Homeowners Raise Concern: 2026 Budget Approved

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Subject: Why the HOA Budget Must Be Accurate and Why the 2025 Records Must Be Corrected

Dear Neighbors,

This letter is being shared to explain an important concern about our Association’s financial records and to help all members understand why accuracy in our budget is not just preferred, but required by law.

At the most recent Board meeting, the 2026 budget for the Grand Landings Master Homeowners’ Association was approved.

Before that meeting, several homeowners notified the Board that the 2025 budget provided to residents contained errors and inaccurate General Ledger (GL) code descriptions. A formal request was made asking the Board to correct the 2025 records and validate the true budget before adopting a new one.

The Board chose not to make those corrections and proceeded to approve the 2026 budget as presented.
This decision, whether intentional or not, means that our new budget was built on data that is known to be incorrect. That action has legal and fiduciary implications that affect every homeowner.

Florida Statute §720.303(6)(a) requires every HOA to prepare and adopt an accurate annual budget in a properly noticed, open meeting. The budget must clearly reflect the estimated revenues, expenses, and reserves for the year, and homeowners must be given a copy or a written notice that it is available at no charge.

Our Bylaws (Article V) reinforce this rule. They state that the Board must adopt the budget in an open meeting and that any changes to assessments or budget line items must follow the same open-meeting and notice requirements. Silent adjustments or unverified changes made during management transitions are not permitted.

When the 2026 budget was approved without first fixing the 2025 discrepancies, it created several risks:

• Year-to-year financial comparisons may now be inaccurate.
   
• Reserve contributions and operating costs may be misrepresented.
   
• Homeowners may be assessed based on unreliable figures.
   
• The Board’s fiduciary obligation to act in good faith may be compromised.
   

Florida HOAs are incorporated as not-for-profit corporations, which means the Board of Directors must also comply with §617.0830, Florida Statutes.

This law requires directors to perform their duties “in good faith, with the care an ordinarily prudent person in a like position would exercise, and in a manner the director reasonably believes to be in the best interests of the corporation.”

Knowingly approving a new budget while the prior one remains inaccurate does not meet that standard of care.

It undermines the transparency that Florida law demands and erodes the trust that homeowners place in their elected representatives.

The good news is that this issue can still be corrected.

We respectfully request that the Board take the following actions before enforcing the 2026 budget:

1. Direct management to prepare a line-by-line reconciliation between the 2025 budget originally adopted and the version distributed to homeowners.
    
2. Publish a corrected 2025 budget report and place it in the Association’s official records.
    
3. Adjust the 2026 budget if the corrected numbers materially change the amounts for assessments or reserves.
    
4. Adopt a Budget Review Policy requiring future reconciliations before new budgets are approved.
    

These are reasonable, responsible steps that restore confidence, ensure legal compliance, and uphold the Board’s duty to act in good faith on behalf of all members.

Every homeowner has the right to clear, truthful, and verifiable financial information.
Budgets are not estimates of convenience; they are binding corporate documents that dictate how our collective funds are managed.

Transparency is not optional. It is a legal and moral obligation that protects everyone — Board members, management, and homeowners alike.

We appreciate the time, dedication, and effort that our volunteer Board gives to this community.
However, the accuracy of our financial records is the foundation of trust between the Board and the members it serves.

We urge the Board to take immediate corrective action so that our Association’s finances reflect the transparency and professionalism our community deserves.

Respectfully submitted, 

Concerned Members of the Grand Landings Community