A buyer who purchased their first condo in Queens Village was surprised to receive a separate property tax bill just before closing, thinking that the monthly maintenance fee included property taxes and insurance. HOA (Homeowners Association) fees and property taxes are different items, and confusing the two is a common misunderstanding among first-time condo buyers.

In the Queens area, condo maintenance fees range from $1 to $2 per square foot, which is noticeably lower than in Manhattan or Brooklyn (defalcorealty.com). Considering that the average maintenance fee in New York City is $653 per month, condos in the Queens area, including Queens Village, are likely to be below this average. This means that when budgeting initially, buyers should account for both the purchase price and the monthly maintenance fees to accurately gauge their financial burden.

Maintenance fees cover building exterior and common area maintenance, master insurance, landscaping, garbage collection, and reserve fund contributions. While this can be advantageous for budgeting, it is not enough to conclude that a building is a good choice just because the fees are low. If a building maintains low fees without sufficient reserves, it could lead to a significant financial burden in the form of special assessments in the future.

New York State does not have specific state-level regulations regarding condo reserve funds. The only exception is a New York City ordinance that requires 3% of the sale price to be set aside as a reserve fund at the time of conversion, and a bill (A8945/S7600) mandating a 30-year reserve fund plan is still in committee as of mid-2026 (propfusion.com). This means that the responsibility to check how much reserve is accumulated ultimately falls on the buyer.

Mortgage lenders also review this aspect. Fannie Mae has required that more than 10% of maintenance fee income be allocated to reserves for loan approval, and starting January 4, 2027, this requirement will increase to 15% (governingdocs.dev). Buildings with high delinquency rates or ongoing litigation, as well as those with a high percentage of commercial space, may also be classified as non-warrantable condos, which can block loan approvals.

The national average for HOA fees ranges from $200 to $400, while buildings with many amenities can see fees rise to $500 or more, even exceeding $1,000 (nar.realtor, realtor.com). Areas like Queens Village, which are preferred by Korean families due to good school districts, may have maintenance fees that are similar to or lower than the national average while still maintaining decent school ratings, making them noteworthy for buyers weighing budget against school quality. However, school district boundaries change frequently, so it's advisable to verify the specific address before purchasing.

Families moving from other states may find it easy to overlook actual costs if they carry over their previous perceptions of property taxes or insurance. New York State has varying property tax rates and mortgage conditions by county, so separate verification is necessary. Investors looking for rental income should first check for rental restrictions and the percentage of units available for rent as outlined in the CC&Rs.

If you are preparing to buy your first condo, it may be helpful to check the following items before signing a contract:

• Whether property taxes and insurance are included in the maintenance fees
• The reserve fund ratio on recent financial statements
• Whether a reserve study has been conducted
• The percentage of delinquent units and ongoing litigation
• Regulations regarding pets, rentals, and renovations

Rather than focusing solely on the amount of maintenance fees, it may be more beneficial to consider what is included in those fees and how much reserve has been accumulated when setting a realistic budget. Tax and mortgage conditions can vary by county and lender, so be sure to check the latest information for individual listings. This article does not constitute investment or legal advice, and consulting a professional before making any contracts is recommended.