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Berding|Weil

Davis-Stirling Common Interest Development Act

Part 5.  Common Interest Developments

Chapter 7.  Finances

Article 3.  Reserve Planning

§5570.
Disclosure

(a) The disclosures required by this article with regard to an association or a property shall be summarized on the following form:

Assessment and Reserve Funding Disclosure Summary For the Fiscal Year Ending _____

(1) The regular assessment per ownership interest is $_____ per ____. Note: If assessments vary by the size or type of ownership interest, the assessment applicable to this ownership interest may be found on page _____ of the attached summary.

(2) Additional regular or special assessments that have already been scheduled to be imposed or charged, regardless of the purpose, if they have been approved by the board and/or members:

Date assessment will be due: Amount per ownership interest per month or year (If assessments are variable, see note immediately below): Purpose of the assessment:
     
     
     
  Total:  

Note: If assessments vary by the size or type of ownership interest, the assessment applicable to this ownership interest may be found on page ____ of the attached report.

(3) Based upon the most recent reserve study and other information available to the board of directors, will currently projected reserve account balances be sufficient at the end of each year to meet the association's obligation for repair and/or replacement of major components during the next 30 years?

Yes _____ No _____

(4) If the answer to (3) is no, what additional assessments or other contributions to reserves would be necessary to ensure that sufficient reserve funds will be available each year during the next 30 years that have not yet been approved by the board or the members?

Approximate date assessment will be due: Amount per ownership interest per month or year:
   
   

(5) All major components are included in the reserve study and are included in its calculations.

(6) Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570, the estimated amount required in the reserve fund at the end of the current fiscal year is $____, based in whole or in part on the last reserve study or update prepared by ____ as of ____ (month), ____ (year). The projected reserve fund cash balance at the end of the current fiscal year is $____, resulting in reserves being ____ percent funded at this date.

If an alternate, but generally accepted, method of calculation is also used, the required reserve amount is $____. (See attached explanation)

(7) Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570 of the Civil Code, the estimated amount required in the reserve fund at the end of each of the next five budget years is $______, and the projected reserve fund cash balance in each of those years, taking into account only assessments already approved and other known revenues, is $______, leaving the reserve at ______ percent funding. If the reserve funding plan approved by the association is implemented, the projected reserve fund cash balance in each of those years will be $______, leaving the reserve at ______ percent funding.

Note: The financial representations set forth in this summary are based on the best estimates of the preparer at that time. The estimates are subject to change. At the time this summary was prepared, the assumed long-term before-tax interest rate earned on reserve funds was ____ percent per year, and the assumed long-term inflation rate to be applied to major component repair and replacement costs was ____ percent per year.

(b) For the purposes of preparing a summary pursuant to this section:

(1) "Estimated remaining useful life" means the time reasonably calculated to remain before a major component will require replacement.

(2) "Major component" has the meaning used in Section 5300. Components with an estimated remaining useful life of more than 30 years may be included in a study as a capital asset or disregarded from the reserve calculation, so long as the decision is revealed in the reserve study report and reported in the Assessment and Reserve Funding Disclosure Summary.

(3) The form set out in subdivision (a) shall accompany each annual budget report or summary thereof that is delivered pursuant to Section 5300. The form may be supplemented or modified to clarify the information delivered, so long as the minimum information set out in subdivision (a) is provided.

(4) For the purpose of the report and summary, the amount of reserves needed to be accumulated for a component at a given time shall be computed as the current cost of replacement or repair multiplied by the number of years the component has been in service divided by the useful life of the component. This shall not be construed to require the board to fund reserves in accordance with this calculation.

