hoa financials

You got it. Your HOA isn't owner operated it is Developer operated/funded so you don't get to see the financials of the HOA. Let me put it this way...If you were renting an apartment, would you have a right to see your management companies financials? No. You could see YOUR transactions with them.

Once the HOA is turned over to the owners, then you would have a right to view the financials since it is now your money and your neighbors funding the ENTIRE HOA. The developer may never let you see their financials at turnover either. They just will make you aware of the HOA obligations such as lawncare and amenity maintenance. The HOA will have to find it's own insurance, management company (if they choose) and updating the rules.

I wouldn't worry about the developer's financials as much as I would want to know the future responsibilities when you become part-owner/member of the HOA.

i managed to receive a partial journal of entries for last year. i found that the builder is in fact paying for development items with the hoa money?? this could not be legal???

Hi Alan:

Are you single family homes or condo? Also per your association incorporation documents, how are you set up (i.e., non-profit, limited liability, etc.), or do they reference any statutes you are guided or set up under.

In most states YES you are entitled to review your HOA information, especially when you are paying any assessments. In some even if you are not paying assessments while under developer you still are a member of the association and suppose to receive general annual budget reports and copies of certain items you request and to be provided by law.

Now with regards to your other question it could depend on what you are considering development items that HOA money is being used to pay. If it is for common area expenses or items for said common areas, then potentially they are valid purchases. This would depend on your governing documents and state statutes.

thanks janetb2 and davidw5
we are listed as a non-profit, i have been researching louisiana law and have found that a non-profit has to make its financials available to the public. i have yet to find the exact law that covers hoa's in my state but i will.
as for the expenses i referred to they were not for anything that had to do with the hoa. example would be a sewer line that the railroad made the developer install in order to be able to build homes here, a fence that the developer put up to block the noise from the railroad in order to make those lots more attractive to potential buyers and the list goes on and on....
the developer, until now has never been questioned about the hoa money or the manner in which it has been used. now he does'nt want to provide the information.

Hi Alan:

TimB posted the following on another thread on which you had asked a question and I moved it here for everyone to reference as needed regarding your question:

If you are looking for your State,Louisiana, you can click on the following to go to
Title 12 Corporations and Associations

Scroll down to statutes 12.223 for info on Corporate records and reports.

NOTE: this would only apply to your HOA if the Association is incorporated. Additionally, your State's HOA or Condo laws would also apply.

The section Tim gave us states the following:

RS 12:223

§223. Corporate records and reports

A. Every corporation shall keep at its registered office (1) records of the meetings of its members and directors, and of committees of the board, share and membership records giving the names and addresses of the members in alphabetical order by classes and series and the number of shares held by each, and records of its assets, liabilities, receipts, disbursements, gains, losses, capital and surplus; and (2) separate records of all trust funds held by it. Whenever membership is terminated, this fact shall be recorded in the share or membership record together with the date on which the membership ceased, and transfers of shares shall similarly be recorded.
B. The records listed in subsection A of this section may be in written form or in any other form capable of being converted into written form within a reasonable time.
C. Every shareholder and voting member may examine in person, or by agent or attorney, at any reasonable time, the records of the corporation listed in subsection A of this section.
D. If the articles or the trust instrument so provide, every corporation shall, within ninety days after the close of each fiscal year, mail an annual report, signed by the treasurer, to its members concerning any trust funds held by it, and the use made of such funds and the income thereof during such fiscal year.