Maplewood Estates

Location: Suburban Midwest (e.g., Illinois)
Property Type: 150 single-family homes (median home value: $350,000)
Annual HOA Dues: $600 per household ($90,000 total annual income)
Operating Budget: $120,000/year (covers landscaping, snow removal, insurance, etc.)
Reserve Fund Balance: $180,000 (70% funded against a $250,000 reserve study target)
Delinquency Rate: 4% ($3,600 in unpaid dues annually)
Recent Dues Increase: 5% annually for the past 3 years to bolster reserves

Category Amount Notes

Total Income $93,600 Includes $90,000 from dues + $3,600 late fees/other income

Operating Expenses $110,000 Landscaping ($30k), snow removal ($20k), insurance ($25k), utilities ($15k), admin ($20k)

Reserve Contributions $15,000 Allocated annually to reach 90% funding in 5 years 6

Surplus/Deficit -$31,400 Covered by prior-year surplus (see "Risks" below)

Current Reserve Balance: $180,000 (70% funded)
Upcoming Major Expenses:
- Roof Replacements (2027): $50,000 (20-year lifespan) 3
- Parking Lot Repaving (2028): $40,000
- Fence Replacement (2026): $15,000
Projected Reserve Shortfall: $70,000 by 2028 if no additional funding is secured

Gradual Dues Increases
- Implemented 5% annual dues hikes since 2023 to avoid sudden spikes.
- Homeowner feedback: Mixed (20% opposed, but 75% approved after transparency meetings)
Deferred Maintenance Strategy
- Postponed non-critical upgrades (e.g., playground refresh, estimated $10k) to prioritize reserves.
- Risk: Aging equipment may require costly emergency repairs 8.
Reserve Study Compliance
- Conducts reserve studies every 3 years (last study: 2024).
- Uses findings to adjust contribution schedules (e.g., increased roof replacement allocation by 10% in 2025).
Delinquency Management
- Uses Specific software to automate payment reminders and track late fees
- 95% collection rate achieved through payment plans (vs. legal action)

Lessons for Other HOAs
Transparency Builds Trust
- Maplewood shares quarterly financial dashboards via Condo Control software, reducing disputes.
Reserves ≠ Optional
- Florida’s Champlain Towers collapse (2021) underscored the need for fully funded reserves
Tech Saves Time
- Automated tools like Buildium cut delinquency processing time by 30%

Maplewood Estates is a textbook "good but not great" HOA: no crises, but future costs loom. By sticking to disciplined reserves, transparent communication, and incremental dues increase, it avoids special assessments—for now.