Must the HOA or Condo Board Distribute Financials?

Here is a question on a subject that I commonly receive in one form or another:

“Our HOA provided in the past, a monthly Financial report to all the residents (Monthly). Here it is May and they say they have not approved Januarys Financial Report nor released the Jan thru Aprils reports to the community. Several emails to the Property Management has not been successful to obtain this information. We are financially shakey…Any thoughts ?”

First of all, Boards are not required to distribute financials other than once a year. The annual “Review” for associations that gross more than $75,000 in assessments in a fiscal year is due to be sent to owners within 120 days of the end of the fiscal year. That is the only requirement found in the law, but there may be other requirements in the governing documents (such as relating to audits or other, maybe shorter, timelines).

Second, owners have a right to ask for review and/or copies of many financial and accounting records as provided by California Civil Code Section 1365.2. The statute can be located in the California Codes on the state website (www.ca.gov) or by the Davis Stirling Act link on my website (www.californiacondoguru) mainpage.

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