Comparing Kapolei condos and unsure what those monthly AOAO fees actually cover? You are not alone. When you understand how associations work in Hawaii and what you get for your dues, it is much easier to compare buildings like Mehana and Ko Olina with confidence. In this guide, you will learn what AOAOs are, what maintenance fees typically include, how to read budgets and reserves, and how dues affect your total monthly cost. Let’s dive in.
AOAO basics in Hawaii
An AOAO is the Association of Apartment Owners. It is the legal entity that manages the condo’s common elements and enforces the declaration, bylaws, and house rules. A board elected by owners sets policies and approves budgets. Most day-to-day tasks are handled by a professional management company.
You have the right to review the AOAO’s governing documents and financials during your contract’s due diligence period. That usually includes the declaration and bylaws, current budget, financial statements, reserve study, insurance summary, and recent meeting minutes. Use this time to understand costs, upcoming projects, and any special assessments.
What maintenance fees usually cover
AOAO dues vary by project and amenities. They typically fund shared expenses that benefit all owners.
Operating and administration
- Management company fee
- Accounting, legal, and administrative costs
- Master insurance for the building and common areas
- Common-area utilities like lighting, irrigation, pumps, and sometimes shared water
- Janitorial services, trash collection, and landscaping
- Elevator service and inspections
- Pool, spa, and fitness center upkeep
- Security or gate operation if provided
- Pest control
Maintenance and repairs
- Routine repairs to roofs, exterior paint, plumbing, and mechanical systems
- Service contracts for common systems
Replacement reserves
- Planned savings for big-ticket replacements like roofing, exterior painting, elevators, paving, and pool work
Taxes and special assessments on common elements
Insurance deductibles and special coverages
What is included can differ by building:
- Ko Olina communities often include resort-style amenities, extensive landscaping, security, and coastal maintenance. Expect higher operating costs and higher dues.
- Mehana is a master-planned residential area with neighborhood parks and fewer resort features. Dues can be lower than in resort projects, but utilities and management style matter.
- Utilities may be included or billed separately. Some AOAOs include water, sewer, trash, or gas. This can make a lower-fee building more expensive if you add outside utility bills.
How to read budgets and reserves
Ask for the current budget, the last 12 to 24 months of financials, reserve study, insurance summary, and board meeting minutes. Then review these points:
- Dues composition. See how much goes to daily operations versus reserves. Very low reserve contributions are a red flag.
- Reserve plan. Look for regular contributions tied to a current reserve study. Check the reserve balance against near-term needs like roof or paving projects.
- Insurance. Review coverage and the master policy deductible. High deductibles can shift more risk to owners after a major loss.
- Unique cost drivers. Gate operation, lagoon and beach access rights, security contracts, and on-site staff add up fast.
- Management fees. Professional management is standard, but fees should fit the project’s scale.
- Delinquencies. A high delinquency rate can strain cash flow and raise the risk of special assessments.
Red flags to investigate:
- Deferred capital projects without a funding plan
- Frequent special assessments in recent years
- Operating deficits over multiple years
- Litigation with uncertain cost exposure
- Aging systems with no reserves set aside
- Insurance nonrenewal notices or sharply rising deductibles
- Vendor turnover and emergency repairs that suggest poor maintenance
Kapolei-specific factors
Kapolei has a mix of resort and residential communities, and that directly affects dues.
- Ko Olina. Resort amenities, lagoons, and coastal infrastructure require robust landscaping, security, and specialized maintenance. Coastal exposure can also influence insurance and long-term repair needs.
- Mehana. Planned residential neighborhoods with community parks and practical amenities. Dues can be moderate, but watch for transitions from developer to owner control that may lead to fee adjustments as full operating costs take effect.
- West Oahu coastal climate. Salty air can speed up corrosion, exterior painting cycles, and metal replacement. Budgets and reserve studies should reflect this reality.
How dues affect your total monthly cost
Your total monthly housing cost is more than your mortgage payment. Build a full picture before you write an offer.
