When

What

Why

Every 3 years

Reserve Study
Prepare reserve study

Civil Code §1365.5(e), §1365(a)

Recommended annually,
Required when initially adopted, and any time amended thereafter

Schedule of Monetary Penalties / Fines
Distribution of fine schedule to all members when initially adopted, and then anytime the fine schedule is amended or revised

Civil Code §1363(g)

Upon member request

Index of Required Disclosures
At the request of any member, the Association must provide an index, consistent with the form provided in Civil Code §1363.005, listing the required Association disclosures, along with references to relevant Code sections.

Civil Code §1363.005

Quarterly,
January 1
March 31
June 30
September 30

Governing documents may require more stringent timeline

Quarterly Financial Review
Quarterly review of:

1. reconciliation of operating and reserve accounts
   
2. current year’s actual reserve revenues / expenses as compared to the current year budget
   
3. income and expense statement for operating and reserve accounts

Review may be more frequent due to need or more stringent requirements in governing documents

Civil Code §1365.5(a)

Quarterly,
January 1
March 31
June 30
September 30

Governing documents may require more stringent timeline

Accounting of Litigation Expenses
Preparation of an accounting of litigation expenses available for inspection by members at the Association’s office

Civil Code §1365.5(d)

Annually,
No later than
April 30

Year-End Financial Statement
Distribution to membership of CPA-prepared financial statement of prior fiscal year (if association gross income exceeds $75,000 annually)

Civil Code §1365(c)

Annually,
No later than
April 30

Annual Report
Completion of Annual Report of prior fiscal year, which includes all of the following.  Members must be notified of their right to receive a copy of the Annual Report by no later than April 30.

1. Balance sheet for year end

1. Statement of changes in financial position

1. Notice re: membership contact information

1. Disclosures re: insider transactions and any indemnification agreements

1. CPA report or Board officer certificate indicating Annual Report was prepared without audit.

Corporations Code §8321, §8322

Annually,
No earlier than September 30 -
No later than
December 1

Pro-Forma Budget
Distribute to membership of the Pro Forma Operating Budget (or summary thereof) for the next fiscal year, which must include:

1. estimated revenue and expenses on an accrual basis;
   
2. reserve summary, based on the most recent reserve study (in bold type);
   
3. statement of whether, and reason for, deferral of any major component repair or replacement work
   
4. statement whether the levying of any special assessment(s) are anticipated and the amount(s);
   
5. reserve funding statement indicating how reserves are funded and calculated
   
6. statement whether the association has any loan(s) with an original term of 1 year or more, including payee, interest rate, amount outstanding, annual payment, and when loan is expected to be paid off in full
   
7. statement regarding the Association’s receipt or expenditure of any construction defect award or settlement monies

Civil Code §1365(a), (b), (d)

Annually.
No earlier than September 30 -
No later than
December 1

Assessment and Reserve Funding Disclosure Summary form
Annual distribution with pro forma budget.  Statutorily required information must be provided in accordance with Civil Code §1365.2.5.

Civil Code §1365.2.5

Annually,
No earlier than September 30 -
No later than
December 1

AND

With Pre-Lien Notices

Assessment Collection Policy / Lien Rights
Annual distribution with pro forma budget and with any pre-lien notice. 

Civil Code §1365(e), §1367.1(a)

Annually,
No earlier than September 30 -
No later than
December 1

Notice of Right to Submit Secondary Address for Collection Notices
Annual distribution with pro forma budget.  The Association must notify all owners of their right to submit a secondary address to the Association for purposes of collection notices. 

Civil Code §1367.1(k)

Annually,
No earlier than
November 1 –
No later than
December 1

Notice of Collection Rights and Duties form
Statutorily required language found in Civil Code §1365.1 must be distributed annually to members.

Civil Code §1365.1

Annually,
No earlier than September 30 -
No later than
December 1

OR

With any notice, report, or other communication regularly sent to all members

Notice of Right to Board Meeting Minutes
Annual distribution with pro forma budget, or with any other general mailing to the membership.  Members are entitled to receive copies of meeting minutes, an unapproved draft, or summary of the minutes (excluding minutes from executive sessions) within 30 days of a Board meeting, upon a member’s request, and subject to reimbursement for copying costs.  Details regarding how, and from whom, minutes can be requested should be included in the notice.

