Sample HOA Risk Report
See exactly what you'll receive - A complete analysis based on 20+ years of HOA expertise
Overall Score
Risk Level
Monthly HOA Fee
320
per month
Paseo Place Community Association
1234 Paseo Boulevard, San Diego, CA 92122 (Source: CCR Paseo Place.pdf, p.5)
Recommendation: LOW
Paseo Place demonstrates excellent financial health with strong reserves (82% funded), low delinquency (2.1%), and transparent governance. The upcoming elevator project is well-funded and planned. This is a well-managed community with minimal financial risk.
Paseo Place Community Association represents a solid investment opportunity with strong financial fundamentals and transparent governance. The association maintains an impressive 82% reserve funding level, well above the industry standard of 70%, demonstrating excellent long-term capital planning. With only 2.1% delinquency and a healthy 18.4% operating margin, the financial position is robust. The community is professionally managed by ABC Property Management with quarterly audited financials and transparent board operations. While there are some lifestyle restrictions on pets and a longer-than-average architectural review process, these are clearly documented and reasonable. The upcoming elevator modernization project is 78% funded and well-planned. The higher-than-average insurance deductible ($15,000 per unit) is the primary watch item, but this is partially offset by stable premiums and comprehensive coverage. Overall, this is a well-managed community with minimal financial risk and strong governance.
Final Recommendation
This property represents a solid opportunity with strong financial health and transparent governance. The minor concerns identified are manageable and typical for a well-maintained community. Proceed with normal due diligence.
Snapshot
Reserve Funded
82%
Operating Margin
18.4%
Delinquency Rate
2.1%
Operating Cash
3.2 mo
Active Litigation
None
Insurance Trend
Stable
Deductible
$15K per unit (Watch)
Rentals
6-month minimum
Pets
2 max, breed restrictions
Parking
2 assigned spaces
Management
Professional (ABC PM)
Transparency
High (Quarterly audits)
Conflict Level
Low
- Strong reserve fund at 82% funded ($847,000 actual vs $1.03M recommended) - Well above 70% threshold
- Low delinquency rate of 2.1% indicates stable community participation and strong financial discipline
- Transparent governance with quarterly audited financials and regular board meeting minutes
- No active litigation or pending lawsuits - Clean legal record
- Operating margin of 18.4% shows healthy surplus after covering regular expenses
- 3.2 months of operating cash on hand provides cushion for unexpected expenses
- Upcoming elevator modernization project scheduled for 2026 ($180K estimated) - Currently 78% funded
- Insurance deductible of $15,000 per unit is above average for the area
- Pet restrictions limit breeds over 40 pounds - May impact resale value
- Architectural review process averages 45-60 days for exterior modifications
Based on our analysis, here are specific questions you should ask the HOA management before closing:
- 1What is the specific timeline and funding plan for the 2026 elevator modernization project?
- 2Are there any planned HOA fee increases in the next 12-24 months?
- 3Can you provide the most recent reserve study (ideally within last 3 years)?
- 4What steps is the board taking to address the insurance deductible concerns?
- 5Are there any other major capital projects planned beyond the elevator modernization?
- 6What is the current status of the community's common area maintenance schedule?