Question:
Does an HOA Board have responsibility for posting its annual financial statements to its HOA website (minus the “Management Letter”) ?
What penalties, if any, does an HOA president/ board face, for misrepresenting the annual margins (e.g. revenues over expenses), as a pre-text for raising homeowner dues ?
– Brian
Answer:
Hi Brian,
While the Maryland Homeowners Association Act requires HOAs to maintain financial statements and provide copies of them upon request, there is no requirement to post them on the HOA website.
As for misrepresenting the financial statements, if the board member committed fraud, it is best to report the issue to the authorities. If no fraudulent activity happened, it is a good idea to consult a lawyer for advice on what to do.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
