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Wednesday, October 27, 2021











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Subject: Budget
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Author Messages
NormaB3
(Florida)

Posts:22


10/02/2021 4:16 PM  
Our HOA is experiencing some major problems due a flooding of our clubhouse. We have been interviewing mold remedial companies and contractors for rebuild. The flood was catastrophic and rendered our clubhouse useless. We can no longer hold meetings in our clubhouse as it is unsafe for the members to enter. Our covenants require us to start our annual budget meetings in order to meet the 60 day advance notice to the members. Our covenants also state that due to circumstances, we can carry our current budget over to the new fiscal year.
Have any of the HOAs ever done this? If so how did you go about it and how did you notify the members of this?

Thank you

Norma
BenA2
(Texas)

Posts:1040


10/02/2021 4:25 PM  
If you carry over your current budget, wouldn't your board still have to meet to make that decision? It seems to me that your board is going to have to have an alternative location for a meeting regardless. I doubt the clubhouse being out of commission would be a suitable excuse for avoiding your open meeting rules.

SheliaH
(Indiana)

Posts:4239


10/02/2021 4:38 PM  
What Ben said. Start calling around to see if there's a community center, library, church, etc who's be willing to let you rent the place for a fee. At the appropriate time, tell the homeowners the day, time and location.

You could also consider a virtual meeting - I think these should be set up to allow people to participate by phone if they don't have internet access. There are also hybrid meetings where you can do both.

Just be sure to keep COVID precautions in mind - check with the local health department. At the very least, you may want to require masks if people aren't fully vaccinated and have someone check temperatures before entering.
NormaB3
(Florida)

Posts:22


10/03/2021 9:08 AM  
We do have an alternate space available on our property. Has anyone ever carried over the current budget to the next year? Our covenants state our fiscal year is in January.
Seems that requires us to follow the carried budget for another year.
JohnT38
(South Carolina)

Posts:768


10/03/2021 9:24 AM  
I would think that there will be additional expenses that insurance does not cover in regards to rebuilding your clubhouse. In addition, many costs have skyrocketed this year. Based on this, why would you want to carry over the existing budget instead of doing whatever is needed to plan an accurate budget that reflects these issues? At a bare minimum your monthly fees need to keep place with inflation. My suggestion is you find a place for the meeting.
KellyM3
(North Carolina)

Posts:1789


10/03/2021 5:27 PM  
The short answer is "Yes." You can call a board meeting and pass your 2022 budget at the same levels as 2021. That your clubhouse is flooded shouldn't stall your normal meeting procedures.

LetA
(Nevada)

Posts:1429


10/03/2021 5:42 PM  
Posted By NormaB3 on 10/03/2021 9:08 AM
We do have an alternate space available on our property. Has anyone ever carried over the current budget to the next year? Our covenants state our fiscal year is in January.
Seems that requires us to follow the carried budget for another year.



Why do you want to kick the can down the road? You mention flood damage to the clubhouse and no mention if you are in a financially sound situation? Is your insurance covering your food damage or do you have to tap into your reserves or operating expenses?

If you are 100% solid financially, then by all means cary over your budget to the next year, if not you need to hammer out the details ASAP.
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