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What are the financial reporting requirements for condo associations?

  
  
  
  
  
condo association financialsI am one of the owners in a 11 unit condo association in the state of Delaware. We have 10 separate owners, as two units are owned by one individual. I have been told that there are new condo financial regulations relating to percentage of reserves, budgets, and most recently told that we need to have a balance sheet. We are a non- profit association and are incorporated. I am worried that if a unit were to be sold, our condo association would not have the proper documentation. I would be interested in knowing what these new regulations are and to whom it pertains. Who would you suggest I contact in order to obtain this information? Thank You

Comments

Download a copy of the Delaware Code, Title 25 (Property) chapter 22 (unit property and find the answers to your questions. This law became effective om 30 August 2010.
Posted @ Tuesday, September 14, 2010 6:41 AM by Charles Adler
Are there similar laws like this for Iowa? Also, do laws treat condo associations and homeowner associations (for free-standing townhomes) differently?
Posted @ Tuesday, September 14, 2010 7:15 AM by Marcia
Yes there are similar proviwsions in Iowa state law-enter "Iowa Horizontal Property Act" into your briowaser and print out cop. Your arnswers are in this law. Condos and HAOs are different and are ubnder the law treated differently. There is a web site (free access) called Association Times through which any state's Condo or HOA act can be accessed. You may even ask questions of experts from this site.
Posted @ Tuesday, September 14, 2010 7:52 AM by Charles Adler
Condos in our association have sold without any problems over the 25 years primarily because our two-bedroom, two-bathroom units are one of the lowest cost in the area - the fancy end of the suburb kind of grew up to the south of us. We have never had reserves and only had a budget and a balance sheet in the last five years. The board does not stick to the budget anyway nor does it uphold and enforce the bylaws. No matter what state laws say, my observations are that most of our buyers didn't have the foggiest idea what to look for before purchase, and the realtors just wanted to make a sale. If you lived in Minnesota, there are a lot of state laws but no state agency to enforce them. I would say don't sweat the laws, no one will enforce them anyway unless they hire a private attorney and who is going to do that?
Posted @ Tuesday, September 14, 2010 9:23 AM by nellie
Any guidelines/laws for Louisiana condos?
Posted @ Tuesday, September 14, 2010 10:17 AM by db
Your State Attorney General is responsible for enforcing the 2009 Minnesota Statues, Chapter 515A of the Uniform Condominium Act. Download a copy and find the answers to your questions.
Posted @ Tuesday, September 14, 2010 11:22 AM by Charles Adler
We are only a 45 unit condo group but we are incorporated based on legal opinion.
Posted @ Wednesday, September 15, 2010 2:41 PM by Bob Gross
Where do I get the same info for associations in Baton Rouge , LA?
Posted @ Thursday, September 16, 2010 12:05 PM by Pate, BG
To Charles: Minnesota has statutes concerning community-owned property including 515A which you quote. That's the good news. The bad news is that there is no state agency, including the Attorney General's office, that enforces them - believe me, I have checked. They suggest working with your board of directors (failed) or hire a private attorney.
Posted @ Saturday, September 18, 2010 8:40 AM by nellie
Recently I had noise complaints about my tenants who I promptly evicted. However, I subsequently received a "warning notice" and then a statement of 3 fines at once, with no actual incident in between the notices. They are stating there was a "noise complaint" with no specifics. Can they do that?
Posted @ Tuesday, September 28, 2010 5:37 PM by Laurie Dunlop
Is an HOA required to breakout "Penalty Revenue" from "Assessment Revenue" per the Profit & Loss Statement?
Posted @ Tuesday, September 28, 2010 5:40 PM by Laurie
Don't Board minutes have to include all topics of conversations, not just be cherry picked? How do you enforce this?
Posted @ Tuesday, September 28, 2010 5:43 PM by Laurie
How about New York? Our Bylaws state once a year but beyond that are there any additional requirements?
Posted @ Saturday, March 03, 2012 9:48 AM by Alan Willemssen
The minutes of a board meeting once approved become the legal record of action taken by the board at that ,eeting. It should not include anything that cannot be classified as an action of the board. Chit chatpoff hand remarks and opinions have no place in the minutes. In case of a law suit the court will use the approved minuites as evidence and will discard anything that is included that is not an actyion that the bhoard took.
Posted @ Saturday, March 03, 2012 11:11 AM by Charles Adler
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