Can HOA Boards Sell a List of Member Addresses?

Community association boards often wonder: Do we have the authority to enter a marketing contract that includes giving a vendor a list of all resident addresses?

HOA boards have a fiduciary obligation to its members. While it may be debatable how far the board must go to actually protect individual privacy, the association is not authorized to share, distribute, or publish private information to the public relating to its members.

Under California’s Davis-Stirling Act and Corporations Code:

• Members have the right to opt out of having their contact information included in the membership list that is shared with other members.
• Members can inspect the membership list but only for a purpose reasonably related to their interest as a member — not for commercial use.

“An HOA should first seek advice of legal counsel before selling membership lists’ personal information,” says Richard Williamson, a member of the Citrus Square Community Homeowners Corporation in Cypress, Calif.

In California, for example, “State law has protections on some types of personal information. The excuse that ‘it’s out there’ or ‘it’s discoverable through other means’ does not give any community homeowner corporation that must comply with the Common Interest Development Act the right to violate the limitations and restrictions of the public laws,” adds Williamson.

“Membership lists are association records maintained for the purpose of communicating with the members about matters relating to the association,” says attorney Robert M. DeNichilo, founder and shareholder of DeNichilo Law in Ladera Ranch, Calif., and a fellow in CAI’s College of Community Association Lawyers. “Under most state laws, members may have a right to inspect the list if they can state a legitimate purpose related to their membership interest in the association, but they may not copy or use the list for commercial purposes.”

Most states’ nonprofit codes will advise what personal contact records an association is obligated to keep, explains Williamson. In California, a membership list is a corporate asset. Without the consent of the board, a membership list may not be:

• Used to solicit money or property unless such money or property will be used solely to solicit the vote of the members in an election to be held by their corporation.
• Used for any purpose which the user does not reasonably and in good faith believe will benefit the corporation.
• Used for any commercial purpose or purpose in competition with the corporation.
• Sold to or purchased by any person.

Nevada goes one step further, making it clear that membership lists are not a publicly available record even if the information contained in the list, including address and property owner, is otherwise publicly available. That distinction prevents an association from selling its membership list, according to DeNichilo.

Selling a membership list raises serious privacy concerns and could violate state laws if there is no clear consent from homeowners. Even if technically allowed, it risks damaging trust with owners.

Instead of selling data, consider vendor partnerships where owners can opt in. This way, you protect privacy while still exploring revenue ideas, observers say.

HOA boards should consult with their association attorney for additional guidance.