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House Study Bill 158 - IntroducedA Bill ForAn Act 1relating to access to unit owners associations’
2financial information and meeting minutes.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 499C.1 Definitions.
2As used in this chapter, unless the context otherwise
3requires:
41. “Bylaws” means the instruments, however denominated, that
5contain the procedures for conducting the affairs of a unit
6owners association or an executive board regardless of the form
7in which the association is organized, including any amendments
8to such instruments.
92. “Common element” means:
10a. For a cooperative under chapter 499A or a horizontal
11property regime under chapter 499B, all portions of the common
12interest community other than the units.
13b. For a planned community, any real estate within the
14planned community which is owned or leased by the unit owners
15association, other than a unit.
16c. For all common interest communities, any other interests
17in real estate for the benefit of unit owners identified in the
18declaration.
193. a. “Common interest community” means real estate
20described in a declaration with respect to which a person,
21by virtue of the person’s ownership of a unit, is obligated
22to pay for a share of real estate taxes, insurance premiums,
23maintenance, or improvement of, or services or other expenses
24related to, common elements, other units, or other real estate
25described in the declaration. “Common interest community”
26includes a planned community, a cooperative under chapter 499A,
27and a horizontal property regime under chapter 499B.
28b. “Common interest community” does not include:
29(1) A covenant that requires the owners of separate parcels
30of real estate to share costs or other obligations related to a
31wall, driveway, well, or other similar structure, unless all
32such owners consent in writing to the creation of a common
33interest community.
34(2) Real estate described in paragraph “a” if all units are
35owned by a single owner.
-1- 14. “Declarant” means a person or group of persons who,
2as the record title owner of real estate, by a declaration,
3creates a common interest community.
45. “Declaration” means the instrument, however denominated,
5that creates a common interest community, including any
6amendments to the instrument.
76. “Executive board” means the body, regardless of name,
8designated in the declaration or bylaws to act on behalf of a
9unit owners association.
107. “Planned community” means a common interest community
11that is not solely a cooperative under chapter 499A or solely
12a horizontal property regime under chapter 499B, and includes
13property owner or homeowner associations. A cooperative under
14chapter 499A or a horizontal property regime under chapter
15499B, however, may be part of a planned community.
168. “Rule” means a policy, guideline, restriction, procedure,
17or regulation, however denominated, which is not set forth in
18the declaration or bylaws.
199. “Unit” means a portion of a common interest community
20designated for separate ownership or occupancy or as otherwise
21defined in the statute under which the common interest
22community is organized, including but not limited to an
23apartment as defined in section 499B.2.
2410. “Unit owner” means a declarant or other person that owns
25a unit, but does not include a person having an interest in a
26unit solely as security for an obligation. In a horizontal
27property regime under chapter 499B or a planned community,
28the declarant is the owner of a unit. In a cooperative under
29chapter 499A, the declarant is the owner of any unit to
30which an interest has been allocated until that unit has been
31conveyed to another person.
3211. “Unit owners association” means an association,
33regardless of name, organized as a for-profit or nonprofit
34corporation, trust, limited liability company, partnership,
35unincorporated association, or any other form of organization
-2-1authorized by the laws of this state, the membership of
2which consists solely of unit owners except following
3termination of the common interest community, at which time the
4association shall consist of all former unit owners entitled
5to distributions of proceeds or their heirs, successors, or
6assigns.
7 Sec. 2. NEW SECTION. 499C.2 Records retention.
81. A unit owners association shall retain all of the
9following records for the duration of the existence of the unit
10owners association:
11a. Detailed records of receipts and expenditures relating to
12the operation and administration of the unit owners association
13and other appropriate accounting records.
14b. Minutes of all unit owners meetings and executive board
15meetings, a record of all actions taken by the unit owners or
16the executive board without a meeting, and a record of all
17actions taken by a committee of the unit owners association
18authorized to act for the association. The minutes retained
19by the unit owners association shall indicate the date, time,
20and place of the meeting, the names of all persons present
21at the meeting, and each action taken at the meeting. The
22minutes shall also include the results of each vote taken at
23the meeting, including information indicating the vote of each
24executive board member present at the meeting, and the vote of
25each executive board member present shall be made public at the
26open session.
