HOA records retention is more than a filing task. When records are organized and easy to access, boards can make better decisions and respond to homeowners’ requests and queries faster. More than that, it helps protect the HOA from unnecessary disputes. But even after properly filing the records, the HOA board should also know how long to keep them.
What is HOA Records Retention?
It is the process of maintaining, organizing, storing, and eventually disposing of association documents in accordance with applicable laws and governing documents. An HOA documents retention system follows a clear structure for which records to keep, where they are stored, who can access them, and when it’s appropriate to discard them.
According to the Texas State Law Library’s guide on property owners’ association bylaws and records, Texas law gives homeowners certain rights to access HOA records and outlines recordkeeping requirements for associations.
Why Do You Need a HOA Document Retention Policy?
Having one helps the HOA board stay consistent, especially when board members change over time. During transitions, boards may misplace, lose, or delete important documents, leaving the new board without access.
A good policy should include an HOA records retention schedule that explains how long the association must keep each type of document. This schedule gives the board and management company a shared reference point, reducing confusion when someone requests or reviews records.
Under Texas Property Code Section 209.005, owners may request access to association books and records. If the HOA lacks organized records, even a simple request can become a larger administrative problem.
Records are often needed by homeowners, for tax filings, audits, insurance claims, vendor reviews, enforcement issues, and legal disputes.
How Long Does an HOA Need to Keep Records
What documents should the HOA retain? Different documents have varying retention requirements. Here is a list of what documents should an HOA retain depending on the time period.
Permanent Retention: HOA Governing Documents
Do not delete or discard these documents:
- Certificate of formation
- Bylaws
- Restrictive covenants (CCR&s)
- Amendments to the certificate of formation
- Amendments to the bylaws
- Amendments to the restrictive covenants
These are the core documents of any HOA that explain the HOA’s authority, its governing rules, the HOA board’s power and responsibilities, homeowner obligations, and all the information an HOA needs.
Boards should record and sign these documents, along with all past amendments.
Keep for 7 Years: Financial Records and Meeting Minutes
Under Texas law, all financial books and records must be retained for seven years. Included here are the HOA’s tax returns and audit records.
Here is a complete list:
- Annual budgets
- Balance sheets
- Income and expense statements
- General ledgers
- Bank statements
- Check registers
- Invoices and receipts
- Reserve fund records
- Audit reports
- Tax filings
- Financial reports prepared by the manager or accountant
Boards should keep these records organized by fiscal year. These documents support audits, budget reviews, budget forecasting, and financial transparency.
Meeting minutes must also be retained for seven years. These records should show key actions from the meeting, such as motions, approvals, votes, and decisions.
Keep for 5 Years: Owner Account Records
Documents that include homeowners’ account records must be retained for five years. This list includes:
- Assessment ledgers
- Payment histories
- Late fees
- Fines
- Collection Notices
- Payment Plans
- Deliquencies
Note that these records contain sensitive owner information and require privacy. While homeowners can inspect association records, there are limits on what they can access, especially when confidential account details are involved. It is best to consult an HOA attorney to determine these limits.
Keep for 4 Years: Contracts
All vendor contracts with a term of one year or more must be retained for 4 years after the contract’s expiry. These are contracts and agreements with:
- HOA Management companies
- Landscaping services
- Pool maintenance services
- Security services
- Accounting services
- Insurance companies
- Contractors (for construction and repairs)
Expired contracts can still be useful. Boards may need them to review warranties, compare vendor pricing, confirm service obligations, or understand why a prior board made a certain decision.
Other HOA Records Boards Should Consider Keeping
Boards may need to keep additional documents, such as:
- Insurance policies and claims
- Reserve studies
- Architectural applications and approvals
- Violation notices and enforcement records
- Board resolutions
- Election materials
- Vendor bids and proposals
- Maintenance records
- Rules and regulations
- Management certificates
- Owner notices and newsletters
- Legal correspondence
- Incident reports
While boards may encounter a state of Texas records retention schedule, it is important to remember that public agency schedules can differ. Texas HOAs should rely on the Texas Property Code, their governing documents, and legal counsel to develop their retention policies.
What Records Should Not Be Freely Shared?
Texas HOAs must provide access to many association records, but not every document should be released without review.
Boards should be careful with:
- Attorney-client communications
- Attorney work product
- Pending litigation materials
- Owner delinquency details
- Individual violation records
- Personnel records
- Security information
- Access codes
- Personal contact information
- Contracts still under negotiation
If a request includes sensitive records, the board should consult the association’s attorney before producing documents.
Best Practices for HOA Records Retention
A strong records retention system does not have to be complicated. Boards can start with a few basic practices:
- Store records in a secure digital system
- Keep permanent records in a separate folder
- Organize files by year and category
- Use consistent file names
- Keep signed copies of contracts and policies
- Limit access to confidential records
- Back up digital files regularly
- Track all record requests and responses
- Review the records retention policy each year
How HOA Management Can Help
Records and documents can be easily misplaced and, worst of all, lost. It is the HOA board’s responsibility to organize them and ensure their safety. However, when HOA board members change, it is easy to overlook the turnover of these records.
A professional HOA management company in Texas can help boards maintain organized records, track important documents, prepare financial reports, manage owner requests, and coordinate with attorneys, accountants, and vendors. New board members do not have to start from scratch or chase down files from prior volunteers if there is proper record storage.
Need help keeping your HOA records in order? Contact Landmark Community Management today to learn how our Texas HOA management services can support your community.
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