I've never heard of coops doing annual inspections, but I would expect there to be something in the bylaws, house rules, etc. stating that it will be done. What are they looking for? Hoarders? Washers/dryers if not permitted? Some localities do house inspections periodically for tax assessment purposes, but the building staff would not be doing that.
In my coop, we provide an 'apartment condition checklist' to be reviewed by the super in the presence of a new owner or renter/sublet to verify that drains drain, faucets are not dripping, lights/outlets work, windows/latches/locks in good repair, etc. Then the necessary parties are advised of any deficiencies. I have thought about having building staff do 'preventative' inspections - check window locks and latches, drain pipes under sinks once a year or so, haven't implemented it.

Add to all of the above -
Annually a required changing the AC filters and inspection to see legally required detectors are working.

My co-op does annual inspections. We absolutely have that right. We are looking for hoarders who could cause a safety issue, but we are also looking for people who are hiding things like dishwashers, washers, dryers.

In addition, we are looking for people who might be renting out rooms (looking for room dividers).

Unfortunately, it's a fact that a small percentage of shareholders are dishonest. Their cheating ways jeopardize the financial well being of the co-op, in addition to the safety and security of the shareholders.

I agree with JG. I've never heard of a board requiring and/or performing any regularly scheduled inspection. As a rule, board members cannot enter an apartment without the shareholder's explicit permission unless they believe an emergency condition exists. Your proprietary lease and house rules should state this, and any exceptions to the rule, such as an annual inspection.

Have you asked the board for the reason they want to perform an inspection? Without an emergency condition existing I believe you have the right to refuse entry. If they insist or demand entry to inspect without documented authority you may need to contact an attorney.

Thank you for all the responses.
To JG and Steven 424 I'd like to say that I've only been living at this coop for 3 years and I didn't know much about housing coops when I moved in.
The inspections were already included in the Rules and Regulation, under housekeeping: "Inspections of all units will be done once every eighteen months" "The purpose of the inspection shall be to evaluate conditions which may be hazardous to life, health or safety of the occupants and those in the adjoining units" Of course that could be interpreted differently by different people and I don't know if it happens in your coops but in ours we've had a lot of turnover in terms of Board and Office Managers who are the ones conducting the inspections. Besides the inspections itself, that many members find intrusive, unpleasant and irksome, the failing of the inspection can set up a procedure for eviction. I don't know how many people have been evicted as a result of an inspection but I know cases where they have sent eviction notices.
I would like to ask you if you all belong to the NAHC and if there are other associations. I've read about coops but I'd like to have some support and a way to compare notes in the world of housing cooperatives. I've never got any response to my questions from the NAHC. It's a good thing that I found this forum. Thank you all!

All of my experience has been with cooperative apartments in NYC. I know there are many different flavors of co-ops and condos in other parts of the country, with many different rules and regulations and customs. You might want to use Google to search for more localized information. If you live in Chicago, try googling "Chicago cooperative apartments" and see what turns up.

To find out more about NYC co-ops and condos, take a look at the Council of NYC Cooperatives and Condominiums here: https://www.cnyc.com/ . This is the main umbrella trade organization representing and advocating for NYC co-ops and condos. If you ask a question on their website someone might be able to recommend a similar organization in your locale.

It is not legal to take pictures of your place by any means and if they do without your permission I'd talk/contact my lawyer. If your by laws state this requirement you have 2 choices. (1) Try to change it....(2) Sell as ASAP. Now that you have learned this lesson next time read the by laws before you buy and get a lawyer who should have advised you not to buy. Best of Luck

I find this site very helpful.

http://codes.findlaw.com/ny/business-corporation-law/

Good Luck