The 2025 Annual Meeting Notice includes a proposal that would raise assessments by $35 per month for 2026 and 2027. This is being presented inside the “budget” paragraph — but under our governing documents, this increase cannot be adopted as a simple budget item. It requires a homeowner vote under two separate sections of our CC&Rs.
Here is a clear explanation of why the increase is improper as currently noticed, and what owners need to understand before the meeting.
1. The Board Already Voted on a $65/Month Increase — Not $35
From the posted meeting minutes:
July 9, 2025 Board Meeting
“Voted to put the question of raising the dues by $65/month for two years before the membership.”
August 15, 2025 Board Meeting
“The proposed budget increasing dues to $65/month for two years…”
There are no posted minutes from September or October showing:
- A change from $65 → $35
- A reclassification of the increase
- Any rescission of the July vote
The sudden shift to $35 appears only in the Annual Meeting Notice.
2. The Annual Meeting Notice Blends Budget Rules With Assessment Rules
The notice first quotes CCIOA’s budget ratification statute, which uses a majority veto rule.
But the same paragraph then says the Board will ask the membership to approve a $35/month increase.
That increase is treated like a budget line item — but our CC&Rs are very clear:
Budget ratification ≠ authority to raise assessments.
They are different legal mechanisms with different processes.
3. The Proposed $35 Increase Violates Two Sections of Our CC&Rs
A. Article VI — The 10% Maximum Annual Increase Rule
Article VI, Section 3(a) prohibits raising assessments more than 10% in a year without member approval.
Current dues: $59.38
10% limit: $65.32
A $35/month increase is a 58% increase, so:
- The Board cannot adopt it unilaterally.
- It requires owner approval by a majority of votes cast.
- It cannot be buried in a budget paragraph.
This section alone invalidates the current notice.
B. Article IV — CPI Rule + 2/3 Member Approval Above CPI
Article IV, Section 4(b) allows increases up to CPI without a vote.
2025 CPI = 2.1%
Allowable without vote: $59.38 → $60.60
Anything above CPI requires:
- A meeting called for that purpose
- 60% quorum (first meeting)
- 2/3 vote of owners present (in person or by proxy)
- Increase is valid for two years only
The notice does not disclose any of these required steps.
C. If Treated as a Special Assessment — Still Requires 2/3 Vote
Article IV, Section 5 allows special assessments only with:
- 60% quorum
- 2/3 approval
- Applies only for one year (must be re-approved)
But the Board never identified it as a special assessment.
Bottom Line
The $35/month increase:
- Violates the 10% limit in Article VI
- Violates Article IV’s CPI + 2/3 vote rule
- Cannot be adopted through the budget
It must be voted on at the December 2 meeting — and it requires the correct quorum and vote thresholds.
4. The Reserve Study Being Used Is Inadequate
The Board’s 2025 reserve study:
- Was done in-house, not by an independent reserve specialist
- Expressly relies on “Board judgment”
- Excludes major infrastructure, including stormwater drainage and culverts
- Conflicts with the 2020 professional study
- Shows our reserves declining from 38% → 23%, primarily due to discretionary spending
A multi-year assessment increase should not be based on an incomplete or non-professional report.
5. Participation Barriers Affect the Vote’s Legitimacy
- No remote access
- No email or drop-box proxies (unwritten rule; not in bylaws)
- Nominations restricted to floor-only
- Meeting scheduled one day after Thanksgiving travel weekend
- Recordings banned, meaning owners must rely on minutes published nearly a year later
These restrictions suppress turnout and render a 60% quorum nearly impossible — except through mass proxy collection.
This benefits the Board, not homeowners.
6. HB25-1043: Strict Compliance Now Matters Even More
Colorado’s new law (HB25-1043) requires HOAs to strictly comply with:
- CCIOA
- Their own governing documents
before attempting to:
- collect delinquent assessments,
- send accounts to collections,
- record liens, or
- pursue foreclosure.
If the $35/month increase is not properly adopted:
- It is not a lawful assessment.
- Any collections activity becomes noncompliant.
- The HOA could be legally prohibited from enforcing it at all.
This exposes the association to significant long-term financial risk.
7. What Homeowners Should Do
✔ Vote NO on the proposed $35/month increase
✔ Request correction of the 2024 Meeting Minutes
✔ Demand a professional reserve study
✔ Request revision of the Collections Policy to fully comply with HB25-1043
✔ Support candidates who want transparency and legal compliance
✔ Share this article with neighbors
Full citations, documents, and supporting materials are available on this site.
Feel free to reach out with questions or additional documentation.