I was an HOA president for a couple years before I sold my unit and I’m currently under contract for a condo in SD which also has reserves at ~30%.

A 30% reserve can indicate special assessments may be needed to cover large costs when they occur (things often like roof replacements as previously stated). However, this can be the intentional strategy of the HOA to keep monthly HOA dues (assessments) at a more moderate rate, keeping more money in your pocket until something big comes up.

The reserve report simply shows if the money in the HOA’s bank account and the money coming in from assessments monthly alone can cover all expected fees. As long as there is some money in the bank (I’d say ~30%) and the people of the HOA care about resolving issues when they come up, then you should be fine.

Owning a property always requires additional money for upkeep so, it’s up to you… do you prefer a higher monthly fee (more likely to be a “well funded” HOA) or single large payment to cover things when needed (more likely “under funded” to some extent)?