HOA Records Bill - Start Preparing Now to Comply! Blog Entry #2
HOA Records Which May Be Withheld From Production
Last Friday, House Bill 1237 (“HB 1237”) was sent to Governor Hickenlooper for action. As we have noted in previous blog postings, given the bipartisan support for the bill, we fully expect HB 1237 to be signed into law. While the new law will not go into effect until January 1, 2013, now is the time for managers, management companies and HOA board members to get acquainted with the requirements of the new law and to begin preparing to comply with them by the 1st of the year.
I began a short series of blog entries last Thursday to bring everyone up-to-speed on the requirements of HB 1237. The first blog entry provided a list of the records that every HOA will be required to maintain and provide to owners upon request. This blog entry will cover records which associations may withhold from producing to owners.
The following records maintained by an HOA may be withheld from inspection and copying to the extent they are or concern:
●Architectural drawings, plans, and designs, unless released upon the written consent of the legal owners of the drawings, plans, or designs;
●Contracts, leases, bids or records related to transactions to purchase or provide goods or services that are currently in or under negotiations;
●Communications with legal counsel that are otherwise protected by attorney-client privilege or the attorney work product doctrine;
●Disclosure of information in violation of law;
●Records of an executive session of an HOA board;
●Records relating to or concerning individual units other than those of the requesting owner;
●The names and physical mailing addresses of unit owners if the unit is a time-share unit.
As I mentioned above, these records may be withheld (but are not required to be withheld) from production to owners. As a result, associations should consult with their legal counsel to draft a policy by January 1st that outlines whether and under what circumstances these records will be withheld from production to owners.
Stay tuned this week for additional blog entries on HB 1237 relating to: (1) records which must be withheld from production to owners; (2) restrictions on the use of membership lists; (3) procedures for owners to request records; and (4) what associations may charge owners for producing records.
Well there appears to be one thing that's still an issue.
Being able to withhold bids still in negotiation means no member oversight if there is a problem, or a normal way for directors and property managers to show everything is on the up and up through transparency.
Maybe they will get it in the next bill.