Ever wonder why two similar Cherry Creek condos can have very different HOA fees? If you are weighing lock-and-leave living, the monthly fee is more than a line item. It shapes your budget, your loan options, and the level of service you get. In this guide, you will learn what HOA fees typically cover, how they affect mortgage approval, and what to ask so you can compare buildings with confidence. Let’s dive in.
HOA fees in Cherry Creek: the basics
HOA fees are recurring charges your condo association collects to run the building and plan for long-term repairs. In Cherry Creek, fees vary because buildings range from older low-rises to new full-service towers. More amenities and staffing usually mean higher monthly fees.
These fees matter because they are counted in your housing costs. Lenders consider them when approving your mortgage, and short reserves or special assessments can add surprise costs. Guidance from the Community Associations Institute explains how associations budget for operations and reserves, and why healthy planning matters.
What HOA fees typically cover
Operating costs you will see
- Building staffing such as concierge, front desk, security, or porters
- Common-area utilities like electricity, water, and sewer
- In some buildings, bulk-paid heat, hot water, gas, cable, or Internet
- Elevator service and common HVAC maintenance
- Roof, exterior, landscaping, and snow removal
- Janitorial, trash, recycling, and pest control
- Professional management and administrative costs
- Master insurance for common elements
According to the Community Associations Institute, these line items make up the day-to-day operating budget that keeps services steady.
Reserves for big projects
- Ongoing contributions to a reserve fund for capital repairs, such as roof replacement, elevator modernization, piping, or major system updates
- A well-funded reserve lowers the risk of one-time special assessments
Amenities and services
- Fitness centers, pools, roof decks, meeting rooms, and garage facilities
- Valet, concierge, and doorman services common in luxury towers
Insurance and what you insure
- Most associations carry a master policy for the structure and common areas
- You typically need an HO-6 condo policy for interior finishes, personal property, liability, and loss assessment coverage
- The Insurance Information Institute provides a useful overview of HO-6 coverage and deductibles
Special assessments
- One-time charges if regular fees and reserves are not enough for a repair or project
- Review the building’s history and any planned work to gauge risk
How fees affect your monthly budget
Your total monthly housing cost includes mortgage principal, interest, property taxes, homeowner’s insurance, and the HOA fee, plus any utilities not included by the association. When you compare units, adjust for what is included. If one building’s fee covers heat and water and another does not, your net monthly cost may be closer than it looks.
Ask about fee increases. A small annual increase is normal. Recent double-digit jumps or recurring special assessments may signal underfunded reserves or rising costs that could continue.
How fees affect mortgage approval
Lenders count your HOA fee in your debt-to-income ratio. A higher fee can reduce the loan amount you qualify for, even with strong income. On top of that, condos must meet project eligibility standards for many loan programs.
- Conventional loans follow rules in the Fannie Mae Selling Guide and the Freddie Mac Single-Family Seller and Servicer Guide. High delinquency rates, heavy commercial space, investor concentration, inadequate reserves, or significant litigation can cause problems.
- FHA and VA loans require condo project approvals. The U.S. Department of Housing and Urban Development explains FHA condo approval pathways and exceptions.
Expect your lender to request project documents such as the budget, financials, reserve study, insurance certificate, rules and regulations, and board meeting minutes. Getting your lender involved early helps confirm the building is eligible for your loan type and that your DTI works with the HOA fee.
Cherry Creek factors that drive fees
- Building age and systems. Older buildings may have leaner monthly fees but need robust reserves to prepare for pipes, roofs, or facade work. Newer towers often carry higher fees for amenities and staffing, though systems may need fewer near-term capital projects.
- Unit size and allocations. Many associations allocate fees by percentage interest or square footage. Larger units usually pay more.
- Parking and storage. Garage spaces or storage lockers can carry added monthly fees or separate purchase costs.
- Rental policies. Cherry Creek buildings vary on rentals, and local rules may limit short-term rentals. Check association policies and how they align with your plans.
- Location and services. Buildings closest to the shopping district with concierge-level service often command higher fees that reflect demand and amenities.
