Right to Inspect HOA Records
Association members have the right to inspect and copy the association's books and records. The Davis-Stirling Act defines records as the association's records, not the records of members (Civ. Code § 5200.) Members may inspect the association's records with certain with limitations.
Requests to inspect records must be in writing and sufficiently detailed so it is clear what is being requested from the association. For example, members cannot make a general request for every record ever produced by the association over a certain period of time.
The request by a member to inspect records must be for a proper purpose reasonably related to his or her interests as a member of the association. (Civ. Code § 5230, Corp. Code § 8330, Corp. Code § 8333.) Associations can bring actions for injunctive relief and damages against members who violate this requirement.
- The association records, and any information from them, may not be sold, used for a commercial purpose, or used for any other purpose not reasonably related to a member's interest as a member. An association may bring an action against any member who violates this limitation for injunctive relief and for actual damages to the association caused by the violation.
- The law may not be construed to limit the right of an association to damages for misuse of information obtained from the association or to limit the right of an association to injunctive relief to stop the misuse of any information.
- An association shall be entitled to recover reasonable costs and expenses, including reasonable attorney's fees, in a successful action to enforce its rights.
Records must be made available at the association's onsite business office or, if there is none, at a mutually agreed upon location. If the parties cannot agree on a location or if the member submits a request for copies of specifically identified records, the association may copy the documents and mail them to the member. (Civ. Code § 5205{c).) During the inspection process, records remain under the association's custody and control. Members do not have a right to remove, alter, or destroy corporate records.
Members may designate another person, agent, or attorney to inspect records. The member shall make the designation in writing. (Civ. Code § 5205{b), Corp. Code § 8311.) Inspection rights cannot be limited by contract or by the association's articles or bylaws. (Corp. Code § 8313.)
Owners sometimes mix requests for" information with requests for records. The Davis-Stirling Act provides for an owner's right to inspect books and records. It does not create an obligation that associations compile information. For example, if an owner were to request a list of all rules violations for the past two years, the association is not required to review its files and create a list. If a list already exists, the association could produce it (minus any personal information that might be in the document), although it is not required to do so since the list is not part of the statutorily authorized "books and records" associations are required to produce.
Except for minutes that are permanently available, associations are only required produce records for the current fiscal year-and two previous fiscal years. (Civ. Code § 5210(a).) While some association records are not subject to review, most can be inspected and copied by members. (Civ. Code § 5200{a).) Following is a list of records subject to membership review:
- architectural plans
- contracts
- election materials
- employee salaries (with limitations)
- governing documents (Civ. Code § 5200)
- insurance policies
- membership list
- minutes
- Financial records,
- Invoices, canceled checks, purchase orders approved by the association, bank account statements, credit card statements for credit card issued in the association's name, and reimbursement request submitted to the association.
- schedule of monetary penalties
- tax returns
The following association records are not subject to inspection by members (Civ. Code § 4935 and § 5215):
- Bids and contract proposals
- Board packets
- Correspondence between members, vendors or others with the board (unless a correspondence is used as evidence in a disciplinary action against another owner, in which case the disciplined owner has a right to see it).
- Disciplinary actions, collection activities, or payment plans of other owners
- Email between directors
- Employee bonuses
- Employee contracts
- Executive session minutes
- Information privileged by law, such as documents subject to attorney-client privilege or relating to litigation in which the association is or may become involved, and confidential settlement agreements. social security numbers, tax ID numbers, driver's license numbers, credit card account numbers, bank account number, and bank routing number
- Personnel records
- Records likely to lead to identity theft
- Records likely to lead to fraud
- Records reasonably likely to compromise the privacy of an individual member
- Security camera recordings
- Video recordings of meetings
Associations may charge for the cost of copying the requested documents and redacting sensitive information. Directors who request copies can also be charged for the cost of copying.
Associations are required produce records within the following time frames:
All minutes of board and member meetings (other than executive session) shall be made available to members within 30 days of the meeting and distributed upon request (Civ. Code § 4950). All minutes of previous member and board meetings (other than executive sessions), must be produced within 30 days following the association's receipt of the request (Civ. Code § 5210(b)(4)). Minutes of committees with decision making authority for meetings commencing on or after January 1, 2007, within 15 calendar days following approval. (Civ. Code § 5210(b)(5).)
Any record or statement available under Civil Code § 5300 (budget, reserves, lien policies, insurance, financial statement, etc.) or Civil Code § 4525 (governing documents, assessments, violations, construction defects, etc.), within the following time frames:
- Current Fiscal Year: Records for the current fiscal year, within 10 business days of receipt of the request (Civ. Code § 5210(b)(1));
- Prior Fiscal Years: Records for the previous 2 fiscal years, within 30 calendar days of receipt of the request (Civ. Code § 5210(b)(2));
Membership List: 5 business days.
With respect to association records required to be provided pursuant to Civil Code § 5200, an association may charge the direct and actual cost of copying and mailing the requested items. (Civ. Code § 5205(f).) An association may also charge an amount not exceeding $10 per hour, and not exceeding $200 total per written request, for the time actually and reasonably involved in redacting an "enhanced association record." (Civ. Code § 5205(g).)
With respect to association records required to be provided pursuant to Civil Code § 4530, an association may charge a reasonable fee based upon the association's actual cost to procure, prepare, reproduce and deliver the requested items. (Civ. Code § 4530(b).)
Association members who request records have the option of receiving them in electronic form if the records can be transmitted in a redacted format that does not allow the records to be altered. (Civ. Code § 5205(h).)
The association may charge a reasonable fee for this service based on the association's actual cost to procure, redact, prepare, and reproduce the requested items.
For items provided electronically, the cost of duplication is limited to the direct cost of producing a copy of a record in the electronic format. The cost of duplication shall be limited to the direct cost of producing a copy of a record in that electronic format. (Civ. Code § 5205(h).)
Association members may bring an action in small claims court to enforce their right to inspect and copy the association's records. Making a request for ADR is not required before going into small claims court. If the court finds that the association unreasonably withheld records, the court may assess a penalty of up to $500 for the denial of each separate written request and order the production of records. (Civ. Code § 5235.) If owners bring an action in small claims that the court finds is frivolous, unreasonable, or without foundation, the court can award costs to the association. (Civ. Code § 5235.)
Inspection rights cannot be limited by contract or by the association's articles or bylaws. (Corp. Code § 5235.)
For deed-restricted associations that do not fall under the Davis-Stirling Act, inspection rights can be found in Corporations Code § 1601 and § 8333. Corporations Code § 1610(a) only requires that the accounting books and records and minutes of proceedings of the shareholders and the board and committees of the board of any domestic corporation be open to inspection at any reasonable time during business hours. Section 1601, subdivision (a) requires only that the identified records 'shall be open to inspection at any reasonable time during usual business hours.
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