[WSBARP] "Ratification" Of HOA Budget and Reality Check

[Paul Neumiller]

I have been approached by a Chapter 64.38 HOA who has a creative take on the requirement of the members to "ratify" the annual budget.  For years, the HOA has published the annual budget and sent the proper notices and then held its annual meeting within the proper time limits.  Then the Board presents the budget at the annual meeting but, in their own words, "as long as the majority of the membership did not notify the board that they reject the budget, we considered the budget ratified at the time of the annual meeting."  As a clarification, the HOA President wrote to me and stated "In addition to publishing a high level budget a month before our annual meeting, we review the budget at our annual meeting.  We do not call for a vote.  Again, our understanding is that as long as the membership does not voice rejection of the budget, we considered it ratified."



OK, Chapters 64.38 and 64.90 (under the budget provision which applies to "old" HOAs) do not define "ratify" or "ratification" but common sense and other sources indicate that "to ratify" requires an affimative action or vote.    It seems this HOA is equating "to ratify" with "to acquiesce."  In case I am missing something here and before I advise them they are doing it wrong (tactfully, of course), I wanted to throw it out to the collective hive for a reality check first.  Does "ratification" of the budget mean the members have to affirmatively take a vote?




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