How to compare buildings the smart way
Documents to request
- Current budget and recent financial statements
- Reserve study and current reserve balances
- Board meeting minutes from the past 12 to 24 months
- Master insurance summary and deductible details
- Colorado resale disclosure packet with assessments, rules, and any litigation
- Rental and pet policies, owner vs investor ratios, and delinquency report
- Notices about capital projects, contracts, or planned assessments
- Management contract and contact info
Questions to ask
- What exactly is included in the fee, including utilities, cable or Internet, parking, and storage?
- How are fees allocated among units?
- When did fees last increase, and what is typical year-over-year change?
- What is the reserve balance, and when was the last reserve study? Are reserves on track?
- Any special assessments in the past 5 years or planned capital projects?
- Any ongoing or threatened litigation?
- What percentage of owners are delinquent on dues?
- Are there rental restrictions or short-term rental bans?
- Does the master policy cover interiors or is it bare-walls? What is the master policy deductible, and how are insurance deductibles assessed to owners?
- Is the building approved for FHA, VA, Fannie Mae, or Freddie Mac financing?
Normalize your comparison
- Adjust fees for included utilities to compare net cost
- Compare reserve strength by reserve balance relative to annual budget or months of operating expenses
Red flags to watch
- Low reserves relative to the building’s age and needs
- Frequent or recent large special assessments
- High owner delinquency or a single owner owing a large share
- Ongoing litigation that could impact finances or insurance
- Missing financials or unwillingness to share required disclosures
- Unclear insurance coverage or very high master policy deductibles
Colorado disclosures to know
Colorado’s Common Interest Ownership Act sets rules for condo governance and buyer disclosures. The Colorado Division of Real Estate provides helpful consumer resources on association operations and records. Practically, your resale disclosure packet is the key document set. Review it carefully during your contract deadlines, and connect your lender early so project eligibility and documentation do not delay closing.
- Learn more from the Colorado Division of Real Estate resources
- Review FHA condominium project approval guidance from HUD
- Check condo project standards in the Fannie Mae Selling Guide and the Freddie Mac Single-Family Seller and Servicer Guide
- Explore owner education from the Community Associations Institute
- Understand HO-6 coverage through the Insurance Information Institute
A quick scenario to make it real
You tour two similar one-bedroom units. Building A has a higher monthly fee, but it includes heat, water, and a staffed front desk. Its reserve study is recent and well funded. Building B has a lower fee that excludes utilities and shows past special assessments. Once you add utility estimates and consider reserve health, Building A may offer a more predictable cost of ownership even with the higher fee.
Your next steps
- Ask your lender to preview your target buildings for project eligibility and to model your DTI with each HOA fee.
- Request the full document set early. Use the checklist above to compare apples to apples.
- Weigh the value of amenities and staffing against both your monthly budget and your tolerance for future assessments.
If you want a steady, lock-and-leave lifestyle in Cherry Creek and a clear picture of the numbers, local guidance makes all the difference. Reach out to Dianne Goldsmith to compare buildings, review disclosures, and move forward with confidence.
FAQs
What do Cherry Creek condo HOA fees usually include?
- Most cover common-area utilities, building maintenance, master insurance, management, and cleaning, with some buildings also including heat, hot water, gas, cable, or Internet.
How do HOA fees impact mortgage approval for a condo?
- Lenders add the fee to your monthly housing costs for DTI, and condo projects must meet eligibility rules under Fannie Mae, Freddie Mac, or FHA to qualify for many loans.
What is a special assessment in a condo HOA?
- It is a one-time charge to owners when the association needs funds for a specific repair or project that regular fees and reserves do not cover.
What documents should I review before buying a Cherry Creek condo?
- Ask for the budget, financials, reserve study, insurance summary, board minutes, rules, rental policies, delinquency report, and the Colorado resale disclosure packet.
Are short-term rentals allowed in Cherry Creek condo buildings?
- Policies vary by building and must align with local rules, so review the association’s rental restrictions and confirm any limits on short-term rentals.
