What is an HOA budget?
An HOA budget is the association’s financial plan for the year. It estimates income, mostly from assessments, and the cost of running the community, plus how much to set aside in reserves for big future repairs.
The budget sets each owner’s assessment, so it’s one of the most important documents a board approves. A clear, line-by-line budget makes it easier to explain increases, spot overspending during the year, and keep reserves on track.
What to include
- Assessment income based on units and the monthly rate
- Other income such as late fees, rentals, and interest
- Every operating expense, line by line
- A reserve contribution based on your reserve study
- Last year’s actuals next to this year’s budget
- Totals, a monthly breakdown, and the surplus or deficit
- The break-even assessment each unit needs to pay
Template preview
Fill in the [highlighted] fields| Income | |
| Regular assessments | $78,000 |
| Special assessments | $0 |
| Late fees & interest | $1,200 |
| Amenity & clubhouse rentals | $600 |
| Interest on reserve accounts | $400 |
| Other income | $0 |
| Total income | $80,200 |
| Operating expenses | |
| Landscaping & grounds | $18,000 |
| Pool & amenity maintenance | $6,000 |
| Electricity (common areas) | $4,200 |
| Water & irrigation | $3,600 |
| Trash & recycling | $2,400 |
| Insurance (property, liability, D&O) | $9,500 |
| Repairs & general maintenance | $5,000 |
| Management software & admin | $1,500 |
| Legal & accounting (CPA, attorney) | $3,000 |
| Postage, printing & supplies | $600 |
| Taxes & licenses | $300 |
| Bad debt allowance | $1,000 |
| Contingency | $2,000 |
| Total operating expenses | $57,100 |
| Reserves | |
| Reserve fund contribution | $20,000 |
| Total expenses & reserves | $77,100 |
| Surplus / (deficit) | $3,100 |
Tips for using this template
Enter what you really spent last year, then adjust for known changes like new contracts or insurance renewals.
Use your reserve study’s recommended contribution. Underfunded reserves are the most common cause of special assessments.
A small contingency line covers surprises without blowing the budget.
Check actual spending against the monthly column during the year so there are no surprises at year end.
Frequently asked questions
What should be included in an HOA budget?
Income from assessments and other sources, every operating expense such as landscaping, utilities, insurance, and maintenance, and a contribution to the reserve fund for future repairs and replacements.
How much should an HOA keep in reserves?
A professional reserve study is the best guide. It lists each major component, its remaining life, and the yearly contribution needed to replace it on time.
Does this template work in Google Sheets?
Yes. Upload the .xlsx file to Google Drive and open it with Google Sheets. The formulas carry over.