HOA Document Preservation HOA Records
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1 HOA Dcument Preservatin HOA Recrds
2 What is Cnsidered a Recrd s between bard members? Tape recrdings f bard meetings? Owner addresses? Electrnic ntices? Management Sftware? Manager s Recrds?
3 Have t dcuments: UCA 16-6a-1601 Minutes f all meetings f members and Bard f Directrs Recrd f all actins taken by the members r Bard f Directrs withut a meeting Recrd f all actins taken by a cmmittee f the BOD in place f the BOD Recrd f all waivers f ntices f meetings f members and BOD r any cmmittees f BOD
4 Dcuments at Principal Office Articles f Incrpratin Bylaws CC&R s Reslutins adpted by BOD Minutes f all members meetings fr 3 years All written cmmunicatins t members generally fr 3 years Names and business r hme address f current fficers and directrs Cpy f mst recent annual reprt All financial statements prepared during last three years that members culd request
5 Financial Dcuments UCA 16-6a-1606 Must shw in reasnable detail the assets and liabilities and results f the peratins: Mst recent annual financial statements, and Mst recently published financial statements
6 Inspectin Rights 16-6a-1602 A member is entitled t inspect and cpy any f the ther recrds f the crpratin; During regular business hurs At a reasnable lcatin At least 5 business days befre the date f inspectin By written demand Made in gd faith Prper purpse
7 Prper Purpse Must describe in reasnable particularity the purpse and the recrds Prper purpse means a purpse reasnably related t the demanding member s interest as a member
8 Curt Ordered Inspectin If the curt rders inspectin r cpying, unless the HOA prves that it refused in gd faith because it had a reasnable basis fr dubt abut the right t inspect: The curt shall rder the HOA t pay the csts, including reasnable attrney fees The curt may rder the HOA t pay damages
9 Any simple prblem can be made wrse if enugh meetings are held t discuss it.
10 Meeting Minutes Typically a painful tpic TWO REASONS: HOA hasn t taken minutes The minutes are verly detailed and thrugh
11 Lack f Minutes Failure t fllw Utah law Nn-Prfit Crp Act requires meeting minutes UCA 16-6a-1601 All Member meetings and Bard meetings Meeting minutes fr the last 3 years shuld be maintained at the principal ffice f the Assciatin. Minutes Supprt the Assciatin and its Bard N recrd f actins taken by the Bard. Where is the authrity t act? Hw d yu enfrce these actins?
12 Discverable in litigatin Creates liability Overly Detailed Minutes Waives privilege t attrney client discussins Litigatin strategy Enfrcement strategy Culd disclse unwanted infrmatin Debtrs Enfrcement questins
13 What shuld be in the Minutes? Date, time, place, and kind f meeting (bard, annual, special) Which Bard members are present Was there a qurum? Were the previus minutes apprved? Establish prf r evidence f prper ntice Any mtins made and secnded Vtes taken Hw Bard Members vted. Percentage f vtes in annual meetings save ballts General prcedures Exhibits can include: cpy f agenda and ntice, check-in sheets, reprts, financials, etc.
14 Shuld Meetings be recrded? If recrded in rder t ensure accuracy shuld be destryed immediately after minutes are typed. Majr Liability
15 Failure t Cperate Rule 37. Failure t make r cperate in discvery; sanctins. (f) Failure t disclse. If a party fails t disclse a witness, dcument r ther material as required by Rule 26(a) r Rule 26(e)(1), r t amend a prir respnse t discvery as required by Rule 26(e)(2), that party shall nt be permitted t use the witness, dcument r ther material at any hearing unless the failure t disclse is harmless r the party shws gd cause fr the failure t disclse. In additin t r in lieu f this sanctin, the curt n mtin may take any actin authrized by Subdivisin (b)(2).
16 Failure t Cperate (g) Failure t preserve evidence. Nthing in this rule limits the inherent pwer f the curt t take any actin authrized by Subdivisin (b)(2) if a party destrys, cnceals, alters, tampers with r fails t preserve a dcument, tangible item, electrnic data r ther evidence in vilatin f a duty. Absent exceptinal circumstances, a curt may nt impse sanctins under these rules n a party fr failing t prvide electrnically stred infrmatin lst as a result f the rutine, gd-faith peratin f an electrnic infrmatin system.
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