Chapter 5312: What It Means For Your Hoa (part V)

This article marks the continuation of our summary of the Planned Community Act that went into effect on September 10, 2010. Chapter 5312.06 (A) deals with budgets, reserves and collecting assessments.

The board is required, under this section, to both adopt an annual estimated budget for revenue and expenses and to collect assessments to cover the common expenses and the reserves. The budget must include an amount for the reserves in an amount that makes it possible for the association to repair and replace major capital items or common elements without specially assessing the owners. The owners, on an annual basis, have the ability to waive this reserve requirement by voting on an annual basis to waive the requirement. A majority of the voting power of the Association is necessary to effectuate the waiver.

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