StephenC1 (Florida)
Posts: 11
Posts: 11
Posted:
From your experience I was wondering what your interpretation is of the comment below. Especially what is meant by (if such opening does not coincide with the fiscal budget year). I would appreciate your thoughts.
To the extent that these assessments are insufficient to cover the budgeted or actual expenses relative to the operation, management or maintenance of the club area facilities during the initial partial year of operations if such opening does not coincide with the fiscal budget year), MFS shall pay any deficit incurred during this period.
More info below:
MFS is the builder that's finishing building a started club house when the initial builder went under.
Lets say the club house is being completed in three phases and after each phase is completed the assessments would be $21 a month for Phase 1, $47 a month for Phases 1 & 2 and $75 a
month for Phases 1 & 2 & 3.
All these phases are not completed at the same time or date. Phase 1 was completed Oct 1, 2011 and Phase 2 was completed Mar 15, 2012. Phase 3 is not completed yet and the est completion date is by the end of this year.
The HOA budget was prepared in Oct 2011 for Facial year budget 2012. So when the budget was done the only phase completed at that time was phase 1. How do you complete the 2012 budget with the above facts. Would you just budget for Phase 1 in Oct 2011 for the Facial year 2012 budget, since the other 2 phases weren't completed yet?
Would you start charging for phase 2 with phase 1 when it is done in March 15th 2012 and recast a new budget or wait until the next budget is completed for 2013 is done in Oct 2012 to start charging for phases 1 & 2. And the difference would be paid by deficit funding by MFS builder.
Should the budget for 2012 just include Phase 1 and MFS pay the for phase 2 by deficit funding for the rest of 2012.
Thanks,
Stephen