Annual Disclosures under the New Davis-Stirling Act

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Disclaimer: The rules and procedures described below are taken from the New Davis-Stirling Act, effective January 1st, 2014. To revisit the current requirements, review all sections (and subsections) of Civil Code §1365.

30-90 Days before End of Fiscal Year

Annual Budget Report

  1. Pro Forma Budget
  2. Reserves Summary
  3. Reserve Funding Plan Summary
  4. Statement of Funding Mechanisms
  5. Statement of Any Board Decision to Defer or Not Undertake Certain Component Repairs
  6. Assessment and Reserve Fund Disclosure
  7. Association Loan Disclosure
  8. Insurance Coverage Summary

Click the link to learn more about the components of the Annual Budget Report.

Annual Policy Statement

  1. Assessment Collection Policy
  2. Standards for Payment Plans
  3. Notice of Owners’ Rights to Submit Secondary Address for Annual Disclosures and Collection Notices
  4. Notice of Owner’s Rights to Receive General Notices by Individual Delivery Upon Request
  5. Notice of Owner’s Rights to Receive Minutes of Board Meetings
  6. Notice of Owner’s Rights to Receive Notice of Location, if any, Designated for Posting General Notices
  7. Discipline Policy
  8. Dispute Resolution Summary
  9. Architectural Guidelines and Procedures

Click the link to learn more about the components of the Annual Policy Statement. 

30-60 Days before End of Fiscal Year

Notice of Assessment Increase

The association shall provide individual notice, pursuant to §4040, to all members regarding any increase in the regular or special assessments of the association.

Review the law here: §5615

120 Days after Start of Fiscal Year

Review of Financial Statement

California law requires that every association whose gross income exceeds $75,000 for the fiscal year receive a Review of Financial Statement. The review must be prepared annually by a licensee of the California Board of Accountancy (CBA) and distributed to owners within 120 days of the end of the fiscal year, unless the association documents have a more stringent requirement.

Click the link to learn more about the Financial Statement Review requirements.

Review the law here: §5305

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