California, like most states, has passed legislation defining how HOAs manage their affairs. Here, it’s called the Davis-Stirling Act. Davis-Stirling includes provisions for many aspects of HOA governance, but its requirements for annual disclosures to homeowners and to the state are most important. These disclosures can be broken down into three broad categories: the annual budget report, the annual policy report, and miscellaneous other requirements. Requirements of the annual budget report California law Civil Code Section 5300(b)(1) requires that an annual operating budget is distributed t ..read more

This article is provided for general informational purposes only, and is not legal advice. A homeowners association’s bylaws define how the community operates. Typically, these bylaws include stipulations for how many board members can serve at any given time, how often to hold board elections, meeting requirements, and the responsibilities and titles of each board member. Typically, these governing documents are established upon the development of the planned community. Given the perception that these documents are set in stone, you might wonder if changing your HOA bylaws is even possible. H ..read more

This article is provided for general informational purposes only, and is not legal advice. If you have purchased a home or condo, you are likely paying a monthly fee to your Home Owners’ Association. Typically, these HOA fees are used to cover repairs and maintenance on the outside of your home or in common areas, or for emergency repairs that may come up throughout the year. This work done by the HOA can help maintain or increase the neighborhood’s property values. While many homeowners wish they could lower their taxable income with HOA fees, there are actually only a few scenarios where HOA ..read more

A reserve HOA account is a savings fund that’s set aside by the association to meet future costs of upkeep and any unexpected costs that arise around the community. For these accounts, it’s important for boards to make sure they are adding or subtracting money from them periodically, or they risk the funds being escheated to the state if there has been inactivity for a period of time. In California, Boards are required to have two signers on the reserve account and any transfers over $10,000 also require two board members to authorize. It’s also a good idea to keep a set amount of money in the ..read more

HOA meetings are an important part of any homeowners association. Typically, HOAs will hold regular monthly and annual meetings that cover a wide variety of topics – including repairs and maintenance, CC&R enforcement, administrative functions, homeowner input, and much more. Here are a few common topics that are typically covered at HOA meetings. HOA Annual Meeting The primary goal of an annual HOA meeting is to have an election of the Board of Directors, to present the previous year’s accomplishments, and to address any potential situations that may affect the homeowners in the near futu ..read more

Both smaller and large associations have their respective obstacles to overcome when it comes to managing money, whether it’s figuring out how to battle outstanding assessments or knowing how to navigate the payment of a loan. It’s important that administrators are familiar with their community’s banking practices, and know how to keep their operating funds safe and accessible while still taking care of their reserve and operating funds. Understanding the Purpose of an HOA Bank Account The primary purpose of an HOA bank account is to manage the association’s finances, including collecting asse ..read more

Understanding HOA Rules and Restrictions Living in a community governed by a Homeowners Association (HOA) has benefits and challenges. On one hand, HOAs help maintain property values, ensure community aesthetics, and provide shared amenities. On the other hand, homeowners must adhere to certain restrictions and rules set forth by the HOA. Here is everything you need to know about HOA rules and restrictions, and how they may impact your homeownership. HOA Rules and Restrictions: Pros & Cons Some of the reasons many homeowners choose to live within an HOA include: Community aesthetics: HOA ..read more

As a homeowner in a Homeowners Association (HOA), it’s crucial to be aware of your insurance obligations. A thorough understanding of what’s included in the HOA’s insurance and what you need to insure yourself against can help you avoid any unexpected expenses in the case of a disaster or accident. Below, you’ll learn about the usual coverage provided by a HOA’s insurance policy and the potential gaps that may exist. Also, discover what kind of homeowner’s insurance policy you should consider purchasing to ensure that you have adequate coverage for your personal property, liability, and other ..read more

Homeowners associations (HOAs) are organizations that manage and maintain a community of homes, typically in a planned development or condominium complex. They are run by a board of directors elected by the homeowners, and their purpose is to ensure that the community’s property is maintained and that the community’s rules and regulations are enforced. While HOAs can provide many benefits, they also have some drawbacks. Here are some things to know about how HOAs work – and if one might be right for your community. Things to Know About Homeowner Associations It’s important for potential homebu ..read more

Both smaller and large associations have their respective obstacles to overcome when it comes to managing money, whether it’s figuring out how to battle outstanding assessments or knowing how to navigate the payment of a loan. It’s important that administrators are familiar with their community’s banking practices, and know how to keep their operating funds safe and accessible while still taking care of their reserve and operating funds. The Two Types of Bank Accounts an HOA Should Have Typically, an HOA opens two financial accounts: an operating (or checking) account; and a reserve (or saving ..read more