Actual bank statements

Started by CarolP13 • 7 replies • 1945 views

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CarolP13 (Oregon)
Posts: 4

Posted:

As a home owner,(Oregon), in a 13 developer owned/controlled town-home community, ( 3 not developed, 2 finished went to foreclosure, owner/ developer has one), can we the remaining 8 homeowners ask for actual bank statements? PNL's mean zero.
Sadly, Developer and wife going thru dire times. Other member and the last one on board of 3, is left with the hardship. And, now out of state.
Maintenance is not being done, and with any human inclination in your body you can understand why.
But..." Transparency", is the concern of the homeowners.
Do we have the right to simply ask for actual bank statements?
The other homeowners are assuming. Want to get a mgnmt. Company. (NO!)
I want to trust the developer, give them their time. If money is there, then it is bank rolling, all is good.

GlenL (Ohio)
Posts: 5,491

Posted:

You can ask but until turnover I don't believe the Declarant (developer) is required to. (emphasis added)

94.616 Turnover meeting; transfer of administration; receivership. (1) At the meeting called under ORS 94.609, the declarant shall turn over to the homeowners association the responsibility for the administration of the planned community, and the association shall accept the administrative responsibility from the declarant.

(2) If a quorum of the owners is present, the owners shall elect not fewer than the number of directors sufficient to constitute a quorum of the board of directors in accordance with the declaration or bylaws of the association.

(3) At the meeting called under ORS 94.609, the declarant shall deliver to the association:

(a) The original or a photocopy of the recorded declaration and copies of the bylaws and the articles of incorporation, if any, of the planned community and any supplements and amendments to the articles or bylaws;

(b) A deed to the common property in the planned community, unless otherwise provided in the declaration;

(c) The minute books, including all minutes, and other books and records of the association and the board of directors;

(d) All rules and regulations adopted by the declarant;

(e) Resignations of officers and members of the board of directors who are required to resign because of the expiration of any period of declarant control reserved pursuant to ORS 94.600;

(f) A financial statement. The financial statement:

(A) Must consist of a balance sheet and an income and expense statement for the preceding 12-month period or the period following the recording of the declaration, whichever period is shorter; and

(B) Must be reviewed, in accordance with the Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants, by an independent certified public accountant licensed in the State of Oregon if the annual assessments of an association exceed $75,000;

(g) All funds of the association and control of the funds, including all bank records;

To see the entire statute: http://www.leg.state.or.us/ors/094.html

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CarolP13 (Oregon)
Posts: 4

Posted:

The developers, w/ all they are going thru and all that they have lost, are not going to relinquish voting rights.
We homeowners have no right to ask for actual bank statements?
Need to hire an attorney to demand bank statements?

CarolP13 (Oregon)
Posts: 4

Posted:

i want the developer to keep control if all is "just", HOA financially honest.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Why hire a lawyer to demand this? You know that means you all have to pool your money together to do that? Or you have to do that as an individual. If your still under developer control, they don't have to disclose actual bank statements. They can just provide some basic accounting information. Bank statements won't really tell you as much as you think.

Until your HOA is under owner control, there' not much you can do but to volunteer to help the developer out.

Former HOA President

CarolP13 (Oregon)
Posts: 4

Posted:

To find out if the money is still there.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

What money is still there exactly? Your a NON PROFIT corporation. Whatever money you all collect has to be spent out on it's expenses. You should have a little balance that revolves if things are done correctly. Like garbage in/garbage out, the money you all put into your HOA should work similar to that. Your concern may be that there will be enough money in a reserve account for bigger capital repairs in the future. Your checking account information will just provide the money collected is being spent out on expenses. Which sounds like a possible rate hike if that is not able to happen and things lack maintenance.

Former HOA President

JeffT2 (Iowa)
Posts: 880

Posted:

You have the right to inspect and make copies of bank statements now, without waiting for owner control of the HOA.

First check your governing documents for the right to inspect, and follow those guidelines.

If your HOA is incorporated (most are), then Oregon's Nonprofit Corporation laws also allow you to inspect and copy financial documents. Write a demand letter to the HOA describing with reasonable particularity the purpose and the records you desire to inspect.

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