HOA's Financial Accountability Update: Changes the frequency of review required by law

homeowners association The Homeowners Association (HOA) existing law is for its board to review financial documents and statements related to the HOA's accounts on at least a quarterly basis, unless the HOA's governing documents require more frequent review. Updated Assembly Bill 2901 law changes the frequency of review required by law from at least once a quarter to once a month, and adds a requirement to review the check register, monthly general ledger, and delinquent assessment receivable reports. But it also provides some flexibility in this monthly review requirement by allowing an individual board member—for example, the treasurer—to review these financial documents so long as the board ratifies that review at the next board meeting.

This law requires the HOA to maintain fidelity bond coverage for its directors, officers, and employees in an amount equal to or more than the combined amount of the reserves of the HOA and total assessments for three months, unless the governing documents require greater coverage amounts.

This law prohibits a managing agent from transferring from a bank trust funds greater than ten thousand dollars ($10,000) or 5 percent of an association’s total combined reserve and operating account deposits, whichever is lower, without prior written approval from the board of the association.

Assembly Bill 2912 codified as Civil Code No. 5501, 5502, 5380, 5500 and 5806. Effective January 1, 2019.

Read More.

Post a Comment

Current Homes for Sale
Santa Cruz County
City # Price Range
Aptos Homes 342 $195k - $15.4m
Capitola Homes 124 $175k - $5.6m
Rio Del Mar / Seascape Homes 162 $195k - $8.8m
Santa Cruz Events 731 $110k - $10.0m
Santa Cruz Homes 731 $110k - $10.0m
Santa Cruz Real Estate 731 $110k - $10.0m
Monterey County
City # Price Range
$0-$300000 140 $18k - $28.5m
Alta Mesa-Monterey 140 $18k - $28.5m
Big Sur Homes 14 $350k - $35.0m
Carmel Homes 405 $250k - $40.0m
Fishermans Flats 140 $18k - $28.5m
Glenwood Circle Monterey 140 $18k - $28.5m
Monterey Homes For Sale 140 $18k - $28.5m
Oak Grove Monterey 140 $18k - $28.5m
Old Town Monterey 140 $18k - $28.5m
Pebble Beach Homes 107 $750k - $36.3m
New Listing

Email Alerts

Subscribe Today!
Why List

With Us?

Learn More!
What People

Are Saying

Recommendations!