ROYDEN BOOKS AND RECORDS REQUEST, DENIED FOR THIRD TIME-NC LAW VIOLATED

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Re:       Inspection of Royden Home Owner’s Association’s Books and Records      October 29, 2019

Dear Mr. Arrington and Members of the Royden Home Owner’s Association Board:

 This is my second written request after the Oct. 9, 2019 request. I stated then that on September 4, 2019, I sent an email to Mr. Arrington, requesting to inspect records pertaining to the HOA’s activities since Fiscal Year ending May 31, 2016 to the present date. On the same date, by return email, I received an email response from Mr. Arrington indicating that the information I requested could be found on the website. Unfortunately, after a complete review of all documents on the site I have found his statement is totally false. The website data is incomplete as it does not have all Board or Annual Meetings for FY 2017, 2018 and 2019. Further there are no Financial Statements for FY 2017, 2018 and 2019. As you are well aware, Books and Records Review rights for the Homeowner are included and clearly stated in the By-Laws of 2012 of 2019 under Article IX.

            Furthermore, under both N.C. Gen. Stat. § 55A-15-01 and § 47F-3-118, a home owner’s association incorporated under the laws of North Carolina is required to create and maintain certain records.  The records required include, but are not limited to, financial statements and accounting records, minutes of membership meetings and actions taken by the board and special committees outside of membership meetings.  N.C. Gen. Stat. § 47F-3-118(a) requires a home owner’s association to make “[a]ll financial and other records, including records of meetings of the association and executive board . . . reasonably available for examination by any lot owner and the lot owner’s authorized agents as required in the bylaws and Chapter 55A of the General Statutes.” 

            Chapter 55A divides records into two categories – those a member is entitled to inspect for any purpose at all (N.C. Gen. Stat. § 55A-16-01(e)), and those in which a member is entitled to view upon stating a “proper purpose” (§ 55A-16-01(a)).  Upon five business days’ written notice, a member is entitled to inspect and copy the following records, regardless of purpose: (1) the articles of incorporation and all amendments to them currently in effect; (2) the bylaws or restated bylaws and amendments to them currently in effect; (3) resolutions adopted by the members or board of directors relating to the number or classification of directors or to the characteristics, qualifications, rights, limitations, and obligations of members or any class or category of members; (4) minutes of all membership meetings, and records of all actions taken by the members without a meeting; (5) All written communications to members generally within the past three years, and the financial statements, if any, that have been furnished or would have been required to be furnished to a member upon demand within the past three years; and (6) a list of the names and business or home addresses of its current directors and officers. N.C. Gen. Stat. § 55A-16-02(a). 

Additionally,  the member is entitled to inspect the following records: (1) minutes of all meetings of the members and board of directors; (2) records of all actions taken by the members or directors without a meeting; (3) records of all actions taken by committees of the board of directors in place of the board of directors on behalf of the association; (4) accounting records of the association; and (5) the association’s membership list. N.C. Gen. Stat. § 55A-16-02(b).

            Accordingly, I hereby make this written demand to inspect all books records as provided under NC Law and the Royden- By- Laws as soon as practicable.