When and how do I call law enforcement on my HOA?

My COA in Texas of about 250 condos has not produced an audit in 4 years. This is required by state law and our bylaws.

Our group wrote to them demanding to examine records and they never responded.

Only recently after much pressure, did they start having open board meetings as required by state law.

The HOA president made a long speech about how hard it is to get an audit. She said they are working on it. According to our portal, they put documents in there 6 months ago that the missing audits are pending. Note I recently called a local CPA who audits condos he looked at our last audit and said he would audit us for $7500 and be done within 2 weeks.

When it came time for member comments, the lady who went first asked for the audit. When it was my turn, even though I believe an audit can be done in 2 weeks I said "if you are unable to provide the audit please share current bank statements and let us examine records so we can verify the money is actually there".

Again with this background info, Then our HOA president made a speech saying that covid slowed everything down, there is no concern, our other auditor retired, everything is fine, there is no misappropriation or misuse of funds, nothing going on that is unlawful.

The President's communication actually made me more concerned to verify the funds are there.

Since my HOA is not providing audits, not allowing us to examine records - they could be stealing and we'd have no way to know. They won't be transparent to let us prove to ourselves if they are honest or not. So I now want law enforcement to investigate.

Am i wrong? And how do I get law enforcement to investigate my HOA?

ok so think like a criminal. They get control and end financial transparency. Conveniently the only way to get evidence is a super long political process or a court process. If this is true than HOA is a paradise for criminals. Is there really no way to get law enforcement to investigate? There must be some way. Why would criminals be allowed to tell members "no you can't investigate me" and keep on stealing?

Not having any audit in 4 years isn't good, but you need more to show a crime has been committed. I know you're unhappy with your board, but you need to think strategically.

To begin, what details did you get regarding a lack of audit? Is there a money issue? What kind of audit did you ask for? Have you looked at the last 3-5 years of income/expense statements for trends? Have you asked why some line items have increased by a lot? (What you consider a lot is subjective) has there been a reduction in services and have homeowners been told why? Are your assessments keeping up with inflation (the rate can vary, depending on your area).

No, this isnt an audit, but it's a start for you and your neighbors to take a deeper dive in how the money's being spent. It's ok to disagree on how it's being spent, but then you have to come up with ways to make the spending more effective. Perhaps it's time to take a closer look at vendors- is the board getting at least 3 bids for major projects? When was the last time someone took a look at routine services to see if you're purchasing something that really isn't needed anymore? Could there be conflicts of interest? Maybe.

Has your group been educating people on the documents and urge them to demand answers and an audit of last year's budget? Start there and if the auditor sees some irregularities the board can't/won't answer, you may need a more detailed audit. Yes, that may take longer and cost more money - are homeowners willing to pay for that if there's not enough in the budget (you c ant forget about other bills or funding reserves)?

The lack of an audit could be another reason to kick out this board, after which a full audit may be appropriate to check for funny business. If so, that's when you may need to consider making a criminal complaint.

i have some questions. approx how much in monthly assessments does your association collect? what is included in your monthly assessment.. does the association pay for trash? water? gas? electric? landscaping? employees? Do you have a management company? who do you receive your statements from?

this info will help me give you some guidance.

Not really applicable to the discussion topic.

The topic of discussion was when can outside authorities be called in to address the issue of lack of transparency creating theories of misappropriation of funds.

The following letter was written by ai. I asked for a strong letter. Is your condo subject to Texas Property Code § 82? The law usually allows you to go to inspect records, but the association may be able to email them to you if they choose to do so. The ai also said "The strongest approach is to send this by certified mail and keep a copy of everything you send. Texas law specifically references certified mail requests for condo association records." I suggest you verify the refs to texas law, as ai can make mistakes:
[Your Name]
[Your Address]
[City, State ZIP]
[Email Address]
[Phone Number]

[Date]

Board of Directors
[Name of Condominium Association]
[Association Address]

Re: Formal Request to Inspect Association Financial Records Pursuant to Texas Property Code §§ 82.114 and 82.1141

To the Board of Directors:

I am the owner of Unit [#] at [Condominium Name], and I hereby formally request access to inspect and obtain copies of the Association’s books and records, including but not limited to the Association’s complete financial records, pursuant to Texas Property Code §§ 82.114 and 82.1141.

Texas law is clear and unambiguous regarding a unit owner’s right to access association records.

