Budgets are no easy task. For condo or homeowners associations, budgets can and should require considerable work and time to prepare this in-depth fiscal plan for the coming year. But once your budget has been prepared, be certain that you are following the correct Florida Statutes for budget approval.
To prevent your condo association board meetings from turning into the next Game of Thrones, we have 4 simple and easy to follow guidelines for approving the budget.
1. BOD Approves the Budget.
Owners do not typically have the power to approve the budget. However, unit owners are allowed to attend and speak at budget approval meetings.
2. There Must be a Budget Meeting
Bring some cookies and coffee. Or you could just make it an event and have everyone sign up for a potluck. Whatever format you choose, there MUST be an official budget meeting.
3. 14 Day Notice to all Owners
The BOD must notify all unit owners 14 days prior to the proposed meeting. This notice can be delivered by hand, through mail, or e-mail.
4. Notice Must Include: Budget & Reserve Schedule
“The proposed annual budget of estimated revenues and expenses must be detailed and must show the amounts budgeted by accounts and expense classifications.” Straight from the horse’s mouth.
And there you have it. We always strive to provide resources to our clients and community. Do you have further questions about budget approval or anything else related to condo or HOA law? You can always reach out.
If you just love reading government documents you can dive deeper into budget approval with some light reading of Florida Statutes 718.112(2)(e)-(2)(f), 720.303(6). If you’d rather just get the synopsis, feel free to contact us to schedule a coffee.