27c. The unit owners association’s original and amended
28organizational documents, bylaws including all amendments to
29the bylaws, and all rules and amendments to the rules of the
30common interest community.
31d. The unit owners association’s annual reports delivered to
32the secretary of state, if applicable.
33e. Copies of each contract to which the unit owners
34association has been or is currently a party.
352. A unit owners association shall maintain all financial
-3-1statements and tax returns of the unit owners association for
2the immediately preceding ten years.
3 Sec. 3. NEW SECTION. 499C.3 Right to access — exceptions.
41. a. Except as provided under subsection 2, all records
5and documents retained by a unit owners association under
6section 499C.2 must be available for examination and copying
7by a unit owner or the unit owner’s authorized agent during
8reasonable business hours or at a mutually convenient time and
9location upon the unit owner or the unit owner’s authorized
10agent providing five days’ notice that reasonably identifies
11the specific records that are being requested.
12b. Except as provided under subsection 2, all records and
13documents retained by a unit owners association under section
14499C.2 must be available for examination and copying by a
15bona fide prospective purchaser of a unit or the bona fide
16prospective purchaser’s authorized agent during reasonable
17business hours or at a mutually convenient time and location
18upon the bona fide prospective purchaser or the bona fide
19prospective purchaser’s authorized agent providing two days’
20notice that reasonably identifies the specific records that are
21being requested.
222. Records and documents retained by a unit owners
23association under section 499C.2 may be withheld from
24inspection and copying to the extent that the records or
25documents concern any of the following:
26a. Personally identifiable information, salary, or medical
27information relating to specific individuals.
28b. Information relating to contracts, leases, and other
29commercial transactions that are currently under negotiation to
30purchase or provide goods or services.
31c. Information relating to existing or potential litigation,
32mediation, arbitration, or governmental administrative
33proceedings.
34d. Information relating to existing or potential matters
35involving governmental administrative proceedings or other
-4-1proceedings before a government tribunal for enforcement of the
2declaration, bylaws, or rules.
3e. Communications with the unit owners association attorney
4which are otherwise protected by the attorney-client privilege
5or the attorney work-product doctrine.
6f. Information that if disclosed would violate another
7provision of law.
8g. Records directly related to the personal, health, or
9financial information of a unit owner if the person requesting
10the records is not the unit owner that is the subject of the
11records.
123. A unit owners association shall not charge a fee for
13providing copies of any records or documents under this
14section, or for supervising the inspection of such records or
15documents.
164. The right to inspect records under this section includes
17the right to copy records by photocopying or other means and
18includes the right to receive copies through an encrypted
19electronic transmission, if available, upon request of the
20requester.
215. A unit owners association shall not be obligated to
22compile or synthesize information or records under this
23section.
246. Information or records obtained under this section shall
25not be used for commercial purposes.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill relates to access to unit owners associations’
30financial information and meeting minutes.
31Under the bill, a unit owners association is an organization
32of unit owners in a common interest community, including a
33planned community, a cooperative under Code chapter 499A, or
34a horizontal property regime under Code chapter 499B. The
35bill requires unit owners associations (association) to retain
-5-1certain records and documents (records) as specified in the
2bill.
3All records retained by an association must be available
4for examination and copying by a unit owner or the unit
5owner’s authorized agent during reasonable business hours or
6at a mutually convenient time and location upon five days’
7notice that reasonably identifies the specific records being
8requested. All records retained by an association must
9also be available for examination and copying by a bona fide
10prospective purchaser of a unit or the prospective purchaser’s
11authorized agent upon two days’ notice. Records that may be
12excluded from being made available for examination and copying
13are detailed in the bill.
14An association is prohibited from charging a fee for either
15copies of the records or for supervising the inspection of the
16records. The right to inspect records includes the right to
17copy records by photocopying or other means and to receive
18copies via encrypted electronic transmission, if available.
19An association is not obligated to compile or synthesize
20records, and the bill prohibits the records from being used for
21commercial purposes.
