California’s New HOA Law Could Cost Condo Owners $749 a Month

HOA fees have been quietly lying to buyers for years. Complexes kept their monthly dues low to look attractive, then came back with special assessments when something broke. Low fees made people feel comfortable paying more for the unit. Now that math is catching up. Deck and staircase inspections, insurers walking away from buildings near fire zones, and AB 2050 pushing HOAs to fund their reserves properly by 2032 are all landing at once. Alex Lehr (Broker and Co-Founder of Guide Real Estate, 40 years selling homes for thousands of Bay Area families) walks through what AB 2050 is doing, why HOAs were able to run on a shoestring for so long, and how to read a reserve study before you write an offer. The number that should stop you: a San Francisco building he is showing right now charges $1,000 a month and is raising fees 15% a year to get ahead of the deadline. Four years of that is $1,749 a month. The $749 difference is roughly $100,000 of mortgage you no longer qualify for, which is exactly the kind of pressure that shows up in condo pricing. Alex is not against condos. He has owned townhomes and still recommends them in the right situation. The point is knowing the expense ahead of time instead of getting blindsided by it. Questions about a specific complex, or want a referral to a CPA who reads reserve studies? Alex is glad to give you a straight answer, even if you are not buying for a while. No pressure. Reach Alex and the Guide team: 🌐 guiderealestateca.com ✉️ hello@guiderealestateca.com 📅 Free 15 minute call: calendly.com/alex-guiderealestateca 📞 Call or text: (650) 595-5500 CHAPTERS 0:00 Why condos and HOAs are under pressure right now 0:25 When a condo or townhome actually makes sense 1:00 How low HOA fees hid the real cost 2:44 The deck and staircase inspections that started this 3:50 The complex that got dropped by its insurer 5:04 What AB 2050 asks HOAs to do by 2032 5:49 A San Francisco building raising fees 15% a year 6:42 What $749 a month does to your buying power 7:53 Big complex or small complex, which carries less risk 8:21 The reserve study you should never skip 9:01 Single family homes have HOAs too 9:53 51,700 HOAs and 14.5 million Californians 10:28 How to know your share before you buy Guide Real Estate | The Lehr Group Alex Lehr, Broker and Co-Founder Serving San Carlos, the Peninsula, and the greater Bay Area DRE# 00867442