When working in Lansing for a long time, you often encounter similar cases. There was a building that was said to have ample reserve funds, but when the time came to replace the roof, the accumulated funds fell short of even half the construction costs, resulting in all residents having to pay special assessments of several thousand dollars each. This became an issue because they only checked the management fees at the time of purchase and did not look into the reserve balance. At that time, the special assessments ranged from $3,000 to $5,000 per unit, and the costs tend to increase for repairs of common facilities that affect all units, like roofs. Such cases are not uncommon in cities like Lansing, where many buildings have been completed for a long time.

The median price of homes in downtown Lansing is around $169,900 (as of July 2026, Houzeo), and for condos, the median listing price is $215,000. One-bedroom units start at $110,000, while two-bedroom units start at $155,000, with a wide range of listings from $90,000 to $395,000 (as of 2026, Homes.com). Condos tend to sell quickly, with contracts typically being finalized in about 25 days.

So, how much should reserve funds accumulate to be considered safe? The Michigan Condominium Act (MCL 559.205) requires that the association set aside at least 10% of the annual budget in a non-cumulative manner for reserves. However, this is just a minimum standard, and for buildings nearing the time for major equipment replacements like roofs or boilers, this amount is often insufficient. The recent revision of the Fannie Mae guidelines in 2026, which raised the threshold for warrantable condos from 10% to 15% of the budget, can be seen in the same context.

The most common question is how to check the status of these reserves. You can request the association's financial statements and reserve study results for the past 2-3 years. If there is no reserve study or if the building is old, that in itself can be a warning sign. It is also advisable to request the minutes of the association meetings to check for any pending or planned special assessments and any history of lawsuits (refer to the NAR condo purchase guide).

Another frequently asked question is about loans. The conditions for being classified as non-warrantable are specifically defined. If more than 15% of units are delinquent on their fees, if the rental unit ratio is excessively high (typically over 50%), if reserves are less than 10% of the budget, or if there are pending lawsuits, the property falls into this category (according to Fannie Mae and Freddie Mac selling guidelines). If any of these conditions apply, buyers can only obtain loans with higher interest rates, which can also affect resale. In markets like Lansing, where listing prices are relatively low, there are buildings with a high proportion of investor purchases, so it is essential to check this aspect carefully.

Lansing is close to the state government offices and Michigan State University, leading to a steady demand for rentals from government employees and graduate students. However, buildings with a high proportion of student tenants should also be considered for their potential impact on the rental unit ratio.

Families moving to Lansing from other states should be aware that the property tax and insurance calculation methods differ from their previous residences. The millage rate is applied differently at the county and school district levels, so even the same condo can have varying property tax burdens. Families prioritizing school districts should refer to the evaluations of the Okemos or East Lansing school districts, but since school district boundaries change frequently, it is advisable to verify the assigned school for the specific address before purchasing.

It is also important to note the trend of rising insurance premiums. In recent years, condo insurance rates have been increasing nationwide due to rising reinsurance costs and litigation risks (iii.org), and buildings with lower management fees are more likely to pass on the increased insurance costs as special assessments. Ultimately, when considering condos in Lansing, checking the status of reserve fund accumulation before the listing price is a principle derived from long experience. This article does not constitute investment or legal advice, and it is recommended to consult a professional before making any actual contracts.