HOAâ€™s have annual financials/budget for the complex which include monthly operating costs, balances in reserve & operating accounts, etc. Itâ€™s possible that your dues seem high and have been increasing because you are in an older building. As a building ages there can be more required maintenance as systems come to the end of their useful life.
Some associations may choose to increase monthly dues by an agreed on amount per year rather than pass through special assessments in order to build up the reserve account.
Typically, a portion of your monthly dues go into a reserve account & a portion goes towards monthly operating expenses for common areas, management, etc. This is all laid out in the budget/financials which owners are provided copies of.
If you want to do your own independent research on how funds are allocated contact Jacquie Berry:
She specializes in HOA/financial analysis. I typically have my buyers hire her during their inspection period to determine how well funded the reserve account is since this plays a role in value/purchase price of a condo.
Cheryl Bower, Realtor , GRI, ABR
Zephyr Real Estate