Davis-Stirling Common Interest Development Act
Part 5.  Common Interest Developments
Chapter 1. General Provisions
Article 1. Preliminary Provisions
§ 4000.Citation
§ 4005.Headings
§ 4010.Effect of Act on Documents or Actions Before January 1, 2014
§ 4020.Construction of Zoning Ordinances
§ 4035.Delivery of Documents to Association
§ 4040.Individual Delivery or Individual Notice
§ 4045.General Delivery or General Notice
§ 4050.Completion of Delivery
§ 4055.Electronic Delivery
§ 4065.Approval by Majority Vote
§ 4070.Approval by Majority of a Quorum
Article 2. Definitions
§ 4075.Definitions
§ 4076.Annual Budget Report
§ 4078.Annual Policy Statement
§ 4080.Association
§ 4085.Board
§ 4090.Board Meeting
§ 4095.Common Area
§ 4100.Common Interest Development
§ 4105.Community Apartment Project
§ 4110.Community Service Organization or Similar Entity
§ 4120.Condominium Plan
§ 4125.Condominium Project
§ 4130.Declarant
§ 4135.Declaration
§ 4140.Director
§ 4145.Exclusive Use Common Area
§ 4148.General Notice
§ 4150.Governing Documents
§ 4153.Individual Notice
§ 4155.Item of Business
§ 4158.Managing Agent
§ 4160.Member
§ 4170.Person
§ 4175.Planned Development
§ 4177.Reserve Accounts
§ 4178.Reserve Account Requirements
§ 4185.Separate Interest
§ 4190.Stock Cooperative
Chapter 2. Application of Act
§ 4200.Application of Act; Creation of Common Interest Development
§ 4201.Requirement of Common Area
§ 4202.Nonapplicable Provisions for Commercial CIDs
Chapter 3. Governing Documents
Article 1. General Provisions
§ 4205.Controlling Authority
§ 4210.Assessments; Board Statements
§ 4215.Liberal Construction of Instruments
§ 4220.Boundaries of Units; Presumption
§ 4225.Discriminatory Restrictive Covenants; Removal from Governing Documents
§ 4230.Amendment of Governing Documents for Certain Declarant Provisions
§ 4235.Amendment of Governing Documents to Reflect Changes in the Davis-Stirling Common Interest Development Act
Article 2. Declaration
§ 4250.Declaration; Contents
§ 4255.Declaration; Notice of Airport in Vicinity; Notice of San Francisco Bay Conservation and Development Commission Jurisdiction.
§ 4260.Permissible Amendment of Declaration
§ 4265.Extension of Term of Declaration
§ 4270.Amendment of Declaration; Effective Date
§ 4275.Amendment of Declaration; Power of Court to Approve Amendment; Recording Amendment; Mailing
Article 3. Articles of Incorporation
§ 4280.Articles of Incorporation; Identifying Corporation as Association; Business Office Address; Managing Agent's Name and Address
Article 4. Condominium Plan
§ 4285.Condominium Plan; Requirements
§ 4290.Certificate Consenting to Recordation of Condominium Plan; Signature Requirement
§ 4295.Condominium Plan; Amendment or Revocation
Article 5. Operating Rules 20
§ 4340.Operating Rules; Definitions
§ 4350.Validity of Operating Rules
§ 4355.Application of §4360 and §4365
§ 4360.Notice of Rule Change
§ 4365.Notice of Reversal of Rule Change
§ 4370.Application of Article
Chapter 4. Ownership and Transfer of Interests
Article 1. Ownership Rights and Interests
§ 4500.Ownership of Common Area
§ 4505.Common Area Rights and Easements
§ 4510.Access to Owners' Separate Interest
Article 2. Transfer Disclosure
§ 4525.Sale or Title Transfer; Provisions of Specified Items to Prospective Purchasers
§ 4528.Billing Disclosures
§ 4530.Sale or Title Transfer; Copies; Fees
§ 4535.Application of §1133 and §1134
§ 4540.Enforcement of Act
§ 4545.Validity of Title Transferred in Violation
Article 3. Transfer Fee
§ 4575.Prohibition of Fees
§ 4580.Exceptions
Article 4. Restrictions on Transfer
§ 4600.Granting Exclusive Use of Common Area
§ 4605.Actions for Violations
§ 4610.Partition
§ 4615.Labor Performed, Services or Materials
