Records Request Form
INSPECTION OF RECORDS AT CONTEMPO HOMEOWNERS ASSOCIATION
The matter of inspection of records comes up in almost every homeowners association. Some of the most frequent questions are: "What records are subject to inspection? What are the limits on these inspection rights? Who pays for the costs involved? What are the inspection rights of directors?"
These questions, as well as other questions dealing with inspection rights within an association, are addressed in Civil Code sections 5200-5240.
Can information be withheld or redacted?
Yes, if it is likely to lead to identity theft; to fraud in connection with the association; documents that are privileged or confidential (subject to attorney-client privilege, litigation, or confidential settlement agreements); a release that is likely to compromise the privacy of a member; information that contains disciplinary actions, collection activities or payment plans of members, or any personal identification information (i.e. social security number, tax identification number, driver's license number, credit card number, bank account number or bank routing number); minutes and other information from an executive session, personal records, and interior architectural plans, including security features.
If information is withheld or redacted, the association must provide a written explanation (Civil Code § 5200).
Who may inspect?
A member or member's designated representative may inspect [Civil Code § 5205(a)], as well as a director.
Does a member need a reason to request inspection?
Yes, records and minutes may only be inspected for a purpose reasonably related to the member's interest as a member. [Civil Code § 5230 a)]. Corporations Code § 8338(a) states that a membership list may not be used to solicit money; for any purpose that the requesting member does not reasonably and in good faith believe will benefit the association; for a commercial purpose or for sale to any person.
What are a director's rights of inspection?
A director has an "absolute" right, at any reasonable time, to inspect and copy all books, records, and documents of the association (Corporation Code § 8334). This absolute right is constrained by a director's fiduciary duty to act in the best of interests of the association [Corporations Code § 7231(a)], to restrain directors from exercising these rights for personal gain, or to further interests contrary to the interests of the association.
Can the association charge?
Yes. The association may bill the requesting member for the actual cost of copying and mailing. The association shall inform the member of the amount and this shall be paid prior to copying and sending [Civil Code § 5205(f)]. Additionally, the association may bill a requesting member up to $10.00 per hour not to exceed $200.00 per written request, for the time involved in redacting an enhanced record. These costs shall be prepaid. [Civil Code § 5205(g)].
The matter of inspection of records comes up in almost every homeowners association. Some of the most frequent questions are: "What records are subject to inspection? What are the limits on these inspection rights? Who pays for the costs involved? What are the inspection rights of directors?"
These questions, as well as other questions dealing with inspection rights within an association, are addressed in Civil Code sections 5200-5240.
Can information be withheld or redacted?
Yes, if it is likely to lead to identity theft; to fraud in connection with the association; documents that are privileged or confidential (subject to attorney-client privilege, litigation, or confidential settlement agreements); a release that is likely to compromise the privacy of a member; information that contains disciplinary actions, collection activities or payment plans of members, or any personal identification information (i.e. social security number, tax identification number, driver's license number, credit card number, bank account number or bank routing number); minutes and other information from an executive session, personal records, and interior architectural plans, including security features.
If information is withheld or redacted, the association must provide a written explanation (Civil Code § 5200).
Who may inspect?
A member or member's designated representative may inspect [Civil Code § 5205(a)], as well as a director.
Does a member need a reason to request inspection?
Yes, records and minutes may only be inspected for a purpose reasonably related to the member's interest as a member. [Civil Code § 5230 a)]. Corporations Code § 8338(a) states that a membership list may not be used to solicit money; for any purpose that the requesting member does not reasonably and in good faith believe will benefit the association; for a commercial purpose or for sale to any person.
What are a director's rights of inspection?
A director has an "absolute" right, at any reasonable time, to inspect and copy all books, records, and documents of the association (Corporation Code § 8334). This absolute right is constrained by a director's fiduciary duty to act in the best of interests of the association [Corporations Code § 7231(a)], to restrain directors from exercising these rights for personal gain, or to further interests contrary to the interests of the association.
Can the association charge?
Yes. The association may bill the requesting member for the actual cost of copying and mailing. The association shall inform the member of the amount and this shall be paid prior to copying and sending [Civil Code § 5205(f)]. Additionally, the association may bill a requesting member up to $10.00 per hour not to exceed $200.00 per written request, for the time involved in redacting an enhanced record. These costs shall be prepaid. [Civil Code § 5205(g)].