Question:
Connecticut statute says that surplus funds shall be refunded to homeowners or credited
to their acounts unless the Declaration specifies otherwise. My association transfers the surplus to reserves and includes a statement that if you vote to approve the annual budget, yoy approve this transfer. Can the Association do this even if the law states otherwise?
– Henry
Answer:
Hi Henry,
Section 47-256 of the Connecticut Common Interest Ownership Act does specify that surplus funds be returned or credited to homeowners after “any prepayment of reserves.” Additionally, if your declaration specifies that surplus funds can be deposited into the reserve account, then the HOA can take this action.
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