-6-ko/ns
2financial information and meeting minutes.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 499C.1 Definitions.
2As used in this chapter, unless the context otherwise
3requires:
41. “Bylaws” means the instruments, however denominated, that
5contain the procedures for conducting the affairs of a unit
6owners association or an executive board regardless of the form
7in which the association is organized, including any amendments
8to such instruments.
92. “Common element” means:
10a. For a cooperative under chapter 499A or a horizontal
11property regime under chapter 499B, all portions of the common
12interest community other than the units.
13b. For a planned community, any real estate within the
14planned community which is owned or leased by the unit owners
15association, other than a unit.
16c. For all common interest communities, any other interests
17in real estate for the benefit of unit owners identified in the
18declaration.
193. a. “Common interest community” means real estate
20described in a declaration with respect to which a person,
21by virtue of the person’s ownership of a unit, is obligated
22to pay for a share of real estate taxes, insurance premiums,
23maintenance, or improvement of, or services or other expenses
24related to, common elements, other units, or other real estate
25described in the declaration. “Common interest community”
26includes a planned community, a cooperative under chapter 499A,
27and a horizontal property regime under chapter 499B.
28b. “Common interest community” does not include:
29(1) A covenant that requires the owners of separate parcels
30of real estate to share costs or other obligations related to a
31wall, driveway, well, or other similar structure, unless all
32such owners consent in writing to the creation of a common
33interest community.
34(2) Real estate described in paragraph “a” if all units are
35owned by a single owner.
-1- 14. “Declarant” means a person or group of persons who,
2as the record title owner of real estate, by a declaration,
3creates a common interest community.
45. “Declaration” means the instrument, however denominated,
5that creates a common interest community, including any
6amendments to the instrument.
76. “Executive board” means the body, regardless of name,
8designated in the declaration or bylaws to act on behalf of a
9unit owners association.
107. “Planned community” means a common interest community
11that is not solely a cooperative under chapter 499A or solely
12a horizontal property regime under chapter 499B, and includes
13property owner or homeowner associations. A cooperative under
14chapter 499A or a horizontal property regime under chapter
15499B, however, may be part of a planned community.
168. “Rule” means a policy, guideline, restriction, procedure,
17or regulation, however denominated, which is not set forth in
18the declaration or bylaws.
199. “Unit” means a portion of a common interest community
20designated for separate ownership or occupancy or as otherwise
21defined in the statute under which the common interest
22community is organized, including but not limited to an
23apartment as defined in section 499B.2.
2410. “Unit owner” means a declarant or other person that owns
25a unit, but does not include a person having an interest in a
26unit solely as security for an obligation. In a horizontal
27property regime under chapter 499B or a planned community,
28the declarant is the owner of a unit. In a cooperative under
29chapter 499A, the declarant is the owner of any unit to
30which an interest has been allocated until that unit has been
31conveyed to another person.
3211. “Unit owners association” means an association,
33regardless of name, organized as a for-profit or nonprofit
34corporation, trust, limited liability company, partnership,
35unincorporated association, or any other form of organization
-2-1authorized by the laws of this state, the membership of
2which consists solely of unit owners except following
3termination of the common interest community, at which time the
4association shall consist of all former unit owners entitled
5to distributions of proceeds or their heirs, successors, or
6assigns.
7 Sec. 2. NEW SECTION. 499C.2 Records retention.
81. A unit owners association shall retain all of the
9following records for the duration of the existence of the unit
10owners association:
11a. Detailed records of receipts and expenditures relating to
12the operation and administration of the unit owners association
13and other appropriate accounting records.
14b. Minutes of all unit owners meetings and executive board
15meetings, a record of all actions taken by the unit owners or
16the executive board without a meeting, and a record of all
17actions taken by a committee of the unit owners association
18authorized to act for the association. The minutes retained
19by the unit owners association shall indicate the date, time,
20and place of the meeting, the names of all persons present
21at the meeting, and each action taken at the meeting. The
22minutes shall also include the results of each vote taken at
23the meeting, including information indicating the vote of each
24executive board member present at the meeting, and the vote of
25each executive board member present shall be made public at the
26open session.
