Washington State condominium and homeowners associations' annual and special budgets are legally required to contain certain information and to be ratified by their owners. Those associations must first provide each proposed budget to their owners and schedule a meeting to consider ratification of that budget. The proposed budget must include:
(a) The projected income to the association by category;
(b) The projected common expenses and those specially allocated expenses that are subject to being budgeted, both by category;
(c) The amount of the assessments per unit and the date the assessments are due;
(d) The current amount of regular assessments budgeted for contribution to the reserve account;
(e) A statement of whether the association has a reserve study that meets the requirements of RCW 64.90.550 and, if so, the extent to which the budget meets or deviates from the recommendations of that reserve study; and
(f) The current deficiency or surplus in reserve funding expressed on a per unit basis.
Other state laws (RCW 64.34 and 64.38) require the proposed budgets of the associations to which they apply to contain additional information as well. Each proposed budget is ratified unless a group of owners of units or lots to which a majority of the total voting power in the association is allocated rejects it at that meeting.
If your board has questions or concerns about the approval and ratification of the association’s budgets, then my office is here to help!
