Why inspect HOA records?
There are many reasons to request records. My journey of HOA problems began as a board member when a homeowner discovered that our HOA manager had been issuing work orders for landscape renovations which were not authorized by the board. Without going into the whole entire story which is for another article, I requested the landscaping invoices as well as the work orders. Although you may be receiving some of the Board’s financials through the monthly open session packets, newsletters or annual report, you might want to consider requesting a complete set of a month’s financials to gain a better understanding of how your board invests and spends its money.
California Civil Codes
California Civ. Code § 5200 defines “association records” to include financials such as the balance sheet, executed contracts not otherwise privileged under law, written contractor proposals or invoices, state and federal tax returns, reserve account balances and records of payments made from reserves. The statute also provides for agendas and meeting minutes, membership list, check registers, and governing documents. Of course, some documents such as disciplinary actions, employee contracts, legal invoices are not available. I find it somewhat interesting that recordings of meetings and security camera footage is not subject to review. Without going into boring detail of what you can request, I will instead refer you to the Davis-Stirling Law Firm which provides the full legal citations and records available for request.
If you want to mail or email everyone in your HOA, you can request a membership list which includes the homeowner’s name, property address, mailing address and email information. Please note that they are not allowed to provide phone numbers. Homeowners can also “opt out” of receiving communications from other homeowners. I will soon be writing an article on requesting email addresses and how to communicate with your fellow homeowners, so please be sure to subscribe to my blog so you can receive my email newsletter. The turnaround time to receive the membership list is five business days.
For financials, the current and two prior fiscal years’ records are available. Records for the current fiscal year are available within 10 business days whereas the prior fiscal year records, the turnaround time is 30 calendar days of the receipt of request.
Keep in mind that the HOA can charge you for the direct and actual cost of copying and mailing the requested items. They can also charge you an hourly amount not exceeding $10 per hour and not exceeding $200 total per written request.
What is the proper purpose?
A member’s request must be for a “proper purpose” and cannot be sold or used for a commercial purpose. For example, you cannot request member emails and mailing addresses to promote your open house. For requesting the membership list, my purpose was “to communicate with homeowners about issues facing our community.” As long as you come up with a reasonable reason, your request should not be denied.
How to make your records request
So what is the proper purpose? I suggest that you send an email to the manager and cc: either the board or another staff person. Be sure that the subject has in all caps “FORMAL REQUEST FOR RECORDS.” In the request, I often reference the citation and define the statutory turnaround time so there is not any misunderstanding on what your legal expectation might be.
If they don’t comply, take them to small claims court
Small claims court can help you if the board or management does not comply. Fortunately, ADR (alternative dispute resolution) is not required. If the court funds the association unreasonably withheld records, the court may assess a penalty of up to $500 for the denial of each separate written request and order the production of records. If small claims finds the request to be frivolous, unreasonable or without foundation, the court can award costs to the association.
