Cost of Record Keeping for HOA and Condominium Associations
Are you on the board of your HOA? Did you know homeowner and condominium associations are required to keep financial records for at least three years; and that board meeting, member meeting and committee meeting minutes dating all the way back to the beginning of 2007 must be accessible to the membership within 30 days of a request (or 15 days for committee meetings)?
So what does this mean for your association? This means that you need to have a proper data retention policy in place. Record retention, organization and storage policies need to be updated to keep up with today’s technology and to minimize costs to the Association.
Who pays to get the records to the homeowner? Unit owners may be charged actual costs for photocopies and postage, but any hourly fees from the management company must be paid by the association – regardless of what the contract with the management company states.
How important is this? Well…in California, associations have been hit with excess of $50,000.00 in attorneys’ fees for delays in providing access to records. That’s one expensive trip to the copier!
As a new board member of a homeowner or condominium association, we can help your association stay California compliant. For more information, contact the attorneys at Chauvel & Glatt.