HOA Prize money

Our HOA (in California) held a Christmas light contest in December handing out prizes to the homeowners with the best decorated home. $100, $50 and $25 gift Visa cards were handed out along with purchases at Costco for refreshments held at the park for homeowners to vote. I asked for receipts on all spending and that was provided. I also asked which board members were reimbursed but they said they do not have to disclose which board members were reimbursed for the gift cards and Costco spending. Can the HOA decline to disclose which board members were reimbursed? Also, is a prize give away legitimate using HOA funds?

Dean: Provide a citation that the HOA must give owners an accounting of expenses for which they were reimbursed by the HOA.

Also provide any citation that HOA cannot be used for social events.

You fling out your opinions, often with no evidence, and often with no knowledge of what is permitted in states other than your own, Ohio.

This is not an Ohio thing, it is a declaration limitation. Most declarations only authorize the board shall to establish a budget and an assessment for the maintenance of the common elements. Parties aren’t maintenance.

Now the legal part in Ohio.5312.07

A) Unless otherwise prohibited by this section, any owner may examine and copy the books, records, and minutes of the owners association that division (C) of section 5312.06 of the Revised Code describes, pursuant to reasonable standards set forth in the declaration, bylaws, or rules the board promulgates.

C) The owners association shall keep all of the following:

(1) Correct and complete books and records of account that specify the receipts and expenditures relating to the common elements and other common receipts and expenses;

(2) Records showing the collection of the common expenses from the owners;

(3) Minutes of the meetings of the association and the board of directors;

(4) Records of the names and addresses of the owners.

A bank statement is a record of account and will indicate to who checks were issued.

Jerry,

Why does it matter who initially paid for what?

You asked for receipts and those were provided.

Obviously, there is much more behind this request.

Hi Tim, we just had a few homeowners that didn't like the idea of the HOA spending our dues for prize money so I took it upon myself to get full disclosure to share with the homeowners around me. We also wanted to know who was doing the spending so I asked if they could tell me which board members were doing the spending and who was reimbursed and management suddenly became offensive and said we really don't even have to disclose that so I wanted to ask the question in this group.

Thank you, Tim.

When board members stand for election, who promoted, participated or voted for spending that so,e members don’t approve, it become relevant.

My HOA does not donate money to any organization or buy flowers for deceased homeowners. If gifts or prizes are given at HOA functions, they are donated by homeowners. We do spend very frugally on entertainment and if any members objected, we would probably charge for HOA social functions.

No they can't decline to disclose reimbursements. Corp Code 8321. Civil Code 5320.

Hi again Tim,

Would I be able to request a copy of the checks (front and back) for the HOA prize reimbursements?

Most banks do not return the checks anymore.
Therefore, an argument could be that a photo of a cashed check is not a record of the Association - it is a banks record. (legal action and court ruling would be required to resolve).

Some banks do include images of the cashed checks on their bank statements.
Some banks include images of cashed checks on statements for an additional fee.
Some banks don't make images of cashed checks available without a fee (which the Association could charge to you).

Although unlikely, an ACH payment could have been used which might not have an image.

My suggestion, request to review the bank statements for Dec 2023 and Jan 2024.
You may get lucky and the check image is there.

Again, I don't really understand why knowing who the initial purchaser was is that important as it was the Board of Directors who would have approved any expenditures.
If you care to share, that would be great.
If you don't want to share, I understand.

Not liking the expenses (which I do understand) should have your concerns be toward the entire board.

I think sometimes people get caught up in the "Fun" in their neighborhood. They don't take a step back and realize where the money is coming from. A HOA is ONLY funded by it's members FOR it's members. Not everyone wants to participate or pay for a neighborhood "party/decor/gifts". Honestly, how many of us have sat through an awards ceremony to see the person most people don't like get a gift card? It was for "Long term service". Your like no one wants to vote them out cause no one to replace them!

The best advice I ever got was "This is NOT your money. It is EVERYONE's money" when I was President. This is something I would go to a board meeting and repeat. That it's nice to give away these prizes etc... However, it should be surveyed by the membership if they are okay with their money being used this way. It's less about the board member getting reimbursed as much as it is creating a culture where this is acceptable without thought.