Dues made out to?

It is not that unusual of a practice. In our county we actually write the check for our licenses in the name of the License commissioner. It isn't to a "License Department". It is probably how the HOA accountant has the account set up. Plus a copy of the HOA bank statement may be not available but the expense report isn't. We gave out our monthly expense reports and discussed them at every meeting. We only gave collections to the HOA board members. That being that only the HOA board had the authority to take actions to collect and it's a private issue. (Although some HOA's do practice the "shaming" method).

So I don't see an issue here. Plus I would make sure to ALWAYS write your Lot# on your checks on the subject line with dues/month note. That way you have a copy of what that check was written for if an issue was to come up. Many HOA's go by lot #'s not address. That is how we did ours.

Steven,

Welcome to the forum.

To answer your question, the check should be made out to the Association (not to an individual).

Typically, through governing documents and applicable statutes, you have a right to review Association records. Depending on statute, copies may have to be provided as well, but the Association may also normally charge you for those copies.

In my opinion, your larger concern would be if the Association has it's own bank account or is utilizing an account in the name of the Treasurer (which is a not allowed). If the account is in the name of the Association, the checks should be written in the name of the Association.

I totally agree with PitA, Tim & Fred. But I'm wondering: where is the "requirement" to make out your assessment check to the treasurer written? What is the exact quote, please?

What size is your HOA? Detached homes or condos or?

In many states, owners are permitted to review/have copies of HOA records like disbursement records, bank statements, voucher statements, etc. The requests to have same usually have to be made in writing and could involve a fee. It depends on what your won governing docs say and your state's law.

Been trying to justify this in my own mind and I cannot. The only scenario that works at all is that the treasurer is using his own personal account for HOA business.

Among the downsides to using a personal account for HOA business:

1. Once deposits are made there is no way to distinguish the treasurer's own property from that of the HOA.

2. The IRS (and state) may treat those deposits as the treasurer's personal income.

3. Reserve amounts (and I am being overly optimistic in hoping that there are any) would also be in the treasurer's personal account.

4. Even if the treasurer is completely trustworthy, you do not know who else has access to the HOA funds in his account.

5. If the treasurer gets hit by a bus the account will be frozen and subject to probate as part of his estate; Great-aunt Matilda could receive quite a windfall while your HOA bills go unpaid.

Steven, you may also wish to request a copy of the HOA's tax return. I suspect that the treasurer is not filing the proper forms; he may be filing tax returns as if the HOA were his own personal business. The HOA should have its own EIN and file returns on form 1120-H if incorporated.

Since this practice is irregular I would assume nothing and begin by verifying that the association is incorporated as a non-profit corporation if that is what you CC&R's require (most do).

> It is also a practice common in my state. The county assessor asks that checks be made out to him.

I have seen this also in other places. Usually the request is to make out checks to "Fred Smith, county treasurer" or such.

I am not ready to jump to conclusions. We don't have enough details about the HOA. We don't know if it's still under Developer control or HOA members. We don't know the size of the HOA or if they are given a voucher/coupon/dues slip. There are too many factors we don't know yet to come to a "Boy that is wrong" conclusion.

Now I agree that the Treasurer being written the checks isn't the "Norm". However, don't know if they own their own business and their business name is theirs. Like a "John Doe Inc.". We and the OP needs more details before deciding this is something to notice...