💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

TristaJ (Texas)
Posts: 96
Posted:
Hello,

Texas Trista again . HOA run under TPC 209. This post is about TPC 209.0051.

Our budget meeting is supposed to be tomorrow.

Just got this e-mail from our PM:

"BOD,

Please find attached packet for tomorrow’s meeting. This is the last opportunity to approve the budget so if the board does not want the 9% increase please advise so we can have a budget ready for approval tomorrow."

So I replied "I thought we were not to vote on budget stuff outside of an open meeting?"

PM response: "It should be under old business on page 10-11 of the attached."

I had asked our association attorney last week about the budget meeting and his response below.

"Good morning,

No, the Association’s board cannot meet to determine a budget outside an open board meeting. The Association’s board cannot consider or vote on increasing assessments, and cannot consider or vote on approving or amending an annual budget, except in an open and properly-noticed board meeting."

So I am confused why our PM is asking about approval before the meeting? What am I getting wrong? The way I read it, we're not allowed to discuss the budget outside of an open meeting.
MichaelT21 (Arkansas)
Posts: 462
Posted:
I won't speak about Texas.

In general though, it sounds like he wants an e-mail concurrence that you guys like the budget, so what gets presented at the meeting will be approved.

While in my HOA (not Texas) we make decisions at meetings, we occasionally discuss things prior to the meeting if work needs to be done. Our Board meetings are not places to work on documents, only to approve them. For example, we circulate meeting minutes in advance and make requests for changes, so the ones shown at the meeting are the ones that we approve. A budget seems similiar.

Again, not talking about texas law here. Just in general.
AugustinD
Posts: 1,027
Posted:
TPC 209.0051 says to me that the vote for approval must occur at an open board meeting. If this vote will in fact take place at an open board meeting, then I would drop this.

To help assuage your concerns: Recognize that a board majority could still choose not to approve the budget at the open board meeting. This of course is as it should be.

Recognize that getting together the numbers for the budget is not a small chore.

So far from the facts presented, I would cut the MC (management company) some slack here.

I am more curious about whether the board's policy is to let an individual director contact the HOA attorney any time a director feels like it. You want the board to follow the rules. Are you? Just checking in on the point.
KerryL1 (California)
Posts: 14,550
Posted:
I may be wrong, Trista, but it looks to me like in your board packet for tomorrow under Unfinished Biz is an agenda item for budget approval. Since it's Unfinished Biz, it was discussed at a previous board meeting. It appears that the Board approved a tentative 9% increase, by modifying the draft budget they had for review in that board packet.

The PM wants directors' feedback before tomorrow's meeting to see if a majority of the Board wants to still consider the 9% increase. Let's say a majority wants an 8% increase. The PM would need to run the numbers on that to present to the Board for its approval at tomorrow's meeting.

Isn't tomorrow's meeting an open meeting of the board per TX statute?

With Aug, how is it you can have personal contact with the HOA attorney?

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here