For many Colorado HOAs, fall is budget season. The board is setting the plan for next year: what the community will spend, what it will save and what assessments owners will pay. Knowing how the process works makes it much easier to follow along and have your say.
Step 1: The board builds a draft
The budget usually starts with a review of the current year. The board, often with help from its community manager, looks at what the association actually spent, then plans for the year ahead. A draft typically considers:
- Contracts such as landscaping, snow removal, trash and management.
- Insurance for the association's master policy.
- Utilities for common areas and any shared services.
- Repairs and maintenance the community expects to need.
- Reserve contributions to save for major future projects, often guided by a reserve study.
Every community's budget is different, because every community's property, services and governing documents are different.
Step 2: The board adopts a proposed budget
Once the draft is ready, the board votes to adopt a proposed budget at a board meeting. Board meetings are generally open to owners, so this is a good chance to listen in and understand the reasoning behind the numbers.
Step 3: Owners receive a summary and meeting notice
Under the Colorado Common Interest Ownership Act (CCIOA), after the board adopts a proposed budget, owners receive a summary of it and notice of a meeting of the owners to consider the budget. Your bylaws and governing documents also shape how and when that notice goes out.
When the summary arrives, take a few minutes to read it. Compare it with this year, look at the reserve contribution and note any questions.
Step 4: Owners meet to consider the budget
At the owner meeting, the budget is considered. Under CCIOA, the budget is generally approved unless the owners vote to reject it, by a majority of all owners or any larger vote the declaration requires. If the proposed budget is rejected, the last budget that owners did not reject continues until the board proposes a new one.
How to have a say
- Read the budget summary as soon as it arrives.
- Attend the board meeting where the budget is discussed, and the owner meeting.
- Send questions to your community manager ahead of time so answers can be ready.
- Think about the long term. Healthy reserves help the community plan for big projects instead of being surprised by them.
Why it matters
The annual budget is one of the most important decisions an HOA makes each year. It funds the services owners rely on and protects the property for the future. A clear process, open meetings and good communication help owners trust the result.
Have questions about your community's budget? Contact your community manager or call our office at 720-230-7303. Accord owners can also find community documents through the HOA Portal at accordhoa.com.
This article is general information only, not legal advice. Your community's governing documents and applicable Colorado law control; consult your association's attorney about specific situations.