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Condo vs. HOA Budget Procedures Explained

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Q: How much notice to the members is required when the board is adopting the annual budget? (B.R., via e-mail)

A: For a condominium association, budget meetings must be noticed at least 14 days in advance for the benefit of the members. Notice is to be posted on the condominium or association property, and also mailed, hand delivered, or electronically transmitted (to those unit owners who consented in writing to receive electronic notice) to each owner, along with a copy of the proposed budget.

For associations managing a condominium with 150 or more units, the notice of the budget meeting and the proposed budget must also be posted on the association’s website or be made available through an application (app) that can be downloaded on a mobile device. Effective July 1, 2021, the board must also adopt the annual budget at least 14 days prior to the start of the condominium association’s fiscal year.

By comparison, homeowners’ associations are required to post notice of the board meeting at which the annual budget will be considered at least 48 hours in advance. There is no requirement for homeowners’ associations to send the members the proposed budget in advance of the budget meeting, but homeowners’ associations are required to provide each member with a copy of the annual budget, or a written notice that a copy of the annual budget is available upon request at no charge, within 10 business days of the board adopting the annual budget.

The governing documents for both condominium and homeowners’ associations may impose stricter requirements than the minimum standards of state law.

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