Texas Property Code § 82.114(b) provides:

“All financial and other records of the association shall be reasonably available at its registered office or its principal office in this state for examination and production in accordance with Section 82.1141.”

Further, Texas Property Code § 82.1141(b) states:

“An association shall make the books and records of the association, including financial records, open to and reasonably available for examination by a unit owner…”

Additionally, § 82.114(a)(1) requires the Association to maintain:

“Detailed financial records that comply with generally accepted accounting principles…”

Accordingly, I request inspection and copying of the following records for the period of [insert years or dates requested]:

Annual budgets and reserve studies
Balance sheets and income statements
General ledgers and bank statements
Check registers and invoices
Contracts with vendors and management companies
Accounts payable and receivable records
Audit reports and CPA reviews
Tax returns filed on behalf of the Association
Board meeting minutes relating to financial decisions
Records of special assessments, loans, and reserve expenditures

Pursuant to Texas Property Code § 82.1141(d), this letter constitutes a formal written request for inspection of records. I elect to inspect the books and records before obtaining copies.

Under Texas law, the Association is required to respond within ten (10) business days after receipt of this request by providing written notice of dates and times during normal business hours when the records will be made available for inspection.

Please consider this a formal demand for compliance with the Texas Property Code. Failure to comply with the statutory requirements for records production may subject the Association to legal action to compel production of the records and recovery of all remedies available under Texas law.

I expect the Board to fulfill its fiduciary obligations to the members of the Association by providing full transparency and timely compliance with this lawful request.

Please direct all communications regarding this matter to me in writing at the address and email listed above.

Sincerely,

[Your Name]
Owner, Unit [#]

do you get access to monthly financial reports? Once a year they give us a balance sheet and a budget, unaudited. They could easily be making up numbers.

writing to the management company is useless. The management company ignores most emails. Recently we wrote in demanding to know what the office hours are to examine records per Texas property 81 and 82. They wrote back putting a whole lot of difficult restrictions on it and threatening us for "interfering with HOA employees" . (note we have not wasted our time talking to the HOA employee in over a year because last time we tried she was extremely rude and hostile so we immediately left.)

Our condo is pre-1994 so it is governed by Texas property statutes 81 and selections of 82 that apply to all condos.

There is no requirement in bylaws for meetings other than an annual meeting. But according to Texas 82 they can only make decisions outside of open board meetings if the decision is unanimous and recorded on the minutes of the following meeting. We can prove they have not been doing this.

Also, the board has retaliated against multiple unit owners for simply asking questions like "who are the board members, and what are their terms?" And "where is the permit for this major structural repair you are doing?". Their position of no audits, extreme defensiveness over basic transparency, not really following texas 81,82 or our bylaws all make us suspect they are stealing money. If they are not stealing money why would they be so antagonistic to people asking questions? Why not produce an audit. In the recent open board meeting (the first any one ever remembers) I said if they are really having trouble producing an audit why not publish the current bank statements to prove they have the money they say they have? They wrote an extremely petty violation against me 2 days after I asked that on a meeting. They have also retaliated against at least 4 other unit owners. The remaining unit owners have a mix of apathy and fear. Two of them told me they are afraid to sign our petitions and letters because of fear of retaliation.

I get it, we can only do a civil remedy. In the meantime, if they are stealing, since the only way to get information is a super expensive court proceeding or a super long and difficult political effort - they can just keep stealing as much as they want. We also suspect they are pressuring owners to sell pre-foreclosure. We also suspect they are doing self dealing. We can prove nothing because they block us from accessing anything. This is why I want law enforcement to help.

Aren't there fraud investigators? Isn't this behavior sign of gross fraud? Do we have to wait until someone dies or the place burns down to get a fraud investigator involved?

4. STEP-BY-STEP INSPECTION STRATEGY
Follow these steps precisely to build an irrefutable record of your attempt to exercise your rights.

