Legal Question in Real Estate Law in Maryland

Annual Budget

Hi,

I live in a townhome community with a recreation association. I am secretary on the rec. assn. board of directors. In Nov.2008 the board, line by line, approved a budget for 2009. In Dec. 2008 the approved budget was mailed out to the community . The problem is that the President of the board, on her own, made changes to the budget before mailing it out. It's not the same budget that was approved. Though the bottom line is the same in both budgets , lines have been changed

and added in the mailed out budget that do not reflect what was approved on the proposed budget in November. Specifically,the board approved a rent increase to the condo. association that uses our pool house from $600 to $1500 a year . The $1500 increase was not reflected on the mailed out budget.It still said $600 . Also a line was added to the mailed out budget under income ,called Funds From 2008 ,with an amount of $607. This line and this money is no where on the budget that was approved in Nov. 2008 . I am told by the president of the Recreation board that it is only the bottom line that is approved and what matters. I am questioning the legality of this. Can the President of the board make any changes to the budget after it's been approved ?


Asked on 1/21/09, 1:04 pm

2 Answers from Attorneys
Robert Sher Wagshal and Sher

Re: Annual Budget

Unless your bylaws give this authority to the President, which is highly unusual, she acted without authority and cannot change line items in the budget. You should consult your other members and if necessary call another board meeting. Perhaps it's time to replace the president.

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Answered on 1/21/09, 1:33 pm
Carter Ferrington Bar Adon Vogel PLLC

Re: Annual Budget

Can the President of the board make any changes to the budget after it's been approved ? What do the bylaws say? You're all but certain to find your answer there. If, for example, the bylaws state that the board must approve the budget, and she doesn't have any special revisory powers, then, barring any other language to the contrary, the board-passed budget is the official budget for the association.

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Answered on 1/21/09, 2:01 pm


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