Cuomo Signs Bill Requiring HOAs To Open Books To Members

Gov. Andrew Cuomo signed a bill Oct. 23 that would if effect open the books of the state’s homeowners associations to its members. Senate bill S6648, and its Assembly version A3037B, relates to the not-for-profit corporation law.

It amends the law by adding the right of a member of a homeowners association to review its financial books and records.

According to the legislation, effective immediately, members of an incorporated homeowners association “shall also be entitled to review, upon request to the homeowners association’s governing board, invoices, ledgers, bank accounts, reconciliations, contracts and any documents related to the expenditure of homeowners association dues.”

That is in addition to the homeowners association up to now only being required to provide shareholders an annual balance sheet and profit and loss statement.

Assemblywoman Amy Paulin, D-Scarsdale, thinks the legislation is a good idea.

“Members of homeowners associations deserve to know how their money is being spent,” she said.

“By increasing transparency, this law will ensure that members can access the records they need to determine if funds are being managed responsibly,” Paulin said.

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