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DavidW5 (North Carolina)
Posts: 565
Posted:
Our board, still controlled by the developer, recently passed a resolution that requires members who wish to examine (not copy) association records to pay, in advance, the estimated cost of gathering the records AND the cost of an employee of the management agent to sit as custodian while the records are being examined. This appears to violate the Virginia Property Owners Act. I have written to the board protesting this resolution and citing provisions of the Act which appear to make it illegal. So far they have refused to amend or rescind the resolution. Does anyone else have such a rule in their association?

Dave
MikeS1
Posts: 668
Posted:
Good question - The tricky part stems from the fact that they have spend a great deal of time in order to sort through the confidential items that they are not allowed to show you. I don't see that it technically violates the POA law, although I'll grant you that perhaps the law is a little vague when it says "shall be available for examination and copying by a member in good standing". It doesn't say "Examination OR Copying" and in the very strict sense of the wording, you can see that it really technically doesn't invite someone to just examine only.

Keep us posted. ....

VA POA
_____________________________________________________________________________

B. Subject to the provisions of subsection C, all books and records kept by or on behalf of the association, including, but not limited to, the association’s membership list and addresses, which shall not be used for purposes of pecuniary gain or commercial solicitation, and aggregate salary information of employees of the association, shall be available for examination and copying by a member in good standing or his authorized agent so long as the request is for a proper purpose related to his membership in the association. This right of examination shall exist without reference to the duration of membership and may be exercised (i) only during reasonable business hours or at a mutually convenient time and location and (ii) upon five days’ written notice reasonably identifying the purpose for the request and the specific books and records of the association requested.
C. Books and records kept by or on behalf of an association may be withheld from inspection and copying to the extent that they concern:
1. Personnel matters relating to specific, identified persons or a person’s medical records;
2. Contracts, leases, and other commercial transactions to purchase or provide goods or services, currently in or under negotiation;
3. Pending or probable litigation. Probable litigation means those instances where there has been a specific threat of litigation from a party or the legal counsel of a party;
4. Matters involving state or local administrative or other formal proceedings
before a government tribunal for enforcement of the association documents or rules and regulations promulgated pursuant to § 55-513;
5. Communications with legal counsel which relates to subdivisions 1 through 4 or which is protected by the attorney -client privilege or the attorney work product doctrine;
6. Disclosure of information in violation of law;
7. Meeting minutes or other confidential records of an executive session of the
board of directors held in accordance with subsection C of § 55-510.1;
8. Documentation, correspondence or management or board reports compiled for or
on behalf of the association or the board by its agents or committees for consideration by the board in executive session; or
9. Individual unit owner or member files, other than those of the requesting lot owner, including any individual lot owner’s or member’s files kept by or on behalf of the association.
D. Prior to providing copies of any books and records to a member in good standing under this section, the association may impose and collect a charge, reflecting the reasonable costs of materials and labor, not to exceed the actual costs thereof.
E. Meetings of the association shall be held in accordance with the provisions of the bylaws at least once each year after the formation of the association. The bylaws shall specify an officer or his agent who shall, at least 14 days in advance of any annual or regularly scheduled meeting, and at least seven days in advance of any other meeting, send to each member notice of the time, place, and purposes of such meeting. Notice shall be sent by United States mail to all members at the address of their respective lots and to such other addresses as any of them may have designated to such officer or his agent; or notice may be hand delivered by the officer or his agent, provided the officer or his agent certifies in writing that notice was delivered to the member. Except as provided in subdivision C 7, draft minutes of the board of directors shall be open for inspection and copying (i) within 60 days from the conclusion of the meeting to which such minutes appertain or (ii) when such minutes are distributed to board members as part of an agenda package for the next meeting of the board of directors, whicheveroccurs first.
RogerB (Colorado)
Posts: 5,067
Posted:
David, who do you think should pay for the costs involved?
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By DavidW5 on 10/18/2007 7:19 AM
Our board, still controlled by the developer, recently passed a resolution that requires members who wish to examine (not copy) association records to pay, in advance, the estimated cost of gathering the records AND the cost of an employee of the management agent to sit as custodian while the records are being examined. This appears to violate the Virginia Property Owners Act. I have written to the board protesting this resolution and citing provisions of the Act which appear to make it illegal. So far they have refused to amend or rescind the resolution. Does anyone else have such a rule in their association?

Dave

There is a cost to the HOA to gather the documents and supervise the viewing of the documents (so they are not removed or damaged). This cost should be paid by the person wishing to view the documents.


Ron
SC
DavidW5 (North Carolina)
Posts: 565
Posted:
Quote:
Posted By RogerB on 10/18/2007 1:33 PM
David, who do you think should pay for the costs involved?

In the case of a simple request to examine a limited number of documents, I don't see how there is ANY incremental cost to the association. The employees of the Management Agent who would locate the documents and supervise the review are already paid full-time by the association. Unless you could argue that they are already working 100% of their available hours on Association business (anyone who ever worked in an office knows this is not so) and therefore, overtime would be required to fulfill the document request.

I believe the Board resolution has as its primary purpose, to limit members examination of records. The Virginia statute specifically prohibits limiting members' access to association records.

Dave
GloriaM (North Carolina)
Posts: 829
Posted:
Time is money....If the Developer has to pay an employee to sit with you while you review the records, who should pay his employee's wages?

