Keeping good homeowner association records is not only important for the present but for the future and past as well. HOAs are legal entities with significant power over their members. As such, the governing documents, rules, regulations, policies, resolutions, newsletters and minutes should be organized and accessible because they outline and discuss how the HOA impacts the members’ lives. Financial records memorialize the handling of the member contributions and help the Board maintain balance in this most important aspect of HOA business. Then there are assorted documents that fill files with correspondence, contracts and other business details.

Prospective buyers have the right to inspect most records and, indeed, it’s in the best interest of the HOA that they do rather than be duped into buying under false pretenses. An uninformed buyer is usually a contentious or uninvolved owner. Neither one is good for the community. So, to encourage informed and concerned people to buy in, information must be available that any informed buyer would want to know. While making records available may seem fruitless, tedious and expensive to some, in the end better members will result. Or at least, the HOA will have a sound defense against the “I didn’t know about (fill in the blank)” argument that uninformed buyers like to make.

There are literally dozens of records that should be organized by category:

• Correspondence
• Mailing Lists
• Management Notices
• Newsletters
• Resident Manuals/Handbooks
• Annual Budget
• Assessment Information
• Auditor Reports
• Balance Sheets
• Bank Statements & Reconciliations
• Bank Deposit Slips
• Cancelled Checks
• Financial Statements
• Income Tax Returns
• Inventory Lists
• Investment Account Statements
• Invoices-Assets
• Invoices-Supply/Services
• Petty Cash Vouchers
• Purchase Orders/Journal
• Reserve Study
• State & Federal ID Numbers
• Supply/Service Invoices
• Articles of Incorporation
• Bylaws
• Declaration
• Resolutions
• Rules & Regulations
• Insurance Accident Reports
• Insurance Claims-Open/Settled
• Fire Inspection Reports
• Insurance Policies
• Safety Records
• Agent of Record Letters
• Annual Report-Corporation
• Correspondence
• Legal/Litigation Files
• Blueprints & Specifications
• Contracts
• Correspondence
• Plat Maps
• Warranties-Expired/Unexpired
• Work Orders
• Election Ballots
• Meeting Notices
• Meeting Proxies
• Meeting Minutes
• Committee Reports ADA Complaints (Disability)
• Benefits, Pension, Profit Sharing, Insurance
• Employee Applications
• Employee Expense Reimbursements
• Employee Files
• Employee Payroll Records
• Formal Discipline Actions
• Leave Requests
• Medical Records
• OSHA Records
• Procedure Manuals
• State & Federal Unemployment Tax Records
• State & Federal Withholding Taxes
• Time Cards

Whew! The list is mind boggling. Fortunately, not all items apply to all HOAs. But there are legal and practical guidelines on how long each kind of record should be kept. For example, the IRS has guidelines for records that are related to tax payments. Other kinds of records need only be kept as long as they are applicable. Others, forever.

To ensure you stay up on the records, get them organized and have a clear understanding of how long you should hold them.

For a Record Retention Checklist showing recommended holding times, see www.Regenesis.net “Planning Tools”.

Published: May 28, 2003

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Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues. Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .