Q.  The annual meeting for our association is coming up in January.  I've heard that the board of directors must obtain the approval of the owners before it can increase monthly assessments.  Is this correct?

A.  Owner approval of an increase in assessments is only required if your governing documents specifically state their approval is required.  For example, your association's governing documents may require owner approval of any incrase in assessments or an increase which exceeds a certain set amount (e.g. 10% or more).  In addition, if the board incorporates an assessment increase into the next year's budget, your governing documents may require owners approve the board's proposed budget.  If so, then owners, in essence, are approving everything proposed within the budget, including any assessment increases.  If your governing documents do not address a budget process requirement, then pursuant to Colorado law, the budget is approved as long as a majority of all owners at a meeting do not veto it.  Otherwise, assessment increases, like other business decisions, must be made in good faith, prudently, and in the best interest of the association as a whole, by the board of directors.

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