Civil Code §1363.05(e)

Annually,
No earlier than September 30 -
No later than
December 1

Governing documents may require more stringent timeline

Insurance Coverage
Summary of Association property, liability, earthquake (if applicable), flood, and Directors & Officers insurance policies, which must include:

1. Name of insurer and type of insurance; and
2. Policy limits and deductibles
3. 10-point font minimum
4. Statutory language in Civil Code §1365(f)(4)

Civil Code §1365(f)

Annually,
No earlier than September 30 -
No later than
December 1

OR

With any notice, report, or other communication regularly sent to all members

Alternative Dispute (ADR) Summary
Annual distribution with pro forma budget, or with any other general mailing to the membership.  The summary must outline the procedure found in Civil Code §1369.510 et seq., and must include the statutorily required language found in Civil Code §1369.590. 

Civil Code §1369.590
Corporations Code §5016

Annually,
No earlier than September 30 -
No later than
December 1

OR

With any notice, report, or other communication regularly sent to all members

Internal Dispute Summary (“Meet and Confer”)
As part of the Alternative Dispute Summary, a summary of the Association’s internal dispute resolution (“meet and confer”) process must be included.  Such process must conform with, or be identical to, the default process described in Civil Code §1363.810 et seq.

Civil Code §1363.850

Annually

Architectural Rules and Policies
The Association must annually provide members with notice of any requirements related to architectural or other physical alterations to property.

Civil Code §1378

No more than 60 days prior
No less than 30 days prior
to the effective date of the increase or levy

Assessment Increases
Notice of an increase in regular assessments, or in the levy of a special assessment, must be provided by first-class mail to all members no less than 30 days, and no more than 60 days, prior to the effective date of the increase or levy.

Civil Code §1366(d)

In next notice, report, or other communication regularly sent to all members following Board decision

Reserve Fund Transfer / Use
When an Association Board decides to use reserve funds, it must notify all members of the transfer and of the availability of an accounting in the next available general mailing to the membership.

Civil Code §1365.5(d)

Notice must be included in the posted notice of the Board meeting

Notice of Intent to Borrow from Reserves
When an Association Board authorizes the temporary transfer of reserve funds to the operating fund to meet short-term cash flow needs or other expenses, the Board must notify the members.  The notice must include:

1. Reasons for the transfer
   
2. Options for repayment
   
3. Whether a special assessment is necessary or being considered

Civil Code §1365.5(c)

Within 1 year of borrowing, in posted notice of the Board meeting

Notice of Intent to Postpone Repayment to Reserves
After giving the same notice as required for an intent to borrow, and upon a finding that a temporary delay in repayment would be in the Association’s best interest, the Association may delay repayment of borrowed funds from reserves for a period exceeding 1 year.

Civil Code §1365.5(c)

No less than 30 days prior
to filing of lawsuit

Disclosure of Construction Defect Issues before Suit
Notification of all owners of construction defect issues is required at least 30 days prior to the filing of a lawsuit in order to permit discussion of options and claims.

Civil Code §1368.5, §1375(k)(1)(D)

As soon as reasonably practicable after settlement

Disclosure of Construction Defect Settlement
After settling a construction defect claim with a builder, the Association must inform the members as soon as “reasonably practicable” after the settlement of the following facts:

1. What will be repaired
2. Approximately when the repairs will be done
3. Disclose any defects which may not be repaired

Civil Code §1375.1

Every other year

Statement of Officer Names, Addresses & Agent for Service of Process
All incorporated associations must file a statement with the Secretary of State every other year with the above-mentioned information.  The Statement may be filed as early as 5 months before the anniversary date of the initial filing.

Corporations Code §8210

Every other year

Statement of CID Association
All associations (both incorporated and unincorporated) must file a form with the Secretary of State, along with the Statement of Officers’ Names, above, every other year or within 60 days of any change in on-site or management address.  Unincorporated associations file every other July.

Civil Code §1363.6