A family recently looking for condos in Hartsdale shared their dilemma about two listings. One had relatively low fees, while the other was significantly higher. They almost received a special assessment bill for thousands of dollars for roof repairs after choosing the lower fee option. Every time I hear such stories, I want to emphasize the reality of HOA (Homeowners Association) fees.

For those considering buying a condo, it's easy to assume that the lower monthly fee is the better option. However, simply put, a lower fee doesn't necessarily mean less financial burden. In Westchester County, the median condo fee is around $375 per month, which is much higher than the $58 fee for single-family homes in the same area (ragette.com). Across New York State, fees range widely from $190 to $1,900 per month, with an average of $886, largely driven up by luxury condos in Manhattan and Brooklyn (hoacosts.com).

HOA fees cover building maintenance, master insurance, management of common areas like lobbies and elevators, landscaping, garbage collection, and contributions to a reserve fund. If these terms are unfamiliar, think of it this way: part of the monthly fee is for current operating expenses, while the rest is saved for future needs like roof or plumbing replacements. Buildings with insufficient reserves may impose sudden special assessments on residents when major repairs are needed.

New York State currently has no statewide mandatory regulations regarding condo reserve funds. The only exception is a New York City ordinance (Local Law 70) that requires 3% of the sale price to be set aside as a reserve during condo conversions. A bill (A8945/S7600) has been introduced to mandate a 30-year reserve plan, but as of mid-2026, it remains in committee (propfusion.com). This means that the only way to know how much reserve is available is to check each building's financial statements directly.

It's also important to consider the perspective of mortgage lenders. Fannie Mae uses the percentage allocated to reserves in condo budgets as a criterion for approval, currently requiring more than 10% of fee income, which will increase to 15% for loans submitted after January 4, 2027 (governingdocs.dev). Buildings that do not meet this standard may be classified as non-warrantable condos, leading to rejection of conventional loans or stricter conditions.

Nationally, HOA fees average between $200 and $400, while luxury condos with amenities like pools, gyms, and doormen can have fees exceeding $500 to $1,000 (nar.realtor, realtor.com). In areas like Hartsdale, which are favored by Korean families due to good school districts, there is often limited condo supply. Therefore, comparing school district ratings and fee levels when selecting listings can be helpful for making informed decisions. However, school district boundaries can change frequently, so it's advisable to verify the assigned school for a specific address before purchasing.

Families relocating from other states may budget based on the fees or property taxes from their previous homes, potentially overlooking actual costs. Property taxes and mortgage conditions in New York State can vary significantly by county, so it's necessary to check these separately. Investors looking for rental income should also examine rental restrictions outlined in CC&Rs, as some buildings may prohibit rentals entirely or limit the number of units that can be rented, making it essential to confirm this aspect first if the intent is investment.

To summarize the items to check before signing a contract:

• Recent 2-3 years of HOA financial statements and reserve fund balance
• Whether a reserve study has been conducted and its results
• Delinquency rates and any ongoing lawsuits
• CC&Rs regarding rental restrictions, pets, and renovation work
• Proportion of commercial space and recent special assessment history

When comparing two neighboring condos, don't just look at the fee amount; consider these items together for a more accurate assessment. Tax and mortgage conditions can vary by county, so be sure to verify the latest information on specific listings. This article is not investment or legal advice, and consulting a professional before making any contracts is recommended.