Contract Terms Private?

Started by JohnJ9 • 8 replies • 1709 views

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JohnJ9 (Texas)
Posts: 6

Posted:

I am in a TX HOA that is not wishing to make the terms of contracts (rates paid etc.) available to homeowners, Specifically pool cleaning and newsletter creation. I thought that the records of the association were supposed to be available to members. Am I missing something?

Thanks
John

RogerB (Colorado)
Posts: 5,067

Posted:

Quote:

Posted By JohnJ9 on 03/08/2011 6:19 AM
I am in a TX HOA that is not wishing to make the terms of contracts (rates paid etc.) available to homeowners, Specifically pool cleaning and newsletter creation. I thought that the records of the association were supposed to be available to members. Am I missing something? Thanks John

No, unless it is assertiveness. You could provide a copy of the law to educate your Board and again request access to the association's records.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Yes, they should be able to be viewed. If they do not want them viewed, they are hiding something that they don't want the members to know. What that is, who knows... In order for a HOA to be successful, you need to be transparent. Good and bad.

I can go to my city hall and view stuff like this, a tiny HOA should be no different.

If you want daily drama, members fighting, keep everything a secret.

DanielH1 (California)
Posts: 482

Posted:

It is possible that the contracts have confidentiality clauses in them. Even if they don't, the specific terms are not usually required to be disclosed. (If you have an issue with the work, you should be taking it up with the Board or the property manager, not with the contractor directly.)

It is also expected that pay rates for individuals are confidential.

However, the HOA does have to provide financial records, such as budgets, accounting and year end reports.

For pool cleaning and newsletter creation specifically, the cost of these must be presented to you but they can presented as part of a larger category (e.g. landscaping/maintenance).

JohnJ9 (Texas)
Posts: 6

Posted:

Thanks all. I appreciate it. I know the TX prop code (209 I think) says pretty much the same. I will show this to the board at the next meeting and go from there.

RobW (California)
Posts: 279

Posted:

I don't know what the records access laws are in Texas, but in California, all of the signed contracts for services are available by law to the members, unless they are pending litigation, include financial or confidential information about individuals, and a few other exceptions.

Just FYI, here's what should be available to homeowners in California:

http://www.davis-stirling.com/MainIndex/RecordsSubjecttoInspection/tabid/1215/Default.aspx

Rob

MelissaP1 (Alabama)
Posts: 13,836

Posted:

People forget that the HOA's money is EVERYONE's money. The board/Officers are just ELECTED to REPRESENT the majority of homeowners in daily operations and managing the budget. This means that ANY contract is representing ALL the members in the association.

It is typical and easy on a HOA board to want to keep the HOA's financials close to their vest. It's NOT that they are trying to "hide" anything necessarily. There's just MORE headaches beyond belief when people NOT involved in the process decide they know EVERYTHING about the decision. Instead of having to hear every squeeky wheel in the neighborhood they just decide it's best not to expose every detail.

It's very very hard to get the concept of keeping the books OPEN to the general membership especially when you have to work sooo hard negotiating and gathering bids. Your always afraid 1 homeowner is going to come up and blow the WHOLE deal just because they aren't happy with 1 detail...

Believe me, it's difficult to gather bids, negotiate terms, and then be open about it with a group of people who can't agree on what the color of roses should be planted in the flowerbeds... Your HOA should adopt and adapt to being open despite the difficulties and complaints they will recieve. In the end, it does work to be open and post this information for review.

Former HOA President

LawrenceC1 (Georgia)
Posts: 480

Posted:

John,

As others have posted, any contract signed by the HOA must ordinarily be made available for viewing by any of the members. However, the Board does not have to reveal details of a negotiation in progress. They are free to discuss proposed contracts in executive session, and only make the final executed contract available in the corporate records.

This gives the Board the ability to negotiate a deal without undue interference.

ValerieS2 (Michigan)
Posts: 244

Posted:

The Michigan Condominium Act states that contracts ARE subject to disclosure.

559.157 Books, records, and contracts; examination; audit.
Sec. 57.

The books, records, and contracts concerning the administration and operation of the condominium project shall be available for examination by any of the co-owners and their mortgagees at convenient times and all books and records shall be audited or reviewed by independent accountants annually. Such audits need not be certified.

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