Builder-Managed HOA

Hello. The builder runs the HOA for Mossy Meadows in Kathleen, GA, and it will soon be transferred to homeowners. They have refused to provide a list of expenditures to homeowners and stated that there is no legal requirement to do so. I believe that they might be misusing the monies collected over the past five or so years that the subdivision has been in development and that they simply do not want to provide this information due to how homeowners might respond. Is there a legal precedent for such things?

I do not think this is accurate. Georgia statutes appear to require that The developer provide an annual budget. More at https://www.hoamanagement.com/ask-an-hoa-manager/how-to-transition-from-developer-control-in-georgia/

I think a group of you should consider hiring an attorney.

An annual budget, yes. An itemized list of expenditures, no. An annual budget is simply a plan for the year that includes anticipated income and expenditures. They have provided this. What they refuse to provide is an itemized list of expenditures; or even an account balance.

Go find the "applicability" section of the GPOAA and see if you can suss out why the developer thinks it does not apply.

Hi Donald,

Communities have an option to opt in to the POAA https://www.condocontrol.com/blog/georgia-property-owners-association-act/.

However, owners have a right to see expenditures. It sounds like you will need to get an attorney involved if the developer is not cooperating.

Donald,

Remember the Posting Rules:

(3) No Mention of Community/Company/Person Names: In order to fairly enforce (2) and prevent liability, we do not allow the mentioning of any community name, company name or product. Please also do not post the full name of any person.

Regarding your question:

Some developers run the Association under their own corporate name. If this is the case, unless your governing documents specify access to association records, you might be out of luck.

However, if the Association is incorporated as it's own entity, check with Georgia
Corporations Division to find out, then corporate statutes apply.

Per O.C.G.A. § 14-3-1602, available here (you have to go through captcha verification):

(c) A member is entitled to inspect and copy, at a reasonable time and reasonable location specified by the corporation, any of the following records of the corporation if the member meets the requirements of subsection (d) of this Code section and gives the corporation written notice at least five business days before the date on which the member wishes to inspect and copy:

(1) Excerpts from minutes of any meeting of the board of directors, records of any action of a committee of the board of directors while acting in place of the board of directors on behalf of the corporation, minutes of any meeting of the members, and records of action taken by the members or the board of directors without a meeting, to the extent not subject to inspection under subsection (a) of this Code section;

(2) Accounting records of the corporation; and

(3) Subject to Code Section 14-3-1605, the membership list.