Navigating homeowner requests to examine and copy Ohio condominium or homeowners’ association records can be complex. Although homeowners do have a legal right under Ohio law to inspect and copy an association’s books and records, it is not an absolute right and the association’s board of directors should be prepared to address the record requests in an efficient and proper manner. This blog will break down key insights into homeowners’ inspection rights, the types of records that are to be available for inspection and copying generally, and the limitations on a homeowner’s right to inspect and copy certain records of the association.

 

     In addition to basic language within an association’s bylaws or code of regulations, there is a statutory framework within Ohio law that provides for the rights of homeowners to request records for inspection (and copying). Condominium and homeowners’ associations are formed as not-for-profit corporations in the State of Ohio, and therefore, are subject to Ohio Revised Code §1702.15. This statutory provision provides:

 

     Each corporation shall keep correct and complete books and records of account, together with minutes of the proceedings of its incorporators, members, directors, and  committees of the directors or members.  Subject to limitations prescribed in the articles or the regulations upon the right of members of a corporation to examine the books and records, all books and records of a corporation, including the membership records prescribed by section 1702.13 of the Revised Code, may be examined by any member or director or the agent or attorney of either, for any reasonable and proper purpose and at any reasonable time.

 

     Ohio Revised Code section 1702.13 refers to a record of “the association’s members containing the name and address of each member, the date of admission to membership, and, if members are classified, the class to which the member belongs.”

 

     For condominiums specifically, Ohio Revised Code §5311.09 outlines a homeowner’s right to inspect certain association records such as records of account that specify receipts and expenditures associated with the common elements and other common receipts and expenses. It also provides a homeowner with the right to inspect and examine records showing the allocation, distribution, collection of common profits, losses, and expenses among and from the unit owners; minutes of the association meetings and board meetings; records of the names and addresses of each homeowner and their respective divided interests in the common elements.

 

     Ohio Revised Code §5311.091, however, gives condominium associations the right to define what “books and records” means and, thus, which records will be available for inspection. As stated in section (A) of this statute, the association is required to provide records to a homeowner subject to the reasonable standards set forth in the declaration, bylaws, or rules adopted by the board. These standards may include the type of documents to be provided, the times and locations where the documents can be inspected, and reasonable fees related to providing the documents for inspection and copying.

 

    Pursuant to section (B) of this statute, in addition to documents that are five years or older from the date of the request, an association is not required to provide the following records to a homeowner: 1) information that pertains to condominium property related personnel matters; 2) communications with legal counsel or attorney work product pertaining to pending litigation or other condominium property-related matters; 3) Information that pertains to contracts or transactions under negotiation, or information contained in a contract with confidentiality requirements or subject to such requirements; 4) information that relates to the enforcement of the declaration, bylaws, or rules of the association; and 5) information the disclosure of which is prohibited by state or federal law.

     All of this means that generally homeowners within a condominium association can inspect budgets, balance sheets, income statements, accounts receivable, bank statements, and general ledgers; the governing documents; approved board meeting (excluding executive meeting minutes) and owners' meeting minutes; fully negotiated and executed contracts or agreements with vendors or contractors; the association's insurance policies; the names and addresses of unit owners with their individual percentage interest in the common elements.          

          

     Condominium associations are fully within their right to prohibit the inspection of documents that are five years or older from the date of the request; information related to association employees and their  personnel files; any attorney work product or communications with legal counsel; information related to bids for contracts or ongoing negotiations related to contracts or confidential agreements; violation letters to other homeowners; or information related to the status of any enforcement action against another homeowner including information related to collections or fines. If condominium associations have exercised the right to define what books and records will be available for inspection through a document retention and inspection policy, as permitted by Ohio Revised Code §5311.091, those associations will only be obligated to produce the documents identified as being available for inspection in those policies.   

 

     Ohio Revised Code §5312.07 (the HOA statutes) applies to homeowners’ associations in Ohio and details similar rights and limitations with respect to requests from homeowners as to the HOA’s books and records.

 

     The best practice for associations to efficiently address record requests from homeowners is to adopt a document inspection and retention policy and to adopt the use of a specific form to be completed by homeowners to ensure the request is handled efficiently and appropriately pursuant to Ohio law.  Homeowners should be required to produce the record request in writing using a form and to specify the exact documents for inspection (and copying). The document inspection policy adopted by the board will specify what documents will or will not be provided to the homeowners and also provide information related to the location and hours/days where the documents will be made available to the homeowners. The policy will also specify a reasonable fee for the time to compile the documents and copy any documents.

 

     Associations should keep accurate and current books and records not only to manage the affairs of the association properly, but also to provide for accountability, transparency and to prevent any misunderstandings about the association’s finances and records. Keeping good records and providing records within the perimeters of the law when requested by homeowners may reduce disputes between the association and homeowners as to the board’s actions and decisions.

     If your association does not have a document inspection and retention policy and a form homeowners are required to complete in order to process a records request, or if you simply have questions about record inspections for your association, please reach out to one of the attorneys at Williams & Strohm, LLC at (614) 228-0207.