POA Budget

CharlesZ (Florida)
Posts: 14

Posted:

Do homeowners have any rights when it comes to a POA budget or does the Board control all budget related decisions.

DouglasK1 (Florida)
Posts: 2,045

Posted:

The primary authority for that info would be the governing documents for your association. Generally the CCRs and possibly bylaws will spell out the duties and responsibilities of the board. In most cases the board is given broad power to manage the association's affairs, and the member's main role is to elect directors that they feel will best carry out those duties. Depending on the governing documents, the members may have to approve one or more of: the annual budget, the annual assessment (dues), increases to the annual assessment over a certain percentage threshold, improvements (not just maintenance/repair/replacement), and special assessments. State law might also have some requirements but I don't recall anything offhand from FS718 or FS720 that would affect this.

Here is snippet from my last association's CCRs about board duties/responsibilities:

The Board of Directors of the Association shall approve annual budgets in advance for each fiscal year and the budget shall project anticipated income and estimated expenses in sufficient detail to show separate estimates for operating expenses, maintenance expenses, repairs, replacement reserve and reasonable operating reserve for the common property, in addition to reasonable reserves for the continued maintenance and operation of any other items deemed necessary for the protection of all property owners. There shall be a reserve for periodic major maintenance to the streets and drainage system, including ponds,

with minimum level of reserves to be maintained in perpetuity and replenished from time to time, as necessary, by assessment, and such minimum level of reserves shall be in an amount approved by the County. These funds shall be held in a separate account apart from all other Association funds. These funds shall be reported to the County by submission of an annual audit or County-approved financial report. Each owner shall be liable for the payment to the Association of its share of the common expenses as determined in said budget.

Escaped former treasurer and director of a self managed association.