- Monthly TCO formula: mortgage principal and interest + AOAO dues + property tax divided by 12 + HO-6 condo insurance divided by 12 + utilities not covered by the AOAO + a monthly estimate for likely special assessments or underfunded reserves.
- Affordability and financing. Lenders include AOAO dues when qualifying your loan. Higher dues can reduce your borrowing power. Some loan programs also review condo project financial health.
- Insurance exposure. Understand what the master policy covers and what your HO-6 must cover. Large master policy deductibles can lead to owner assessments after major events.
- Special assessments. Even with moderate dues, a weak reserve fund or known capital project can result in large one-time charges that change the math.
- Resale impact. Well-run AOAOs with healthy reserves and desirable amenities often support stronger resale. Very high dues without matching value can narrow your buyer pool later.
Mehana vs. Ko Olina: how to compare
Instead of focusing only on the monthly number, compare what you get and what you might pay outside the fee.
- What is included in dues: water, sewer, trash, cable, internet, parking, or storage
- Amenities and staffing: pools, fitness centers, security, gate operation, on-site personnel
- Reserve health: current balance, contribution rate, and upcoming projects
- Building age and condition: near-term roof, paint, elevator, paving, or coastal work
- Insurance: premium costs, coverage limits, and deductible levels
- Assessment history: any recent or pending special assessments
If you are weighing a Mehana townhouse with modest dues against a Ko Olina condo with resort amenities, run the full TCO for each. A higher-fee resort condo may still make sense if it replaces outside gym costs, security, and water bills, while delivering lifestyle benefits you value.
Due diligence checklist for Kapolei condo buyers
Request these during your condo contingency period:
- Current AOAO budget and any proposed budget for the next fiscal year
- Most recent 12 to 24 months of financial statements and balance sheet
- Reserve study and reserve funding plan
- Minutes of board meetings for the last 12 months
- Declaration, bylaws, rules, and amendments
- Master insurance policy declarations and deductible summary
- Management contract and major vendor agreements
- Delinquency report and list of current or anticipated special assessments
- Litigation disclosures and pending claims
- List of current board members and whether developer control remains
Smart questions to ask:
- What exactly is included in monthly dues, and when was the last increase?
- What is the current reserve balance, and are contributions aligned with the reserve study?
- Are any special assessments planned in the next 1 to 5 years?
- What costs are most volatile, like insurance or utilities?
- Is any major work planned soon, such as roofing, exterior painting, concrete or seawall work?
Your next steps
If you are comparing Kapolei condos, secure the AOAO documents early and run the full monthly TCO for each building. Focus on what dues include, the strength of reserves, insurance terms, and any near-term projects. A clear picture now helps you buy the right home with fewer surprises later.
Ready to review specific buildings in Mehana or Ko Olina and map out your total monthly cost? Connect with Ashliey Wasson for a tailored condo comparison, document review guidance, and a financing-ready budget plan.
FAQs
What is an AOAO in Hawaii?
- It is the Association of Apartment Owners that manages a condo’s common areas, enforces rules, and collects dues to fund operations, maintenance, insurance, and reserves.
What do Kapolei condo fees usually include?
- Typical inclusions are management, insurance, common-area utilities, landscaping, janitorial, security or gate service, and reserve funding, with some projects also covering water or trash.
Are Ko Olina condo dues higher than Mehana’s?
- Often yes, because Ko Olina’s resort amenities, landscaping, security, and coastal upkeep increase operating costs compared with residential-focused Mehana communities.
How do AOAO dues affect mortgage approval?
- Lenders include dues in your debt-to-income ratio, which can reduce borrowing power, and some loan programs review the condo project’s financial health and reserves.
What is a reserve study and why does it matter?
- It estimates the remaining life and replacement cost of major components and guides annual reserve funding so the AOAO can avoid large surprise assessments.
What are signs of a financially healthy AOAO?
- Regular reserve contributions tied to a recent study, clear budgets, manageable insurance deductibles, low delinquency, and few or no special assessments.
What documents should I review before buying a Kapolei condo?
- Ask for the current budget, recent financials, reserve study, insurance summary, minutes, declaration and bylaws, delinquency report, and any assessment or litigation disclosures.
