Posting Delinquency Lists

There isn’t a statute that addresses posting delinquency lists. Rather, the statutes address what documents must be disclosed and what documents may be withheld from the members. Generally, records that can be withheld are termed “confidential” and the records that must be disclosed are “public.” In the context of community associations, “public” simply means to the “membership.” It does not mean that the general public can access them.

The statutes are located in the Arizona Condominium Act for Condominiums and the Arizona Planned Community Act for Planned Communities.  Specifically, A.R.S. 33-1258 and A.R.S. 33-1805 provide that “all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member’s representative.” If the analysis were to stop here the conclusion would be easy. All records of the association would be ”public” records and must be disclosed to any member who wants to see them. But the analysis does not stop here.

Certain records of the association and the board “may be withheld from disclosure to the extent that the portion withheld relates to any of the following: 1) Privileged communication between an attorney for the association and the association, 2) pending litigation, 3) meeting minutes or other records of closed executive meetings, 4) personal, health or financial records of an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, including records of the association directly related to the personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, and 5) records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association.”

Some think that “financial information of a member” includes delinquency lists. Others disagree. The higher court has not ruled on this specific question yet so it is anybody’s guess as to who is right. I don’t care who is right and who is wrong. It doesn’t matter. The statute says that some records “may be withheld from disclosure” not “must be withheld from disclosure.” Delinquency lists can be posted if the board so decides.

Before posting delinquency lists, the board should consider the consequences. The delinquent members will not be happy to learn that the “naughty list” went public. Conversely, posting the delinquency list can help. It may help delinquent owners pay their past-due accounts or it may help folks understand why the association doesn’t have the money to do some of the things it wants to do.

If a board decides to post its delinquency list it MUST remember to say that the delinquency list is…

READ THE REST OF THIS ARTICLE BY CLICKING HERE.