HOA Legal requirements

Started by ShirleyC • 4 replies • 1180 views

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ShirleyC (California)
Posts: 117

Posted:

We were just voted in as the new board. The old board will not turn over any records other that prior year bills and deposits ; so no minutes; etc.

We are a non profit corporation;

how do we find out what the requirements are re IRS, Franchise tax; etc. and fin'l stmt requirements.

thanks

BrianB (California)
Posts: 2,820

Posted:

sorry to say, but you need to work hard at getting that information from the old board.

It's much harder, or almost impossible, to do some of the rebuilding without it.

SusanW1 (Michigan)
Posts: 5,202

Posted:

The treasurer and the secretary should receive a letter written by a lawyer demanding the information within 24 hours. They are the keepers of the records and are responsible for turning them over when they leave office.

(Our bylaws say that all records are to be turned over within that amount of time when leaving office)

If you have bank statements, etc. you should be able to rebuild the finances.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Shirley,

Start by looking at the davis-stirling.com web site. This is an excellent source of information.

You will also need to contact the bank and the State corporation commission so they know about the new officers.

Typically, the following basics need to be done:

Annual Report for State Corp. Commission.
State Taxes
Federal Taxes
Change Signature Authority on all bank accounts
Review Reserve Study
Review Contracts
Review Insurance (liability, D&O, Crime/Fidelity Bond, etc.)
Pay Bills as they come in
Create a budget
Keep Membership informed (usually by newsletters)
Call an annual general membership meeting for the purpose of electing directors for the following year
Inform the Registered agent and/or Association lawyer of new board members

You might want to spend some money and consult with a management company and/or attorney to see what else needs to be done.

Tim

ShirleyC (California)
Posts: 117

Posted:

thank you everyone.....

I love this site!!!

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