TIMING FOR NOTICE AND DISTRIBUTION OF HOA BUDGET PACKAGE

I will do some bullet blogs this week because questions come up from readers that require less detailed answers than others. However, you can followup and get much more detail on the statutes noted by visiting the California state website at www.ca.gov and navigating to the laws of the state or by ordering the book upon which these answers are based – IT IS CALLED THE DAVIS STIRLING ACT IN PLAIN ENGLISH and is available in the webstore at californiacondoguru.com.

QUESTION AS POSED (this blog): “Davis Stirling Calif law requires prop mgr.  send the year end letter that contains budget with upcoming dues 30 -60 days prior to Jan. 1.  If letter is due Jan 1, postmarked Nov 30 and mail delivered in Dec.  Would post mark cover 30 day notification or is it late if arrives in Dec.?   Would clarity on this be something your readers would find informative in your newsletter.”

ANSWER:  Civil Code Section 4050 says the date of mailing (postmark) is the date the item is considered delivered.

“4050. WHEN DOCUMENT IS DEEMED DELIVERED.

(a) This section governs the delivery of a document pursuant to this act.

(b) If a document is delivered by mail, delivery is deemed to be complete on deposit into the United States mail.

(c) If a document is delivered by electronic means, delivery is complete at the time of transmission.

4055. VALIDITY OF ELECTRONIC DELIVERY.  If the association or a member has consented to receive information by electronic delivery, and a provision of this act requires that the information be in writing, that requirement is satisfied if the information is provided in an electronic record capable of retention by the recipient at the time of receipt. An electronic record is not capable of retention by the recipient if the sender or its information processing system inhibits the ability of the recipient to print or store the electronic record.”

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ADDITIONAL INFORMATION IN RESPONSE TO QUESTION SENT.: Some items (namely any new assessment or increase in assessment) require distribution in the 30-60 window before the assessment becomes effective and some in a 30-90 day window (budget and reserve study) before the fiscal year ends. Civil Code Section 5300. Go to www.californiacondoguru.com and click on the box that contains the Post 2014 reorganization items (top right box on main page) and you will find links to the list of required disclosures and some of the sample disclosures, all of which are in current form. In the DAVIS STIRLING ACT IN PLAIN ENGLISH (the laws with commentary) there are more forms that assist an association in getting out proper annual notices and disclosures. They do not constitute legal advice per say but do provide guidance in reference to the laws.

“5300. REQUIREMENTS OF ANNUAL BUDGET REPORT AND INSURANCE DISCLOSURE [Checklist Provided in Attachment D.]

(a) Notwithstanding a contrary provision in the governing documents, an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year.

My comment which appears in the DAVIS STIRLING ACT BOOK.

The 60 day window was adopted in 2005 (it was just a 30 day window previously). That window of time should be sufficient for providing the annual disclosure packet to members.  However, note that assessment increases require notice of “not less than 30 nor more than 60 days prior to the increased assessment becoming due.” This is a 30 day window. So, if you are providing notice of an assessment increase with the annual disclosure package, the safest time to send it out is within the 30-60 day window. In any case, it would be best to consult your own legal counsel for interpretation of the confusing language. “

NOTICE, ALL BLOGS ARE CURRENT WHEN WRITTEN, HOWEVER, LAWS CHANGE AND CASES COME UP THAT CHANGE THINGS OVER TIME. BE SURE TO SEEK LEGAL ADVICE IF YOU ARE TAKING ACTION THAT HAS LEGAL RAMIFICATIONS, AND DO NOT RELY ON THESE BLOGS AS LEGAL ADVICE. THEY REFLECT THE OPINION AND INTERPRETATION OF THE  AUTHOR.

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