As I previously blogged on May 17, 2018, as of July 1, 2018 homeowners in pre-CCIOA communities are now permitted to veto proposed association budgets. So, what does this mean specifically?
Previously, only associations subject to CCIOA were subject to the following relating to annual budgets:
- Within 90 days after adopting a proposed budget, the board is required to deliver by U.S. mail a summary of the budget to all owners in a community and further schedule a meeting of the unit owners to consider the budget.
- At the owner meeting to consider the budget, a majority of all owners (or larger percentage required in the Declaration) can vote to veto the budget regardless of whether there is a quorum of members present. If a veto does not occur, the proposed budget is deemed approved.
Currently, the requirements above apply to both CCIOA and pre-CCIOA communities. In addition, regardless of the date of formation of a community, a copy of the proposed budget can now be posted to the association’s website in lieu of mailing (but notice of the meeting must be sent to the owners as specified in the Bylaws).