1. Know if and when your Declaration (CC&Rs) expires. Older CC&Rs may terminate on a specified date if not extended. Some are doing so now. Calendar the expiration and any deadline to act. Some deadlines occur months before the expiration date. ONLY IF the CC&Rs contain no method to extend the term, CC §1357 provides for an extension approved by more than 50% of the owner votes. Otherwise, follow the amendment requirements in the CC&Rs. Allow at least a year lead time, preferably more, before any expiration deadline. .-2. As of January 1,2001, CC §1352.5 and Govt. Code §12955{l) require an association to remove any discriminatory language from an association's governing documents. It is not enough just to say that the restriction is repealed or void. If you haven't reviewed your documents for this, you should do so. [CC §1352.5; Govt. Code §12955{l)].
3. Between 45 and 60 days before the new fiscal year begins, prepare the annual budget and distribute it to the owners.#1
4. Must include a budget prepared on an accrual basis. [CC §1365(a)(I)]
5. Must limit increases in regular assessment to a maximum of 20% above the regular assessment for the prior fiscal year and total special assessments to a maximum of 5% of the association's budgeted gross expenses during a given fiscal year. [CC §1366(b)]
6. Must include a summary of the association's reserves in boldface type and include the many details described in the statute. [CC § I 365(a)(2)] As of January 1,2000, reserves include any funds received and not yet expended from a settlement or damage award arising out of any claim for construction or design defects. [CC § I 365.5(f)(2)] Each association must report, as separate line items, either in the reserve study or in the annual review or audit, the amount of any such defect funds that have not yet been expended, and the expenditure or disposition of such funds, including any amounts expended for the direct or indirect costs for repairing construction or design defects. [CC §1365(a)(2)(iii)]
7. Must include a statement whether the board has determined or anticipates the need to levy of one or more special assessments to repair, replace, or restore any major component or to provide adequate reserves for doing so. [CC §1365(a)(3)]
8. Must include a general statement addressing the procedures used to calculate and establish reserves. [CC §1365(a)(4)]
9. Must include notice to members of their right to obtain copies of minutes within 30 days upon request and payment of the copying costs. [CC §1363.05(d)&(e)]
10. Must include at least a summary of Civil Code Section 1354 (Alternative Dispute Resolution) with the specified language required by Civil Code Section 1354. [CC §1354]
11. The association must send notice of any increase in regular or special assessments, by first class mail, 30 to 60 days before the due date for the increase [CC § I 366(c)] and notify prospective purchasers of increases that have been approved but are not yet due. [CC §1368(a)]
12. The association must send to members, within 60 days prior to the new fiscal year a summary of the association's (I) property, (2) general liability, (3) earthquake, (4) flood insurance and (5) fidelity policies, listing the carrier's name, type of insurance, policy limits for each type and the deductibles. If the policy declaration page includes the required information, the association may use the declaration page. The association must also include the exact disclaimer language specified by the statute in at least 10-point bold type. The association must also give members immediate notice of any lapse, non-renewal, or cancellation of coverage. [CC §1365(e)]
13. The board must notify members (of incorporated associations) annually of their right to obtain an annual report upon written request. This report is similar to the audit or review required by CC § I 365(b), but it applies to corporations that have at least $10,000 in gross annual receipts. [Corp. Code §8321]
14. During the 60-day period before the new fiscal year begins, the association must deliver a statement to all members describing the association's policies and practices in enforcing lien rights (aka "Collection Policy"). Effective January 1,2002, the association must also include verbatim, in at least 12-point type, a lengthy disclosure of an association's collection rights as set forth in ~ CCI365.1. [CC §§1365(d) & 1365.I]JL The board must also notify the owners of the standards for ~ payment plans, if any exist. [CCI367.I(c)(2)]
15. The board must distribute to all members any fine schedule adopted by the board to discipline ~ members. The board must distribute it by personal delivery or first-class mail. The board needs to I do this only once, although it must redistribute it, if there are any changes. [CC §1363(g)]
16. Under Health & Safety (H&S) Code Section 2591 5.2, the association must give or post notice ~ about any asbestos known to exist in the project. See the footnote in Civil Code §1368(a) above. ~ Consult with legal counsel for assistance in preparing this disclosure for compliance with the
requirements of the H&S Code. [Health & Safety Code §25915.2]
17. Upon written request, within 10 days, the association must provide to a unit owner: (I) a . copy of the governing documents and, if the association is not incorporated, a statement to that . effect; (2) a statement that any age restriction in the governing documents is enforceable only to the extent permitted by Civil Code Section 51.3 (Unruh Civil Rights Act) and including the applicable provisions of Civil Code §51.3; (3) a copy of the most recent financial statement provided to the, owners as required by Civil Code §1365; (4) a statement of the current regular and special , assessments and fees, including a statement of any unpaid assessments and fees plus any unpaid . monetary fines or penalties, late charges, interest and costs of collection on the unit in question . including any which are or may be a lien on the unit; (5) a copy or summary of any notice of . violation sent to the owner alleging, any violation of the governing documents that remains . unresolved at the time of the request; (6) information about defects and/or repairs as required by , Civil Code §§1375, 1375.05 and 1375.1; and (7) information on approved changes in regular and , special assessments that have been approved but are not yet payable. [CC § 1368] Any association that provides a copy of a declaration or any governing document or a deed to any other person shall place a cover page over the document or a stamp on the first page of the document stating, in at least 14-pt boldface type the following:"If this document contains any restriction based on race, color, religion, sex, familial status, marital status, disability, national origin, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section 12956.1 of the Government Code. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status." [Govt. Code §12956.1]
.18. If incorporated, an association must file biennially a "Statement by Domestic Nonstock , Corporation" on a form available from the Secretary of State, before the end of the month in which it was originally incorporated. All unincorporated associations must file this form by July, 2003 and biennially thereafter. [CC §1363.6]. Using a credit card, you can now file this online for a corporation in good standing at https://www.businessfilings.ss.ca.gov. The form must list the names and, addresses of the principal officers and its agent for service of process and the street address of the J corporation's office [Corp. Code §8210]. Since January I, 1995, the form (I) must also state that the corporation is an association formed to manage a common interest development, (2) must include the nine-digit Zip Code, front street and nearest cross street for the physical location of the association, if the corporation's office address is not within the development, and (3) must include the name and address of the association's managing agent, if any [CC § 1363.5]. Failure to file may first result in a penalty of $50.00 [R&T §19141] and later in suspension if the penalty is not paid.
