How do I check an HOA's financials and reserves before buying?

Request the HOA disclosure package as soon as you are under contract, which the seller is required to provide in Arizona. This includes the financials, budget, reserve study, meeting minutes, and governing documents. Look at the percentage of owners who are current on dues versus delinquent. Review the reserve study to see if the HOA has adequate funds set aside for major repairs and replacements, or if a special assessment might be coming. Check meeting minutes for ongoing disputes, deferred maintenance, or planned projects. Compare the current budget to actual spending in previous years. A healthy HOA typically keeps at least a few months of operating expenses in reserves and funds its reserve account according to the study recommendations. You can also hire a company to review the documents if the community is large or complex.