4 Ways to Spot HOA Red Flags Before You Buy: A Colorado Springs Buyer's Guide

HOAs are everywhere in Colorado Springs. Briargate, Flying Horse, Wolf Ranch, Meridian Ranch, most of the newer communities along the Front Range all run through a homeowners association. And here's the thing: a well-run HOA is a real asset. It keeps streets clean, amenities maintained, and property values steady. A poorly run one can hit you with surprise special assessments, endless rule drama, and a resale headache years down the road.

So how do you know which one you're buying into before you sign? The Wall Street Journal recently published a great piece with four ways to spot HOA risks before you buy (featured on Realtor.com by Veronica Dagher, August 29, 2026), and it lines up exactly with what we tell every buyer we work with. Here's what to check.

1. Improvement Projects

Boards typically have a three-to-five-year view of planned improvements. Understand what's coming and how it will be funded, and what disruption it might cause. A pool-deck renovation that sounds routine might mean a full season without pool access.

Ask the board what projects have been completed recently and what's coming next. A strong track record of completed upgrades is often a sign of good governance; a board that can't tell you what's planned, or keeps deferring work, is a warning.

2. Reserves

Reserves are the community's savings account for major repairs like roof replacements, and they're the single most important number to check. Ask for the community's reserve study, the professional report evaluating the HOA's financial health.

In the report, look for the "Percent Funded" level. A level above 70% indicates strength. Anything below 30% raises the odds that special assessments will be needed to cover surprise costs. The study should also show a recommended reserve funding level; compare that with what's actually being budgeted each year. A shortfall often signals that the board is pushing today's repair costs onto future owners, meaning you.

Also make sure the reserve study you're given isn't older than 36 months. And if you're buying into a condo association specifically, note that lenders apply stricter standards here. Updated Fannie Mae and Freddie Mac requirements are increasing scrutiny of condo association finances, and insufficient reserves can be a reason to deny a loan.

3. Claims

Insurance claims can reveal hidden operational problems. One dispute may not mean much, but a pattern reveals the association's true culture. Red flags include repeated claims over water leaks, construction disputes, or harassment.

Associations rarely share full claims reports with prospective buyers, but you can ask the seller or the board about significant claims, pending lawsuits, or insurance premium increases from the past five years.

For a single-family home, ask about a CLUE (Comprehensive Loss Underwriting Exchange) report, which contains the insurance claims history associated with the property, generally going back up to seven years. The current homeowner can request a copy and share it with you.

4. Vibe

Every association has its own personality. Some operate like easygoing golden retrievers, others are tightly wound. Drop a golden retriever owner into a pit bull neighborhood, and they'll face constant stress. The fit matters as much as the finances.

To get a feel for a community, hang around after you view the home. Join local social-media groups, call board officers directly, or use personal connections to gather information before making an offer. Talk to residents and get a sense of how responsive the board is.

And one more reality check: even with careful vetting, surprises are possible. HOAs vote, rules change, and courts usually side with the association. So go in with eyes open, and buy into a community whose rules and culture you can live with for years, not just one you can afford this month.