By: Elina B. Gilbert, Esq.
Regardless of how long the CCIOA budget process has been in existence, it remains a mystery and enigma to many. As currently written, this budget process only applies to post-CCIOA communities (i.e. those communities created on or after July 1, 1992) but as of July 1, 2018, a portion of the process will apply to pre-CCIOA communities as well. The pertinent portion of the budget process is identified below.
To help you navigate through the CCIOA budget process, below is a checklist of the CCIOA budget process and requirements:
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 to owners
- If mailing, must use ordinary first-class mail
- “Otherwise delivered” includes posting budget or its summary on the association website
- Within 90 days of board approval, a meeting date is set for owners to consider budget
- 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 (CCIOA requires 10 to 50 days’ notice for all membership meetings)
[Please note: on and after July 1, 2018, all common interest communities in Colorado will be required to comply with the above bulleted items.]
Budget Ratification Meeting
- Quorum is not required
- Owner approval is not required (unless declaration requires affirmative approval of a certain percentage of owners, in which case such approval must be obtained)
- Budget deemed approved absent a veto from a majority of all owners (or larger percentage that may be specified in the declaration)
[Please note: if the budget ratification meeting is combined with the annual meeting, quorum must be present to ratify the budget. It is only when the budget ratification meeting is separate and apart from any other membership meeting that quorum is not required.]
After the Meeting
- If budget was ratified (or approved as otherwise required in the declaration), new budget takes affect
- If budget was vetoed (or failed to obtain approval as required by the declaration), the last ratified (or approved) budget must be continued until a new budget is proposed by the board and ratified, or approved, by the membership
Should you have any questions about the CCIOA budget process, please do not hesitate to contact a Altitude Community Law attorney at (303) 432-9999.