By Prerna Kapoor, CLHMS | REAL Brokerage | May 24, 2026
Most buyers I work with read the HOA monthly dues line on a listing and stop there. They see a $600 monthly dues number and figure that’s the cost. But the line that can actually break your budget is the one nobody talks about until it lands in your mailbox: the special assessment. In Colorado right now, those assessments are spiking, and a lot of buyers are walking into purchases without knowing what they could be on the hook for.
What a Special Assessment Actually Is
A special assessment is a one-time charge an HOA can levy on owners to cover a major expense that the regular reserves can’t handle. Think roof replacement on a 40-unit building, new boilers across a townhome community, repaving a private road, or a sudden insurance premium jump the association didn’t budget for. The board votes, the bill goes out, and every owner pays their share.
Some are a few hundred dollars. Some are tens of thousands. In Colorado condo communities right now, I’m seeing assessments in the $5,000 to $40,000 range hit owners with very little warning. That’s not a hypothetical. That’s last month.
Why They’re Spiking in 2026
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Three things are colliding. First, master insurance policies for condos and townhomes have jumped 30 to 100 percent in some Colorado communities over the past two years. Hail, wildfires, and broader property risk have rewritten the math for insurers. Many HOAs underbudgeted for these increases and are now facing shortfalls.
Second, deferred maintenance is catching up. A lot of communities pushed off roof, siding, balcony, and plumbing work through the high-interest, high-cost construction years. Now those projects can’t wait anymore, and reserves don’t cover the full cost.
Third, some older buildings are facing structural review requirements that didn’t exist five years ago. Reviews, then repairs, then assessments. The cycle is real, and it’s hitting all at once.
What to Check Before You Close
If you’re buying in any condo, townhome, or HOA-governed community, here is the short list I walk every client through before we waive any contingency.
Pull the HOA’s most recent reserve study. A healthy reserve fund should be at or above 70 percent of recommended levels. Anything under 30 percent is a flashing yellow light, and under 10 percent is a red one. You need the actual study, not just a paragraph in the HOA disclosure packet.
Ask for the last three years of HOA meeting minutes. Special assessments don’t usually come out of nowhere. They get debated for months. The minutes will tell you what’s been discussed and what’s coming.
Review the budget and the current dues history. Have dues increased every year for the last five? That’s a sign the board is keeping up with costs. Have they been flat? That’s often a warning, because it means the community is underfunded relative to inflation.
Check the insurance master policy. Specifically the deductible, what’s covered, and any recent claim history. Some Colorado HOAs have switched to policies with $25,000 to $100,000 deductibles, which means smaller losses fall on individual owners or get rolled into assessments.
Look at pending litigation. A community in litigation, or even rumored litigation, can face huge unexpected costs. Your title company can pull this, but ask the HOA directly too.
Questions to Ask the Listing Agent (or the Seller Directly)
I always send a short list of questions in writing before we go under contract. The written record matters if anything later turns out to have been hidden. The questions are simple. Has the HOA discussed any assessment in the last 18 months? Are there any major projects on the reserve study planned for the next five years? Has the insurance premium changed in the last 12 months, and by how much? Are dues expected to increase next year, and if so, by how much?
If the listing agent doesn’t have answers, that’s a signal to slow down, not speed up. A good seller’s agent knows this stuff cold.
What Happens If You Already Own and an Assessment Is Coming
If you’re an existing owner and you’re hearing rumblings about an assessment, you have a few options. First, attend the meetings. Boards make decisions in rooms, and owners who show up tend to have their concerns heard. Second, request the full reserve study and budget. You’re entitled to them. Third, talk to a real estate attorney if you think the assessment is being levied improperly or without the required vote.
And if you’ve been thinking about selling, an assessment can change your timeline. Some buyers walk when they see a pending assessment, even if the dollar amount is reasonable. Pricing strategy and timing become more important.
The Bigger Picture for Colorado Condo Buyers
I’m not saying don’t buy a condo. Condos still make sense for a lot of buyers, especially first-time buyers looking at the $300K to $500K range in places like Aurora, Centennial, and parts of Denver. But the due diligence bar is higher than it was three years ago, and treating an HOA disclosure packet as a casual read instead of a serious financial document is how people end up with surprise bills they can’t absorb.
A good buyer’s agent will spend extra time on HOA review. A good lender will factor the realistic assessment risk into your debt-to-income picture. A good real estate attorney can help you read between the lines of the disclosure documents. It costs more time upfront. It saves a lot of pain later.
If You’re Trying to Decide
If you have a specific property in mind and you’re trying to figure out whether the HOA situation is workable, I’m always happy to look at the disclosure packet with you. Some communities have rock-solid finances and well-run boards. Others are running on fumes. The documents will tell you which is which if you know what to look for.
No pressure, no pitch. Just a clear-eyed read of what you’d actually be buying.
Prerna Kapoor | REALTOR® | Luxury Home Specialist
REAL Brokerage | 720-949-5450 | info@prernakapoor.com
CLHMS • RENE • PSA • ABR | International Sterling Society Award Winner
Prerna specializes in residential real estate across Parker, Aurora, Lone Tree, Castle Pines, Highlands Ranch, Cherry Creek, Greenwood Village, and Centennial. She speaks English, Japanese, and Hindi.
