Boston Condo Association Basics: Rules, Fees & Reserves

Buying your first Boston condo? The association’s rules, fees, and reserves can shape your monthly costs and your long-term peace of mind. If you’ve seen terms like “master deed,” “special assessment,” or “reserves” and felt unsure, you’re not alone. In this guide, you’ll learn what those terms mean in Boston, what to request from the seller, and how to spot red flags before you make an offer. Let’s dive in.

How Boston condo associations work

Condominiums in Massachusetts are created and governed under the Massachusetts Condominium Act (Chapter 183A). The master deed, plans, and bylaws define each owner’s rights and responsibilities, how fees are allocated, and how the association operates.

Key records are public. In Boston, recorded documents and amendments are filed at the Suffolk County Registry of Deeds. Your attorney or agent can help you pull these to confirm unit boundaries, limited common elements, and any changes since conversion.

City rules also matter. If you plan to rent, review Boston’s short-term rental rules and the association’s leasing policies. Associations can be more restrictive than the city.

Financing can hinge on the building’s health. If you need FHA or VA, check the project on HUD’s condominium approval search. High delinquencies, low reserves, or too many investor-owned units can limit loan options.

The documents you need to review

Before you commit, ask for a complete resale package. These documents show how the association functions and whether big costs are coming.

Master deed and plans

The master deed establishes the condo and sets each unit’s share of common expenses and voting rights. The recorded plan shows the unit lines, common areas, and any limited common elements like assigned parking or storage. In brownstones, plans matter if basements, attics, or porches were finished later.

Bylaws and rules

Bylaws explain how the board is elected, meeting procedures, and voting thresholds for budgets and amendments. Rules and regulations cover day-to-day issues like noise, pets, storage, common area use, and short-term rentals.

Budget and financials

The annual budget shows expected income and expenses. Look for line items like management fees, insurance, utilities included in fees, routine maintenance, and reserve contributions. Compare to the most recent financial statements to see if the association runs a surplus or deficit.

Reserves and reserve study

Reserves are the savings for big-ticket capital items like the roof, brickwork, boilers, elevators, and paving. A reserve study inventories these components, estimates their remaining life, and recommends annual funding. Associations that follow Community Associations Institute guidance on reserves tend to have fewer surprises.

Minutes, litigation, and insurance

Board and annual meeting minutes reveal planned projects, disputes, or special assessments under discussion. Ask for a summary of any pending litigation or known construction defects. Review the master insurance policy and deductibles, and ask what you need to cover with an HO-6 policy.

What to request in a resale package

• Master deed, bylaws, recorded plans, and all amendments
• Current operating budget and most recent financials
• Latest reserve study and current reserve fund balance
• Minutes from the last 12–24 months
• Rules and regulations, leasing and short-term rental policies
• Certificate of insurance with deductible details
• List of pending or recent special assessments and any lawsuits
• Management agreement and major vendor contracts
• Delinquent owner ledger and collection policy

Fees and what they cover in Boston

Your monthly condo fee funds operations and reserves. Typical items include building insurance, management, common utilities (often water and sometimes heat or hot water), routine repairs, snow and landscaping, elevator service, trash, and reserve contributions. Fees vary by building size, age, and amenities.

• Brownstone conversions: Often smaller associations with fewer amenities and no elevator. Fees can be lower, but older systems and brickwork can create larger capital needs. Some include heat or hot water in the fee.
• Newer developments: More amenities like concierge, gym, roof decks, and garage parking. Fees are higher, but there is often professional management and a formal reserve plan. Be aware that developer-era budgets can be low at first and rise after turnover.

Reserves and why they matter

A well-funded reserve lowers your risk of surprise special assessments. The reserve study should identify major components, their useful life, and funding targets. In Massachusetts, there is no fixed statewide reserve percentage in the statute. Funding practices come from the governing documents and prudent board management.

What to look for:

• Current reserve balance and date of the most recent study
• Whether annual funding aligns with the study’s recommendations
• Upcoming capital projects in the next 3–5 years and estimated costs

Red flags include no recent reserve study, very low reserves in an older building, or a long list of deferred projects without a plan to fund them.

Special assessments and delinquencies

A special assessment is a one-time charge to cover costs not funded by the operating budget or reserves. Triggers include major repairs, litigation, or unexpected failures. The master deed or bylaws explain how assessments are approved.

Under Chapter 183A, unpaid common expenses become a lien on the unit, and associations can pursue collection and, in extreme cases, foreclosure. High delinquency rates can strain cash flow and force fee increases or assessments. Ask for the total dollar amount of delinquencies and how many units are in active collection.

