The Daily Mail asked me to weigh in on a growing concern for California homeowners: how much more can people afford to pay to keep their HOA financially healthy?
Reporter Sara McGiff quoted me throughout her September 27 story about AB 2050, a proposed law aimed at strengthening association reserves. We discussed the pressure that higher dues, insurance costs and major repairs put on homeowners, and how those costs follow a property when it goes up for sale. I’m proud to bring a San Diego broker’s perspective to this national coverage.
Read the full Daily Mail feature.
The issue comes down to a difficult balance. Associations need money for necessary repairs. The owners paying for those repairs still need to afford their homes. As Broker/Owner of Blum Realty Group, I help buyers and sellers work through that balance when deciding what to buy, what to offer and how to price a home for sale.
A reserve study only helps if the association follows through
I have reviewed HOA disclosures where the association hired a firm to prepare a reserve study, and the board minutes later showed it chose not to adopt the recommended funding plan.
That gap matters. A reserve study estimates when major repairs will be needed and how the association should save for them. If the budget does not put that money aside, the repair bill has not gone away. Owners may eventually face higher dues, a special assessment or further delays to the work the property needs.
When I look at this with a buyer, I want to understand what the association plans to repair, what it expects that work to cost and how it intends to pay for it. A low monthly dues figure is much less reassuring if the community is putting off a roof replacement it cannot afford.
AB 2050 is now law
Governor Newsom signed AB 2050 on September 29, 2026. Its new reserve-funding requirements begin in 2032. The Governor’s signing message explains the transition and the goal of building reserves for future repairs.
The enrolled text calls for associations to fund the minimum contribution identified in their reserve study. That calculation looks ahead 30 years and aims to keep the projected reserve balance from falling below zero. Where the projection shows a shortfall, the text requires transfers of at least 15% of the association’s gross annual budget to reserves until the projection is corrected. It also provides for reserve-funding special assessments when the budget cannot meet the requirement, subject to assessment limits and voting rules.
For an owner, the question is how much the association would need to collect beyond what it is already collecting. An HOA that has consistently funded its repair plan faces a different situation from one that has kept dues low by postponing contributions. The law’s 15% budget allocation is not an automatic 15% increase in every owner’s dues.
How an HOA funding gap can change your monthly payment
Suppose a 25-home association needs another $90,000 a year and divides that cost equally among its owners. Each home would owe another $3,600 a year, or $300 a month. Dues of $500 would become $800.
That is a hypothetical example, not a prediction of what AB 2050 would cost a particular community. It shows why the association’s budget deserves attention before a purchase. The mortgage payment may stay exactly the same while the cost of keeping the home rises substantially.
Higher insurance costs can add pressure, too. I would look at the association’s current premium, renewal information and adopted budget to understand which costs are already reflected in the dues and which may still be ahead.
Stronger reserves can reduce the risk of a large surprise assessment later. Building those reserves can still mean a substantial bill now. Buyers need to be comfortable with both the monthly payment and the cash they will have left after closing.
Buying a San Diego condo? Look beyond today’s dues
When comparing condos, I look at what the dues cover, the condition of the building and the expenses coming up. A higher payment can fund worthwhile maintenance and services. A lower payment can be attractive, but it deserves a closer look when major work is approaching.
Before committing to a purchase, I advise clients to get clear answers to a few practical questions:
- Is the association saving what its current reserve study recommends?
- Which major repairs are approaching, and is there a plan to pay for them?
- Has a dues increase or special assessment been approved, or is it still being discussed?
- What would those charges do to your monthly budget and savings after closing?
- Has your lender reviewed the condo project itself, not just your loan?
My San Diego condo and HOA checklist explains the records behind those answers. If the seller offers to pay an assessment, my guide to buying a condo with a special assessment explains what to establish before accepting that arrangement.
At Blum Realty Group, I use this information to help clients compare properties, negotiate an offer and decide whether a particular condo fits their plans. An appealing kitchen and a manageable mortgage payment are a good start. The building’s finances deserve the same attention.
Higher dues also affect the person selling
One point I raised with the Daily Mail is that higher dues stay with the property when the owner sells. They can reduce what buyers are willing or able to pay for the home.
A buyer deciding between two homes will consider the total monthly cost. If your association’s dues have increased, your pricing strategy needs to account for the alternatives available to that buyer. There is no universal dollar-for-dollar price adjustment; the comparison depends on the homes, their condition, what the dues include and the local competition.
Before listing, I want current association information and a clear account of any approved assessments or planned projects. If the association has completed important repairs and funded future work, buyers should be able to see that. If a financial issue remains, I want to address it in the sale strategy before it becomes a surprise in escrow.
That is the practical side of the issue I discussed with the Daily Mail: helping people make a sound real estate decision while the costs of ownership keep changing.
You can also read more of my published real estate commentary.
Questions buyers and sellers ask
Are low HOA dues always better for a buyer?
I would compare the payment with what the association provides and what it needs to repair. Low dues can be a benefit when the community is maintaining the property and funding its obligations. They are less attractive when the savings depend on postponing necessary work.
Does AB 2050 raise my dues immediately?
AB 2050’s new reserve-funding requirements begin in 2032. What an association needs to collect depends on its finances and repair obligations. Existing expenses can lead to dues increases before then.
How do I prepare to sell a condo with rising HOA dues?
Get the current budget, dues amount, assessment notices and information about planned work. I would compare your home with competing properties and recent sales, then use those facts to plan the asking price, marketing and negotiations.
This is general real estate information, not legal advice or a prediction of any particular association’s charges.