Of course there would be a fee associated with this. Go to your bank request a copy and see what they charge you. Go to your State VA and ask the Register of Deeds for a copy of something? Is there a charge associated with it? Of course!

If a HO requests documents then the HO has to pay for the time, postage, copies anything associated with their request. I don't think the HOA, the mc or devloper should have to pay extra for this request.
RogerB (Colorado)
Posts: 5,067
Posted:
Quote:
Posted By DavidW5 on 10/19/2007 1:02 PM
Posted By RogerB on 10/18/2007 1:33 PM
David, who do you think should pay for the costs involved?


In the case of a simple request to examine a limited number of documents, I don't see how there is ANY incremental cost to the association. The employees of the Management Agent who would locate the documents and supervise the review are already paid full-time by the association. Unless you could argue that they are already working 100% of their available hours on Association business (anyone who ever worked in an office knows this is not so) and therefore, overtime would be required to fulfill the document request.

I believe the Board resolution has as its primary purpose, to limit members examination of records. The Virginia statute specifically prohibits limiting members' access to association records. Dave

David, FYI our management agreements do not include this service in the monthly rate. It is paid under an hourly rate plus the cost of any copies provided.

I don't know what specific Board resolution you are referencing, but the primary purpose is to allow HOA members to review and copy HOA documents and pay accordingly.
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By DavidW5 on 10/19/2007 1:02 PM
Posted By RogerB on 10/18/2007 1:33 PM
David, who do you think should pay for the costs involved?


In the case of a simple request to examine a limited number of documents, I don't see how there is ANY incremental cost to the association. The employees of the Management Agent who would locate the documents and supervise the review are already paid full-time by the association. Unless you could argue that they are already working 100% of their available hours on Association business (anyone who ever worked in an office knows this is not so) and therefore, overtime would be required to fulfill the document request.
..

David, as others have posted, the employees of the MC are paid to do a job. Adding to their workload means that either other work does not get done, they pay existing employees to work overtime, or they hire temporary help. As someone else posted, time is money. The documents must be located, the examining member must be supervised, and the documents must be returned to their proper place. Who is to say the member will not tie up staff for hours? And remember that there are employee costs in addition to hourly wages.


Ron
SC
HaroldS (Arizona)
Posts: 906
Posted:
Arizona does not allow charges to the homeowner for reviewing documents. "The association shall not charge a member or any person designated by the member in writing for making material available for review." But it doesn't preclude the MC from charging the HOA for their time, The HOA just cannot pass that charge on to the homeowner. They can charge the homeowner 15 cents a page for any copies requested. Harold
AdrianC (California)
Posts: 36
Posted:
Yes, the devil is in the details.

Most public documents are as I understand it covered by the Freedom of Information Act.
HOA's are publicly registered entities, and I believe anybody can look up anything that you file with the state or the Feds.

Mostly I have found that I can examine any record free, but have to pay copy charges, sometimes a lot sometimes very little.

We are busy building our website, and any owner in good standing will be able to access minutes of meetings, financial statements and other info on line. This info carries a privacy warning.
Individual owners should be able to view their own association account, notices to them, and fines levied, and hopefully eventually the history of their unit, such as architectural, landscape, plumbing issues.

AdrianC

DavidW5 (North Carolina)
Posts: 565
Posted:
Quote:
Posted By RonaldW on 10/19/2007 3:33 PM

Posted By RogerB on 10/18/2007 1:33 PM

David, as others have posted, the employees of the MC are paid to do a job. Adding to their workload means that either other work does not get done, they pay existing employees to work overtime, or they hire temporary help. As someone else posted, time is money. The documents must be located, the examining member must be supervised, and the documents must be returned to their proper place. Who is to say the member will not tie up staff for hours? And remember that there are employee costs in addition to hourly wages.



The documents of the association are every bit as much a piece of common property as the clubhouse, the swimming pool or any other of our facilities. As such, there is no justification for charging a member for their use. It would not make sense for the association to make me pay for the lifeguard at the pool each time I swim there. Nor does it make sense for the association to make me pay for the management agent's employee each time I ask them to show me an association document. This cost should be part of the amenities and services the association provides to its members.

Furthermore, if the association has nothing to hide, why are they trying to limit members' access to records. In this case, an early draft of the annual financial audit report stated that the management agent was unable to produce the paid invoices for two months of the year. In the final draft of the report, that failure is not mentioned. I have requested to see those invoices as a means of verifying that they really were eventually made available to the auditor. By the way, the audit report, which in our bylaws is required to be completed within 180 days (by July 1) has still not been released to the community (it is now mid Oct.). This policy of charging for access to the records was passed at the Sept. board meeting. Something smells here!

David
NancyD1 (Florida)
Posts: 447
Posted:
What David say above has validity but what happens if a homeowner asks to view documentation ever day. Should the office staff put off their duties to satisfy this request?

A board recommendation has to be passed, and entered into the Rules and Regs. of the HOA, allowing homeowners to submit requests to view or copy that certain documentation that is requested. It needs to be stated by the homeowner what documents he would like to view, if not, the office personnel would be running to locate these items. With the requests in hand the office can accumulate the collection of these documents during the slow part of their daily routine. These items should be made available only during certain hours on the day you designate. The office has to run in a efficient manner and if people are just stopping at all hours, it disrupts the production flow.

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