Can HOA charge for copies of records? Every now and then, an owner will want to examine or copy select association records. When that happens, board members must understand the limitations of their authority regarding copying fees. It is important to look at state laws and the association’s governing documents to avoid liability.
Can HOA Charge for Copies of Records?
In an HOA or condominium, transparency is a fundamental pillar. Owners have a right to know what’s going on in their community. They can attend meetings and demand that the board share crucial information with them. This level of disclosure keeps the board accountable.
Most states give owners the authority to inspect the association’s records. In Illinois, this right is protected under 765 ILCS 160/1-30 (for HOAs) and 765 ILCS 605/19 (for condos). Noncompliance with reasonable requests can lead to penalties.
Of course, producing or copying these records often comes with certain costs. Whether or not an association can charge these costs to the owner depends on state laws and the governing documents. It is imperative to check both before collecting copying fees.
Can HOA Charge for Record Requests in Illinois?
In Illinois, an HOA can charge a reasonable fee that covers the cost of retrieving and copying requested records (765 ILCS 160/1-30). The statute is clear that the request must have been properly made. This includes providing a written statement of a proper purpose.
That said, the law does not set a dollar limit on how much an HOA can charge. It simply says that the fee must be reasonable. Additionally, it is limited to the cost of retrieving and copying the records. This means that it is not intended to be a profit-generating charge or penalty.
Retrieving the records typically covers staff or management time spent on locating them. Meanwhile, copying costs usually cover paper copies, printing costs, and other similar expenses.
Moreover, the HOA board is not required to charge a fee. The Illinois law merely allows the association to do so. For further guidance, it is best to check the association’s governing documents and consult a lawyer.
Keep in mind that the statute clearly distinguishes between examination and copying. If the owner just wants to inspect the record at the management office, then the association shouldn’t charge them a copying fee. A retrieval fee, on the other hand, may be justified.
Can a Condo Charge for Record Requests in Illinois?
Condominiums are governed by a different statute in Illinois. That said, 765 ILCS 605/19 contains similar provisions regarding charging fees for record requests.
According to Illinois law, condo associations may charge a fee covering the actual cost of retrieving and making records available for inspection and examination. This includes costs relating to locating the records, retrieving them, and preparing them for review.
Additionally, a condominium may also charge a fee covering the actual cost of reproducing the records. This includes photocopying, printing, or other reproduction costs.
There is a clear distinction between actual costs and reasonable fees. The Condominium Property Act is more limiting, essentially prohibiting condos from charging flat administrative fees, markups, or other profits.
That said, as with HOAs, condominiums don’t have a set dollar limit. Instead, it must strictly cover only the actual costs of retrieving and copying the records.
Can HOA Charge Fees for Governing Documents?
Associations generally provide a new owner with a copy of all pertinent records, including the governing documents. Along the way, the owner may lose their copy, or amendments may have been made. To secure an updated version, owners may file a request with their association or their county recorder’s office. Some communities even make these easily available on their websites.
Whether or not an association can charge a fee for governing documents depends on state laws and the documents in question. For Illinois communities, it is best to treat them as standard record requests, following the provisions under 765 ILCS 160/1-30 and 765 ILCS 605/19.
Can HOA Charge Fees for Resale Disclosure Documents?
Disclosure documents are not the same as standard record requests. Resale disclosures are required by law, and sellers must provide them to potential buyers. In Illinois, 765 ILCS 160/1-35 (for HOAs) and 765 ILCS 605/22.1 (for condos) apply to disclosure documents for the resale of a unit.
According to these statutes, the board must make certain disclosure records available to prospective buyers in the event of a resale. The purpose is to ensure that the buyer receives important information about the association before purchasing.
The board must provide specific disclosures, including:
- The governing documents, such as the declaration and rules,
- Any liens or unpaid dues on the unit,
- Anticipated capital expenditures,
- Reserve fund balances,
- The latest financial statement,
- Pending lawsuits or judgments, and
- The association’s insurance coverage.
After receiving a written request to provide this information, the board only has a fixed amount of time to comply. For HOAs, the deadline is 30 days, while condos have 10 days to comply with the request.
Of course, producing disclosure documents comes with certain costs, too. Guidance differs depending on the type of community.
For HOAs
According to 765 ILCS 160/1-35, HOAs may charge a reasonable fee that covers the direct out-of-pocket cost of preparing and copying the resale disclosure package. The association charges this fee to the unit seller (current owner), not the buyer. The statute does not explicitly state a dollar limit.
For Condos
According to 765 ILCS 605/22.1, the authority to charge disclosure fees will depend on the type of sale. Initial sales by the developer shouldn’t come with a fee. The developer must simply furnish the package to the prospective buyer without extra charge.
Resales, where a unit owner sells to another buyer, are a different matter. The statute allows a reasonable fee covering the direct out-of-pocket cost of providing and copying the documents. That said, unlike the provision for HOAs, condominiums have an explicit dollar limit.
The maximum amount a condo may charge for resale disclosures is $375. This price is adjusted annually based on the Consumer Price Index. A condo may also charge an additional $100 fee for rush service (72 hours).
Can HOA Charge for Copies of Records? Explained!
Operating an association comes with several costs, and most communities pass these costs on to the owners. Records requests follow the same principle, but with certain limitations. Board members must review state laws and their governing documents to ensure they don’t exceed their authority.
First Community Management provides expert HOA, condo, and co-op management services to communities in Chicago. Call us today at (312) 829- 8900 or contact us online to learn more!
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