One of the many improvements made by the Legislature in 2012 to the Davis-Stirling Act was to group a variety of required disclosures into two very important disclosure packets — the Annual Budget Report of Civil Code Section 5300 and the Annual Policy Statement of Civil Code Section 5310. Civil Code Section 5605(a) requires the budget and six other Annual Budget Report items be timely prepared and sent to members or the board must seek a membership vote for new or increased assessments during that next year. Assessment and Reserve Funding Disclosure Summary form required by Civil Code 5570. Under Civil Code Section 5320, the full packets or a summary must be sent individually to all members. Because of the importance of these disclosure packets, management company contracts should state that the manager helps with not only the budget but also to assemble the complete Annual Budget Report and Annual Policy Statement packets.

Source: thestar September 10, 2022 17:30 UTC