Record Requests

Requests for records of the association are not uncommon.  Many members simply desire to understand how their assessment dollars are being spent.  In this economy such an understanding is ever more important.  As more and more people are feeling the financial pinch of the economy they want to ensure efficient and effective governance in exchange for their hard-earned money.

A member of a planned community or condominium has the right to inspect many of the records of the association.  As mentioned, for certain homeowners, the ability to see the inner-workings of the association is important, and rightfully so.  Associations should desire to have active and interested members that contribute positively to the proper functioning of the business.  To that end, an association should desire to exist as transparently as possible.

The member’s right to inspect records of the association is codified in A.R.S.§ 33-1258 for condominiums and A.R.S.§ 33-1805 for planned communities.  Both mirror each other and provide that, with certain limitations, “all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative.”  If the member wishes to have copies of the records, he must request so and the association is permitted to charge a fee for making copies “of not more than fifteen cents per page.”  There is no provision for charging the member for management time to compile records.

There are limitations to a member’s right to inspect, primarily expressed in Subsection B of each relevant statute (A.R.S.§33-1258 or A.R.S.§ 33-1805).  Certain records may be withheld from disclosure to a member at the association’s discretion if the record, or a certain portion thereof, relates to: (1) privileged communication with the association’s lawyer; (2) pending litigation; (3) minutes of a closed-session board meeting; (4) the personal, health or financial records of an individual member, employee or employee of a contractor for the association; or (5) the job performance of, compensation of, health records of or specific complaints against an employee of the association or an employee of the association’s contractor who works under the direction of the association.

The reason for these limitations makes sense.  The association should be able to reasonably protect the privacy of its members and employees and should be able to freely and confidentially discuss litigation with, and obtain advice from, its legal counsel.

When a records request is made by a member, the association must act quickly.  Subsection A only permits the association 10 business days to fulfill such a request.  If there is ever a question about what records to withhold or disclose, the association should seek legal advice from its attorney as soon as possible.  That best protects the association’s board of directors from individual liability if sued by a member claiming a violation of this law.

If you need assistance with record requests or determining what should be disclosed, feel free to contact Chad Miesen or any other attorney at Carpenter, Hazlewood, Delgado & Bolen, PLC.