Are homeowners allowed to review the financial statements?

I am turning to you all for advice once again. I’m a new board member, as many of you may know. The previous V.President/Treasure is asking the president if she can still receive copies of the finical statements. I don’t know all that much about them to give an educated answer. but it doesn’t seem like a very good idea. Not being all that familiar with these statements. Would this be a good idea, will it hurt anyone? All I can do is question what I don’t know. Are homeowners allowed to review the financial statements? She has said she would only like copies of the financials...just the main Balance sheet and Income statement not the supporting details. She says "she thought that the homeowner was allowed to view these documents.Can she???

Thank you all
Chuck W.

Chuck:

Sorry! we do not go into the details on contracts costs,etc. unless inquiries are made.

Jim

Yes Chuck, all homeowners are allowed to review the financial records. In fact for one association I manage the Board requested I email the monthly Balance Sheet, Income Statement, and Cash Flow chart to all owners who have provided an email address. Accounts receivable are not provided by email, except the net total.

CharlesW1,

Homeowners and Board members alike need to understand their rights and educate eachother in the learning process.

Your caution is admirable, but don't let it trip you up. The Treasurer is not asking for the details but I'd advise her it's available for review upon written request of time, place, etc. Just to be on the safe side.

GeraldT1
NNJ

Chuck:
You ask;what could be considered personal information?

Strange as it is, any homeowner who attends our board meetings may elect to sit through the session and listen while we discuss the names of other homeowners and the amounts they owe on past assessements. (one examble) Some are in default for several years. To me this would be, not only personal but, embarrasing for someone to know your financial business.
One member of the board suggested the names and amount owed by deligents be published in the newsletter because non payment means they were in essence stealing from those who do pay on time. The attorneys say this cannot be done because of the privacy laws. Yet! as I said, anyone can attend the board meetings and know everything about anybody in the community. Perplexing""""
Roger, is in tune with most of these issues and seems to have the answers.

Jim

I would never publish the names of homeowners who are delinquent. If their names are discussed at a Board meeting it should be understood by all that this is confidential information. Nevertheless, an owner has the right to review the accounts receivable file to ascertain the delinquencies but ONLY AFTER providing a good faith reason such as a concern that the Board wants to raise the assessment and the owner thinks this is not necessary because delinquent accounts are not being actively persued.

Following is an example:

Rules and Regulations on Inspection and Copying of Association Records

The records of the Association shall be reasonably available for inspection and copying during normal working hours to a Unit Owner, or their appointed representative, in response to their good faith request for a proper Association purpose. The Association may withhold records such as those protected by attorney-client privilege and information which might be used for soliciting purposes. No owner shall disclose Association information which can be used for soliciting purposes. Privacy concerns, however, are narrowly construed. For example, despite what might be embarrassing to a homeowner, delinquent account information can not be withheld from an Owner if the request is made in good faith and for a proper purpose.

The Owner shall submit a written request to the Registered Agent providing a) Name, b) Address, c) Date, d) purpose, e) Specific records for which copies are requested, f) Specific records for which only onsite review under supervision are requested. Upon receipt of a request the Agent shall contact the Owner to schedule a meeting within five business days and advise on the cost involved.

Yes, we faced the same problem. And the President of the Board posted the names of all the delinquent members in the Clubhouse. What an uproar that turned out to be! Losing several more members that had been current.

Now, we will post the names of the PEOPLE WHO ARE CURRENT - THEREFORE IN GOOD STANDING - as a "reward" for the members that take care of their obligations. This "List" has to be available at the beginning of all meetings of members anyway to tally attendance as well as voting eligiblility! So why not use this law in your favor. If a delinquent member's name is NOT on the list - - oh well - - it is a "Member in Good Standing List" anyway and they can get their names on the REWARD LIST simply by being current in their dues and any assessments.

Works for us.
Nikki T.