JohnB97 (Pennsylvania)
Posts: 1
Posts: 1
Posted:
What if the residents fail to approve a budget because they think the rate increase is too high, even though the rate was calculated IAW the bylaws. Our documents are silent on this matter.
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Budget approval
Started by JohnB97 • 5 replies • 118 views
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ElleN (Idaho)
Posts: 1,333
Posts: 1,333
Posted:
Please quote verbatim everything the bylaws say about budget approval.
Is this a condominium?
Is this a condominium?
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Typically, if a new budget wasn't approved, the current budget remains in place and the Board has to make decisions on what services to cut, what maintenance to delay or, if needed, a special assessment.
However, laws vary by State and this is one reason why Elle asked if you are in a condominium or single family home (SFH) development.
However, laws vary by State and this is one reason why Elle asked if you are in a condominium or single family home (SFH) development.
DeanJ
Posts: 1,786
Posts: 1,786
Posted:
During a regular meeting the owners with quorum the owners rejected the budget and assessment increase. The board is probably stuck with it. The previous assessment and budget adopted is in effect. Some CC&Rs do not provide for the budget/assessment change after the beginning of the HOA”s budget year. If this is not the situation, a regular meeting, following an information process, could be called and if a quorum is present and the issue resubmitted to a vote. The board may be authorized to pass special assessments during the year for specific purposes without owner approval.
My question is does your declaration give the board the authority to adopt budgets/increases, within limits, without owner approval. If this is the situation, why was this matter on the agenda and before the owners? In Ohio, this vote would be void because absent a declaration provision to the contrary, the board has full authority to establish the budget and assessment under the Ohio Revised Code. I would discuss the issue with the HOA’s attorney.
My question is does your declaration give the board the authority to adopt budgets/increases, within limits, without owner approval. If this is the situation, why was this matter on the agenda and before the owners? In Ohio, this vote would be void because absent a declaration provision to the contrary, the board has full authority to establish the budget and assessment under the Ohio Revised Code. I would discuss the issue with the HOA’s attorney.
MichaelS56 (Minnesota)
Posts: 858
Posts: 858
Posted:
The owners in our association receive a draft of the proposed budget 30 days before the Annual Meeting. At the Annual Meeting the treasurer goes over the proposed budget and answers any questions. The draft budget is not voted on at the Annual Meeting but finalized at the next Board meeting, by a vote of the Board.
KellyM3 (North Carolina)
Posts: 2,239
Posts: 2,239
Posted:
Quote:
Posted By DeanJ on 01/18/2026 11:00 AM
During a regular meeting the owners with quorum the owners rejected the budget and assessment increase. The board is probably stuck with it. The previous assessment and budget adopted is in effect. Some CC&Rs do not provide for the budget/assessment change after the beginning of the HOA”s budget year. If this is not the situation, a regular meeting, following an information process, could be called and if a quorum is present and the issue resubmitted to a vote. The board may be authorized to pass special assessments during the year for specific purposes without owner approval.
My question is does your declaration give the board the authority to adopt budgets/increases, within limits, without owner approval. If this is the situation, why was this matter on the agenda and before the owners? In Ohio, this vote would be void because absent a declaration provision to the contrary, the board has full authority to establish the budget and assessment under the Ohio Revised Code. I would discuss the issue with the HOA’s attorney.
During a regular meeting the owners with quorum the owners rejected the budget and assessment increase. The board is probably stuck with it. The previous assessment and budget adopted is in effect. Some CC&Rs do not provide for the budget/assessment change after the beginning of the HOA”s budget year. If this is not the situation, a regular meeting, following an information process, could be called and if a quorum is present and the issue resubmitted to a vote. The board may be authorized to pass special assessments during the year for specific purposes without owner approval.
My question is does your declaration give the board the authority to adopt budgets/increases, within limits, without owner approval. If this is the situation, why was this matter on the agenda and before the owners? In Ohio, this vote would be void because absent a declaration provision to the contrary, the board has full authority to establish the budget and assessment under the Ohio Revised Code. I would discuss the issue with the HOA’s attorney.
Good advice. Our community does not vote 'up/down' on our operations budget but we must present that approved budget at the annual meeting. If enough owners of the entire ownership class - not just who's in the room at the annual meeting - step forward and reject the budget, it's dead. It takes a strong negative action to defeat a budget proposal, but only a majority of the HOA board of directors to pass the same budget.
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