Question: Our board president set up a three year budget last year which was passed with only one vote in opposition. Does the budget, having been projected for three years, have to be approved every year even so?

Answer: Adopting a three year budget is unrealistic because of costs that are moving targets not in the HOA's control. Contracts and utilities change at varying rates every year. In addition, there will likely be new owners in any given year that have not had the opportunity to review or give input on the budget.

Based on practical considerations, the board should review and approve a new budget every year.

Question: When an HOA board holds a meeting, does it need to be announced to the HOA members? If so, how far in advance?

Answer: Yes, all board meetings held (unless one is a real emergency) need to be noticed to the members. Check the governing documents for notice provisions but if they are silent, two weeks is reasonable.

Question: Can the board meet to brainstorm about upcoming board meeting issues to develop a plan of action? No voting would be taking place, just discussion.

Answer: Yes, but these sessions can easily transition into decision making sessions and could have the appearance of closed door meetings. As a rule, they are not recommended or, at least, don't do it very often.

Question: If an HOA President resigns from the board prior to the term being up does the seat automatically go to the Vice President until the end of the term or should the board appoint a new President to fulfill that term?

Answer: Officers are selected by the board and not elected by the membership. So officer titles can change when circumstances do. Vice Presidents are generally chosen because they are willing to fill in for the President when unavailable. But when the President position must be filled full time, the VP may not be willing or able to do so. The board should convene to discuss it. The first choice should go to the VP. If refused, other directors can be considered.

For more Ask the HOA Expert, see Regenesis.net.

Published: November 15, 2006

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Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues. Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .