Living in an HOA community can be a fulfilling experience. Residents get to enjoy regular maintenance of common areas, enhanced safety and security, and an increased level of community engagement. HOAs also ensure proper enforcement of local laws and ordinances. However, one question remains. Can homeowners request HOA financial reports? Let’s find out.
Can Homeowners Request HOA Financial Reports?
HOA boards are responsible for managing the community’s financial resources. They collect fees, dues, and special assessments on behalf of the residents. For this reason, the board must ensure transparency and accountability for sound financial management.
However, if any homeowner suspects fraud, misappropriation, or discrepancies, they have a right to request and review the HOA’s financial records. Many HOAs have guidelines in their governing documents that outline how members can review financial reports. Some states also have laws that specify the rights of HOA members to have a copy of the association’s financial records.
What Financial Reports Can Homeowners Request?
Not all HOA documents are open for homeowners to review. Some records, such as minutes of executive board sessions, are confidential. Fortunately, most financial reports are accessible and available for inspection. These include accounting and financial reports, such as income statements, balance sheets, bank statements, and budgets. Other records include third-party agreements, contracts, insurance policies, and permits, among others.
How to Request Homeowners’ Financial Reports
Knowing how to request HOA financial reports can make a difference in ensuring you stay privy to your association’s fiscal health. However, the process varies based on your association’s governing documents and state statutes. Some HOAs may accept verbal requests, while others need it in writing. Whatever the case, ensure you lodge your request using a friendly but professional tone to increase the chances of approval. If your association has a website, they may post the financial records on the HOA portal, eliminating the need for a formal request. If the board refuses to respond to your request, you can file a petition, seek professional assistance, or file a lawsuit.
Consult Expert HOA Accountants for Assistance
Reviewing your HOA’s financial reports is one way to verify the fiscal status of your association. The good news is that homeowners have a right to request financial reports either in writing or verbally. At Abel Accountants, we can assist homeowners in submitting requests for HOA financial records. Contact us today to schedule a
