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Delaware Code (Titles 8, 9, 25, 30)

25 Del. C. § 81-324

Adoption of budget

Official textdelcode.delaware.gov

# (a)

The executive board shall, at least annually, prepare a proposed budget for the common interest community. In a condominium or cooperative, the proposed budget shall include a line item for any required funding of a repair and replacement reserve. Within 30 days after adoption of any proposed budget after the period of declarant control, the executive board shall provide to all unit owners a summary of the budget, including any reserves and a statement of the basis on which any reserves are calculated and funded. Simultaneously, the executive board shall set a date for a meeting of the unit owners to consider ratification of the budget not less than 14 nor more than 60 days after providing the summary. Unless at that meeting a majority of all unit owners or any larger vote specified in the declaration, voting in person or by proxy, reject the budget, the budget is ratified, whether or not a quorum is present. If a proposed periodic budget is rejected, the periodic budget last ratified by the unit owners must be continued until such time as the unit owners ratify a subsequent budget proposed by the executive board.

# (b)

In addition to adoption of its regular periodic budget, the executive board may at any time propose a budget which would require a special assessment against all the units. Except as provided in subsection (c) of this section, the special assessment is effective only if the executive board follows the procedures for ratification of a budget described in subsection (a) of this section and the unit owners do not reject that proposed special assessment.

# (c)

If the executive board determines by unanimous vote that the special assessment is necessary in order to respond to an emergency, then: (i) the special assessment shall become effective immediately in accordance with the terms of the vote; (ii) notice of the emergency assessment shall be promptly provided to all unit owners; and (iii) the executive board shall spend the funds paid on account of the emergency assessment solely for the purposes described in the vote.

Amendment history

76 Del. Laws, c. 422, § 2; 77 Del. Laws, c. 91, §§ 59, 60, 82; 83 Del. Laws, c. 173, § 12

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In this title (40 sections)
  1. 25-81-305 · Termination of contracts and leases of declarant
  2. 25-81-306 · Bylaws
  3. 25-81-307 · Upkeep of common interest community
  4. 25-81-308 · Unit owner meetings
  5. 25-81-308A · Executive board meeting
  6. 25-81-309 · Quorums
  7. 25-81-310 · Voting; proxies
  8. 25-81-311 · Tort and contract liability; tolling of limitation period
  9. 25-81-312 · Conveyance or encumbrance of common elements
  10. 25-81-313 · Insurance
  11. 25-81-314 · Surplus funds
  12. 25-81-315 · Assessments for common expenses
  13. 25-81-316 · Lien for assessments
  14. 25-81-317 · Other liens
  15. 25-81-318 · Association records
  16. 25-81-319 · Association as trustee
  17. 25-81-320 · Rules
  18. 25-81-321 · Litigation involving declarant
  19. 25-81-322 · [Reserved.]
  20. 25-81-323 · Removal of members of executive board
  21. 25-81-324 · Adoption of budget
  22. 25-81-325 · Service on associations and executive board
  23. 25-81-326 · Delaware corporations
  24. 25-81-401 · Applicability; waiver
  25. 25-81-402 · Liability for public offering statement requirements
  26. 25-81-403 · Public offering statement; general provisions
  27. 25-81-404 · Common interest communities subject to development right
  28. 25-81-405 · Time shares
  29. 25-81-406 · Common interest communities containing conversion buildings
  30. 25-81-407 · Common interest community securities
  31. 25-81-408 · Purchaser’s right to cancel
  32. 25-81-409 · Resales of units
  33. 25-81-410 · Escrow of deposits
  34. 25-81-411 · Release of liens
  35. 25-81-412 · Conversion buildings
  36. 25-81-413 · Express warranties of quality
  37. 25-81-414 · Implied warranties of quality
  38. 25-81-415 · Exclusion or modification of implied warranties of quality
  39. 25-81-416 · Statute of limitations for warranties
  40. 25-81-417 · Effect of violations on rights of action; attorneys’ fees
Full table of contents →