Step 1: Draft a Formal Written Demand Letter

The letter must be in writing. Do not rely on verbal requests.
Address it to the Board of Directors via the Association's registered agent or management company.
Send the letter via Certified Mail, Return Receipt Requested. This provides legally verifiable proof of delivery. Keep the green card receipt when it returns.
Step 2: Clearly State Your Proper Purpose

Your letter must explicitly state your purpose for the inspection. Be direct and professional.
See Section 9 for sample language.
Step 3: Propose a Reasonable Time and Place

Propose specific dates and times for the inspection (e.g., "during normal business hours on May 26 or May 27, 2026").
Request the inspection take place at the Association's principal office or another mutually agreeable location.
Step 4: Await the Board's Response (The 10-Day Clock)

Under § 82.1141(d), the Association must produce the requested records "not later than the 10th business day after the date the association receives the request."
If the Board fails to respond within 10 business days, their inaction is a refusal.
The Board may extend this deadline by an additional 15 days only if they provide you with written notice of the extension within the initial 10-day period.
Step 5: Document the Refusal

If the Board ignores your request, the certified mail receipt and the passage of the statutory deadline serve as documented refusal.
If the Board responds with a denial or an unreasonable delay, save the communication (email, letter). This is your evidence for legal action.
5. OVERCOMING BOARD RESISTANCE TACTICS
A resistant Board may use common excuses. Here is how to respond, citing Texas law.

"We need more time."

Response: "Under Texas Property Code § 82.1141, you have 10 business days to comply. An extension is only permissible if you have provided prior written notice. An indefinite delay is a constructive denial of my rights as established in Shioleno v. Sandpiper (2008)."
"You have to pay a fee to inspect the records."

Response: "Texas law allows the Association to adopt a policy for charging reasonable costs for copies of records, but not for the mere inspection of records. Please provide a copy of the Association's adopted Records Production and Copying Policy as required by § 82.1141(f)."
"The records are with our accountant/attorney/off-site."

Response: "The Texas Court of Appeals held in Board of Directors v. Sondock (1982) that the 'most logical place for keeping these records is on the premises' to ensure ready access for owners. The location of the records does not negate the Association's statutory duty to make them reasonably available for inspection within the 10-day deadline."
"You can't inspect records because you're not current on assessments."

Response: "My right to inspect Association records under Texas Property Code § 81.209 and § 82.1141 is not conditioned on my assessment payment status. As established in McKeough v. Camelot (2023), the right is only limited by the proper purpose requirement, which has been met. Please comply with the law."
6. LEGAL REMEDIES IF THE BOARD REFUSES
If your formal demand is refused, you have powerful and direct legal remedies.

Writ of Mandamus: This is a court order compelling a party (the Association) to perform a non-discretionary legal duty (making records available). The court in Burton v. Cravey (1988) explicitly confirmed that a writ of mandamus is the proper remedy to enforce a unit owner's inspection rights under Chapter 81.
Justice Court Petition: Section 82.1141(n) provides a streamlined, cost-effective remedy. You can file a petition with the Justice of the Peace. If the court finds you were denied access, it can order the Association to produce the records and may order them to pay your attorney's fees and court costs.
Attorney's Fees and Costs: Both a mandamus action and a Justice Court petition provide for the recovery of attorney's fees and costs from the Association if you prevail. This provision incentivizes the Board to comply with the law rather than risk financial penalty.
7. SUPPORTING CASE LAW
Texas courts have consistently upheld the owner's right to inspection.

Burton v. Cravey (Tex. App.—Houston [1st Dist.] 1988, no writ): Confirmed that an owner's right to inspect under § 81.209 is a legal right enforceable by a writ of mandamus.
Shioleno v. Sandpiper Condominium Council of Owners, Inc. (Tex. App.—Corpus Christi 2008, no pet.): Held that an association must make records available at a "reasonable time" and that undue delays constitute a failure to comply with the law.
McKeough v. Camelot Townhomes Association, Inc. (Tex. App.—Houston [14th Dist.] 2023, no pet.): Established that once an owner states a proper purpose, the burden of proof shifts to the association to prove the purpose is improper. Also affirmed the right to inspect is not contingent on assessment status.
Board of Directors of the Sea-Isle Council of Co-Owners, Inc. v. Sondock (Tex. App.—Corpus Christi 1982, writ ref'd n.r.e.): Ruled that records should be kept on the premises to provide owners with "ready access," countering the excuse that records are inconveniently located off-site.
8. PRACTICAL TIPS
Document Everything: Keep copies of your demand letter, the certified mail receipt, and all correspondence with the Board. Create a log of all interactions.
Be Specific in Your Request: Instead of a vague request for "financials," ask for specific documents:
General ledger for the past two fiscal years.
Bank statements for all operating and reserve accounts.
Executed contracts for landscaping, management, and other major vendors.
Invoices and receipts for all expenditures over $500.
The most recent annual audit report as required by § 81.209(c).
Bring Your Agent: Section 82.1141 allows you to bring an agent, attorney, or certified public accountant to the inspection. It is highly recommended to have a CPA or accountant accompany you.
What to Look For: During the inspection, look for red flags such as large, unexplained expenses; payments to unknown vendors; missing invoices; comingling of operating and reserve funds; and contracts not approved by the Board.
9. SAMPLE DOCUMENTS
A. Sample Demand Letter

