Definition
The yearly financial plan detailing HOA expenses and the member assessments needed to cover them. It shows you exactly where your HOA money goes and what you'll pay.
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Annual budgets specify costs for maintenance, amenities, insurance, and administrative expenses. Member assessment amounts are calculated from budgeted expenses divided by number of units. Budgets provide transparency and allow members to understand their financial obligations. Budget reviews often occur at annual meetings.
Pro Tip
Request multiple years of budgets before buying. Rising budgets indicate increasing maintenance costs and financial stress.
Example
An HOA annual budget of $600,000 divided by 200 units creates $250 monthly assessment per unit.