No risk. HOA wants your money

It's not atypical.  It is charged by HOA, not the escrow.

The resale package usually cost that range.

If you don't buy the package, you will still need the statement ("The demand") which could cost about 1/2.

Yes, HOA charges arms and legs for closing, and they "need" 3 -10 business days to respond (count on 10 days mostly). Want it quick to meet your closing deadline? Well, "Hand over $150 rush fee".

Isn't it blackmail!