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DougM5 (Washington)
Posts: 20
Posted:
Board expects me to pay $423 to inspect six months of financials. I don't want or need copies. I am aware of the WA state RCW's. the management company is in South Carolina, We have a owner website and I have asked the electronic versions of the documents to be placed there. Has anyone in WA STATE had experience with taking their HOA to court?
TimB4 (Tennessee)
Posts: 21,061
Posted:
Doug,

Typically, an Association may charge a reasonable fee for inspection or copies including the cost of labor. This is even stated in RCW 64.38.045 [emphasis added]:

The association may impose and collect a reasonable charge for copies and any reasonable costs incurred by the association in providing access to records.

It does take time for someone at the MC to pull the documents you desire, perhaps sit there while you review them, etc.
DougM5 (Washington)
Posts: 20
Posted:
I appreciate your time and comments, my question is regarding a condominium, which falls under a different set of rcws
RichardP13 (California)
Posts: 3,868
Posted:
The MC is in South Carolina and the HOA is in Washington. I have to assume that being completely across country, the MC would email the financials to the Board. From experience it would take me 15 minutes to compile what I think you are looking for.
MarkM31 (Washington)
Posts: 494
Posted:
Pay the $423, view the financials and sue the HOA in small claims court for $423 and let them explain to a judge how that is a reasonable amount.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By DougM5 on 03/01/2017 7:09 PM
I appreciate your time and comments, my question is regarding a condominium, which falls under a different set of rcws

Then I refer you to the WASHINGTON NONPROFIT CORPORATION ACT, applicable if your Association is incorporated as a nonprofit (most are, but check to be sure). Per RCW 24.03.135 [emphasis added]:

Required documents in the form of a record—Inspection—Copying.
Each corporation shall keep at its registered office, its principal office in this state, or at its secretary's office if in this state, the following documents in the form of a record:
(1) Current articles and bylaws;
(2) A list of members, including names, addresses, and classes of membership, if any;
(3) Correct and adequate statements of accounts and finances;
(4) A list of officers' and directors' names and addresses;
(5) Minutes of the proceedings of the members, if any, the board, and any minutes which may be maintained by committees of the board.
The corporate records shall be open at any reasonable time to inspection by any member of more than three months standing or a representative of more than five percent of the membership.
Cost of inspecting or copying shall be borne by such member except for costs for copies of articles or bylaws. Any such member must have a purpose for inspection reasonably related to membership interests. Use or sale of members' lists by such member if obtained by inspection is prohibited.
The superior court of the corporation's or such member's residence may order inspection and may appoint independent inspectors. Such member shall pay inspection costs unless the court orders otherwise.

Again, it costs money for someone to pull the records, review them, redact privacy information, perhaps sit with you while you review.

I would ask that the costs be itemized. This way you can see if such charges are reasonable or not.
MarkM31 (Washington)
Posts: 494
Posted:
Quote:
Posted By DougM5 on 03/01/2017 7:09 PM
I appreciate your time and comments, my question is regarding a condominium, which falls under a different set of rcws

64.34 and 64.38 are mirror images of each other, with just minor differences reflecting the different types or real property. The reasonably available records rule is common to both. I stand by my statement of paying the $423 and then suing for $403 (give them twenty bucks for the four months of records). I can tell you by experience that the judge will have zero patience for any claim that $423 was a reasonable fee.

And you'll have fun while you watch the officer get dressed down.

Just how big is this COA that a MC in North Carolina is deemed nreasonable?

Quote:
(1) The association shall keep financial records sufficiently detailed to enable the association to comply with RCW 64.34.425. All financial and other records of the association, including but not limited to checks, bank records, and invoices, are the property of the association, but shall be made reasonably available for examination and copying by the manager of the association, any unit owner, or the owner's authorized agents. At least annually, the association shall prepare, or cause to be prepared, a financial statement of the association in accordance with generally accepted accounting principles. The financial statements of condominiums consisting of fifty or more units shall be audited at least annually by a certified public accountant. In the case of a condominium consisting of fewer than fifty units, an annual audit is also required but may be waived annually by unit owners other than the declarant of units to which sixty percent of the votes are allocated, excluding the votes allocated to units owned by the declarant.

MarkM31 (Washington)
Posts: 494
Posted:
The above quote is RCW 64.34.372
SheliaH (Indiana)
Posts: 6,964
Posted:
The $423 may also be based on the volume of records you want - financials would likely be contracts, invoices, bank statements check registers, balance sheets, income-expense reports (for the operating and reserve budgets), daily cash receipts reports, delinquency report (much of which would have to be redacted because it contains individual homeowner information), etc. The larger the community, the more documents you might be talking about.

Putting electronic versions of the documents online also means redacting sensitive information before scanning all of this in the system. Do you really want your association's bank information, complete with account numbers posted online? how can you ensure that a crook would grab that information and use it for God knows what?

If your website has an owner-only spot which would require a password to access, that's where I agree that posting the balance sheets, income-expense reports and some sort of summary on delinquent accounts could go.

If you're only looking to inspect the records, could you make an appointment to go to the management company offices to look at this information? Or perhaps, start with six months worth of income-expense reports and balance sheets? Review those along with the board meeting minutes for the same period and then you can request specific information such as, say, an invoice for roof repair that was done in March.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
KerryL1 (California)
Posts: 14,550
Posted:
Did you, DougM, request all records for the past 6 months? Or just certain ones? I see you're in a condo HOA and if they're elevator buildings with other mechanical equipment, too, there can be a lot of materials to be compiled.

So....exactly what materials are you requesting?

Reminds me: did you also ask the MC to compile materials that are now separate? For example, did you ask to see what the average water usage is over 6 months?

Perhaps you can refine your request.
DougM5 (Washington)
Posts: 20
Posted:
Thanks Mark. That seems like a reasonable idea. Our condo association is only 40 units, this was supposed to be a cost saving measure.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Doug

A blanket request for "all financials" is out of line and often considered witch hunt. As an example, delinquent lists, payment arrangements, etc. are private. Other transactions might also be, meaning someone is going to have to take the time (money) to edit/redact them thus there will be a cost involved.

If you narrow your requests, they may be met quicker and with less cost.

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