Can HOA keep association finances secret?

[Gizmos]

California

For years (more than a decade now) my home owner's association has mailed out a detailed financial statement of their expenses and income before the annual owner's meeting. Along with last year's real numbers this statement included a projected budget for next year and, most importantly, the assesment (aka HOA fees) for the next year.

This year, with a new board and a new president, they conspicuously failed to do that. I've made some information requests by telephone and email for this information from both the HOA president and the management company that handles their books. So far I haven't received anything and I'm starting to feel like I'm getting the run around.

Before I make too big a fuss, I want to know if I'm on solid legal ground or not. Are there any laws requiring HOAs to publish financial statements? Are there any laws guaranteeing HOA members access to the association's financial data?

This is especially troublesome because we have the annual meeting coming up in three weeks and the board hasn't said boo about what the assessment will be for next year. With the voter apathy we have, 90% of our members will just vote "whatever the board wants" by proxy without having any idea what the board intends to do. We might as well just send them a blank check!

Thanks,
Bob

 

[Shel77]

You will have to get an anwser from someone else as to the financial statements having to be made avail. Here in FL our board has the option but not the obligation to make them avail. However as far as the upcoming meeting if 90% will send in a proxy that they vote yes on whatever the board wants to do, there's nothing that can be done about that, next year try running for the board if you want some say in these matters.

 

[giralready]

Disclosure

According to my understanding from what my association (and I am a board member). Financial statements including actual ledgers "must" be made accessible to any owner. Plus they should be audited by an outsider to avoid mismanagement and funds being used. If this isn't happening I would go door to door and request other owners to step forward about it which I know sometimes it's hard to get people to do that. Our association is considered non-profit which means legally they have to open their books.

At our last meeting I just found out they let some lady take $2000. and used it for her own personal use. Our association now has an attorney & auditor that looks over everything so the mismanagement never happens again. I'm a board member for the reason that I want to know who, what, where, when and how much so that my money and property if being protected.

Hope this helps!