Legal Term
analyzing condominium association budget for special assessment triggers
Legal Definition
The systematic review of a condominium association's financial plan, including operating and reserve budgets, to identify specific line items, shortfalls, or unforeseen expenses that may authorize or necessitate the imposition of special assessments on unit owners under governing documents and state condominium statutes.
In Plain English
Checking the condo association's money plan to see what might cause extra fees for homeowners, like big repair costs the regular budget can't cover.
Example in a Contract
If the Association's annual budget analysis shows that projected common area maintenance costs exceed the allocated budget by more than 10%, or if a reserve study indicates insufficient funds for major repairs, the Board may propose a special assessment, which must be approved by a majority vote of unit owners pursuant to Section 18-107 of the Condominium Act and Article VII, Section 4 of the Bylaws.
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