
Question:
I currently live within an association for homeowners, which comes with some delinquencies. Several properties owned by the bank exist, along with foreclosures and places that come with default notices. Homeowners do not know the amount of units that are paying up assessments by the month or the big special assessment that has been put into place last year.
Not every homeowner is privy to the overall financial situation of this homeowner’s association. The board’s chairman repeatedly states that everything is fine. But he controls every single thing: the non-competitive bids, the committee appointments, as well as all of the decisions. Since his communication skills are up to par, nobody seems to question any of these actions.
Everybody here pays for each delinquent homeowner, bank-owned property, and foreclosed property. It is my belief that our chairman should let us know the whole real situation and go after the owners of the properties in order to get some part of the unpaid fees. Would it be possible to get a complete list of these notices of default, bank-owned properties and foreclosures in order to distribute among all of the homeowners? Does our board actually hold any right to keep such information from every homeowner?
Answer:
Your board happens to act as a single body. Therefore, every director of the board cannot act on his own, whether he is the president or the chairman. If there happens to be an amount of delinquent homeowners, bank-owned properties and foreclosures within your particular development, the statement of your chairman saying that everything is fine simply isn’t credible enough.
Your board has no right to keep any kind of information from its homeowners aside from limited discussions that have been held at an executive session or something similar to it. It would not appear that any circumstance you have previously described would qualify as a matter that would need a call for an executive session or something similar to it. Thus, any information they hold should be made more than available to any of the titleholders, especially if requested.
A basic written request to see the records and books of your association has to be made, so they are aware that you have this particular request. If they do not provide you with the records within the set time limits within Civil Code section 1365.2(j), any of the titleholders have the right to file a certain action within the Small Claims Court, asking for an order that would require your association to offer up these records, as well as pay each titleholder five hundred dollars if their failure to offer these records proves to be unreasonable.
Whether your association is allowed to put liens onto the bank-owned property can be debated. However, any lien that has been filed by your association after the foreclosure for such fees could be gathered the minute the unit has been resold. Any lien that has been filed prior to the foreclosure is likely to get lost within the process.
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