[Corp. Code §§5008.6 & 8810]. If there is no management company and the board hasn't seen or filed such a form recently, the corporation may already have been suspended!
19. To avoid problems like the one described in the prior paragraph, or failing to get key mail or losing key documents as the association changes board members, managers, accountants and attorneys over time, it is helpful to have a permanent post office box that someone on the board checks regularly. Keep an up to date list of all items that are sent to that address, such as tax bills, corporate documents from the Secretary of State, etc., so you can send notifications, if you must change the P.O. Box. It is also a good idea to have your own storage locker, and to keep all your archived documents there. Each box should be labeled, preferably by year and number for easy location, and the materials in each should be indexed so you can find them more easily.
20. Associations who maintain water heaters must brace them properly, no later than January 1, 1996, to deter movement during an earthquake. If owners are responsible for their individual water heaters, it would be advisable for the association to notify them of their duty to do this as part of the other annual notices to owners. Selling owners must certify to prospective purchasers, in writing, that they have complied with this law. Compliance is important to avoid fires following an earthquake. [Health and Safety Code § 19211 ]
21. The association must send notices to vacate, if relocation is required so Association can perform termite treatment (or other common area work requiring relocation). [CC §1364]
22. To assist in collecting assessments, the association may record an information statement containing the name of the association; the recording information on the declaration; the name and phone number of the treasurer, managing agent or other person authorized to collect assessments; and a list of the assessor's parcel numbers of the separate interests subject to assessments. [CC §1366.2]
23. With very limited exceptions, various requirements apply to residential buildings taller than 75 ft. above the ground floor. These include annual Fire Marshall certifications; providing emergency evacuation plans and procedures posted in appropriate locations, including procedures for handicapped and non-ambulatory persons; and other requirements established by the State Fire Marshall or more stringent requirements set by local governmental agencies. [H&S § 1321 0-13234]24. All playgrounds designed and equipped for children's play (ages 2-12) in "subdivisions" (i. e. associations) should have been inspected before 10/1/00 by an inspector certified by the National Playground Safety Institute. Those built between 1/1/94 and 12/31/99 need not comply with the applicable regulations until they are 15 years old, but must comply with other specified federal guidelines. If they don't comply with the latter, they must be upgraded by 1/1/03. All older playgrounds must be upgraded by 1/1/03. [H&S §115730 & 115735 and applicable regulations]
25. See Membership/Owner Duties with respect to smoke detectors in any units owned by or leased by the Association, and any hallway or stairwell smoke detectors in multi-family dwellings.
26. Any matter discussed in executive session must be generally noted in the minutes of the immediately following meeting that is open to the entire membership. [CC §1363.05(c)]
27. For floods, other emergencies and even contacting owners to vote on document amendments, it is extremely helpful to keep a list of home and work phone numbers and email addresses for owners. This can be requested and updated in a database for any owners who contact the association.
# 1. In the alternative, the board may distribute only a summary of the items required by CC §1365(a). However, the members must be given a notice, in at least 10-point bold type on the front page of the summary of the budget, that the budget is available at the association's business office.. or at another suitable location within the boundaries of the development, and that copies will be provided upon request and at the expense of the association. If a member requests a copy of the full budget documents required by CC § I 365(a), the association must mail a copy to the member by first- class U. S. mail at the association's expense, and it must be delivered within five (5) days. It would be prudent to include any statement about the anticipated need for a special assessment with the summary rather than just in the full text. NOTE: See the sample of 10-point bold type in the footnote in Civil Code § 1365 in this booklet.
#2 If this is not included with the budget, it must go out at least annually as part of a newsletter, magazine or some other report regularly sent to the members [corp code 5016]
#3. Most associations send this with the annual budget information, but it can be sent later than the budget.
#4. This shows how large 14-pt boldface type is.