MANDATORY ANNUAL DISCLOSURES
|Article 7. Annual Reports|
|5300||Annual Budget Report.|
|5305||Review of Financial Statement.|
|5310||Annual Policy Statement.|
|5320||Delivery of Budget Report to Members.|
California Civil Code §1365 Financial Records and Reporting provides that
…the association shall prepare and distribute to all of its members the following documents:
(a) A pro forma operating budget, which shall include all of the following:
(1) The estimated revenue and expenses on an accrual basis.
(2) A summary of the association’s reserves based upon the most recent review or study conducted pursuant to Section 1365.5, based only on assets held in cash or cash equivalents, which shall be printed in boldface type and include all of the following:…
Civil Code §1365.5 (e) provides that
At least once every three years, the board of directors shall cause to be conducted a reasonably competent…study of the reserve account requirements of the common interest development, …The board shall review this study, or cause it to be reviewed, annually and shall consider and implement necessary adjustments to the board’s analysis of the reserve account requirements as a result of that review
Civil Code §1365 provides that
(f) (1) A summary of the association’s property, general liability, earthquake, flood, and fidelity insurance policies,…shall be distributed…
CA Department of Real Estate
Operating Cost Manual for HOA Homeowner Assoc.
Our other webpages on doing financial reviews
- Video Guide to Capital reserves are set aside for the maintenance and repair of capital items in condominium and homeowner associations. This may be roads, siding, roofs, swimming pool, or any other item the association is responsible for. This video provides basic information on how you should go about determining what goes into reserve planning and funding.
- This video explains what condominium and homeowner association reserves are and how the association determines the proper amounts to set aside
- Adams Stirling - Borrowing from HOA Reserve Funds
Our webpages on