Cutting Quorm to 10% for budget approval

The wrangling in the Indiana General Assembly continues. It appears that HB 1071 is now the vehicle for new homeowners association controls, supplanting HB 1088.

One (of three) major items in the bill requires that the annual budget be approved by a vote of members.

The legally mandated quorum for budget approval is established at 15 percent for a first meeting and 10 percent for a subsequent meeting.

(d) Subject to subsection (e), a homeowners association budget must be approved at a meeting of the homeowners association members at which at least fifteen percent (15%) of the members of the homeowners association are in attendance.
(e) If at least fifteen percent (15%) of the members of the homeowners association do not attend a meeting held under subsection (d), the homeowners association budget may be approved at a second or subsequent meeting of the homeowners association members held under this section if at least ten percent (10%) of the members of the homeowners association are in attendance.

The second major item in the bill deals with enforcement of liens, requiring that before a lien can be recorded, a judgment must be secured from a court of jurisdiction, and that it can't be filed within a year of the default. (This is clearly a compromise position--some lobbying has gone on here.)

The third major item is the requirement that owners must approve any loan of $5,000 or more.

The text of the bill is located here: http://www.in.gov/legislative/bills/2009/HB/HB1071.1.html

And there is a amending motion filed this morning at 6:38 am by the bill's author at http://www.in.gov/legislative/bills/2009/HAMF/MO107101.001.html

I think giving Membership veto power over budgets is a poor idea, whatever the quorum requirements. What happens if 15% show up and nix the budget?

I agree with Michele, John and Donna. The BOD is there to handle these type duties and have all the necessary info at their fingertips. Members, generally are only concerned with their pocketbooks and most feel an increase in assessments is NEVER warranted! I cannot think of any good, sound reason for the members to ratify the budget.

In increase of assessments in my HOA is determined by the board and not the members as long as they follow our covenants. Ours state an increase can be up to 5% except if more funds are needed for landscaping. Our budget is also approved by the board. We do, however, present the proposed budget to owners for their input. Very few owners were intrested enough to show up at the meeting where the budget was voted on.