Homeowners in Castle Rock's Latigo neighborhood are eagerly awaiting a decision on the Homeowner's Association (HOA) board's latest budget proposal. The proposal came after residents vetoed a previous budget that would have led to a significant increase in monthly HOA dues.

At a meeting held on Saturday, homeowners expressed their concerns and posed critical questions regarding the new budget proposal. Many residents questioned the reasons behind the budget changes and sought clarification on insurance coverage and potential ramifications if the HOA were to default on its policy.

Tomaz Romero, a long-time resident of Latigo, expressed his dissatisfaction with the escalating HOA fees. Previously, monthly dues were $85, but the new proposal suggests an increase to $820—an almost 600% surge. Romero emphasized that the sudden hike was difficult to digest for homeowners.

The spike in HOA fees was primarily attributed to a substantial increase in the community's insurance premium. According to the HOA's broker, recent devastating wildfires have adversely affected the reinsurance market, resulting in the higher cost. This factor significantly impacted the decision-making process for the new budget.

During the meeting, homeowners voted on the proposed solution: a $2,500 special assessment to be paid at the beginning of the year 2024. This additional fee would be paid in five monthly installments, alongside the continued $300 monthly payments.

Sibyl Swope, another homeowner in Latigo, explained that for the first five months, residents would still need to pay the increased amount of $820 as outlined in the original budget. However, this measure was suggested only as a temporary solution until March. Swope emphasized the necessity of paying their bills promptly.

The outcome of the vote remains uncertain due to several proxy votes that need to be counted. If the proposal is vetoed, the monthly payments will revert to $300 unless a new budget is agreed upon. In the worst-case scenario, the HOA might default on the new insurance policy.

In addition to concerns about the budget proposal, homeowners have also raised questions regarding their insurance coverage. They have questioned whether they are fully covered or if there has been double payment for their coverage. This has led some residents to speculate about the need for potential amendments to the HOA bylaws.

Despite the meeting, many homeowners left with a sense of confusion and frustration, with more questions unanswered. Romero expressed his determination to address the issues, referring to the situation as a "big mess" that requires further discussions and resolutions.

The rising cost of insurance is not exclusive to the Latigo neighborhood. Following the initial reports, CBS News Colorado discovered that communities across the state are grappling with similar challenges. On Monday, a deeper analysis will uncover what insurance brokers call a "perfect storm" in the industry and delve into its implications for homeowners in Colorado.