§ 11B-112.2. Annual budget

   (a) Applicability. -- This section applies only to a homeowners association that has responsibility under its declaration for maintaining and repairing common areas.

(b) Preparation and submission. --

   (1) The board of directors or other governing body of a homeowners association shall cause to be prepared and submitted to the lot owners an annual proposed budget at least 30 days before its adoption.

   (2) The annual proposed budget may be sent to each lot owner by electronic transmission, by posting on the homeowners association's home page, or by including the annual proposed budget in the homeowners association's newsletter.

(c) Items required to be included. -- The annual budget shall provide information on or expenditures for at least the following items:

   (1) Income;

   (2) Administration;

   (3) Maintenance;

   (4) Utilities;

   (5) General expenses;

   (6) Reserves; and

   (7) Capital expenses.

(d) Adoption at open meeting; notice. --

   (1) The budget shall be adopted at an open meeting of the homeowners association or any other body to which the homeowners association delegates responsibilities for preparing and adopting the budget.

   (2) (i) Notice of the meeting at which the proposed budget will be considered shall be sent to each lot owner.

      (ii) Notice under subparagraph (i) of this paragraph may be sent by electronic transmission, by posting on the homeowners association's home page, or by including the notice in the homeowners association's newsletter.

(e) Certain expenditures in excess of 15% of budgeted amount to be approved by amendment. -- Except for an expenditure made by the homeowners association because of a condition that, if not corrected, could reasonably result in a threat to the health or safety of the lot owners or a significant risk of damage to the development, any expenditure that would result in an increase in an amount of assessments for the current fiscal year of the homeowners association in excess of 15% of the budgeted amount previously adopted shall be approved by an amendment to the budget adopted at a special meeting for which not less than 10 days written notice shall be provided to the lot owners.

(f) Authority of homeowners association to obligate itself for certain expenditures unimpaired. -- The adoption of a budget does not impair the authority of the homeowners association to obligate the homeowners association for expenditures for any purpose consistent with any provision of this title.

HISTORY: 2010, chs. 294, 295.