Can an HOA Raise Dues? How It Works Under Colorado Law

HOA Money · Colorado

Yes. In most Colorado associations, the board can raise dues by adopting a new budget, unless the declaration caps increases or requires an owner vote. Owners then get a budget summary and a meeting, and the new budget takes effect unless a majority of all owners vote to veto it.

Who decides

CCIOA lets the board adopt and amend budgets and collect assessments (C.R.S. 38-33.3-302). The state’s HOA Center says most governing documents let the board raise dues by majority vote, after owners have a chance to speak (DRE, 2025).

Two things can change that:

• A cap in the declaration, such as a maximum yearly increase
• An owner vote requirement in the declaration

The process, step by step

Under C.R.S. 38-33.3-303(4):

1. The board adopts a proposed budget at a meeting where owners can comment.
2. Within 90 days, the board mails, delivers or posts on the association’s website a summary of the budget to all owners.
3. The board sets a meeting for owners to consider the budget, within a reasonable time after the summary goes out.
4. The budget is approved unless a majority of all owners vote to veto it, whether or not there’s a quorum.
5. If owners veto it, the last budget they didn’t veto stays in place until a new one passes.

A sample calendar-year timeline

• September: treasurer and manager draft the budget.
• October: board reviews it, takes owner comments and adopts it.
• November: summary goes to owners with the meeting notice.
• December: owner meeting, often combined with the annual meeting.
• January 1: new dues start.

Older communities

Communities created before July 1, 1992 follow the same veto process, with one exception. If the declaration caps assessments or increases, and the new budget stays within that cap, the owner veto step doesn’t apply (C.R.S. 38-33.3-303(4)(a)(II)(B)).

Why dues go up

In Colorado mountain towns, the usual drivers are:

• Insurance premiums and deductibles
• Snow removal contracts
• Utilities the association pays for every unit
• Reserve contributions that were too low for too long
• Repairs on aging roofs, decks and boilers

How boards should explain an increase

• Show last year’s budget vs actual next to the new budget.
• Point to the two or three lines driving the change.
• Show the reserve plan and how the increase funds it.
• Compare a steady increase now to a special assessment later.

Owners push back less when the numbers are clear and on time. That starts with clean monthly books. See our HOA accounting services and pricing.

What owners can do

• Read the budget summary and come to the meeting.
• Ask to inspect association records (C.R.S. 38-33.3-317).
• Owners with 20% of the votes, or a lower number set in the bylaws, can call a special meeting (C.R.S. 38-33.3-308).

How much do associations raise dues?

There’s no state limit and no official average. Increases depend on the community. A planned community with low costs may go years without one. A mountain condo building facing a big insurance renewal may need a double-digit jump in one year.

Many boards find small, regular increases easier on owners than a large one every few years. A current reserve plan shows how much is needed and when.

This is accounting education, not legal advice. Your declaration and an HOA attorney are the final word.

FAQ

Is there a limit on how much a Colorado HOA can raise dues?

Colorado law doesn’t set a statewide cap. Some declarations cap annual increases or require an owner vote, so check your governing documents.

How many owners does it take to veto an HOA budget in Colorado?

Under C.R.S. 38-33.3-303(4), a majority of all unit owners, not just those at the meeting, unless the declaration sets a higher number. A quorum isn’t needed for the budget to be approved.

What happens if owners veto the budget?

The last budget the board proposed that owners did not veto stays in effect until a new one passes.

Can an HOA raise dues in the middle of the year?

Yes. Associations can amend their budgets. An amended budget that raises dues should go through the same owner notice and ratification steps.

Do pre-1992 communities follow the same rules?

Mostly. The budget veto process applies to older communities too, except when the declaration caps assessments and the new budget stays within that cap.

Sources

• C.R.S. 38-33.3-303 (budget and veto)
• C.R.S. 38-33.3-302 (powers of the association)
• Colorado Division of Real Estate: Passing an Association Budget
• HB23-1131 (postponed indefinitely)