FRANSSON FARMS
Homeowner Resources
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FRANSSON FARMS
DECLARATION
COMMUNITY BUDGET OVERVIEW
The budget for a Homeowners Association (HOA) serves as a crucial financial tool that ensures the community's financial health, supports operational needs, and aligns with the association's long-term goals. The key purposes of an HOA budget include: Financial Planning, Operational Management, Reserve Fund Allocation, Assessment Calculation, Transparency and Accountability, Compliance with Legal and Governing Documents, and Long-Term Sustainability. In summary, an HOA budget is essential for maintaining financial stability, fostering community trust, and ensuring the smooth operation of the association’s responsibilities.
ARTICLE 7
ASSESSMENTS
SECTION 7.3 | Budget
After the expiration of the Declarant Control Period, the Board shall establish a budget for the Association which shall include, without limitation, the costs of maintaining the Common Area during the ensuing fiscal year and shall mail a summary of the budget to all of the Owners. Within thirty (30) days after adoption by the Board, the Board shall set a date for a meeting of the Owners to consider ratification of the budget not less than fourteen (14) nor more than sixty (60) days after mailing of the budget summary. Unless at that meeting the Owners of a majority of the votes in the Association are allocated, or any larger percentage specified in the Articles or Bylaws, reject the budget in person or by proxy, the budget is ratified whether or not a quorum is present. In the event the proposed budget is rejected or the required notice is not given, the periodic budget last ratified by the Owners shall be continued until such time as the Owners ratify a subsequent budget proposed by the Board.
SECTION 7.4.2 | Annual Assessments - Annual Increase in Dollar Limit.
The maximum dollar amount specified in Section 7.4.1 shall not be increased by more than fifteen percent (15%) annually without the approval of a majority of the Owners voting at a meeting duly called for such purpose.
SECTION 7.9 | Records and Financial Statements
The Board shall prepare or cause to be prepared, for any calendar year in which the Association levies or collects any Assessments and shall distribute to all Owners, a balance sheet and an operating (income/expense) statement for the Association, which shall include a schedule of Assessments received and receivable, identified by the number of the Lot and the name of the Owner so assessed. The Board shall cause detailed and accurate records of the receipts and expenditures of the Association to be kept specifying and itemizing the maintenance, operating, and any other expenses· incurred. Such records, copies of the Governing Documents, and any resolutions authorizing expenditures of Association funds shall be available for examination by any Owner at reasonably convenient hours.