Your Record Inspection Rights Under Davis-Stirling
California Civil Code Section 5200 grants every HOA member the right to inspect and copy "association records." This includes virtually all financial documents:
- Accounting books and records
- Bank statements and cancelled checks
- Invoices and receipts
- Contracts with vendors, managers, and contractors
- Loan documents and lender correspondence
- Board meeting minutes (including financial decisions)
- Annual budgets and financial statements
Key point: You do NOT need to provide a reason for your request. The right exists regardless of your purpose, and the HOA cannot require you to justify why you want the records.
Under Civil Code Section 5210, the association must make requested records available within 10 business days of receiving your written request.
This means:
- Weekends and holidays don't count toward the 10 days
- The clock starts when they receive your request (use email with read receipt or certified mail)
- They must either produce the records OR provide a written explanation of why they can't
- Partial production + explanation for missing items is acceptable
If they miss the deadline without explanation, they're in violation - and you may be entitled to a $500 penalty plus attorney fees.
The HOA can charge reasonable costs for copying records, but there are limits:
- Copying: $0.10-0.25 per page is typical; anything over $0.25 may be challenged
- Inspection: They cannot charge for in-person inspection (only copying)
- Staff time: Generally NOT chargeable for locating and providing records
- Redaction: They may charge for time spent redacting legitimately confidential information
Watch out: Some HOAs quote outrageous "staff time" charges to discourage requests. If they quote you $500+ to fulfill a basic records request, push back - that's likely a delay tactic.
Financial Records Your HOA Must Produce
Bank statements are the foundation of financial transparency. They show:
- Actual deposits - When assessment payments were received and deposited
- Actual disbursements - Who was paid, when, and how much
- Account balances - Real-time financial position (not management estimates)
- Wire transfers - Large payments to contractors, lenders, or other parties
Request statements for ALL association accounts:
- Operating account(s)
- Reserve account(s)
- Special assessment/construction account(s)
- Any money market or investment accounts
All contracts currently in effect are association records under Section 5200(a)(3). This includes:
- Management agreement - Scope of services, fees, authority delegated
- Construction contracts - Scope, price, payment schedule, warranty terms
- Loan agreements - Terms, covenants, reporting requirements, default provisions
- Insurance policies - Coverage limits, exclusions, claims history
- Professional services - Accountant, attorney, engineer engagements
Why this matters: The management contract often reveals whether the manager has authority to hold funds, make payments, or act on the board's behalf. If they're exceeding their contractual authority, that's a governance problem.
Minutes document board decisions on financial matters, including:
- Approval of budgets and special assessments
- Authorization of contracts over threshold amounts
- Loan approval and draw authorizations
- Ratification of expenditures
- Financial report presentations and discussions
Request minutes for at least the past 2-3 years, including any "executive session" summaries (though the substance of privileged discussions may be redacted).
Civil Code Section 5215 allows limited redaction or withholding:
- Personnel records - Individual employee files (but aggregate salary info is producible)
- Litigation strategy - Attorney-client communications about pending/threatened litigation
- Member discipline - Records of violations/fines against specific owners
- Personal identifiers - Social security numbers, personal bank account numbers
However: These exceptions are narrow. HOAs frequently over-claim "attorney-client privilege" to hide embarrassing financial information. Demand specificity - which documents, what privilege, who's the attorney?
Internal Ledgers vs. Lender Verification: Why It Matters
When you ask your HOA "where did my money go?", they often provide management company spreadsheets showing debits and credits. This is NOT adequate verification because:
- No third-party verification - Internal records can be altered, backdated, or fabricated
- No audit trail - Unlike bank statements, spreadsheets don't have external validation
- Allocation vs. application - A ledger might show your payment "allocated" to the loan, but that doesn't prove it was actually sent to the lender
- Timing gaps - Money can sit in operating accounts before being applied, earning interest for the HOA while you think it's reducing your debt
| Internal Ledger Says | Lender Statement Proves |
|---|---|
| "$50,000 applied to owner's PIF balance" | Loan principal reduced by $50,000 on [date] |
| "Payment received and credited" | Funds received and posted to account #XXXX |
| "Balance reflects PIF payment" | Current outstanding principal: $X,XXX,XXX |
| "Trust us, it's all there" | Verified third-party documentation |
Lender-level verification means documentation that comes from or is confirmed by the lending institution. This includes:
- Monthly lender statements - Showing principal balance, interest accrued, payments received
- Draw confirmations - For construction loans, confirmation of each draw request and disbursement
- Payment application letters - Written confirmation from lender that specific payments were received and applied
- Payoff statements - Official lender document showing exact amount needed to pay off the loan
- Covenant compliance certificates - If loan requires audits or reporting, confirmation of compliance
Why you need this: If you paid $50,000 to "pay in full" your assessment loan share, the only proof it actually reduced the loan is a lender statement showing the principal went down by $50,000 on or around your payment date.
