CA does not have a minimum amount for reserves that an H.O.A. is required to have.
Funding levels of H.O.A. reserves do have an effect on the value of a property.
Part of the reason is that Fannie Mae's lending guidelines require that H.O.A.'s set aside 10% of their budget to funding reserves in order for properties to be eligible for loans (which increases the amount of eligible buyers & makes it easier to sell. With out that eligibility sellers could be limited to cash buyers or having to provide seller financing).
Another reason (and the reason Fannie Mae has this guideline) is if there is an unexpected emergency and the H.O.A. doesn't have sufficient reserves it will cause them to take out loans which they may not be able to get so needed repairs wouldn't be able to be completed or they may have to charge a large special assessment on the homeowners which they may not be able to collect from cash strapped owners (or those properties that have been foreclosed upon (and if you have too large a percentage of delinquent homeowners at any one time that will again effect the ability of a buyer to get a loan).
H.O.A.'s can go up depending on their budget. This is why it is very important for home owners to go to the meetings and be active in their association.
Re: the rental: too many rentals in an association is also a liability to a lender so if you have too high a number of renters to owner occupied units that will also make it hard for a buyer to get a loan decreasing a seller's options & thus the value of the unit.... more
You can contact me and can work something, you don't need to put above asking price in all properties. There are lot of other options depending on where you are looking for.
RE/MAX Active Realty.
Short Sale And Foreclosure Resource
Phone: (510) 676-4770
Hi Glory, the price is $319,999. It has tennis courts and a heated pool! If you give me your email, I can send you the listing, and if you'd like to see it, let me know because there is restricted viewing hours.... more