Board Resolution Adopting the Annual Budget
~20 minutes to fill in · 303 words · state notes for FL, CA, TX, AZ, NV, OR, WA
Adopt at the board meeting where the annual budget is approved, and attach the budget as Exhibit A. The resolution — not the spreadsheet — is what fixes the assessment amount, so owners' obligations trace to a recorded vote. Several states regulate assessment increases and member notice; check the state note before setting the new rate.
Resolution
RESOLUTION OF THE BOARD OF DIRECTORS [ASSOCIATION NAME] Resolution No. [YEAR]-[NUMBER] — Adoption of the [FISCAL YEAR] Annual Budget
WHEREAS, the Board of Directors is authorized by Article [X] of the [Declaration/Bylaws] and applicable state law to adopt an annual budget and to levy assessments; and
WHEREAS, the Board has reviewed the proposed operating and reserve budget for the fiscal year beginning [DATE] and ending [DATE], attached as Exhibit A, [prepared with the assistance of [MANAGER/COMMITTEE]]; and
WHEREAS, the proposed budget reflects total operating expenses of $[AMOUNT] and reserve contributions of $[AMOUNT], informed by [the reserve study dated [DATE] / the Board's reserve funding plan];
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The [FISCAL YEAR] budget attached as Exhibit A, totaling $[TOTAL AMOUNT], is adopted. 2. The regular assessment is set at $[AMOUNT] per [lot/unit] per [month/quarter/year], effective [DATE], payable [DUE SCHEDULE]. [This is a change of [+/-][PERCENT]% from the prior year.] 3. $[AMOUNT] per [period] of each assessment shall be allocated to the reserve fund. 4. Late payments are subject to the charges and interest stated in the governing documents and the Association's adopted collection policy. 5. The [Manager/Treasurer] is directed to distribute the budget [or its statutory summary] and the new assessment schedule to all members by [DATE], in the manner required by the governing documents and state statute. 6. The officers are authorized to take all actions necessary to implement this resolution.
Vote record and certification
Adopted at a duly noticed meeting of the Board of Directors held on [DATE], at which a quorum was present.
Votes in favor: [NUMBER] ([NAMES]) Votes against: [NUMBER] ([NAMES]) Abstentions: [NUMBER] ([NAMES])
CERTIFICATION I certify that the foregoing resolution was adopted as stated above and appears in the minutes of the [DATE] meeting.
____________________ [NAME], Secretary · Date: [DATE]
Exhibit A: [FISCAL YEAR] Operating and Reserve Budget (attach)
State notes
- Florida
- §720.303(6), Florida Statutes addresses annual budgets and reserve accounting for HOAs. If the budget changes reserve funding, follow the statutory member-approval rules.
- California
- Davis-Stirling caps board-imposed regular-assessment increases (Civil Code §5605: generally up to 20% over the prior year without a member vote) and requires distribution of the annual budget report (§5300). Verify current limits before adopting an increase.
- Texas
- Chapter 209 does not set a general statutory cap on assessment increases for most HOAs — your declaration controls. Confirm the declaration's cap and any member-vote trigger.
- Arizona
- A.R.S. §33-1803 caps regular-assessment increases for planned communities (generally 20% per year absent member approval). Verify the current cap before adopting.
- Nevada
- NRS 116.3115 governs assessments; NRS 116.31151 requires distributing the budget or a summary to owners, and reserve funding is regulated. Calendar the member-distribution deadline.
- Oregon
- ORS 94.595 governs assessments in Oregon planned communities. Verify your declaration's cap on regular-assessment increases and any member-vote triggers before adopting a budget with a rate change.
- Washington
- RCW 64.38.020 addresses HOA financial powers in Washington. Verify your declaration's assessment-increase caps and member-vote requirements before adopting the budget.
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