How do developers determine HOA fees initially?

[Julia Hwang]

Extremely new to Re devlepment here...upon my own studying I noticed that HOA is a huge component in determining the for-sale price in development projects. I'm wondering if anyone can share their experience in determining the HOA for a residential condo project? Do you get a quote from a management company? Do you look at how much neighboring communities are quoting for HOA? Thank you.

[Jason Hsiao]

It's not sexy or any kind of brilliant insight but yeah you quote it out @Julia Hwang. I've done it before where I literally asked for the CC&R's and bylaws of other other condo buildings, see what they included to understand what I need to provide in the market that I'm in and then quote out all the services: landscaping, utilities, look at their budget/reservers, and get insurance quotes. Chances are you will need an E&O coverage in case the HOA officers or management company miss something. A lot of people forget to get that.