Overseeing a homeowners’ association (HOA) or property owners’ association in Texas requires a lot of work and upkeep. Document retention is just one of many essential tasks that you must perform to ensure you remain in full compliance with relevant laws.
The law commands certain document retention practices for HOAs that include 14 or more lots. Additionally, the law requires the HOA to retain different documents for different periods of time. Here is what you should know to ensure you remain in compliance.
The term length of contracts relevant to your HOA will dictate how long you must retain them. For any contracts that last one year or longer, the HOA must retain them for at least four years after the contract officially expires.
HOAs typically keep account records regarding current homeowners. The HOA should keep these records for at least five years to ensure proper compliance with the law. Failure to hang onto pertinent records could result in legal issues for HOAs.
Financial records, meeting minutes, and tax documents
HOAs typically keep a good accounting of financial information related to operation, as well as other important information. For instance, HOAs usually record the minutes of meetings that involve homeowners and directors on the board, as well as tax returns and audit information. State law stipulates that associations should keep these documents for at least seven years.
Bylaws, articles of incorporation, and associated documents
Associations must keep some forms of information indefinitely. This includes the HOAs bylaws and articles of incorporation, as well as clauses that prohibit certain actions by homeowners and amendments to these clauses. The HOA should maintain this information permanently to remain in the good graces of the law.