Mgmt Compay wirholding information from baord member

Started by NancyM2 • 12 replies • 1317 views

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NancyM2 (California)
Posts: 249

Posted:

Our Mgmt company tells our new board member they can not access information she has requested. These are simple requests, like invoices etc. They say they have to access the archives to get this information, even though it was fairly recent transactions.

We have the "Davis Sterling" act in Calif, and I was wondering if anyone knew where I can find this referenced in Davis Sterling. I believe the Mgmt Co has to give a board member information she requests, and have a time period to do this.

Thanks
NancyM2

MaryA1 (Arizona)
Posts: 7,043

Posted:

Nancy,

I always find it a bit strange when a board member is denied access to assn records. If the PM has to dig into archived records, so be it! I believe the statute you may be looking for is 1365.2 -- inspection of records. All members of the assn are entitled to inspection of assn records, not just board members.

LarryK1 (Washington)
Posts: 32

Posted:

As Mary points out, the section you are looking for is 1365.2. You can retrieve the section here:

http://www.davis-stirling.com/MainIndex/Statutes/CivilCode13652/tabid/894/Default.aspx

Check to see if the information requested falls within any of exceptions listed in that section.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Is an 'invoice' a HOA "record"?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Of course an invoice is an HOA record. It's a supporting document of disbursements made.

JonD1
Posts: 2,350

Posted:

Just wondering:

How long has this new member served?

What types of records are they requesting?

Invoices, why would this member request these?

Was this request made to the PM in front of the other Board members?
What is their stand on this request?

You need more details before you can provide an opinion. At least I do.

SusanW1 (Michigan)
Posts: 5,202

Posted:

I wonder, too. We have 8 board members. imagine if each one wanted to see various invoices.

Once the budget is in place and approved by the board (or members)then the treasurer disperses those funds. Hopefully committees are watching their own invoices before turning them into the treasurer. At least that's the way we do it.

A management company would get invoices in the mail and pay them - in agreement with the budget. The board should watch the YTD expenditures vs. the annual budget.

What kind of invoice did the board member want?

LarryK1 (Washington)
Posts: 32

Posted:

I'm not on the board and yet I regularly request to see invoices and other Association records.

Depending on the complexity of your HOA, invoices might be needed to check the management company is coding the invoices properly, actually receiving invoices rather than just accruing the budgeted amount, actually paying invoices (there are many stories of managers failing to pay association bills), the correct class of units was charged for the expense, to assist the finance committee in budget preparation or explanations of large differences between the budgeted amount and the actual amount.

Invoices from attorneys, which are not generally protected from attorney-client privilege, can also shed light on any legal matters the Association is involved in -- even when the board members cannot otherwise discuss the legal matter.

The Board constantly responds back what if every owner wanted to see the records as much as I do. I usually have to remind them both applicable law and the Declaration requires that they give me access. I also remind them that everyone isn't asking for the records. This is one of those places where the Board cannot get its way.

Personally, I think the review of Association records by people other than those that regularly sees the records is a good thing. Despite the Board grumbling about complying, they know neither the management company nor the Board will be able to get away with anything under my watch.

NancyM2 (California)
Posts: 249

Posted:

Thanks Guys

I did find 1364.2 from the Davis Sterling web-site, "THANK YOU" The Mgmt company is trying to stonewall her as she is a "new" board member and wants to look into some shady past dealings. Like geo-tech reports, litigation expences (over and above Attorneys fee's) Records going back five years .. We have been with the same Mgmt Co for six years, so it shouldn't be a problem.

Thanks for all your help

NancyM2

NancyM2 (California)
Posts: 249

Posted:

Whoops I ment 1365.2

NancyM2

LarryK1 (Washington)
Posts: 32

Posted:

You may also be able to get the geo-tech reports from the local building's department public records. It might be more expensive for paper copies than from the association's records, but depending on the jurisdiction, you may be able to get an electronic copy of the whole report for free and faster than through the management company.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Nancy,

So, if this new board member has taken on a project sanctioned by the BOD, the BOD Pres should have a talk with the mgr and let him/her know that any requests made by a board member are to be honored. The mgr should also be made to understand that he takes orders from the board he doesn't work on his own. The mgr should also be apprised of CA law which gives any member the right to request assn records. If the mgr has nothing to hide he/she wouldn't be averse to providing the requested records.

EllenS1 (Florida)
Posts: 1,148

Posted:

If the mgr doesn't know California law he/she shouldn't be a mgr.

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