HOA annual budget template
An association budget is two budgets: operating (this year's costs) and reserve (the share of future replacements you fund now). The assessment is simply the total divided by the units, and every category you underfund this year becomes a special assessment later.
Edit the template below, then copy or download it — or send and track it automatically inside hoa.to.
How to use this template
- Start from last year's actuals, not last year's budget.
- Get current insurance and utility quotes; these move the most year to year.
- Take the reserve contribution from the reserve study, not from what is left over.
- Add a contingency line of 3 to 5 percent of operating costs.
- Divide the total by units to get the assessment, then check the increase against any cap in your documents or state law.
When to send it
Draft 90 days before the fiscal year; adopt and distribute to owners at least 30 days before it starts (or as your state requires).
Common mistakes to avoid
- • Using the reserve line as the balancing figure.
- • Ignoring bad debt, so delinquencies create a mid-year shortfall.
- • Forgetting insurance renewals that have risen sharply.
- • No contingency line at all.
- • Missing the owner-notice deadline, which can invalidate the assessment increase.
Frequently asked questions
How much should an HOA keep in reserves?
Enough to meet the funding plan in a current reserve study. Many advisers target at least 70 percent funded.
Can owners vote down the budget?
In some states owners can reject a budget by a majority vote at a meeting called for that purpose. Check your statute.
How often is a reserve study required?
Several states require one every three to five years; a yearly update is best practice.
What if the budget has a deficit?
Raise assessments, cut costs, or levy a special assessment, subject to the limits in your documents.
General information only, not legal advice. Requirements vary by state, province and your governing documents — check your CC&Rs, bylaws and the applicable statute (and, if in doubt, licensed counsel) before relying on this template. Notice periods, cure periods and fee limits are not the same everywhere.