Budget

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AB 1079 - Annual Policy Statement Distribution Deadlines

Current law requires requires the association to distribute an annual policy statement between 30 to 90 days before the end of the fiscal year. This bill would change the time requirements for distribution to be within 31 to 91 days before the end of the fiscal year.

2015 Legislation - AB 596 - HOAs Must Disclose FHA Status

Updated on 7/6/15: AB 596 proposes to add another disclosure to an HOA's annual budget report: a statement describing the status of the common interest development as a condominium project approved by the Federal Housing Administration (FHA).

Unforeseen Conditions and Hidden Costs of Construction Projects

It is not surprising to know that in the initial phases of every proposed construction project, it is the first task of the Construction Manager (CM), along with other trained professionals such as the Architect and Engineer of record, to develop projected cost budgets. These are the anticipated costs the project will generate, including such items as labor, material and equipment expenses. In both the constructability review and bidding phases, there is always one aspect of the cost calculation process that can give rise to confusion on the part of the HOA—the “Unforeseen Conditions” line item.

How to Plan Your HOA's Budget

Budgeting in condo associations and other HOAs takes planning: gathering the right disclosure documents, anticipating rate changes in utilities and insurance, and following the Davis-Stirling Act. Get started with all the right information.

Strategic Planning for HOA Board Members

Most successful businesses embrace the concept of strategic planning to drive the direction, resources, and decisions made in the daily course of doing business. A strategy establishes common goals and objectives that guide leadership and unite employees and partners. By guiding your HOA with a strategic plan, you can: make the board’s actions more consistent, schedule projects in a proactive manner to take advantage of pricing opportunities and timing, place decisions required for implementation on an Annual Calendar to have adequate time to prepare, and allocate resources strategically to meet member needs.

Making Ends Meet: Fiduciary Duty on a Limited Budget

It wasn’t so long ago that delinquencies were up, assessment payments were down and the bad economy strained the many aspects of homeowner association operations. The only thing that didn’t stop were the bills directors received and were requested to pay: insurance bills became due, lawns had to be mowed, roofs needed fixing, reserves were planned to be funded, owners’ demanded enforcement of the CC&Rs and the list went on and on. Many boards were forced to prioritize what services might have to be cut and which were too essential.

Annual Disclosures under the New Davis-Stirling Act

Disclaimer: The rules and procedures described below are taken from the New Davis-Stirling Act, effective January 1st, 2014. To revisit the current requirements, review all sections (and subsections) of Civil Code §1365.

The New Davis-Stirling: Annual Reports and Disclosures

Civil Code sections §5300 and §5310 require an Annual Budget Report and Annual Policy Statement, respectively, to be delivered to all association members on an annual basis, replacing the existing budget and disclosure requirements under the current Davis-Stirling Act.

Energy Saving Tips for your Association’s Members

No-Cost Winter Savings

  1. Every degree you lower your heat in the 60‑70° range will save 2% on heating costs.
  2. Set your thermostat to 55° before going to bed at night or when away from home for more than 4 hours.
  3. Turn your heater down to 55° or off when you're using your fireplace.
  4. Close damper when not using fireplace.
  5. Use passive solar heating on sunny days. Open drapes and let the sun in during the day, and close drapes to retain heat at night.

Anytime Energy Saving Ideas

§5300 - Annual Budget Report

  1. 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.
  2. Unless the governing documents impose more stringent standards, the annual budget report shall include all of the following information:
    1. A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis.
    2. A summary of the association’s reserves, prepared pursuant to Section 5565.

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