As 2011 nears, many boards and managers find themselves in the midst of budget season. If your community was created after July 1, 1992, it is subject to the budget process laid out in CCIOA. Although this process sets forth lots of requirements, it also creates latitude for associations whose documents set forth more stringent standards.
Below is a checklist for your board to use to ensure the association is complying with the CCIOA budget requirements or other requirements set forth in the governing documents.
Budget Creation and Board Adoption
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- Board approved new budget
- Within 90 days of board approval, summary of budget (or budget itself) was mailed to owners
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- Mailing must be by ordinary first-class mail
- May also be “otherwise delivered” according to CCIOA
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- Within 90 days of board approval, a meeting date is set for budget ratification
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- Meeting must occur within a “reasonable time” after mailing or delivery
- Notice of meeting must be sent out to all owners in accordance with requirements in governing documents
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Ratification Meeting of Owners
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- Quorum is not required (unless declaration requires otherwise)
- Owner approval is not required (unless declaration requires affirmative approval of a certain percentage of owners, in which case such approval must be obtained)
- Budget deemed approved absent a veto from a majority of all owners (or larger percentage that may be specified in the declaration)
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After the Meeting
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- If budget was ratified (or approved as otherwise required in the declaration), new budget may take affect
- If budget was vetoed (or failed to obtain approval as required by the declaration), the last ratified (or approved) budget must be continued until a new budget is proposed by the board and not vetoed (or approved) by the membership
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