[Your Name]
[Your Unit Number]
[Your Address]
[Your City, TX ZIP]
[Your Email]
[Your Phone Number]

[Date]

VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTED

Board of Directors
c/o [Name of Management Company or Registered Agent]
[Association's Address]
[City, TX ZIP]

RE: Formal Request for Inspection of Association Financial Records Pursuant to Texas Property Code § 81.209 and § 82.1141

Dear Members of the Board of Directors:

As a unit owner in the [Name of Condominium], I am formally requesting to inspect the books and records of the Association, including financial records, pursuant to my rights under Texas Property Code § 81.209 and § 82.1141.

The purpose of this inspection is to [CHOOSE ONE OR MORE OF THE PROPER PURPOSE STATEMENTS BELOW].

Please make the requested records available for my inspection and the inspection of my designated agent on [Date, e.g., May 26, 2026] or [Date, e.g., May 27, 2026] during normal business hours (9:00 AM to 5:00 PM) at the Association's principal office.

Specifically, I request access to the following documents for the fiscal years [Year] and [Year]:
1. The detailed general ledger.
2. All monthly bank statements and reconciliations for all Association accounts (operating and reserve).
3. All executed vendor contracts.
4. The most recent annual audit report.
5. All invoices and supporting receipts for expenditures exceeding $500.

Under Texas Property Code § 82.1141, the Association must respond and make these records available no later than the 10th business day after receipt of this letter.

Please contact me at your earliest convenience to confirm a date and time for this inspection.

Sincerely,

[Your Signature]
[Your Printed Name]
Unit Owner, Unit [Your Unit Number]
B. Proper Purpose Statement Examples

"...to assess the financial health of the Association and verify that its financial operations are being conducted in accordance with the annual budget and governing documents."
"...to investigate suspected financial mismanagement, including what appear to be substantial and inordinate expenditures for [specify area, e.g., landscaping services]."
"...to confirm that the Association is complying with its duty under Texas Property Code § 81.209(c) to conduct an annual audit and to review the results of said audit."
10. CONCLUSION
You have an undeniable, statutorily protected right to inspect your Association's financial records. A resistant Board is not only violating its fiduciary duty but is also acting in direct contravention of Texas law. By following a methodical strategy of formal written demand, careful documentation, and a willingness to enforce your rights in court, you can overcome the Board's resistance and achieve the transparency to which you are entitled.

My previous long post was prepared by a legal-based ai. I asked for a detailed strategy for the owner of a condominium unit in Texas (established under 81, but there are applicable parts of 82) to inspect the financial records when the board is resistant. A normal ai such as Google usually thinks about the answer for a few seconds. This legal ai took a couple of minutes and researched and summarized relevant sources such as laws and dozens of court cases.

I cut off the first three points of background material, and skipped the extensive analyis, to shorten it to a length that was accepted to hoatalk.

I would add that having a lawyer write the letter to the board may impress on them the need to respond.

I also note that the legal process to compel inspection is much easier than a normal, expensive court case. You can use a Justice Court Petition, similar to small claims (?), or look at a writ of mandamus. Your legal fees can be paid by the association if you are successful, although the association may cave before a final court decision leaving you with all of your preliminary legal fees.

When you go for inspection, be fully prepared to make copies of everything (bring your cell fully charged, etc.) and maybe accept emailed copies.

Good luck with it.

What's wrong with the writing? Yes, I asked for a detailed strategy for a resistant board, and the letter is long.

The first letter I posted way above should not be considered, since that was primarily based on Texas 82, but MrTexaS1 later indicated that his condo was based on the older Texas 81.

We often tell people here that they have a right to inspect records, but I think most don't understand the whole process of inspection. Mrtexa's group already wrote a letter that failed and another that got restrictions, so they may need a detailed review of the whole process as laid out here. They may wish to consider a new letter with some or all of these points as well as the responses given here for the restrictions they received from the management company.