A beautiful condo can tell you a lot. You can see the view, the kitchen, the pool, the gym, the sales price, and almost every detail about the home itself. But there is one thing buyers often cannot see clearly: the financial and operating health of the HOA.
That matters because when you buy a condo, you are not only buying the unit. You are also joining the association that governs and maintains the property. The condition of that association can affect your monthly costs, future special assessments, property value, and daily life.
A buyer can inspect the condo. The buyer should also be able to understand the financial and governing health of the HOA.
This Miami Association Says $1.35 Million Should Have Gone Into Reserves
One Thousand Museum is one of Miami’s best-known luxury condo towers. The 62-story building was designed by Zaha Hadid Architects and completed in 2019. Homes in the building have sold for millions of dollars.
In March 2026, the One Thousand Museum Condominium Association sued the developer, 1000 Biscayne Tower LLC. The association alleges that a reserve decision was made while the condominium association was still under developer control.
The association alleges that the decision resulted in about $1.35 million that should have been contributed to reserves. These are allegations in an active lawsuit and have not been proven by a court.
Reserves are money an HOA saves for large future repairs. That can include elevators, roofs, building systems, concrete work, and other major items. When reserves are too low, homeowners may later face special assessments to cover those costs.
In a separate case, the association has also brought claims over alleged construction defects. Those claims have not been decided by a court.
Buyers Need to Know Who Controlled the HOA When the Decisions Were Made
A buyer may know the square footage, number of bedrooms, recent sales, amenities, and view. But the buyer may still not know how much money is in the HOA reserves, whether major repairs are coming, whether the association is involved in lawsuits, or whether owners could face a large special assessment.
Buyers should also know who controlled the association when major decisions were made. A current board may inherit financial or construction problems from the period when the developer controlled the association. That does not mean the current board caused them.
In fact, a board that finds an old problem, tells homeowners about it, and takes action to recover money may be doing exactly what a responsible board should do.
If the Developer Hired the Property Manager, Who Was the Manager Protecting?
During developer control, the developer may select both the board and the property management company. That creates an important question.
The management company is hired to serve the association. But it may also want to keep the developer’s business on this project and future projects.
What happens when the developer’s interests and the future homeowners’ interests are different?
That does not mean the property manager did anything wrong. But homeowners should be able to know what the manager recommended, what the board decided, and who was responsible for each action.
The board governs the community and makes major decisions. The property management company helps carry out those decisions. They do not have the same job, and they should not be judged as if they do.
That level of transparency helps separate developer decisions, board decisions, and property management actions.
A New Board Can Inherit an Old Financial Problem
A serious HOA problem does not always mean the current board is doing a bad job.
A new homeowner-controlled board can inherit low reserves, construction problems, old contracts, lawsuits, or decisions made years earlier. What matters is what the current board does after it learns about the problem.
Does it tell homeowners the truth? Does it explain the financial risk? Does it act to recover money? Does it create a clear plan?
That is the kind of information homeowners and buyers should be able to see.
A Buyer Can Inspect the Condo. They Should Be Able to Inspect the HOA Too.
Real estate websites do a very good job showing the home. They do not always show what is happening inside the HOA.
That is a major blind spot. A buyer can spend millions of dollars on a home and still have very little information about the association’s reserves, governance, financial risks, litigation, or homeowner experience.
The more valuable the home, the more important it is to understand the HOA behind it.
The Sale Price Does Not Tell You the Financial Health of the Community
A buyer can inspect the unit before closing. Buyers should also be able to understand the HOA they are buying into, its reserves, major risks, governance, current leadership, and who made the major decisions.
The sale price tells you what the home costs. It does not tell you the financial health of the community behind it.
