HOA Budget Cover Letter
· Updated
Fill in the highlighted fields to create a cover letter for the HOA annual budget. Click any field to type your details, then copy the letter and attach the budget summary.
[Date]
Dear [Association Name] homeowners,
The board has [Budget Status, for example "approved" or "proposed"] the budget for [Fiscal Year]. A summary is enclosed, and the full budget is available at [Budget Location].
Key points:
- Total operating budget: $[Operating Total]
- Reserve contribution: $[Reserve Contribution]
- Assessment per [Assessment Unit]: $[New Assessment], compared with $[Prior Assessment] last year, effective [Effective Date]
- Main changes: [Budget Changes, for example "insurance premiums, landscaping contract and utility costs"]
Why this matters: [Budget Rationale, for example "the reserve study recommends increasing funding for the roofs and paving"].
[Meeting Or Vote Statement, for example "The board will take comments at its meeting on X" or "Owners may vote on the budget at the annual meeting on X"].
If you have questions, contact [Budget Contact] at [Budget Contact Details].
Sincerely,
[Treasurer Name]
Treasurer, [Association Name]
What this letter does
A budget cover letter explains the numbers: what the association plans to spend, what each owner will pay and what changed. Owners are more likely to accept an assessment change when they see the reasons.
What to include
- Whether the budget is proposed or adopted, and when it takes effect.
- The new assessment, and the old one for comparison.
- The largest changes and why.
- Reserve funding and what it is for.
- How owners can comment or vote, if the documents or state law give them that right.
- Where to see the full budget, and a contact.
Owners who want the full budget can request it with a letter to the HOA requesting documents.
Be consistent with notice rules
Governing documents and state law may require that owners receive a budget by a certain date or have a chance to reject it. Check the requirements before deciding on timing. See meeting notice requirements.
Related letters
If the assessment is rising, pair this letter with the dues increase letter. For a one-time charge, see the special assessment letter. At year end, send the end-of-year letter.
Common questions
Should the cover letter include the whole budget?
No. Summarize the main points and attach or link the detail.
Who signs it?
The treasurer or president, on behalf of the board.
This page gives general information and sample wording. It is not legal advice, and requirements differ by state and by association.