Records Retention: Restoring Order and Organization to Community Documents

Every community association needs a records retention policy that dictates what documents and files to keep and for how long.

“Records are institutional memory and proof of action or inaction. Records can answer questions that may arise based on whether and why something was or was not done in the past, which might be helpful if litigation is involved. Records also can help predict trends for budgeting purposes,” says Sara Austin, with Austin Law Firm in York, Pa., and a fellow in CAI’s College of Community Association Lawyers.

An association’s records retention policy needs to comply with federal and state statutes and regulations. Though laws vary by state, many are directly related to the possibility of litigation and correlate with the statutory timeframes when lawsuits can be filed in different types of cases. State laws also can specify that certain documents be made available to homeowners for a specific length of time.

Before a board implements its policy and adheres to a schedule, run them by the association’s accountant and attorney. They will ensure the policy meets relevant guidelines and laws, as well as the needs of the individual community.

In general, the following guidelines are a good starting point.

Sample Records Retention Schedule

Many associations turn to the board secretary to maintain records, though the community manager, management company, and business partners often support the effort. The secretary should have a system in place to:

• Store and retrieve association documents as needed.
• Devise an effective filing system and keep files safe and accessible.
• Identify and categorize all current and stored records.
• Prepare and maintain a retention schedule for document disposal.

Homeowners should be provided with reasonable access to appropriate community records, including annual budgets and board meeting minutes.

Record retention efforts have gotten a lot easier in the digital world, but communities still need a system to gather, track, and organize their files.

>>Find more information about records retention and purging files in CAI’s The Board Secretary.