Summary
Owners have meaningful rights to financial information under the By-Laws. The Board must provide an annual income/disbursements statement to all owners after each fiscal year close. Any owner can request a special statement of their account status and capital reserve balances within 10 days. All Association books and records are open to inspection by any owner, mortgagee, agent, or attorney at any reasonable time.
Financial Transparency Rights
| Right | Trigger | Timeline | Source |
|---|---|---|---|
| Annual income/disbursements statement | End of each fiscal year | Within a reasonable time after fiscal year close | By-Laws 2004, §9.02 |
| Special statement: owner account status + capital reserve status | Written request by owner (may require fee) | Within 10 days of written request | By-Laws 2004, §9.03 |
| Inspection of all books and records | Written request for proper purpose | At any reasonable time | By-Laws 2004, Article X |
Who May Inspect Records
Any of the following may inspect Association books and records for any proper purpose at any reasonable time:
- Any Owner
- Any Owner’s mortgagee
- Any Owner’s agent
- Any Owner’s attorney
(By-Laws 2004, Article X)
Applicable Rules
| Rule | Source | Section |
|---|---|---|
| Board must furnish annual income/disbursement statement to all owners | By-Laws 2004 | 9.02 |
| Board must provide owner account status and capital reserve statement within 10 days of written request | By-Laws 2004 | 9.03 |
| Board may charge a reasonable fee for the special statement | By-Laws 2004 | 9.03 |
| All books and records open to owner inspection for proper purpose at reasonable time | By-Laws 2004 | Article X |
| Association must keep minutes of member meetings, Board meetings, and committee meetings | By-Laws 2004 | Article X |
| Association must maintain member name and address records | By-Laws 2004 | Article X |
Practical Notes
- An owner who suspects assessment errors, wants to review HOA spending, or is preparing for a dispute has a clear legal right to inspect records — no Board approval required, only “proper purpose” and “reasonable time.”
- The special statement (§9.03) is particularly useful in real estate transactions — it documents unpaid assessments at closing.
- The Board may set a fee for the special statement but cannot condition access on the fee being unreasonably high.
History
No history recorded yet.
Open Questions
- “Proper purpose” (Article X) is not defined in the By-Laws. In Illinois not-for-profit law, any legitimate membership purpose qualifies. An owner seeking to review spending or verify assessments would clearly meet this standard.
- “Reasonable time” for record inspection is not defined. In practice, this is typically interpreted as normal business hours with advance notice.
- The fiscal year end date is not fixed in the By-Laws (§9.01 says it is established by the Association and changeable by 2/3 Board vote). The current fiscal year end is unknown without meeting minutes.