Brownstones vs new developments

Both can be great choices. The risk profile just looks different.

Brownstone considerations

• Building envelope and masonry: Brick repointing, lintels, and roof work are costly. Check recent exterior projects and the reserve plan.
• Shared systems and party walls: Clarify responsibility for heating systems, chimneys, and shared plumbing. Verify access rights for repairs.
• Unit boundaries: Confirm whether basements, attics, decks, or porches are part of the unit or limited common elements in the recorded plan.
• Small association math: With 3–6 units, fixed costs are spread across fewer owners and one delinquency can impact the whole building.

New development considerations

• Developer control: Confirm whether owners have taken control of the board and whether warranties and punch-list items are resolved.
• Initial budgets: Early budgets may be low. Ask for a current reserve study and any pro forma showing post-turnover expenses.
• Amenity costs: Concierge, garage, and gym drive higher operating costs. Make sure fees account for full staffing and maintenance.

Buyer checklist before you offer

Use this to guide your document requests and your offer strategy.

• Get the full resale package: Governing docs, budget, financials, reserve study, minutes, rules, insurance, litigation summary, contracts, and delinquency reports.
• Verify fees and inclusions: What utilities are included? How much goes to reserves? Any pending or recent special assessments?
• Review reserves: Date and quality of the reserve study, current balance, and 3–5 year project plan with costs.
• Scan minutes for signals: Look for recurring issues, disputes, or big projects being discussed.
• Check lending and occupancy: If you need FHA or VA, verify status on HUD’s list. Ask about owner-occupancy and rental caps.
• Confirm insurance: Master policy coverage type and deductibles. Plan for an HO-6 policy for interiors, personal property, liability, and loss assessment coverage.
• Plan contingencies: Include a document review contingency, inspection contingency, and, if needed, a contingency for lender/project approval.

Financing and insurance checkpoints

• FHA/VA approval: If applicable, confirm status using HUD’s condominium approval search.
• Investor ratio and delinquencies: Lenders may balk if too many units are rented or too many owners are behind.
• Master policy vs HO-6: Associations typically carry a building master policy. You will still need HO-6 coverage for interior improvements, personal property, liability, and loss assessments. Ask about the master policy deductible.

How to judge if fees are reasonable

Compare apples to apples. Look beyond the monthly number and ask:

• What’s included? Heat, hot water, water/sewer, parking, concierge, gym
• Building size and age: More units share costs, but older buildings can need more capital work
• Amenities: More services cost more each month
• Reserves: Healthy funding today reduces risk of large one-time assessments later
• History: Track fee increases over the last few years and understand why

A fee that looks “low” without proper reserves can be the most expensive surprise you ever buy. A higher fee that funds reserves and covers many utilities can be the better value.

The bottom line

When you understand the association’s rules, fees, and reserves, you can buy with confidence and avoid budget shocks. Ask for the full resale package, study the reserve plan, read recent minutes, and build the right contingencies into your offer. If you want help interpreting the documents or weighing a brownstone versus a newer building, our team is here to guide you from first tour to closing.

Ready to find the right Boston condo with a clear picture of costs? Connect with YPC Real Estate LLC for hands-on buyer representation and local expertise.

FAQs

What is a condo association in Massachusetts?

• It is the legal entity that manages a condominium’s common property, budget, rules, and reserves under the Massachusetts Condominium Act (Chapter 183A).

Which documents should I review before buying a Boston condo?

• Request the resale package with the master deed, bylaws, plans, budget, financials, reserve study, minutes, rules, insurance, litigation summary, contracts, and delinquency report.

How do condo fees in Boston get set each year?

• The board prepares an annual budget and allocates common expenses per the master deed; bylaws explain approval or member veto procedures.

What is a reserve study and why is it important?

• It’s a plan for future capital repairs and recommended funding; following CAI guidance on reserves helps reduce special-assessment risk.

Can an association levy a special assessment in Boston?

• Yes. When costs exceed the budget or reserves, the board can levy a one-time assessment as allowed by the governing documents and Chapter 183A.

How do Boston’s short-term rental rules affect owners?

• The city requires registration and compliance, and many associations restrict short-term rentals; check Boston’s short-term rental rules and the condo’s policies.

How do I check if a condo qualifies for FHA/VA loans?

• Use HUD’s condominium approval search and confirm with your lender; project finances and owner-occupancy can impact eligibility.