Question:
Our dues were raised $30.00. With the preface that we were buying insurance for the board members and putting 5 % into the reserve fund. New president and new treasure brought the new budget to the table. They are no longer putting the 5% in reserve funds and spending every last penny in the reserve fund that we currently have plus and additional $600.00.
Is it legal to tell the homeowners this plan and then not abide by it?
– Kimberly
Answer:
Hi Kimberly,
The HOA board should ideally follow the budget. However, there can be situations where the board may need to make necessary adjustments or modifications to the budget, depending on the community’s needs. It is important for the board to communicate any changes or deviations from the budget to the homeowners and provide a valid explanation for the same. Ultimately, the board has a fiduciary duty to act in the best interest of the community and ensure that the budget is being managed responsibly.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
