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Budgets in communities of owners

What is a community budget?

As you already know, the budget of a community of owners is the detailed economic plan of the income and expenses of a community of owners. The preparation of the budget of a community of owners is the responsibility of the Property Manager, who will be in charge of presenting it to the Board of Owners and informing them of the resources necessary to meet the budget.

The legal obligation of the owners to contribute to the proportional part of the general expenses for the adequate maintenance and upkeep of the building also extends to the endowment of the reserve fund. The minimum amount of the reserve fund, in accordance with the second article of Royal Decree-Law 7/2019, of 1 March, on urgent housing and rental measures, increased in 2019 to 10% of the last ordinary budget agreed in the community.

Types of budgets to cover community expenses

In accordance with article 16 of Law 49/1960, of 21 July, on horizontal property published in the BOE, the budget of a community of owners can be an ordinary budget, which is annual and covers all foreseeable expenses in the building, such as security and cleaning staff, the consumption of energy services or the payment to the property administrator; or an extraordinary budget, whose implementation will depend on an unforeseen expense, normally linked to a one-off payment.

How many estimates must be submitted for works in a community of owners?

By law, there is no minimum or maximum number of estimates to be submitted for works in the community of owners. "Although there is no compulsory number of estimates, it is important to submit several estimates in order to compare the average price of the services to be contracted, and also to offer different alternatives to the community of owners".

When can work be carried out in homeowners' associations?

Works in the community of owners can only be started when they have been approved by a simple majority in the meeting. Once approved, the time allowed for carrying out the works will depend on the municipal regulations governing noise pollution.

Who must approve the budgets for works in a residents' association?

Once the property administrator has prepared the budgets for the owners' association, it is the responsibility of the president to present them to the owners' meeting. Once this has been done, and after the necessary debate, it is the board itself that is responsible for approving the budgets for works in the community of owners.

The approval of a simple majority will be sufficient to carry out the works in the community of owners, and the owners who did not attend will be given the minutes of the meeting. If they do not oppose the final agreed verdict, their vote will be in accordance with the majority.

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