Tommy and his wife were hit with a $5,000 special assessment from their HOA in Colorado, which has nearly $1 million in deferred maintenance. The community is in a high fire-risk zone, homes are over 50 years old, and HOA lost standard insurance coverage. Premiums are expected to rise.

The HOA fees are currently $340 a month, but the governing documents limit increases to 3% annually. If a proposed $5,000 assessment doesn’t pass, the HOA could face bankruptcy. Tommy says their total housing costs are already nearly 40% of their take-home pay.

Despite the financial strain, experts advise Tommy and his wife to stick it out for now. Moving immediately could result in a projected $25,000 loss. The hosts suggest waiting to see how the situation unfolds over the next few years before making a decision.

In the meantime, Tommy and his wife may want to consider using WiserAdvisor’s free tool to connect with a financial advisor. This could help them plan their next move as costs continue to rise. Planning for the future is crucial in the face of escalating expenses.

Read more at Yahoo Finance: They Just Bought Their Dream Home And Got A $5K Surprise From The HOA. There’s More To Come As There’s $1M In Deferred Maintenance