What does a Homeowner Association operating budget look like?
A Homeowner Association’s operating budget is the projection of the amount of money needed by the association to cover its operating expenses and provide adequate reserves for the maintenance repair and replacement of the physical components of the property that they maintain. Most association documents require that they adopt an operating budget every year. In practice, this means that they revise their budget from the previous year to take into account changes in its financial position and cost structure. The governing documents describe the manner in which the budget is adopted each year. In most associations, the governing documents provide that the budget is adopted by the board rather than by a vote of the owners.
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