Thinking about a condo in LoHi or the Highlands? The HOA behind the building you love can shape your monthly costs, financing options, and day-to-day living more than you might expect. If you want a walkable lifestyle without surprises, understanding dues, reserves, rules, and insurance will put you in control. This guide breaks down what to look for in LoHi’s condo-heavy market, what questions to ask, and how to protect your budget before you sign. Let’s dive in.

Why LoHi HOAs vary

LoHi and the Highlands mix vintage loft conversions with boutique mid-rises and newer, amenity-rich buildings. That variety creates meaningful differences in how HOAs are set up and funded.

Older conversions and small associations often run leaner, with lower initial dues but thinner reserves and more reliance on volunteer boards. Newer luxury buildings may carry higher dues to cover concierge-level amenities like gyms, pools, parking, and security.

Because many units are investor-owned and the neighborhood is popular with urban lifestyle buyers, rental policies differ from building to building. Those differences can affect community feel, financing, and your exit strategy.

What dues cover

Monthly HOA dues typically include:

• Management fees, common-area utilities, landscaping, janitorial, and admin costs
• Routine common-area maintenance and small repairs
• A share of the association’s master insurance premium
• Contributions to the reserve fund
• Operations for amenities like a pool, fitness center, or staffed lobby

Amenities are a major cost driver. Two similar-sized condos can have very different dues depending on amenity levels, staffing, and reserve funding.

Operating vs reserves

Your HOA has two different money buckets:

• Operating budget: Day-to-day income and expenses for the current year.
• Reserve fund: Savings for larger, predictable replacements like roofs, exterior work, elevators, decks, parking structures, and building systems.

Shortfalls in the operating budget are usually handled by dues increases or a special assessment. Major capital projects should be paid from reserves if the association has funded them properly.

Reserves and studies

A reserve study is an independent assessment of the building’s major components, their remaining useful life, and the recommended savings plan. Best practice is to complete a formal study and update it every 3 to 5 years while funding reserves consistently.

Smaller associations sometimes underfund reserves or skip formal studies. That increases the chance of special assessments when big projects come due. Ask specific questions:

• When was the last reserve study, and when is the next update?
• What is the current reserve balance and the percent-funded level relative to the study?
• How many months of operating cash does the HOA keep on hand?

Red flags include no reserve study, reserves that cover only a small portion of identified needs, and minutes that show years of deferred maintenance.

Special assessments

Special assessments are one-time charges to owners to pay for costs the current budget and reserves cannot cover.

Common triggers include exterior repairs, parking structure work, code-mandated upgrades, roof or elevator replacements, or a high insurance deductible after a claim. Each HOA’s governing documents explain when the board can levy an assessment and when a member vote is required.

Buyer impact can be significant. As an illustrative example, a thinly funded building facing a $30,000 to $50,000 deck repair could levy a $5,000 to $10,000 per-unit assessment. If the study and minutes point to near-term projects without a funding plan, build that possibility into your budget and negotiations.

Insurance basics

Understanding insurance helps you avoid gaps and surprises.

• Master policy: Defines what the association covers in common areas and sometimes parts of the building structure. Some policies are “walls-in,” others are “bare walls,” which shifts more responsibility to owners. Review the declarations and condo map to confirm boundaries.
• Key documents: Master policy declarations page, limits, and deductibles; fidelity bond; and directors and officers coverage. A high master policy deductible can lead to larger owner costs or special assessments after a covered loss.
• Your policy: Most condo owners need an HO-6 policy covering interior finishes, personal property, liability, and loss assessment coverage. What you need depends on the master policy scope.

Rules that shape daily life

Building rules influence both lifestyle and long-term value.

• Rentals and STRs: HOAs often set minimum lease terms, rental caps, or notice requirements, and many restrict short-term rentals. The City and County of Denver also regulates short-term rentals with registration and tax rules. You must comply with both the HOA and the city. Ask for current rental percentages and any caps that could affect financing.
• Pets and accommodations: HOAs may limit number, size, or breeds, and enforce leashing, waste, and noise rules. Federal and state disability laws protect reasonable accommodations for service animals, and boards must follow an accommodation process when a disability-related need is asserted. Request the HOA’s written process and any recent enforcement updates.
• Alterations and parking: Most HOAs require approval before you modify anything that affects common elements or building systems. Parking can be tightly managed in urban buildings, including assigned spaces, guest policies, storage rules, and EV charging procedures. Confirm approval steps and typical timelines before you plan a project or buy an EV.

