Understanding HOA Budget Meetings

Part of the reason I went into HOA law was my need for rhythm and music in my everyday life. The law is very structured, and I love the rules (and dishing them out to anyone who crosses me). Like a song writer, my job is to fit some statutorily required things into a few specific measures. It’s like having a song stick in your head and you can’t seem to shake it, even when you’re trying to sing something new. It’s not just the rules that I crave, but the creativity that you can have within each measure (or revision). Finding different flows to create the same rule, like writing 12 verses to dream on a little dreamer, and then throwing them all together at the end for an epic, philosophical ending. Just keeping it moving, mainstream and current.

For example, did you know that the Florida legislature has a special way – a measure if you will – to handle HOA budget meetings? Yes, many HOA’s are required to notice their members that they will be considering the annual budget (or various special assessments) before members have a chance to weigh in on it/kick the idea to the curb. Some folks like to call this part the pre-meeting. The beauty of the pre-meeting is that it gives time for a conversation between board members and owners about what the priorities are for the each year’s budgetary needs. While you’re packing the coolers with caviar, Cristal, and Penne a la Vodka, take a pause and think about what you’d like to add to the 2012 HOA budget. For the entire year leading up to this important meeting, write down the things you see as issues, because, as a member of this private, but very exclusive, club (that we all call home), you’re permitted to participate in this important part of your community’s future.

Here’s where the musical part comes in. The pre-meeting budget notice must tell local associations when a budget meeting will take place (generally 14 days from the date of notice, unless otherwise specified), and tell you about the proposed budget. Preparing a budget is like writing a song, the easy part is the first draft. The hard part is having it played right so the neighbors don’t realize you can’t sing worth a dime. To avoid this, Associations often (and should) schedule a budget meeting that will allow interested parties to discuss the upcoming budget. Many interesting songs have resulted from strange meetings. Here’s one from Prince. Now, if only community members could appreciate the music, but, alas they have no rhythm.

So, when you received the notice of this meeting, what did you do with your first draft of what the community should spend money on? Did you make notes in the margin? Put it in the back of a PCP pipe and smoke it? File it away in the “good intentions drawer” for spare moments of contemplation? Or just nod your head and change the station? The point of this story is that the budget meeting is a unique time for members of the community to review a budget, discuss ideas and give feedback to the Board of Directors about how the money they are (maybe) going to spend is allocated amid the many needs of the community. So, when the budget meeting notice arrives, sing like no one is listening and enjoy the moment while you take the time to reflect on the budget and have your say. Just don’t be all bad and give the Board the finger if they don’t take your advice.

(PS: Old song…sorry for the unintended plagiarism. Here’s where I found the link for the original song. Enjoy!) So, when the requirements for Florida HOA budget meetings were sent out by the Florida Association of Community Association Managers, did you sing like no one was listening? Or did you mumble off key to “forgotten rule #33-13(b) that requires associations to send out the budget meeting notice? Now, don’t fret the mistakes I made above, I’ve got the revised budget pages below the fold.