The budget season is well upon us and the much anticipated (insert sarcasm) budget and annual meetings around the corner. I have received several questions about the budget ratification process for pre-CCIOA communities and hopefully this post will make the process easier to comprehend.
In a nutshell, both pre and post CCIOA communities follow the same procedure with regards to ratifying proposed annual budgets. The budget process is as follows:
a) A proposed budget is prepared and adopted by the board of directors;
b) A date is selected for a meeting of the owners to consider the budget;
c) Within 90 days of adoption of the budget, a copy is mailed to all owners
in the community;
d) At the meeting of the owners to consider the budget, the budget is
approved unless vetoed by a majority of all unit owners in the community
(unless there is a higher percentage required in the Declaration). No
quorum is necessary at the meeting for purposes of vetoing the budget.
Some other items that the Association should consider for purposes of the budget are:
• Does the proposed budget require approval of the members per a specific requirement in the governing documents?
• Do the Bylaws require that notice of the budget meeting be sent in a different manner (i.e. by e-mail also, etc.) or have other requirements as to the owner budget meeting?
• Does the Declaration require more than a majority of the owners to veto the proposed budget?
As always, The Dupont Law Firm is here to answer any additional questions that your association may have relating to the budget process.