Question:
What AZ law enables a condo owner to request and view the financial records of the HOA and what specific documents shall I request? I have been overcharged significantly and the HOA board is NOT responding to my calls or emails. I am concerned about the honestly of the board. Additionally , they haven’t responded at all to my foundation concerns as my building and floors and wall are getting more and more crooked and warped. They charged my 4 times for haz and liability insurance, an overcharge of 900 dollars. I feel an external audit would be appropriate but do not know how to generate one.
– Constance
Answer:
Hi Constance,
The Arizona Condominium Act Section 33-1258(A) states that all financial and other records shall be made reasonably available for examination by any member or any person designated by the member in writing as the member’s representative. The association shall have ten business days to fulfill a request for examination. However, according to Section 33-1258(B), the following may be excluded from the inspection:
- Privileged communication between an attorney for the association and the association
- Pending litigation
- Meeting minutes or other records of a session of a board meeting that is not required to be open to all members
- Personal, health, or financial records of an individual member, employee, or an employee of a contractor, including records of the association directly related to the personal, health, or financial information about those individuals
- Records relating to the job performance of, compensation of, health records of, or specific complaints against an association employee or an HOA contractor employee
Moreover, the association shall not be required to disclose financial and other records of the association if disclosure would violate any state or federal law according to Section 33-1258(C).
As for the audit, Section 33-1243(J) states that unless the condominium documents require an annual audit by a certified public accountant, the board of directors shall provide for an annual financial audit, review, or compilation of the association. It shall be completed no later than one hundred eighty days after the end of the association’s fiscal year and shall be made available on request to the unit owners within thirty days after its completion. You may check the bylaws to see whether it requires an external audit by a CPA. Otherwise, the board should provide an annual financial audit, review, or compilation. For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
