Financial Statement

Started by KathiB • 5 replies • 1609 views

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KathiB (New Mexico)
Posts: 2

Posted:

I am an owner of condo in Santa Fe NM and have been trying to get the new board to send copies of the monthly financial statements which they have said were available to all owners. I have requested 12 times. How can I force them to abide by the bylaws that state that as an owner I should be given the reports. (I am not on good terms any of the board)

TimB4 (Tennessee)
Posts: 21,059

Posted:

Kathy,

Welcome to the forum.

To answer your question:

The only way to "force" the board to prove the documents would be through the courts.

Were the requests in writing?
Did you keep copies?
Do you have proof that the requests were received?
Were the requests specific (i.e. what financial statements did you ask to see)?
Did you research the applicable laws to see if they support your position?

It's always best to resolve things at the lowest level. There are various options available to achieve this without involving the courts.

If you care to share, why are you not on good terms with the board (violation enforcement, failure to pay assessments, personality conflicts, etc.)?

Tim

TimB4 (Tennessee)
Posts: 21,059

Posted:

Kathi,

I am not an attorney and I do not work within the legal profession. I am offering advice based on information contained in your posts, personal experience, any research done and, hopefully, common sense.

If your Association is incorporated as a nonprofit (most are) then New Mexico Nonprofit Corporation Act would be applicable. Per section 53-8-27 of that act, members are entitled to inspect the records. They are not entitled to copies of them.

If your in a condominium, then the Condominium act would be applicable. Per section 47-7C-18 of that act, the Association must make records reasonably available for examination by any unit owner. Again, there is no entitlement to copies of those documents.

If your not in a condominium, I did not see any NM law (other than corporation law) that would apply (but I may have missed it).

Does your governing documents specifically provide for "copies" of those records?

If not, and you only requested copies of the documents, it's possible that your request doesn't have to be honored. If this is true, then it's also possible that, due to your relationship with the board, that the Board just chose to not reply - hoping you would take drastic action rather than appropriate action. In my opinion, that wasn't a proper thing for the board to do, but it could be possible.

If you can provide the language within your governing documents (CC&Rs, Articles of Incorporation and/or Bylaws) that addresses your rights to access Association records, we may be able to provide additional advice.

Hope this helps,

Tim

BonnieG1 (Nebraska)
Posts: 1,186

Posted:

My take on this is that the Secretary may not have mailed them for a variety of reasons. The Secretary may be working and trying to do the job of the Secretary at the same time. (Of course this is probably not the case.) But since I am the Secretary with many other responsibilities outsied of my volunteer job as Secretary of the Organization (President has asked me a few times to get things done by a time it was literally impossible for me to complete it.) This is the reason that makes most since to me.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Kathy - won't one board member share their copy with you? This would be provided to every board member at their meetings,so I don't know why - if you asked - a board members would share the info.

Is there a reason you need to see the MONTHLY report? Did you get a copy of the budget for the year? That should tell you the board's plan on what to spend for each category.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

We provided one at our meetings for viewing. Our bookkeeper just ran off a few copies since not many attended. Sending a copy in the mail or making additional copies of the report cost money. Which doesn't sound like a lot of money but it adds up with multiple individuals. It was best to view a copy at the meeting when it was all discussed or ask someone who attended a meeting to borrow theirs to make copies. We weren't hiding the information at all but it's also not a "convenience item". I would expect to charge someone who requests this information outside of a meeting. By the way, a copy of the COLLECTIONS report is considered PRIVATE and kept ONLY with the board members. A member could talk to a board member about their INDIVIDUAL report but NOT view everyone else's collection history. That is a private matter and could cause some vigilantism.

I too wonder why you want this information if your not attending meetings. No one likes a "Witch hunt" after they spend the time attending meetings, discussing the subject multiple times, and struggling to reach a GROUP decision only to have an outsider who doesn't participate to come in to point out the wind...That is devil's advocate there. Have a specific issue and address that specific issue. That will go over better when addressing your board and fellow members.

Former HOA President

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