Summary of Duties of Board of Directors

Document/Action When Required Code Section
Proforma Operating Budget*

Including Estimated Revenue and Expenses

 Distribute Annually not less than 45 or more than 60 days prior to beginning of Fiscal Year. Civil Code Section 1365(a)
A review of financial statement Distribute within 120 days after close of fiscal year Civil Code Section 1365(b)
Statement of policies and practices regarding delinquent assessments Distribute within 60 days prior to beginning of fiscal year Civil Code Section 1365(d)
Summary of property, general liability, earthquake and flood insurance policies including name of insurer, type of insurance, policy limits and deductibles Distribute within 60 days prior to beginning of fiscal year Civil Code Section 1365(c)
Board must review a current reconciliation of the association's operating accounts Quarterly Civil Code Section 1365.5(a)
Board must review a current reconciliation of the association's operating accounts Quarterly Civil Code Section 1365.5(a)
Board must review the current year's actual reserve revenues and expenses compared to the current year's budget Quarterly Civil Code Section 1365.5(a)
Board must review the latest account statements prepared by the financial institutions where the association has its operating and reserve accounts Monthly if Possible Civil Code Section 1365.5(a)
Board must review an income and expense statement for the association's operating and reserve accounts Quarterly Civil Code Section 1365.5(a)
Board shall cause to be conducted a visual inspection of the accessible areas of the major components which the association is obligated to repair, replace, restore or maintain as part of a study** of the reserve account requirements Inspection must be done at least once every three years. Board shall review the reserve study annually to consider adjustments Civil Code Section 1365.5(c)
Board shall provide members with a summary of the alternative dispute resolution requirements which are a prerequisite to certain litigation between association and owner/member including mandatory statutory language Distribute annually with proforma operating budget not less than 45 days nor more than 60 days prior to beginning of fiscal year Civil Code Section 1354(l)
Assess late fee on past due assessments 15 days after due date of assessment Civil Code Section 1366(d)
An "Intent to Lien" letter is sent to owner by certified mail containing itemized statement of assessments and collection costs 30 days before recording lien Civil Code Section 1367
A Notice of Delinquent Assessment (Lien) is recorded against delinquent property 30 days after mailing "Intent to Lien" letter Civil Code Section 1367
CONSULT WITH ATTORNEY TO COMMENCE FORECLOSURE OF THE ASSESSMENT LIEN 30 days after recordation of Assessment Lien Civil Code Section 1367
     

* The budget must contain (1) estimated revenue and expenses on an accrual basis; (2) a summary of the association's cash reserves including current estimated replacement costs, estimated remaining life, and estimated useful life of each major component; (3) an estimate of the current replacement costs of the estimated remaining useful life of the major components within the development that the association is obligated to maintain, and the methods of funding used to defray future repair or replacement of, or additions to, those major components, and (4) accounts for repair or replacement of, or additions to, its major components.

** The reserve study shall include: (1) identification of the major components which the association is obligated to repair, replace, restore or maintain and have a remaining useful life of less than 30 years; (2) identification of the probable remaining useful life of the major components; (3) an estimate of the cost of repair, replacement, restoration or maintenance of the components at the end of their useful life; and (4) an estimate of the total annual contribution necessary to defray the cost to repair, restore or maintain the major components during and at the end of their useful life, after subtracting total reserve funds.