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"Steve Cerruti" <steve_cerruti@yahoo.com> wrote in message
news:1135287281.956671.32410@o13g2000cwo.googlegroups.com...
>
> Rick wrote:
> No, that isn't what I'm saying. I'm saying that HOAs should follow
> the law and create a budget and determine what the assessments should
> be for the coming fiscal year. If they want to delay an increase of the
> assessment until the calendar year I've no problem with that, but
> they better have a budget and an assessment strategy in place at the
> beginning of the fiscal year.
>
> What possible reason could a board have for increasing assessments
> during the middle of a fiscal year. The only reasons I can think of is
> that they either a) failed to budget properly or b) had unforeseen
> costs. In either case the board is required to go to the membership for
> permission to increase assessments. This provides protection for those
> living on a fixed income from random increases in the assessments at
> the whim of the board.
I agree with all that.
> . It should
>> > immediately trigger a full audit of the association books to determine
>> > why the board has failed to create a budget that works, to determine if
>> > the assessment is necessary and to ensure that no hanky-panky is going
>> > on.
>>
>> I do not see any evidence of any of this.
>
> Did you do an audit? An audit is to ensure there is no hanky-panky it
> does not imply that there is some. You do an audit when there is
> evidence that there are mistakes being made by the board, failure to
> produce a budget and an out of season assessment increase are obviously
> mistakes. Could the board be making other mistakes like overpaying
> contractors, failing to pay other bills or filing taxes or legal
> documents timely? How do you know without an audit?
I do not disagree that distributing a budget is vital. But what seemed to be
an issue, and maybe I misunderstood, was the difference between a fiscal
year and a calendar year. If new budgets are made during the start of the
calendar year, and the increase in assessments are made at the beginning of
the calendar year, I see little problem with this even though legally the
association may be on a different fiscal year. The basic question is if the
association is planning to distribute a budget at this time. If so, then
the issue is a technicality, otherwise then I sympathize.
>> And no budget has been distributed in the last year?
>
> According to prior postings the budget was not distributed to the
> membership during the period in which it was, by law, to be delivered.
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Re: Where is due process you HOA Bolsheviks.
