By David C. Swedelson and Sandra L. Gottlieb, California Condo Lawyers and HOA Attorneys
It’s fall, and that means that most community association board members and management are busy finalizing their budgets (this applies to most community associations that have a calendar fiscal year). Unlike the old days, the budget is not all that California community associations need to be concerned about. What about all those disclosures that are required annually? Are you sure that your association is in compliance? Never fear, SwedelsonGottlieb is here with our updated annual disclosure checklist. Follow this link for a PDF copy of our checklist which we provide annually, setting out all of the statutory disclosures that California community associations are required to provide to the owners/members.
Some managers and board members have asked us what to do if, despite their best efforts, all of the necessary information for the statutory disclosures cannot be obtained. If that is truly the case, we recommend that you send whatever information you have in a form as close to that which complies with the statutory requirements as possible, clearly noting that a revision will be sent out in the not-too-distant future. It’s best to provide an explanation as to why complete disclosure could not be made in a timely manner. At the very minimum, this will provide the association’s members with some assurance that the final disclosures will be on their way and that the board is making a strong effort to fulfill the association’s disclosure responsibilities.
Keep in mind that complying with the association’s statutory disclosure obligations communicates to the association’s members that the association is being properly run and managed. The disclosures encourage feedback from the members to assist the board in gauging owner expectations. We firmly believe that if the board approaches disclosure in a positive and organized manner, the burden need not be overwhelming.
Be sure to visit our HOA Law Blog regularly throughout November, as we will be posting other information regarding California community association disclosure responsibilities.
We hope that you find our annual disclosure checklist helpful. If you have concerns or issues regarding the many statutory disclosure obligations referenced in our checklist, we suggest that you contact legal counsel to assist the board in developing a legal and often times political strategy and plan of action to address the specific concerns and situations impacting your community association.
Our advice and recommendations regarding disclosure are general in nature, and the solution to a particular disclosure issue or problem at your association may require more or less disclosure than what we have been able to describe in the Checklist.
Questions? Contact David at firstname.lastname@example.org