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June 15, 2008
DO BOARD MEMBERS HAVE TO PAY FOR COPIES OF RECORDS?
A reader asks: "Is there a provision in the civil code that a 'Board Member' may have access to HOA records, invoices etc. as a 'board member'? The management company tells us that a homeowner as well as a board member will be charged $____/hour plus ___ cents a copy with a 10 day notice."
I left the amounts out so no one would complain about being targetted. Believe it or not, this is a common question.
Board members are entitled to see all records of the association, with the cavaet that although the Corporations Code provides for an abolute, the basis for review of some association records came into question and a board member was denied review of some proxies in a California case. (Chantiles v Lake Forest II Master HOA) So, board members to not have unfettered access.
That said, board members are members of the association and the records inspection statute (Civil Code Section 1365.2) speaks in terms of members rights of access and charges that can be made to members for review of the records (see below).
"Civil Code Section 1365.2 - (b)(1) The association shall make available association records and enhanced association records for the time periods and within the timeframes provided in subdivisions (i) and (j) for inspection and copying by a member of the association, or the member's designated representative. The association may bill the requesting member for the direct and actual cost of copying requested documents. The association shall inform the member of the amount of the copying costs before copying the requested documents."
This leaves open the argument that the board member could be charged. However, if a board member is being charged for records that Board members should be seeing and reviewing because of their role in serving the association, such as financials that have to be reviewed under Civil Code Section 1365 on a quarterly basis by board members, and the reserve studies, budgets, financial statements, etc., then that would seem to me to be wrong. That said, board members can be as pesky as owners in making excessive demands on management to produce records for their review that have already been provided in past years or that normally are not copied for board members. If these demands cost the association money because they are out of the ordinary duties, then it could be right.
The only way to tell is to pay the charges and then bring a small claims action to recover the money. If the board member can show that they needed to records to fulfill their volunteer role successfully and properly, then the person would probably recover the costs.
So why go there? Be reasonable .... people.
Posted by Beth Grimm at June 15, 2008 6:00 AM