Are you legally prepared this year within your HOA? You could find yourself in hot water if you do not understand what is legally required. HOA board annual disclosures are required to operate, no matter your location. In California, there is legislation to govern how your HOA manages affairs. Let’s discuss the Santa Clarita HOA annual disclosures and how you can be prepared this fiscal year.
The Davis-Stirling Act
California has passed legislation for HOAs to follow to the tee. The Davis-Stirling Act goes into detail regarding what a HOA needs to complete for annual disclosure to your actual homeowners and California Secretary of State. There are three categories within the Davis-Stirling Act that are of most importance for your HOA including:
- The Annual Budget Report
- The Annual Policy Report
- Miscellaneous other requirements
- These important disclosures and reports are crucial to keep your HOA up and running.
- The Annual Budget Report
This report has various requirements and must be provided within 30 to 90 days of the start of your fiscal year. The requirements include a full budget or a summary of your HOA pro forma budget, summary of HOA’s reserves, reserve funding plan and whether or not special assessment will be required, and any outstanding loans and the information associated with them.
The Annual Policy Report
This report also must be provided within 30 to 90 days of the start of your fiscal year. The requirements include name and address of main individual receiving communication, policies for various topics assigned, rights of your HOA members, procedures to solve disputes, and procedures used to oversee physical changes to your property.
Miscellaneous Requirements
There are various requirements that include requirements due each year and as needed. Some of these requirements include:
- 30 days prior to the Annual Budget Report, you must notify your members to send in their contact information
- 120 days before the close of your fiscal year, you must disclose an overview of the financial statement prepared by a certified accountant
- Other statements that must be filed with the Secretary of State
National Property Management Group has extensive experience managing HOAs. Our professional staff is knowledgeable about HOA management in Southern California, serving Los Angeles, Santa Clarita, Valencia, and the surrounding areas. We can manage your HOA properties for you so you have less to stress about. We provide innovative property management solutions that outshine our competitors. There is no property too large or too small that we cannot service.
National Property Management Group
25115 Avenue Stanford A300
Valencia, CA 91355
(661) 295-5966
www.npmgonline.com