Looking at a Foster City condo or townhome and wondering why HOA fees can vary so much from building to building? You’re not alone. With communities built around lagoons and upgraded amenities, dues can look steep until you know what they cover and how they protect you. In this guide, you’ll learn what Foster City HOA fees typically include, how they affect your loan approval, and the documents to review so you can buy with confidence. Let’s dive in.
What HOA fees cover in Foster City
Foster City has many planned communities, townhomes, and condos clustered around waterways. That design often comes with robust shared amenities and higher common-area maintenance needs.
What dues commonly include:
- Common-area upkeep: landscaping, exterior painting, roofing, walkways, garages, elevators, pools, fitness rooms, security gates, and dock or boardwalk care.
- Master insurance: building and common-area coverage. The extent of “walls-in” vs “bare walls” coverage varies by community.
- Some utilities: many associations cover water, sewer, and trash; others do not. Always verify what’s included.
- Management and admin: property manager, accounting, legal, and routine repairs.
- Reserve contributions: a portion of every payment set aside for future big-ticket items like roofs, paving, and elevators.
What dues usually do not cover
Your monthly payment supports the building and shared areas, not your personal property or interior finishes.
Items typically not covered or only sometimes covered:
- Interior repairs and personal property inside your unit.
- Your HO-6 condo policy for contents, interior finishes, and personal liability.
- Earthquake or flood insurance at the unit level, which many owners choose to carry, especially near water.
- Special assessments for large projects if reserves are short.
Insurance basics: master policy vs HO-6
It’s critical to understand where the association’s master policy ends and your coverage begins.
- Master policy: Covers common elements and, depending on policy language, parts of the building structure. Review coverage type, per-claim limits, and deductibles.
- HO-6 policy: Protects your interior finishes, contents, personal liability, loss of use, and may include loss assessment coverage.
- Deductible exposure: Some master policies have high deductibles for major events. If a claim triggers a large deductible, owners may be assessed their share. Confirm the deductible and how it is allocated.
Lagoon and flood factors to check
Waterfront living brings unique maintenance and insurance considerations.
- Flood and levee realities: Proximity to water can mean associations carry flood coverage or face flood mitigation costs. You should confirm flood zone status and how the HOA manages shoreline structures, drainage, docks, and boardwalks.
- Earthquake exposure: Many master policies exclude earthquake. Owners often consider separate earthquake coverage.
- City vs HOA responsibilities: Clarify what the city maintains versus what the association maintains, especially for private roads and shoreline components.
How to read HOA budgets and reserves
The numbers tell you about today’s costs and tomorrow’s risks. Focus on the budget, reserve study, and financial statements.
- Operating budget: Review the current year’s income and expense lines. Look for large increases and whether they are one-time or ongoing.
- Reserve study and balance: The study estimates timing and costs for major repairs. Compare the recommended reserve contribution to what the HOA is actually funding.
- Financial statements: Check operating cash, reserve cash, accounts payable, and any owner assessment delinquencies.
- Board minutes: Minutes from the past 12 to 24 months reveal planned projects, vendor challenges, or discussions about assessments and litigation.
- Governing documents: CC&Rs, bylaws, and rules clarify responsibility boundaries, rental limits, pet rules, parking, and how assessments are authorized.
A note on “fully funded” reserves: It’s rare. Better funding lowers the chance of special assessments, but major events can still exceed reserves and insurance.
Financing 101: how dues affect your loan
Lenders treat monthly HOA dues as a housing expense. They count in your debt-to-income ratio, which can affect your maximum loan amount and the loan programs you can use.
- Project approval: Some loans require the condo project to meet program rules. Lenders review insurance, reserves, owner-occupancy, rental ratios, and any litigation.
- Loan availability and pricing: If a project is not approved for a specific program, you may still qualify, but with fewer options or different terms.
- Special assessments: Lenders often ask about past and pending assessments. Large or imminent assessments can affect approval.
Tip: Confirm project approval status with your lender early. Align your financing contingency with both unit-level and project-level approval.
Due diligence checklist for buyers
Ask for these items as early as possible, ideally before making an offer or before removing contingencies:
- Year-end financials and current operating statements.
- Current budget and the most recent reserve study or update.
- Reserve fund balance and, if available, recent bank statements.
- Master insurance declarations, including deductibles and exclusions.
- CC&Rs, bylaws, and rules and regulations.
- Board meeting minutes for the last 12 to 24 months.
- List of special assessments over the last 5 years and any pending proposals.
- Litigation disclosures and any related obligations.
- Management contract or the management company’s name, plus key vendor contracts.
- Owner delinquency report.
- Rental policy, occupancy limits, and current owner-occupancy rate.
- Any structural or engineering reports, especially for lagoon-front components.
Red flags to watch
Spotting issues early helps you plan or pivot.
- Underfunded reserves with big projects on the horizon.
- Frequent or large special assessments in recent years.
- High owner delinquency rates.
- Pending litigation, especially structural or insurance disputes.
- Master insurance with large deductibles or exclusions for flood and earthquake.
- Restrictive CC&Rs that affect your intended use or resale.
- Management turnover or weak recordkeeping.
Smart timing and negotiation tips
If you cannot gather documents before offering, include a contingency for HOA review and professional consultation. Build in a financing contingency tied to project approval.
If you uncover a pending assessment, litigation, or a large deductible risk, use that information to negotiate. You can request seller credits, a price adjustment, or resolution of specific issues before closing. Clear, timely communication keeps your leverage strong.
Estimating your real monthly cost
When comparing homes, line up all monthly expenses so you can compare apples to apples.
- Mortgage payment: Principal and interest based on your loan.
- Property taxes: Annual taxes divided by 12.
- HOA dues: Include any utilities the HOA covers.
- Insurance: Your HO-6 premium, plus any earthquake or flood policy you choose to carry.
- Potential assessments: If the HOA minutes or reserve study suggest near-term projects, build a cushion.
Make your move with a local guide
You deserve a clear view of the numbers and the risks before you fall in love with a waterfront view. With thoughtful document review and the right financing plan, HOA dues can deliver real value in convenience, maintenance, and protection.
If you want a second set of eyes on budgets, reserves, and insurance, reach out to a local agent who knows the Peninsula’s lagoon communities and lending landscape. For calm, step-by-step guidance and hands-on coordination, connect with Suzanne Garcia.
FAQs
What do Foster City HOA fees usually include?
- Most dues cover common-area maintenance, a master insurance policy for the building and shared spaces, management costs, routine repairs, and reserve fund contributions.
Do I still need my own insurance if the HOA has a master policy?
- Yes. You typically need an HO-6 policy for interior finishes, personal property, liability, and potential loss assessments; consider earthquake or flood coverage as appropriate.
How do HOA dues affect my mortgage approval?
- Lenders count dues in your debt-to-income ratio and may require the condo project to meet program rules, which can impact your loan options and terms.
What documents should I review before buying in a Foster City HOA?
- Prioritize the budget, reserve study and balance, financial statements, insurance declarations, board minutes, CC&Rs, and any assessment or litigation disclosures.
Are lagoon-front communities more likely to have added costs?
- Waterfront communities often face higher maintenance needs, possible flood considerations, and unique structures like docks or seawalls, which can increase dues or lead to special assessments.
