The 2023-2024 Fiscal year will begin on November 1st and run until October 31st. The Board of Directors will review the budget in August for a proposed budget for next year. Some of the most important decisions the Board of a homeowners association has to make are financial decisions. The Board of Directors considered the Reserve study , Operating costs , Service increase , Insurance premiums and tenant activity for the coming year. The budget will be ratified at the Annual Homeowner meeting to be held in November 2023 at the Quail Run clubhouse. Please check the calendar and look for our mailing periodically for more information.
FHA Certification Requirements : F. Budget
The existing budget of a condominium community must be determined to be adequate before FHA certification is approved. The budget must be determined to accomplish the following:
Include allocations/line items to ensure sufficient funds are available to maintain and preserve all amenities and features unique to the condominium project;
Provide for the funding of replacement reserves for capital expenditures and deferred maintenance in an account representing at least 10% of the budget; in 2019 FHA has doubled its Reserve funding requirement up to 20%, this only applies to associations with owner-occupancy between 35% and 50%. The "10% of budget to Reserves" rule still applies to associations with an owner occupancy ratio over 50%.
Provide adequate funding for insurance coverage and deductibles.
In cases where the budget documents do not meet these standards, a reserve study (no older than 24 months) may be requested to assess the financial stability of the project. (A conservative Reserve study costs $7000.)