Are you comparing two San Francisco condos and wondering why one has HOA fees of a few hundred dollars while another tops $1,000? You are not alone. HOA dues can make or break your monthly budget and your long‑term returns. In this guide, you will learn what HOA fees cover, why they vary so much in San Francisco, how to estimate your true monthly cost, and what to review before you buy. Let’s dive in.
Condo vs TIC in San Francisco
San Francisco has both condominiums and tenancy‑in‑common (TIC) properties. Condos are part of an HOA with CC&Rs, bylaws, a board, a budget, and reserves. Owners pay regular assessments to fund daily operations and future repairs.
TICs are different. They are ownership agreements among co‑owners, not traditional HOAs. Expenses are shared per the TIC agreement, and financing and transfers work differently. If you are considering a TIC, you need to review the TIC agreement, loan structure, and how utilities and repairs are allocated.
What HOA fees cover
Your monthly dues typically fund two buckets: daily operating costs and reserve contributions for future repairs. Common inclusions are:
- Common‑area water, trash, and utilities for shared spaces
- Master insurance for the building’s common elements
- Janitorial, elevator maintenance, landscaping, routine repairs
- Professional management and administration
Expenses often not included are:
- In‑unit utilities like electricity and gas, unless master‑metered
- Interior unit repairs and your personal HO‑6 policy
- Earthquake insurance in many buildings
- Parking or storage, which some buildings bill separately
Tip: Ask whether the master policy is “bare walls” or “all‑in,” and note the deductibles. High deductibles can lead to larger loss assessments after a claim.
How dues are set
Each year, the board adopts a budget that sets monthly assessments. A portion covers routine operations. Another portion goes to reserves for big‑ticket items like roofs, elevators, or major systems.
Associations often rely on a reserve study to estimate lifespans and replacement costs for key components. Many complete studies periodically rather than every year. The allocation method for fees is spelled out in the CC&Rs. Common approaches include percentage interest, square footage, or equal shares, which can change how dues compare between units.
Reserves and special assessments
Reserves are the savings plan for future repairs and replacements. A healthy reserve balance lowers the chance of special assessments. Associations may disclose a “funded ratio,” which compares current reserves to what a recent study recommends. A low funded ratio means higher risk of near‑term assessments.
Special assessments are one‑time charges for expenses the budget and reserves cannot cover. They often arise from unexpected repairs, major projects, or seismic work. Under California’s Davis‑Stirling Act, certain large assessments or increases require member approval based on thresholds in the law and the governing documents. Review meeting minutes and plans for upcoming work so you are not surprised later.
San Francisco cost drivers
San Francisco’s building stock and local policies can raise costs compared to other markets. Seismic safety and soft‑story retrofit programs have driven major projects in many buildings. When these are required and not fully funded, owners may face special assessments or higher dues.
Some older buildings have master‑metered utilities or shared systems. That can shift more costs into HOA dues, or change how individual utilities are billed. Short‑term rental rules in San Francisco are strict, and many HOAs prohibit STRs. If you plan to rent, confirm the building’s rental and STR policies.
Financing and resale factors
Lenders and agencies look at the whole project, not just your unit. Owner‑occupancy levels, rental percentages, assessment delinquencies, litigation, and insurance all matter. If a project does not meet condo approval standards, your loan options can narrow and the future buyer pool may shrink. This affects both your financing today and resale value later.
Estimate your total monthly cost
Look beyond the mortgage. Build a simple all‑in monthly view so you can compare buildings fairly.
- Monthly mortgage principal and interest
- HOA dues
- 1/12 of annual property taxes
- 1/12 of your HO‑6 insurance premium
- Average monthly utilities not included in dues
- Monthly parking or storage fees, if separate
- Prorated payments for any disclosed special assessment
In San Francisco, dues can range from a few hundred dollars in small walk‑ups to well over $1,000 in full‑service towers with staff and amenities. The right number for you depends on what you value and what the building must fund.
Due diligence checklist
Before you remove contingencies, request and review the full HOA resale package. Focus on:
- Governing documents: CC&Rs, bylaws, rules, unit allocation formula
- Financials: current budget, recent income and expense statements, balance sheet
- Reserves: latest reserve study, current reserve balance, funding policy
- History: board and annual meeting minutes for 12–36 months, assessment history
- Insurance: master policy declarations, coverage scope, deductibles
- Delinquencies: current dollar amount and percentage of unpaid assessments
- Litigation: summaries of any pending or threatened cases
- Management: manager name, contract term, and scope
- Occupancy: rental and owner‑occupancy percentages, STR policy
- Engineering: seismic and major systems reports, bids for upcoming projects
Questions to ask
- How are fees allocated among units?
- Which utilities are included in the dues?
- What does the reserve study recommend, and how does that compare to current reserves?
- Any special assessments in the last 3–5 years or planned soon?
- What is the current delinquency rate, and are any units in foreclosure?
- Is there any litigation, and what is the potential exposure?
- Are rentals or STRs restricted?
- What insurance and deductibles apply, and is earthquake coverage carried by the HOA?
- What major projects have been completed, and how were they funded?
Red flags to watch
- Very low reserves or no recent reserve study
- Repeated or large special assessments
- High delinquency rate on dues
- Pending litigation with material exposure
- High rental percentage that could limit financing options
- Required seismic or structural work with no funding plan
- Master policy deductibles likely to trigger large loss assessments
Comparing buildings fairly
Normalize for size and amenities when you compare dues. You can review dues per square foot to get a quick sense of value, but always adjust for services. A full‑service high‑rise with a concierge, extensive amenities, and elevators will cost more to run than a small walk‑up with minimal common areas.
For investors
If you are buying for investment, treat HOA dues as an operating expense in your pro forma. Check rental rules and San Francisco’s regulations that affect income and vacancy. Confirm whether the project meets lender approval standards, since that can impact both your loan terms and your exit strategy.
Next steps
Smart condo buying in San Francisco means reading the fine print and planning for both today’s dues and tomorrow’s projects. If you want a second set of eyes on a building’s budget, reserves, and risk profile, reach out to Linda Ngo for a practical, data‑forward review and local guidance.
FAQs
What do HOA fees usually cover in San Francisco condos?
- Most cover common‑area utilities, master insurance, janitorial and routine maintenance, elevator service, landscaping, management, and administration.
How are San Francisco condo dues calculated and allocated?
- Boards set dues through an annual budget, and CC&Rs define allocation by percentage interest, square footage, or equal shares.
What are HOA reserves and why do they matter to buyers?
- Reserves fund future major repairs; a low funded ratio can signal higher risk of special assessments that affect your monthly cost.
What San Francisco factors can increase HOA fees?
- Seismic and soft‑story retrofits, staffing for full‑service buildings, master‑metered utilities, insurance costs, and strict STR policies can all raise dues.
How do I estimate my true monthly housing cost for a condo?
- Add mortgage P&I, HOA dues, 1/12 of taxes and HO‑6 insurance, utilities not in dues, parking or storage fees, and any prorated special assessments.
What HOA red flags should I look for before buying?
- Very low reserves, repeated assessments, high delinquencies, pending litigation, unfunded seismic work, and large master policy deductibles are key concerns.
How do HOA rules affect condo financing and resale in SF?
- Lender project approval depends on factors like owner‑occupancy, delinquencies, insurance, and litigation, which can limit loan options and future buyer demand.
