Florida - Passing a new budget after annual meeting

Started by SP7 • 5 replies • 103 views

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SP7 (Florida)
Posts: 3

Posted:

Hi all,

Searched the forum but couldn't find specifics about my question.

I'm in Florida and I've been looking at the FL statutes because our community had an election in September 2024 but there was no Annual Budget done prior to the end of 2024. Now they are trying to pass one and the verbiage isn't exactly clear from what I've read if they are allowed to pass one after the fact in the middle of the year.

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0718/Sections/0718.112.html

(f) Annual Budget

"The board shall adopt the annual budget at least 14 days before the start of the association’s fiscal year. In the event that the board fails to timely adopt the annual budget a second time, it is deemed a minor violation and the prior year’s budget shall continue in effect until a new budget is adopted." The second time part is not exactly clear as to whether there is a time limit or not.

Management company told me the Annual and Budget meetings are two separate things and that the board can pass a budget after the fact.

I know that is not normal procedure but is that allowed? I've looked online a bunch but haven't found anything definitive.

Thanks.

ElleN (Idaho)
Posts: 1,334

Posted:

I think the key phrase from the statute is "until a new budget is adopted."

Serious question: Would you rather there be no budget?

Or do you have some other concern?

Remember that a budget is only guide. A board should attempt to stay within the budget's various line items. But a Board certainly does not have to rigidly adhere to the budget. The latter would just not be practical or realistic.

Respectfully, boards consistent of unpaid and often unskilled volunteers. Unusual situations like this do arise. A condo attorney I know once advised one of my boards: Try to be reasonable and fair. She was a co-author of the state's condominium statute, now decades old. I think she meant 'try to be reasonable and fair' especially when instances like yours arise.

SP7 (Florida)
Posts: 3

Posted:

Quote:

Posted By ElleN on 03/07/2025 2:36 PM
I think the key phrase from the statute is "until a new budget is adopted."

Serious question: Would you rather there be no budget?

Or do you have some other concern?

Remember that a budget is only guide. A board should attempt to stay within the budget's various line items. But a Board certainly does not have to rigidly adhere to the budget. The latter would just not be practical or realistic.

Respectfully, boards consistent of unpaid and often unskilled volunteers. Unusual situations like this do arise. A condo attorney I know once advised one of my boards: Try to be reasonable and fair. She was a co-author of the state's condominium statute, now decades old. I think she meant 'try to be reasonable and fair' especially when instances like yours arise.

The same budget rolls over if a new one is not adopted. I'm not asking about that. I want to know if a board in Florida is allowed to pass a budget when the new year has already started after the annual election was made, like 6 months after. That is not the norm, that's why I want to know.

KerryL1 (California)
Posts: 14,550

Posted:

We can imagine that some sort of emergency could occur mid-year, which would require a Board to add $$ to assessments to pay for handling it. This decision would need to be to be made at an open board meeting and carefully documented in the meeting minutes.

Or, a Board might very tardily figure out the Association's financial needs for 2025 and create an accurate budget. In that case, too, it must make this decision at an open meeting and record it in the meeting minutes.

It might matter per statute whether you're condos or SFRs

OH, Are you saying that owners will vote on the Board's proposed budget for the remainder of '25??

I'd review your own governing documents on this. First, your bylaws might say if the Budget must be passed at the Annual Meeting. Or your covenants might say by whom and how a budget is made.

( In Calif., yes, boards can revise annual budgets.)

LoriM15 (Florida)
Posts: 1,009

Posted:

There is no requirement in FS 718 that the budget must be adopted at the annual member's meeting. In fact, most annual meetings are held in January - March (after the beginning of the fiscal year).

Do your bylaws state that the membership must vote on the budget? Must don't and that's not required by the statute.

It is common practice to have a budget meeting in the fall where the board approves the budget. Florida Statute 718.112(2)(e) requires that unit owners in condominium associations receive at least 14 days' notice of a budget meeting. The notice must include a copy of the proposed budget. The board then votes on that budget and approved budget would be mailed to owners.

The reason they approve the budget in the fall is to give property management companies (or if self-managed, the board) time to get coupons or notices sent out and to set up systems for the new amount.

DeanJ
Posts: 1,786

Posted:

I suppose in a worse case scenario the board could just change the fiscal year unless it’s is provided in the declaration.

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