Short answer
Yes, but the bar is high. Owners holding at least 51 percent of all allocated voting interests must vote to veto the reserve line item at a special meeting they call, within 45 days after the board adopts the budget. If they succeed, the last reserve line item that was not vetoed applies.
Every Utah HOA and condominium budget has to carry a line for reserves. The board sets the amount. But Utah gives owners a check on that number, and boards are sometimes surprised to learn how it works. Here is the mechanism, step by step, as the statute sets it out.
Where the reserve line item comes from
Under Utah Code 57-8a-211(6), each annual budget must include a reserve fund line item. The amount is either what the board considers prudent in light of the reserve analysis, or a larger amount if the governing documents require one. The condominium statute, 57-8-7.5, says the same thing for management committees.
That is why the analysis matters so much. A board that sets the line item with a current analysis in hand can explain exactly where the figure came from. A board without one is guessing, and guesses are easier for owners to challenge.
The veto, in four conditions
Subsection (7) lets owners veto the reserve line item. All four of these have to be true:
- Timing. The vote takes place within 45 days after the association adopts its annual budget.
- Threshold. At least 51 percent of the allocated voting interests in the association vote to veto. That is a majority of all votes in the community, not a majority of those who turn up.
- Meeting. The vote is taken at a special meeting.
- Who calls it. The lot owners (or unit owners, for a condominium) call that special meeting for the purpose of voting on the veto.
In a 120-home HOA where each lot has one vote, that means at least 62 owners voting yes. Proxies and absentee ballots count only as the governing documents and Utah’s meeting rules allow, so check how your bylaws handle them before counting.
What happens if the veto passes
The reserve line item does not drop to zero. Subsection (7)(b) says that if a previously approved budget contained a reserve line item that was not vetoed, the association funds reserves at that earlier amount instead. In practice, a successful veto usually rolls the contribution back to last year’s figure.
That design limits the damage. Owners can stop an increase they object to, but they cannot use the veto to stop funding reserves altogether if the association has funded them before.
A second, separate vote on the whole budget
The reserve veto is not the only owner check. Utah Code 57-8a-215 requires an HOA board to adopt a budget at least once a year and present it at a meeting of the members. Owners can then disapprove the entire budget, by the same 51 percent of allocated voting interests, at a special meeting they call within 45 days after the meeting where the budget was presented. If they do, the last budget that was not disapproved stays in force until the board adopts a new one.
For condominiums, SB 122 of the 2026 general session added a matching budget section, 57-8-7.6, so condo owners now have the same budget disapproval route. Notice that the two 45-day clocks start at slightly different moments: the reserve veto runs from budget adoption, the budget disapproval from the presentation meeting. If the board adopts and presents at the same meeting, they line up.
Why vetoes are rare
The 51 percent threshold is the reason. In most associations, fewer than half of owners attend even the annual meeting, so organizing a special meeting and turning out a majority of every vote in the community is hard. That does not make the veto irrelevant. It shapes how a board should behave:
- Show the work. Owners who can see the component list, the remaining lives and the cost estimates are much less likely to organize against the number.
- Explain the trade-off. If the line item rises, say what happens if it does not: which projects become special assessments, and roughly how large.
- Use the yearly summary. Utah requires the association to give owners a summary of the most recent analysis every year. A clear one-page summary handed out with the budget answers most questions before they become a petition.
What owners should know before trying
If you are an owner who thinks the reserve contribution is too high, start by asking for the complete reserve analysis. The association must give a copy to any owner who requests it. Read the component list and the funding plan. You may find the number is driven by a roof or road replacement that really is coming.
If you still disagree, the statute gives you the route above. Keep in mind that a lower contribution now usually means a larger special assessment later, and that underfunded reserves can show up in a lender’s questionnaire when a neighbor tries to sell.
What boards should do if a veto is coming
Get the analyst in front of owners. Most firms will present their findings at a board or owner meeting, sometimes for a modest fee. Hearing a professional explain why the asphalt has four years left is more persuasive than hearing it from a neighbor on the board.
And keep records. If the veto passes, minute it, fund reserves at the prior line item as the statute requires, and note the effect in next year’s summary. If the association fails to follow subsections (5) through (7), owners can enforce them in court after giving 90 days’ written notice, so the process matters as much as the number.
None of this is legal advice. For how your own declaration and bylaws interact with the statute, ask the association’s attorney.