Management not releasing documents to Board Member

As a new board member coming in to a financially starved HOA I have asked the management company to supply me with copies of the contracts with five vendors (and the last time they went to bid because all vendors have been in the HOA for over 5 years), itemized receipts for a particular maintenance companies work done in a months time (10K total in April), a copy of a certain locksmiths contractors license that went to bid (because I cannot find it online and the management company swears the locksmith is licensed to do the work), and an itemized receipt for signs installed in the HOA.

They will not give me anything I have requested. They have instructed me that I HAVE TO sign two 'Code Of Ethics' forms first, even though when I first joined the forms were optional to sign. I am also told by the management company that I have to go through the President of the board to ask for any documents. But I have called the president of the board twice and e-mailed and have NO replies.

Does AB1098 & Section 1365 apply to myself being a board member, or just owners. Keep in mind, I am NOT an owner. Our By Laws do not state a board member has to be an owner.

So not being an owner, what rights do I have for inspecting all the above items?

Thanks in advance.

What state do you live in? In some states, the amount of documents that MUST be released to a homeowner is well defined, in what time-frame, and how much it will cost. That might give you some leverage.

Sorry, I missed the non-owner statement. I don't think a non-owner has many rights. It is really up to the board.

"Normally" (and how often is that), as a new boardmember you are given a "boardmember packet" by the MC. I made the disclaimer of "normally" for a reason. As to the "authority" that you have to request, or of the MC to turn down your request - if you have access to the governing documents, not only will you find your "rights" as the "non-owner" boardmember, but usually (again along with "normally") you will also find the "conditions" for which you or any other owner can request doc's. Also, check your state code/laws on disclosures, they may not speak specifically to "non-members" but they may address members, and the rights of access of boardmembers.

PaulM:

I am addressing the situation alone due to the fact that the board president and secretary have been on the board for over three years each and they DO NOTHING but upset owners that attend meetings. The other two board members are not very outgoing and do not press forward to ask for certain things. That is why I feel I am in this alone. These two other board members feel I am coming on too strong. I feel there is alot going on I don't know about. We have not had an independent audit done in over 8 years. Our budget and financial matters are always looked at by the MC's CPA. And furthermore if you were to attend our meetings, you would find that the management compnay pretty much runs the meetings! The more monthly meeting I attend, the angrier I get!

KellyC3:

I don't see anything in our documents that don't allow "non owners" to view documents, but they do not say we can either.

I lived in the HOA as a renter for over three years and all that time I heard rumors from quite a few owners that funny things were going on. Then I began to see it for myself. (Certain vendors related to the MC and jobs being done half way and never completed, etc.) I have a relationship with plenty of the 276 condo owners, and I was elected from a "privately formed committee of change" to be the one they all voted for to get on the board to make changes, or atleast see whats going on behind the scenes. I lived in the HOA when I was elected, but have since moved out. I want to stick with this and get all the "dirty laundry" aired out!

I am just surprised that your bylaws would allow a non-owner to be a board member. I do think that non-owners could be an officer, like pres, vp, sec, treas. Can you quote the bylaws on what constitutes who can be a board member? I am really curious.

Also, remember, there may exist state rules that trump your bylaws. For example, many states have Corporation laws which trump bylaws, especially in who has rights for information.

The reason many By-laws do not require Board members to be members is because the Developer writes the By-laws and places their non owner friends on the Board. So I think this is the norm for most original By-laws.

The solution is simmple: Have a cooperative owner request the documents.

IMO I feel the same way as many posters. Not only do I run a MC but I also own in an HOA, I do not manage my HOA, just as a point of info. I feel that a board member should have a vested interest in the HOA. I am not a fan of a non owner becoming a board member. However, as Roger pointed out, the reason documents are filed that a non owner can serve is not only the appointment from the developer of board members during his reign, is also many HOA's find it difficult to get Owners to volunteer to serve. Therefore in a case where the Owners don't step up to the plate to volunteer, the HOA could elect outsiders to perform this duty (for free).

That said Adam, if you were duly elected in accordance with the governing documents and you are a board member you have the right to the corporate documents. You may be hitting a wall from the members and PM because you are an "outsider" of sorts. But legally, you are a board member and the PM must open the documents to you.

AdamW: You have been asked many questions to assist us in addressing your situation and to make your position clearer.

You are requesting documents on your own, apart from the rest of the Board. You state, '...these two other board members feel I am coming on too strong. I feel there is alot going on I don't know about...' You have been asked to go through the President to get what you want. I think this is acceptable process for a non-owner board member.

I am at a loss to understand why you would want to continue to be an 'offsite board member', since 1) you are a non-owner; 2) you used to live in the HOA but moved out...

Why do you not wish to abid by the mgmt company's request to sign the Code of Ethics form? Challenge them to what they are asking of you, and see if you get what you want...

I would think the other board members would align themselves in the cause to receive copies of receipts/contracts. It is the Board's fudiciary responsibility to approve expenses to be paid, and for the mgmt. company to take their cue from the Board.

Gloria
two comments.

You have come much closer to what I was trying to say. You are now getting more accurate authorities that dictate what must be done with documents. However, I would argue, that just because a corporate attorney makes a statement, it is still his/her opinion. However, if you were to give the actual statue from law, then you would be giving the authority. I am sure that is really what you know, my point is that too many (not necessarily you) make blanket statements of opinion with no actual stated authority given. Too many people are willing to blindly believe and not question the speaker.

I am in AZ and know the open meeting laws of the state well. There is a long discussion about exactly what happened with the board member just stating that because she said it was so, then it must be so.

Robert:

I will quote then NC Planned Community Act Chapter 47F which only applies to HOA's within this state for the authority you asked for:

47F-3-118. Association Records. (a) Tha association shall keep financial records sufficiently detailed to enable the association to comply with this Chapter. All financial records and other records, including records of meetings of the association and executive board, shall be made reasonably available for examination by any Lot Owner and the Lot Owner's authorized agents as required in the bylaws and Chapter 55A of the General Statutues.

I hope that helps.

Robert, it makes sense. It would make even more sense --- IF --- you wish to hire Gloria as a professional consultant