Construction loans work differently than regular loans. During the "draw period":
- The HOA draws down funds as construction progresses
- Interest typically accrues only on drawn amounts
- The lender releases funds based on inspection/certification of completed work
- Final loan amount isn't fixed until the draw period ends
Why this creates transparency risks:
- HOA may draw more than needed for completed work
- Drawn funds may be used for purposes other than the project
- Interest charges may exceed projections if draws are mismanaged
- PIF payments may not reduce draws if the HOA keeps drawing anyway
During active construction, you should request monthly lender statements showing draw amounts, current balance, and interest charges.
Audit Requirements: When Generic Isn't Good Enough
Many HOAs conduct a basic annual "review" or "audit" of their financial statements. But when there's an outstanding construction or assessment loan, there's often a separate, more rigorous audit requirement:
| Generic Annual Review | Loan-Covenant Audit |
|---|---|
| Reviews overall financial statements | Specifically covers loan-related accounts and transactions |
| May be "compilation" or "review" level | Typically requires full GAAS audit |
| Accountant chosen by board | May require lender approval of auditor |
| Satisfies Davis-Stirling disclosure | Satisfies loan agreement covenants |
| Doesn't verify PIF applications | Should verify all loan transactions including PIF |
If your HOA took out a significant loan, check the loan agreement for audit covenants. The HOA may be required to provide audited financials to the lender - and those same audits should be available to owners.
Under certain circumstances, owners can petition for a special audit even beyond normal requirements:
- If CC&Rs or bylaws provide for owner-petitioned audits
- If loan covenants allow owners to request verification
- As part of IDR/ADR if financial irregularities are alleged
- Through court order in enforcement litigation
An owner-petitioned audit typically requires signatures from a threshold percentage of owners (often 5-10%). Check your governing documents for the specific procedure.
A meaningful audit requires an independent auditor. Red flags for auditor conflicts:
- Same accountant - Using the accountant who prepared the books to audit them
- Long tenure - Same auditor for 10+ years may be too cozy with management
- Personal relationships - Auditor is friend/family of board member or treasurer
- Below-market fees - Suspiciously cheap audits may indicate inadequate scope
True independence means the auditor has no financial interest in the outcome and will report problems even if it upsets the board.
Red Flags: Signs Your HOA May Be Hiding Something
- Substituting internal ledgers for bank/lender statements - If they give you spreadsheets instead of actual bank records, ask why.
- Long delays or "unavailable" records - Financial records should be readily accessible. Months-long delays suggest problems.
- Excessive redactions - If every page is half blacked-out, they're likely over-claiming exemptions.
- Refusing to provide loan documents - You have a right to see the loan agreement that created your assessment obligation.
- Different numbers in different documents - Budget shows one thing, bank statements show another? That's a major concern.
- "Management handles that" - The board is ultimately responsible. Deflecting to management is a governance failure.
- Threats or retaliation - Any hint that requesting records will result in fines, harassment, or "being difficult" is a serious violation.
- Claimed "surplus" with no documentation - If they say there was a surplus last year but can't show where it went, that's suspicious.
- Budget deficits despite full assessment collection - If everyone paid but there's no money, where did it go?
- Construction 50% complete but minimal loan draws claimed - This doesn't match normal construction loan mechanics.
Sample Records Request Letter
Tips: Send via email AND certified mail. Keep copies of everything. Note the date you sent it and the date they received it (certified mail receipt). The 10-business-day clock starts on receipt.
When They Refuse: Enforcement Options
Civil Code Section 5235 provides that an association that fails to comply with record inspection requirements may be liable for a $500 penalty to the requesting member.
To recover this penalty, you typically need to:
- Make a proper written request citing the statute
- Document the HOA's failure to respond within 10 business days
- Document any partial or inadequate response
- If necessary, file a small claims or civil action to enforce
If informal enforcement fails, you can seek a court order compelling production. This is typically done through:
- Small claims court - For the $500 penalty and to compel basic record production
- Limited civil case - For broader injunctive relief and attorney fee recovery
- As part of larger litigation - If you're already suing for other violations, records production can be part of discovery
Under Civil Code Section 5235, a member who prevails in an action to enforce record inspection rights may recover reasonable attorney fees. This makes it economically feasible to hire counsel for enforcement even if the underlying records request seems minor.
The fee-shifting provision is important because:
- It deters HOAs from stonewalling in hopes you'll give up
- It allows you to hire qualified counsel without paying entirely out of pocket
- It creates real consequences for non-compliance
Need Help Getting Your HOA's Financial Records?
If your HOA is ignoring record requests, providing inadequate documentation, or substituting internal ledgers for proper verification, I can help you enforce your rights under Davis-Stirling.