27c. The unit owners association’s original and amended
28organizational documents, bylaws including all amendments to
29the bylaws, and all rules and amendments to the rules of the
30common interest community.
31d. The unit owners association’s annual reports delivered to
32the secretary of state, if applicable.
33e. Copies of each contract to which the unit owners
34association has been or is currently a party.
352. A unit owners association shall maintain all financial
-3-1statements and tax returns of the unit owners association for
2the immediately preceding ten years.
3 Sec. 3. NEW SECTION. 499C.3 Right to access — exceptions.
41. a. Except as provided under subsection 2, all records
5and documents retained by a unit owners association under
6section 499C.2 must be available for examination and copying
7by a unit owner or the unit owner’s authorized agent during
8reasonable business hours or at a mutually convenient time and
9location upon the unit owner or the unit owner’s authorized
10agent providing five days’ notice that reasonably identifies
11the specific records that are being requested.
12b. Except as provided under subsection 2, all records and
13documents retained by a unit owners association under section
14499C.2 must be available for examination and copying by a
15bona fide prospective purchaser of a unit or the bona fide
16prospective purchaser’s authorized agent during reasonable
17business hours or at a mutually convenient time and location
18upon the bona fide prospective purchaser or the bona fide
19prospective purchaser’s authorized agent providing two days’
20notice that reasonably identifies the specific records that are
21being requested.
222. Records and documents retained by a unit owners
23association under section 499C.2 may be withheld from
24inspection and copying to the extent that the records or
25documents concern any of the following:
26a. Personally identifiable information, salary, or medical
27information relating to specific individuals.
28b. Information relating to contracts, leases, and other
29commercial transactions that are currently under negotiation to
30purchase or provide goods or services.
31c. Information relating to existing or potential litigation,
32mediation, arbitration, or governmental administrative
33proceedings.
34d. Information relating to existing or potential matters
35involving governmental administrative proceedings or other
-4-1proceedings before a government tribunal for enforcement of the
2declaration, bylaws, or rules.
3e. Communications with the unit owners association attorney
4which are otherwise protected by the attorney-client privilege
5or the attorney work-product doctrine.
6f. Information that if disclosed would violate another
7provision of law.
8g. Records directly related to the personal, health, or
9financial information of a unit owner if the person requesting
10the records is not the unit owner that is the subject of the
11records.
123. A unit owners association shall not charge a fee for
13providing copies of any records or documents under this
14section, or for supervising the inspection of such records or
15documents.
164. The right to inspect records under this section includes
17the right to copy records by photocopying or other means and
18includes the right to receive copies through an encrypted
19electronic transmission, if available, upon request of the
20requester.
215. A unit owners association shall not be obligated to
22compile or synthesize information or records under this
23section.
246. Information or records obtained under this section shall
25not be used for commercial purposes.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill relates to access to unit owners associations’
30financial information and meeting minutes.
31Under the bill, a unit owners association is an organization
32of unit owners in a common interest community, including a
33planned community, a cooperative under Code chapter 499A, or
34a horizontal property regime under Code chapter 499B. The
35bill requires unit owners associations (association) to retain
-5-1certain records and documents (records) as specified in the
2bill.
3All records retained by an association must be available
4for examination and copying by a unit owner or the unit
5owner’s authorized agent during reasonable business hours or
6at a mutually convenient time and location upon five days’
7notice that reasonably identifies the specific records being
8requested. All records retained by an association must
9also be available for examination and copying by a bona fide
10prospective purchaser of a unit or the prospective purchaser’s
11authorized agent upon two days’ notice. Records that may be
12excluded from being made available for examination and copying
13are detailed in the bill.
14An association is prohibited from charging a fee for either
15copies of the records or for supervising the inspection of the
16records. The right to inspect records includes the right to
17copy records by photocopying or other means and to receive
18copies via encrypted electronic transmission, if available.
19An association is not obligated to compile or synthesize
20records, and the bill prohibits the records from being used for
21commercial purposes.
-6-ko/ns