Buyer due diligence checklist

Gather these documents early in escrow and read them carefully. If anything is unclear, ask for written clarifications from the manager or board.

• Resale certificate or estoppel letter showing current dues and any amounts owed
• Declaration/CC&Rs, bylaws, articles of incorporation, and rules and regulations
• Current operating budget and most recent financial statements
• Most recent reserve study and the association’s funding policy
• Minutes from the last 12 to 24 months of board meetings or executive summaries
• Master insurance policy declarations and endorsements, including deductible amounts
• Owner-occupancy report or rental percentage summary, if available
• Any pending or recent litigation, code issues, or violation notices
• Management contract terms, if professionally managed
• Reserve account statements or written confirmation of current balances and recent assessment history

Smart questions to ask

• What capital projects are planned in the next 1 to 5 years, and how will they be funded?
• What is the current reserve balance and percent-funded level?
• When was the last reserve study, and is the HOA following the funding schedule?
• What is the HOA’s dues delinquency rate, and have there been recent collections?
• What are the insurance deductibles and when do owners share in those costs?
• Are there rental or short-term rental restrictions, and any active enforcement?
• Are there any ongoing or anticipated lawsuits or city code issues?
• How are capital projects approved and governed?

Quick red flags

• No reserve study or a very low reserve balance given the building’s age
• Repeated or large special assessments in recent years
• High dues delinquency or multiple owner foreclosures
• Frequent insurance claims or unusually high master policy deductible
• Ongoing litigation with contractors, developers, or the city
• Sudden rule changes, like abrupt bans on rentals or pets
• Visible deferred maintenance that conflicts with the reserve plan

Negotiation and financing tips

• Some lenders limit loans in buildings with high rental percentages, active litigation, or weak reserves. Ask your lender about condo underwriting criteria early.
• You can negotiate for the seller to pay pending assessments at or before closing, or to escrow funds for imminent projects.
• For buildings with unresolved issues, consider professional inspections of common elements or contractor estimates as part of your contingency.

For sellers: prepare ahead

If you plan to list your LoHi or Highlands condo, get in front of buyer questions. Gather recent financials, the reserve study, insurance declarations, board minutes, and any assessment notices. Confirm your dues are current, clarify any upcoming projects, and understand rental caps that could affect buyer financing. Being transparent and organized helps your condo show well and reduces surprises during escrow.

Local resources to consult

If you need deeper guidance, look to these authoritative sources and local professionals:

• Colorado Common Interest Ownership Act for statewide HOA governance
• Colorado Division of Real Estate for resale certificates and disclosure guidance
• Community Associations Institute for reserve study and management best practices
• Metro Denver and Colorado Realtor associations for condo lending trends
• City and County of Denver for short-term rental rules and registration
• Local property managers, reserve-study firms, and insurance brokers with condo expertise

Your next step

Buying in LoHi or the Highlands can be a smart move when you know the HOA story behind the listing. Focus on reserves, upcoming projects, insurance deductibles, rental rules, and board governance. A clear picture today can save you from costly surprises later.

If you want a second set of eyes on HOA documents or need introductions to trusted lenders, managers, or insurance pros, reach out to Wayne Keith. You will get founder-level attention and practical, local guidance tailored to your goals.

FAQs

What is an HOA in a LoHi condo and how are dues set?

• An HOA is the association that manages common areas, operations, reserves, and rules; dues are based on the annual operating budget, projected reserve contributions, and amenity costs.

How can I check reserve health before buying in the Highlands?

• Review the latest reserve study, current reserve balance, and percent-funded level, and ask about projects planned in the next 1 to 5 years and how they will be paid.

Are short-term rentals allowed in Denver condos like those in LoHi?

• Many HOAs restrict STRs and Denver has separate registration and tax rules; you must comply with both sets of rules, so verify HOA documents and city requirements.

What insurance do LoHi condo owners need beyond the building’s master policy?

• Most owners need an HO-6 policy for interior finishes, personal property, liability, and loss assessment coverage tailored to the master policy’s coverage and deductibles.

What are the biggest HOA document red flags for a Denver condo?

• No reserve study, low reserves, frequent assessments, high delinquencies, ongoing litigation, high master policy deductibles, and evidence of deferred maintenance.

How do special assessments work and who pays them at closing?

• Boards can levy assessments under the governing documents; buyers often negotiate for sellers to pay pending assessments or escrow funds for imminent projects, subject to contract terms.