Condominium budget: legal support and control over the use of funds

Financial transparency and effective cash management are the foundation of any multi-unit building co-owners' association. That is why preparing and monitoring the HOA budget plays a key role in ensuring residents' trust, proper building maintenance, and compliance with the law.

Co-owners often encounter situations where the head of the condominium association or the board draws up a budget with violations, does not provide access to information about expenses, or allows the misuse of the condominium association's funds. In such cases, the assistance of a lawyer is needed to ensure legality and protect the interests of apartment owners.

What is an HOA budget and why is it important?

An HOA budget is a financial plan for the year that determines the amount of residents' contributions, the use of funds, and the amount of expenses for the maintenance of common property. It is a document that is approved by the general meeting of co-owners and is binding on the HOA board.

A correctly drawn up budget determines:

• the amount of monthly payments by residents;
• the financing of current and capital repairs;
• the maintenance of the building's grounds and engineering networks;
• the transparency of the HOA's management.

A lawyer will help you draw up a document in accordance with the requirements of the law, taking into account the needs of the building and the interests of the residents.

HOA budget for 2025: new challenges and updated standards

With the new financial year approaching, residents are increasingly interested in what the HOA budget for 2025 should be. Due to inflation, changes in utility rates and new legal requirements, the approach to budget planning needs to be updated.

Professional legal support allows all factors to be taken into account so that the budget reflects current realities and at the same time does not create excessive financial pressure on co-owners.

How to check the movement of HOA funds?

Most often, residents face a lack of access to financial documentation. In such cases, it is important to know how to check the movement of HOA funds.

A lawyer will help you:

• request financial reports from the board;
• check the accuracy of accounting documents;
• identify cases of misuse of HOA funds;
• draft an appeal or complaint to the competent authorities;
• initiate an audit of the HOA's activities.

Competent legal support ensures real control over finances and protection of the rights of co-owners.

Sample HOA budget: why should you consult a lawyer?

Co-owners often look for a sample HOA budget in the public domain, but the use of templates does not always correspond to the realities of a particular building. A lawyer will develop a document individually, taking into account the area of the building, the number of apartments, the condition of engineering systems and other important factors.

Consulting a lawyer allows you to avoid:

• calculation errors;
• conflicts between co-owners;
• appeals against decisions of the general meeting;
• legal consequences for the head of the condominium association.

Legal support: why is it beneficial?

By ordering the service, the client receives:

• correct calculation of contributions;
• a transparent and legal estimate;
• protection against financial abuse;
• the ability to initiate an inspection or audit of the condominium association;
• a guarantee of compliance with the law.