Article 5. Transfer of Separate Interest
§ 4625.Community Apartment Project Transfer of Separate Interest
§ 4630.Condominium Project Transfer of Separate Interest
§ 4635.Planned Development Transfer of Separate Interest
§ 4640.Stock Cooperative Transfer of Separate Interest
§ 4645.Transfer of Exclusive Use Areas
§ 4650.Restrictions on Partition
Chapter 5. Property Use and Maintenance
Article 1. Protected Uses
§ 4700.Limitations on Regulation of Separate Interest
§ 4705.Display of the Flag of the United States of America
§ 4710.Sign Restrictions
§ 4715.Restrictions on Pets
§ 4720.Roof Coverings; Fires and Fire Protection
§ 4725.Video or Television Antennas; Satellite Dish Systems; Restrictions on Installation; Application for Approval
§ 4730.Prohibition of Marketing Limitations
§ 4735.Low Water-using Plants; Water-Efficient Landscape Ordinances; Emergency Water Use Regulations
§ 4740.Rental or Lease of Separate Interest
§ 4745.Electric Vehicle Charging Stations; Prohibition of Unreasonable Restrictions; Requirements; Maintenance by Owner; Maintenance by Association; Attorney's Fees
Article 2. Modification of Separate Interest
§ 4760.Permissive Modification of Separate Interest; Requirements
§ 4765.Architectural or Design Review; Procedures for Approval
Article 3. Maintenance
§ 4775.Association Responsibility for Repair, Replacement or Maintenance; Cost Allocation
§ 4780.Damage by Wood-Destroying Pests or Organisms
§ 4785.Notice of Removal of Occupants; Treatment of Wood-Destroying Pests and Organisms
§ 4790.Access for Maintenance of Telephone Wiring
Chapter 6. Association Governance
Article 1. Association Existence and Powers
§ 4800.Management
§ 4805.Powers of Association
§ 4820.Joint Neighborhood Associations; Membership rights
Article 2. Board Meeting
§ 4900.Common Interest Development Open Meeting Act
§ 4910.Board Meeting Required for Action; Electronic Transmissions
§ 4920.Notice of Board Meeting
§ 4923.Emergency Board Meeting
§ 4925.Member Attendance
§ 4930.Requirement for Action by Board; Agenda; Notice
§ 4935.Executive Session
§ 4950.Minutes of Meeting
§ 4955.Violation; Attorney's Fees; Fines
Article 3. Member Meeting
§ 5000.Member Meetings
Article 4. Member Election
§ 5100.Secret Ballot Elections
§ 5105.Election Rule Requirements; Equal Access for Candidates; Qualifications for Candidates; Qualifications for Voting; Inspectors; Nominations from Floor and Write-ins
§ 5110.Inspectors of Election; Duties
§ 5115.Secret Ballots; Procedures
§ 5120.Counting Ballots; Reporting
§ 5125.Custody of Ballots
§ 5130.Proxies
§ 5135.Prohibition of Association Funds for Campaign Purposes
§ 5145.Violation; Relief
Article 5. Record Inspection
§ 5200.Definitions
§ 5205.Availability of Records; Inspection and Copying
§ 5210.Time Periods; Access to Records
§ 5215.Permissible Redactions in Records
§ 5220.Member Opt Out
§ 5225.Reason for Request of Membership List
§ 5230.Restriction on Use of Records
§ 5235.Member Action; Attorney's Fees; Costs
§ 5240.Applicability of the Corporations Code; Applicability of Article to Community Service Organization
Article 6. Recordkeeping
§ 5260.Record Requests; Writing Requirement
Article 7. Annual Reports
§ 5300.Annual Budget Report; Requirements; Availability to Members; Admissibility as Evidence; Assessment and Reserve Funding Disclosure Summary
§ 5305.Review of Financial Statement; Distribution to Members
§ 5310.Annual Policy Statement; Requirements
§ 5320.Delivery of Full Report and Summary
Article 8. Conflict of Interest
§ 5350.Conflict of Interest; Applicability of Corporations Code
Article 9. Managing Agent
§ 5375.Prospective Managing Agent; Written Statement
§ 5380.Management of Common Interest Funds
§ 5385.Meaning of Managing Agent
