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Lucy, Esq.
Lucy, Esq., Lawyer
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The Colorado Common Interest Ownership Act provides under 38-33.3-314

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The Colorado Common Interest Ownership Act provides under 38-33.3-314 that: ... any surplus funds of the association remaining after payment of or provision for common expenses and any prepayment of or provisions for reserves...

Question: We are operating under a cash rather that accrual accounting system. Can we retain surplus funds for approved but not accomplished
projects and programs rather than put the funds into our reserve account or distribute it to unit owners? The language in the CCIOA would seem to permit this.

We are a small HOA w/21 units and a budget of under $90,000.

Dr. Harold P. Danz

My name is XXXXX XXXXX I'd be happy to answer your questions today.

If the HOA has funds earlier in the year that are ear-marked for budgeted items that haven't happened yet (but will happen), that's not considered a surplus. The language that says "after paying of or provision for..." is the key language. The HOA can set money aside from common expenses to save up for larger, budgeted expenses or budgeted payments to the reserve.

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