Living under the governance of a condominium, co-op, or homeowner’s association (HOA) often comes with a unique set of questions regarding the extent of their authority and the rights of residents. When it comes to accessing information about the association’s operations and finances, homeowners may find themselves wondering what they are entitled to know.
Ryan Poliakoff, an attorney and author based in Boca Raton, Florida, sheds light on these common concerns, addressing inquiries about the transparency of association records and the right to information.
Transparency of Owner Debts to the Association
One common question revolves around whether other homeowners have the right to know if a particular unit owner owes money to the HOA for unpaid repair work. This debt, while perhaps not a regular assessment, can accumulate and impact the association’s financial health.
The Right to Inspect Association Records
Generally, most community association records are considered “official records” and are open for inspection by residents. In an HOA, these records encompass a broad range, including “all other written records of the association not specifically included in [the statute] which are related to the operation of the association.” This means virtually any document the association maintains is likely accessible.
While certain records are expressly excluded from inspection – such as attorney-client privileged communications, medical information, personnel records, and specific personal identifying details – there is typically no exclusion for financial information pertaining to unit owners and their accounts.
Therefore, if an owner owes the association money for repairs, and this debt is documented in any form – be it a ledger, receipts, or correspondence – these records are generally inspectable. The reasoning behind this is that an owner’s debt to the association can, in a practical sense, be viewed as a debt owed by that individual to every other member of the community. This shared financial responsibility often justifies a resident’s right to be informed about such outstanding obligations.
Furthermore, when an association’s governing documents allow for charging owners for repair work (often due to a failure to maintain their specific unit or lot), these charges are frequently treated as assessments or are directly chargeable as assessments. This classification provides an additional basis for homeowners to have access to information about the amounts owed.
Accessing the Association’s Insurance Policy
Another frequent point of contention for homeowners involves the association’s insurance policies. Residents often seek to review these policies to understand the extent of coverage for structural damage and other potential casualties, especially when the association is responsible for exterior building maintenance.
HOA’s Obligation to Provide Insurance Information
Similar to other financial records, an association’s insurance policies are almost universally considered part of its official records and are therefore inspectable. Statutes often explicitly state that “all of the association’s insurance policies” must be maintained and made available for inspection.
The association has a legal obligation to keep these policies and to permit residents to examine them. Excuses such as a malfunctioning computer or a lack of readily available copies are generally not considered valid reasons for refusal. Obtaining a copy of an insurance policy, especially if the association has a relationship with an insurance agent, can often be accomplished with a simple phone call.
In many jurisdictions, if an association has a certain number of units (e.g., 100 or more), it may even be mandated to post its insurance documents on its community website for all residents to access.
Suspicions Arising from Non-Compliance
An unwillingness or consistent failure to provide access to these documents can understandably raise suspicions among residents that something is amiss within the association’s management or financial dealings.
Enforcing the Right to Access
If an association refuses to provide access to records within a specified timeframe (often 10 business days) after receiving a written request sent via certified mail, there can be a presumption that the refusal is willful. In such cases, the requesting party may be entitled to damages, though enforcing this right typically requires legal action against the association.
While many homeowners may hesitate to pursue legal action due to the potential costs and complexities, a persistent refusal to provide essential documents like insurance policies could warrant consulting an attorney. An attorney can send a formal letter outlining the consequences of continued non-compliance, which may prompt the association to release the requested information.
Ryan Poliakoff, a partner at Poliakoff Backer, LLP, is a Board Certified specialist in condominium and planned development law. He co-authored “New Neighborhoods — The Consumer’s Guide to Condominium, Co-Op and HOA Living.”