Article 10. Government Assistance
§ 5400.On-Line Education for Directors
§ 5405.Identification and Registration of Community Associations
Chapter 7. Finances
Article 1. Accounting
§ 5500.Board of Directors; Duties; Operating and Reserve Accounts
Article 2. Use of Reserve Funds
§ 5510.Expenditure of Reserve Accounts
§ 5515.Borrowing from Reserve Accounts
§ 5520.Notice to Members; Accounting of Litigation Expenses
Article 3. Reserve Planning
§ 5550.Study of Reserve Accounts
§ 5560.Reserve Funding Plan; Adoption
§ 5565.Summary of Reserves
§ 5570.Disclosure
§ 5580.Community Service Organizations; Financial Disclosures
Chapter 8. Assessments and Assessment Collection
Article 1. Establishment and Imposition of Assessments
§ 5600.Levy of Assessments; Limitation on Imposition or Collection of Assessments or Fees
§ 5605.Limitation on Increases in Assessments
§ 5610.Emergency Assessments
§ 5615.Notice of Increased or Special Assessment
§ 5620.Exemption from Judgment
§ 5625.Assessments Based on Taxable Value of Separate Interest
Article 2. Assessment Payment and Delinquency
§ 5650.Assessments; Debt of Owner; Association Recovery
§ 5655.Payment of Delinquent Assessments
§ 5658.Payment Under Protest
§ 5660.Notice of Lien
§ 5665.Payment Plans
§ 5670.Meet and Confer
§ 5673.Board Approval Required to Record Lien
§ 5675.Lien; Notice of Delinquent Assessment
§ 5680.Priority of Lien
§ 5685.Release of Lien; Lien Recorded in Error
§ 5690.Failure to Comply with Article; Recommencing Notice
Article 3. Assessment Collection
§ 5700.Enforcement of Lien
§ 5705.Prior to Foreclosure of Liens for Assessment Debt Arising on or After January 1, 2006; Offer to Meet and Confer; Approval by Board; Notice by Personal Service
§ 5710.Sale by Trustee
§ 5715.Right of Redemption
§ 5720.Foreclosure of Liens for Assessment Debt Arising on or After January 1, 2006; Amount and Time Thresholds; Small Claims Court Judgments
§ 5725.Monetary Charge or Penalty Imposed by Association may become a Lien
§ 5730.Notice; Annual Policy Statement
§ 5735.Limitations on Assignment of Right to Collect
§ 5740.Application of Liens Recorded On or After January 1, 2003
Chapter 9. Insurance and Liability
§ 5800.Liability of Volunteer Officer or Director
§ 5805.Liability of Owner in Tenancy-In-Common Common Area
§ 5810.Notice of Insurance Policies
Chapter 10. Dispute Resolution and Enforcement
Article 1. Discipline and Cost Reimbursement
§ 5850.Schedule of Monetary Penalties
§ 5855.Disciplinary Actions and Monetary Charges Imposed by Board; Delivery; Notice
§ 5865.Authority of Board to Impose Monetary Penalties
Article 2. Internal Dispute Resolution
§ 5900.Dispute Resolution; Application
§ 5905.Fair, Reasonable, and Expeditious Procedures
§ 5910.Minimum Requirements; Dispute Resolution Procedures
§ 5915.Statutory Default Procedure
§ 5920.Annual Notice, Description of Association Meet and Confer Program
Article 3. Alternative Dispute Resolution Prerequisite to Civil Action
§ 5925.Definitions
§ 5930.Litigation Pre-Filing Requirements
§ 5935.Initiating the Process; Request for Resolution
§ 5940.Completing the Process; Costs
§ 5945.Statutes of Limitation
§ 5950.Certificate; Commencement of Action
§ 5955.Post-Filing Reference
§ 5960.Refusal to Participate in Pre-Filing Alternative Dispute Resolution
§ 5965.Annual Disclosure
Article 4. Civil Action
§ 5975.Enforcement of Governing Documents
§ 5980.Standing
§ 5985.Allocation of Damages
Chapter 11. Construction Defect Litigation
§ 6000.Filing a Claim for Construction Defects
§ 6100.Disclosure to Members; Resolution of Design or Construction Defect Dispute
§ 6150.Pre-Filing Notice to Members; Requirements
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