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).
Updated on 7/6/15
What AB 596 Says
AB 596 proposes to add another disclosure to the annual budget report: a statement describing the status of the common interest development as a Federal Housing Administration (FHA) -approved condominium project and as a federal Department of Veterans Affairs (VA)-approved condominium project. This information is publicly available online, making this obligation unnecessary. It also creates a potential liability for associations. ECHO favors an amended disclosure that would inform recipients that the information is available directly from the FHA.
Full Summary of AB 596
From the Legislative Counsel’s Digest:
Existing law governing common interest developments, the Davis-Stirling Common Interest Development Act, requires the association of a common interest development, which includes a condominium project, to prepare and distribute to all of its members certain documents, including an annual budget report that includes, among other items of information, a pro forma operating budget. The act requires a notice to be provided if an insurance policy described in the annual budget report lapses, is canceled, or is not immediately renewed, restored, or replaced, or if there is a significant change as to the policy.
This bill would, beginning July 1, 2016, require the annual budget report of a condominium project to also include a separate statement describing the status of the common interest development as a Federal Housing Administration (FHA)-approved condominium project and as a federal Department of Veterans Affairs (VA)-approved condominium project.