HOA Money · Colorado
A special assessment is a one-time charge the board levies for a cost the budget and reserves can’t cover, like a new roof. In most Colorado associations, the board can approve one by majority vote if the governing documents allow it. Most boards then have to run it through the owner budget ratification process.
When boards use special assessments
- Roof, siding, deck or window projects
- A failed boiler, elevator or sewer line
- An insurance deductible after hail, wind or a water loss
- A sudden jump in the insurance premium
- Legal costs
- Refilling reserves after a big repair
A common mountain case: a 1980s condo building in Dillon or Frisco needs new siding and decks at the same time. The reserve account holds a third of the cost. The board covers the rest with a special assessment, a loan or both.
How it works under Colorado law
The Colorado Division of Real Estate’s HOA Center lays out the usual steps (DRE HOA Forum, Nov 2025):
- Check the documents. The authority to levy a special assessment must be in the governing documents. Some limit the amount or require an owner vote.
- Board vote. In most communities, a majority of the board can approve it.
- Owners speak first. Owners must be allowed to comment before the board votes.
- Record it. The vote must be recorded in the minutes of the meeting where it happened.
- Ratification. In most communities, the board then follows the budget process in C.R.S. 38-33.3-303(4): send owners a summary within 90 days and hold a meeting. The assessment stands unless a majority of all owners veto it.
Who pays
Usually every owner, split by the shares in the declaration. A special assessment can also fall only on the owners who benefit, such as units with a limited common element like a balcony or storage unit, if the documents allow it.
Lump sum, installments or a loan
Lump sum: fastest, but hard on owners. Expect more late payments.
Installments: spreads the cost over months. CCIOA doesn’t set a payment period, so the documents and board decide.
Bank loan: spreads the cost over years, repaid from dues. Lenders look at delinquency rates. Pledging common elements as security needs 67% owner approval (C.R.S. 38-33.3-312).
How to avoid one
Most special assessments trace back to reserves that didn’t keep up. To lower the odds:
- Get a reserve study and use it. State law doesn’t require one for most communities, but every association must adopt a reserve study policy (C.R.S. 38-33.3-209.5).
- Fund reserves every month, not just when there’s money left over.
- Budget real insurance numbers, and know your deductible. Plan for it.
- Stay on top of collections. Unpaid dues shrink what’s available for reserves.
- Reconcile every month, so the board knows the true reserve balance.
- Raise dues a little each year instead of a lot all at once.
Newer communities have one more tool. Colorado’s 2026 reserve study law requires developers to fund a reserve study before handing control to owners. See our Colorado HOA reserves page.
Keeping the books clean
Once approved, a special assessment needs its own tracking:
- A separate income line or account for the assessment
- Project costs tracked against it
- Each owner’s balance on their ledger, including installments
- A simple report to owners showing money in and money spent
That’s what owners want to see, and it builds trust for the next big project. See our HOA accounting services and pricing. Denver metro boards can see our HOA accounting services in Denver.
This is accounting education, not legal advice. Talk to an HOA attorney before levying a special assessment.
FAQ
Do owners have to vote on a special assessment in Colorado?
In most Colorado communities, no. The Colorado Division of Real Estate says the board can usually levy one by majority vote, if the governing documents allow special assessments. Owners must get a chance to speak before the vote, and some declarations require owner approval.
Can owners stop a special assessment?
In most communities the DRE says the assessment goes through the CCIOA budget ratification process, where a majority of all owners can veto it. Owners can also attend the meeting, review records and, in serious cases, call a special meeting.
Can a special assessment be paid in installments?
Often, yes. CCIOA doesn’t set a payment period, so the governing documents and the board decide. Many boards offer monthly installments for large projects.
Can an HOA take out a loan instead?
Usually. Colorado nonprofit law lets associations borrow, and most declarations allow it. Pledging the common elements as security requires approval of 67% of the votes under C.R.S. 38-33.3-312.
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