Condo Association Management Blog

Absolutely not! You have a right - as all of the other homeowners do - to obtain copies of financials as they pertain to the association. You should present your request in writing and the association through its board must respond within 30 days. The documents must be made available to you to either see in person or obtain copies for which you may be asked to pay the cost. If they continue to refuse to release docs seek legal advice.

I would like to know if this pertains to California law also. I have asked numerous times for such things and have been ignored, not denied...just completely ignored or told okay and then nothing ever happens.

I would like to know if Iowa has a similar law??

In NY, the shareholders do not have a right to see private Board meeting minutes - maybe IL has the same law? Maybe your board is confused and denying you based on this? I would be as clear as possible - that you are not requesting meeting minutes but financial info, and cite both IL condo law and the Offering Plan provisions in your formal letter.

CALIFORNIA ONLY - Quarterly financial review by Board including reconciliation of operating and reserve, comparison of reserve revenue and expense to the budgeted reserve revenue and expenses, analysis of bank statements for both, analysis of income and expenses. My interpretation of the law is that Homeowners are able to obtain copies of the above by paying for them. In addition homeowners are able to VIEW underlying documents, (like invoices).

It's not only againt the IL CONDO ACT BUT IT'S ALSO A VIOLATION OF THE IL REAL ESTATE DISCLOSURE ACT! Get a lawyer and ask in ur petetion that the association pay all legal fees incurred!

I am sorry to say that this happens more often than not. Sometimes the monthly financials are little more than works of fiction, without seeing the actual underlying hard data documentation. Your situation is more common than not. Check to see if your state/city has any laws that would be helpful. You have the right to know the health of your hoa finances. It is a shame that you might have to go to the expense and perhaps a great deal of time to gain the rights of a home owner. I hate to say it, but this situation is common. If your state laws provide a penalty and fines for non-compliance in this matter, it would be useful to send a message that withholding of vital information of hoa finances will not be tolerated.

Our Association has a formal policy, and request form in place for all records requests. Your state has very specific requirements as to exactly what your Association is permitted and/or required to release. Please see Illinois Condominium Property Act, IL ST CH 76ase. Personally, I welcome owners wanting to review the finances, and Board minutes, but to be honest with you, if you want super detailed line item reporting of every expenditure on your monthly financial you may want to become a Board member so you have access to that information. Also, your Board is probably not required to release owner phone numbers, any attorney -client privileged information or correspondence, executive Board meeting minutes, or penalty assessments hearings information.

The IL condo statutes can be found at: 
 
 
 
www.ilga.gov 
 
Click on "IL compiled statutes", then "Chapter 765 - Property", then "Condominium Property Act". Scroll down to Sec 18 (a)(7) -- contents of bylaws and also all of Sec 19 -- records of association, availibility for examination". 
 
You should find the answers to your questions there. Read the statute and understand what the board's obligations are and what the members rights are. The board must follow state law the same as they are obligated to follow the gov. docs. Records inspections should also be outlined in your bylaws.

Simply because an American opts to buy a Condo or an HOA he does not forfeit his right to control how his money is spent. I've read quite a few state's HOA and Condo laws and find that every one contains a definition of the owners right to get all financial information that he requests. Failure of the board and the management company to provide it is a violation of State law. As such the board could lose their immunity because they have violated an law. A registered return receipt letter to board politely asking for info you need and closing with the veiled hit at criminal prosecution should get you the data you need. This is not a joke-read the provisions in your bylaws about board member immunity.

How about OHio?

klb, 
 
 
 
The OH condo statutes can be found at: 
 
 
 
www.ohio.gov/orc/5311 
 
 
 
Scroll down to 5311.091 -- examination of books and records

When the person asking the question sends a request for financials in writing he or she should send it by certified mail with a return receipt requested. if the board is underhanded enough to refuse your request they will be underhanded enough to say the never received the request in the first place. As far as I can tell, all states' condo laws require that financial information br given to owners when they ask for it. If none is forthcoming, your next move should be to take legal action.

Since you have had problems in the past (your proof would be unanswered letters requesting information) I would do a couple of things in addition to certified mail: 
 
1. Go to the next Board meeting and in front of the Board members, I would verbally and in writing formally request the information. They are now required to make this a part of the formal minutes for the meeting. You should also request a copy of the meeting minutes. 
 
2. I would also include with your requests a copy of your state guidelines because they supercede your HOA documents.  
 
3. Find out who the attorney is for your Association-ask the Board-(it's also public information if they have filed any legal documents for the HOA), send a copy the same information requested, include dates (if you have proof) of previous unanswered requests to the attorney for your Association. Let them know you have verbally and in writing requested the Board provide information and they have refused. The attorney is now required to address the issue and will most likely advise your Board to supply the you the requested information, they may even answer you directly. 
 
4. Do not make threats or become rude, don't make it a fishing expedition.  
 
5. State exactly what documents you want, the reason and purpose of the requests. 
 
6. You need to state whether you want copies or just to inspect the records. If you want copies be prepared to pay for them, we charge .25 per page.  
 
7. If you want to inspect the records and you have a management company you may have to pay for their staff's time (hourly).  
 
8. Check your Association documents- especially with the new year coming, your Association may be required to provide a copy of your 2012 budget to all owners by a certain date or the fees stay the same. 
 
Good luck, and let us know how it turns out!

FYI, 
 
 
 
Before you make any demands or threaten a lawsuit make certain you are entitled to copies of the records. Check your state laws (not all state laws require this!) and also your gov docs. Most gov docs do state the member is entitled to inspect the assn's records. In other words, know exactly what your rights are before you make demands, contact the assn's attorney or instigate a lawsuit.

Maybe your request was rejected by the board because of the type of information you wanted. If one of our just wanted to review the monthly reports we would send him to the Property Manager's office where storage boxes of reports will be provided for review. If someone wanted a detail of certain types of expenses (ie. utilities or legal) then that requires detailed research that most PMs don't have the time to do. If your request is reasonable then I would pursue it like a tiger. Hiding such generic information from a homeowner is highly suspicious. I am on a board that believes the owners have the right to inspect association documents. Stand your ground and follow some of those great suggestions above.

Our management company rep told several owners that unless Board members steal money an HOA is the closest thing to a dictatorship in the State of Illinois. Is this true? Isn't there a local, county or state government agency that handles HOA owner complaints when a board is in violation of an Illinois statute?

Pam, 
 
 
 
If IL is like the majority of states, there is no state agency to oversee HOAs, including the AG who's job is not to oversee Corp's. 
 
Having said that, IMO, that does not mean HOAs are like dictatorships. If an HOA BOD violates their gov docs and/or state law any member has the right to file suit against them. Of course that member is on his own dime (and it could be very costly) and the HOA BOD is covered by the assn's D&O ins that is paid for by the members, which is why many people say that when you sue the board you are suing yourself. Besides filing a lawsuit, the members can recall an errant board member or not re-elect them.

is there any fixed % that limits how much a HOA can charge on their late fees - my HOA charges 44% of the annual HOA for its late payment - I pay HOA dues 1X p/year

Chris, 
 
 
 
Look in your gov docs and state law for your answer. IMO, 44% of your annual assessment seems like a much too high fee for a late charge. AZ state law limits the late fee to the greater of $15 or 10% of the unpaid assessment. I pay a qtr assessment of $125 and our late fee is $15.