How should an association distribute disclosures to the members?
Some statutes merely state that a given disclosure must be “distributed” to the members. Others say the information must be “delivered,” and still others require distribution by first class mail. NOTE: Notices of assessment increases and of the association’s schedule of monetary penalties must be sent via first class mail. We suggest that the remaining disclosure information, such as pro forma budgets, reserve studies, and financial statements, be provided by first class or third class (bulk) mail. Hand delivery complies with applicable statutes but raises questions about whether the materials are actually received. Mailing disclosure information is consistent with traditional corporate practice and is easier to prove and more difficult to challenge. Hand delivery should only be used in emergencies and should be documented in the association’s official records.
