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HOA Financials

Do the HOA financials have to be approved by the board before a member of the HOA sees them? We have a new manager and we have never been able to see the financials. It has been 4 months since they took over. What is a reasonable time frame for them to be able to have the community financials available to members?

8 Responses

  1. DennisL

    Betty,

    While there may be an argument that the monthly financial reports are not official records until they are approved by the board. Board meeting cannot be used by the association to limit access to these records. The treasurer of the association should be reviewing these records on the day they are created and provided to the board. Waiting for a formal meeting of the board to approve financial reports especially when multiple months pass by between board meetings is a meaningless delay tactic and a total disservice to the community. The reality is that they are not they are records as soon as they are created and as such must be made available to view by any member within 10 days of a written request to do so to the association. Banks statements are bank statements and reports on financials status of accounts based on the bank statements are also records. While the board may question expenditures noted in the reports for understanding or line-item assignment the numbers do not change.
    Provide the association a written request to view the financial reports of the association when they are made available to the board. The association has 10 business days to satisfy that request or face legal action.

    Dennis

  2. Betty

    Thank you so much for your information. I am going to mail a request for the financial records to our management company. I will send it registered mail.
    Hope they respond.

  3. Betty Shapiro

    I have sent the letter to our HOA management and Board by registered mail and it was delivered to them 1/7/22. I have not heard a response from them. I am worried they will totally ignore my request. The management company is now saying that meetings will be virtual. No in person meetings. Our meeting for Jan.2022 was cancelled the same day it was scheduled. No notice. Next meeting is in April. We have a very bad board president and are unable to remove her.
    What can I do now to see the financials. It has been 6 months since the new HOA management company has taken over with no financials ever given.
    Thanks for any advice you can give me

  4. DennisL

    Betty,

    Wait the 10 business days and write the management company an e-mail and remind them that they had 10 business days to provide you access to the financial records requested , if they are not made available to you for your review in two days you will file a petition the ADRE to have an ALJ to force the association to comply with the law. The association will then be required to pay your application fee and any attorney cost that they incur. They have a choice to either provide access to the records requested of be subject to those cost and any fines that ALJ could apply to them. They will try to call your bluff but may change their tune when you actually file a petition against them. The board is not doing this the incompetent management company is, but the association is responsible. If enough people do this then the board will see that the management company is incompetent and will fire them. Justice will be served.

    Dennis

  5. DennisL

    Betty,
    Wait the 10 business days and write the management company an e-mail giving them two day to produce the records requested or you will file a petition to ADRE to force the association to comply with the law. The association will lose and be forced to pay your application fee and any fine the ALJ will chose to apply to them as well as any attorney fees they incur. They will try to call your bluff, but you have to file. While the association is not doing this the incompetent management company is, if enough people do this the board will realize that this management company is incompetent and fire the company. Justice will be served.

    I’m not sure why you say you cannot remove the offending board member? Are you the only person that sees what is going on?

    Dennis

  6. Betty Shapiro

    Thank you again for the great advice. I will wait the 10 days before doing anything.
    We can’t remove the bad board president because she has packed the board with friends of hers. She has many homeowners that think she is great. There are only 4 of us that really know what is going on. Most homeowners here don’t want to get involved or be on the board.
    Thank you again

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