Budget Ratification Meeting
The Declaration of Covenants for the Association provides that “the budget shall become effective unless disapproved at a meeting by Voting Representatives representing at least 75% of the total Class “A” votes in the Association AND by the Class “B” member”. Section 8.1. Class “A” members are the homeowners, while the Class “B” member is the Declarant (Riverwood on the Neuse). Therefore, pursuant to the terms of the Covenants, 75% of the total members of the Association (not just the members present at the meeting) AND the Class “B” Member must vote to “disapprove” the budget. If 75% of the total members AND the Class “B” Member do not disapprove the budget, it is automatically approved.
In addition to the Declaration of the Covenants, the ratification of the budget is also governed by the provision of Chapter 47F of the North Carolina General Statues pertaining to planned communities. N.C.G.S. 47F-3-103(c) provides that “the budget is ratified unless at that meeting a majority of all the lot owners in the association or any larger vote specified in the declaration rejects the budget”. Since the Declaration of Covenants does provide for a “larger vote specified in the declaration”, 75% of ALL of the lot owners in the Association AND the Class “B” Member, again, must disapprove the budget. If 75% of the total members AND the Class “B” Member do not vote to disapprove the budget, then the budget is automatically approved.
This is not an open forum meeting. The meeting will be called to order and members present, in person or by proxy, will be counted to determine if there is a quorum of members. If a quorum is not present, then the Budget will be automatically approved.
If you have any further questions or concerns, please see the Questions section of www.riverwoodca.com and feel free to submit your own question.