Since July 1, 2018, when the CCIOA budget process was made applicable to pre-CCIOA communities, there continues to be confusion and unclarity with respect to the CCIOA budget process and especially if and how it applies to special assessments. The purpose of this article is to help clarify both the budget process and special assessment process.
Budget Creation and Board Adoption
- Board approves budget
- Within 90 days of board approval, summary of budget (or budget itself) must be mailed or otherwise delivered AND a meeting date is set for owners to consider budget
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- Meeting must occur within a “reasonable time” after mailing or delivery of the budget
- Notice of meeting must be mailed to all owners in accordance with requirements in the bylaws
*Exception: If the community was created prior to July 1, 1992, and the declaration contains a maximum assessment cap, and the new budget does not propose an increase over and above the cap, the meeting referenced above will be a meeting for the purpose of discussing the budget and not ratifying it. Owner ratification/approval will not be necessary.
Budget Ratification Meeting
- Quorum is not required—anyone (or no one) who shows up at the meeting is sufficient to hold the meeting
- Owner approval is not required (unless declaration requires approval) at the meeting
- Budget is deemed approved absent a veto from a majority of all owners (or larger amount if specified in the declaration)
Special Assessment Process
- If the declaration requires owner approval for a special assessment, such approval must still be obtained
- If the declaration is silent concerning special assessments or allows the board to impose a special assessment without owner input, the budget ratification process set out above must be followed before the special assessment may be imposed:
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- An updated budget must be approved by the board and proposed to the membership—the updated budget will contain an extra income line representing the special assessment income, and an additional expense line representing the expenditure to be paid for with said funds
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- The updated budget must be mailed or delivered to owners, and a meeting must be set for owners to consider the budget
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- The budget ratification meeting, as set forth above, must be held, and the budget must be ratified for the special assessment to become affective
Should you have any questions about the CCIOA budget process, please do not hesitate to contact an Altitude attorney at (303) 432-9999 or at [email protected].