The Federal Court of Justice had to address the question of how detailed housing benefit payments must be presented in the overall annual statement.
In the underlying legal dispute, the plaintiffs had filed a lawsuit against their homeowners' association, requesting that the annual statement be declared null and void. The plaintiffs were of the opinion that a proper annual statement must contain a detailed breakdown of payments for housing benefit arrears, including interest.
The Federal Court of Justice dismissed the claim.
In its reasoning, the Federal Court of Justice stated that the annual statement has the character of a pure income and expenditure account. Therefore, it is not necessary to itemize the accounting periods for which the respective housing benefit payments are owed.
While the annual statement may include the more detailed breakdown of housing benefit payments demanded by the plaintiffs, such a breakdown is not legally mandated.
Furthermore, the Federal Court of Justice explained that supplementary payments made by a homeowner for housing benefit arrears from previous years – irrespective of their respective crediting – constitute income for the homeowners' association in the annual statement.
The Federal Court of Justice reaffirmed its legal opinion, as set forth in its judgment of June 1, 2012, file no. V ZR 171/1, and determined that a credit balance shown in the adopted overall annual statement does not establish a claim by individual homeowners for the disbursement of said balance. This credit balance is to be treated like other income and can optionally be allocated to the maintenance reserve, used to cover ongoing costs, or distributed to the homeowners.
Federal Court of Justice, Judgment of October 11, 2013, File No. V ZR 271/12
Lower Courts:
Local Court Charlottenburg, Decision of november 17, 2011 – 74 C 77/11 –
Regional Court Berlin, Decision of October 17, 2012 – 85 S 244/11 WEG – 17
Source: Press release of the Federal Court of Justice
Goldberg Attorneys at Law 2014
Attorney Christine Thede
Email: info@goldberg.de
