budget

Started by BobbiW • 4 replies • 1409 views

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BobbiW (Idaho)
Posts: 9

Posted:

this is my second post. it is about the dues we are paying. in the governing document titled articles of incorporation or declaration (not sure the exact title) it states that annual dues are based on a budget presented by the board. we have never seen a budget. when i inquired last week i was told that they didn't think we needed one so they were not going to provide it. i feel i am now in position to refuse to pay dues to these people until i see a budget. am i correct?

JanetB2 (Colorado)
Posts: 4,219

Posted:

Dues are kind of like taxes ... if you stop paying you can incur legal fees and possible lien against your property depending on your state statutes and governing documents.

As a member of the HOA you are allowed to view most any HOA documents except a few in order to protect certain individual federal/state rights protected by law.

JanetB2 (Colorado)
Posts: 4,219

Posted:

If you documents state they are to do a budget then your Board cannot just arbitrarily decide not to as that could lead to a breach of fiduciary duty. The board must follow the By-Laws and CCR's or can be held liable.

GlenL (Ohio)
Posts: 5,491

Posted:

Quote:

Posted By BobbiW on 01/26/2011 1:46 PM
this is my second post. it is about the dues we are paying. in the governing document titled articles of incorporation or declaration (not sure the exact title) it states that annual dues are based on a budget presented by the board. we have never seen a budget. when i inquired last week i was told that they didn't think we needed one so they were not going to provide it. i feel i am now in position to refuse to pay dues to these people until i see a budget. am i correct?

No absolutely not, withholding payment can lead to fines, liens and foreclosure; it literally can cost you your home. If the developer is still in charge of the HOA this could be the cause of withholding the information. If the homeowners are in charge there is no excuse for withholding the information and IMO should be replaced immediately if not sooner.

Studies show that 5 out of 4 people have problems with fractions

SusanW1 (Michigan)
Posts: 5,202

Posted:

Bobby - study your bylaws. It should state the "Duties of the Board.'

Sometimes under "Treasurer's duties" it will state that the treasurer should develop a budget, to be approved by either the board or the Members.

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