HOA Budgets: What They Mean for Your Community — and Why It Matters During Budget Season
As fall approaches, many homeowners may start noticing more activity from their community management team — budget season is underway. But while it’s an essential time of year for HOA Board members and community managers, most residents in Parkway Lakes might not be aware of the behind-the-scenes work happening on their behalf.
“The HOA’s annual budget sets the tone for the year ahead,” said Chase Hague, attorney at Houston-based HOA law firm Barsalou & Associates, PLLC. “Boards approach the process thoughtfully, weighing the association’s financial realities and long-term needs to help put the community on its best footing.”
What Is an HOA Budget?
Simply put, an HOA budget is a detailed financial plan for how a homeowners association will manage community operations in the coming year. It includes projected income — mostly in the form of homeowner assessments — and planned expenses such as landscaping, amenity upkeep, utility bills, insurance, legal fees, and vendor contracts. Importantly, it also includes contributions to the association’s reserves, which are funds set aside for major repairs and capital improvement projects down the road.
A sound HOA budget is about more than just balancing the books — it’s a tool for promoting financial health, safeguarding property values, and preserving trust between the Board and homeowners.
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What Happens During Budget Season?
Each year, your Board and community management team — including the community manager, accountants, reserve study consultants, and legal advisors — work together to build a budget that reflects the needs and realities of the community.
The process typically includes:
- Reviewing past expenses and upcoming needs
- Projecting revenue (dues and other income)
- Prioritizing community maintenance and improvements
- Allocating reserve contributions
- Adjusting for inflation and contingencies
- Ensuring legal compliance with Texas Property Code and governing documents
In Texas, HOA budgets must be adopted during an open Board meeting where homeowners are welcome. If a budget needs to be amended later, that decision also must occur in an open meeting. Homeowners can generally request a copy of the adopted budget through a records request or via the guidelines outlined in the governing documents.
Why It Matters to You as a Homeowner
If you live in an HOA-managed neighborhood, your dues directly fund this budget. That means every dollar should be used thoughtfully — to maintain curb appeal, protect common areas, fund long-term repairs, and promote the overall health of the neighborhood.
When the budget is well-prepared, it helps prevent surprise expenses or special assessments. It also enables your Board and management team to plan ahead for aging infrastructure, rising costs, or unexpected repairs.
This is one reason community managers and Board members take budgeting so seriously. It’s about making decisions that benefit the entire community — not just for this year, but for many years to come.
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A Legal Lens on Budgeting
With over 30 years of experience advising associations throughout Greater Houston, Barsalou & Associates provides legal support to help communities stay compliant and responsible during the budgeting process.
“The Board is legally obligated to act in the best interest of the Association, and a carefully crafted budget is one of the key ways they do that,” Hague noted. “It’s not just about the numbers — it’s about managing the community with fairness and foresight.”
Community Involvement Encouraged
Budget season isn’t just for Board members and managers — homeowners are encouraged to stay engaged, attend meetings, ask questions, and review the final budget. Transparency strengthens trust and helps everyone understand how shared resources are being invested.
To learn more about HOA budgeting, visit barsalou.com.
For more community-focused HOA tips and resources for Parkway Lakes, stay tuned to My Neighborhood News.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
