California HOA Board — Minimum Responsibilities (Quick Reference)

Management can assist with administration and tracking. However, the Board of Directors retains the legal responsibility to ensure the Association complies with California law (including the Davis-Stirling Act) and the Association’s governing documents.

✔ Compliance reminder

✔ Board-led obligations

✔ Designed to document notice

1) Annual Budget & Member Disclosures

• Review and approve an annual operating budget.
• Distribute the Annual Budget Report to members (generally 30–90 days before the fiscal year begins).
• Include reserve funding disclosures and reserve summary.

2) Reserve Study & Annual Reserve Review

• Conduct a visual inspection of major common area components at least every 3 years.
• Review and update reserve funding annually.

3) Annual Policy Statement

• Distribute required annual policy disclosures (e.g., collection policy, fine schedule, insurance summary, etc.).

4) Board Meetings (Notice, Agenda, Minutes)

• Hold properly noticed board meetings.
• Post meeting agendas at least 4 days in advance (2 days for executive session).
• Allow member open forum and approve meeting minutes.

5) Elections

• Conduct director elections per Civil Code election rules and the governing documents.
• Appoint an independent inspector of elections and follow required notice/ballot procedures.

6) Insurance Review

• Maintain required association insurance (and any additional policies required by the CC&Rs).
• Review coverage annually and document the review in meeting minutes.

7) Financial Oversight

• Review financial statements regularly.
• Approve invoices and major expenditures as required by the governing documents.
• Maintain proper accounting and association records.

8) Corporate & Tax Maintenance

• Maintain active corporate status with the California Secretary of State.
• File required Statements of Information.
• Maintain EIN and complete required tax filings (state/federal).

9) Records & Member Access

• Maintain official records and respond to lawful member record requests within statutory timeframes.

Important Reminder

• Management assists with implementation and tracking; the Board retains final decision-making authority and legal responsibility.
• If the Board would like a compliance calendar or an annual compliance review, management can provide it.

Recommended best practice: Keep this notice with your Board records and review it annually. If you would like, we can provide a yearly compliance calendar and a one-page acknowledgment for Board signature.

Management = Administrative Arm

Acts at Board direction
Implements decisions
No independent authority
Board retains legal responsibility

Recent California HOA Industry Updates & Critical Compliance Reminders

The following items reflect significant recent legal and regulatory developments affecting California community associations. Boards are responsible for understanding and acting on these requirements where applicable.

Balcony & Elevated Structure Inspections (SB 326 & SB 721)

• Applies to buildings with 3 or more multifamily units.
• Requires inspection of Exterior Elevated Elements (balconies, decks, walkways, stairs).
• Inspections must be completed by a licensed structural engineer or architect.
• Initial deadline was January 1, 2025 (many associations are still catching up).
• Repairs identified as safety hazards must be addressed promptly.
• Failure to comply may create serious liability exposure for the Board.

Reserve Funding & Structural Integrity Focus

• Increased scrutiny on reserve adequacy following high-profile building failures.
• Boards should carefully document reserve study reviews annually.
• Deferred maintenance can increase fiduciary risk.
• Insurance carriers are reviewing reserve strength during renewals.

Insurance Market Tightening

• Premiums have increased significantly in California.
• Some carriers are non-renewing or reducing coverage limits.
• Boards should review deductibles, special assessment exposure, and reconstruction cost valuations.
• Annual documented insurance review is strongly recommended.

Election Law Compliance

• Updated election procedures required under Civil Code.
• Strict ballot handling and inspector-of-election rules apply.
• Associations must follow updated notice timelines.
• Improper elections may be legally challenged.

Electric Vehicle Charging Stations

• Associations must allow installation requests, subject to reasonable architectural standards.
• Boards must process applications in a timely manner.
• Denials are highly restricted under California law.

Drought & Landscaping Regulations

• Restrictions on penalizing owners for drought-tolerant landscaping.
• Water-use limitations may override certain governing document provisions.
• Boards should ensure rules comply with state water conservation laws.

Member Records & Transparency

• Increased enforcement of statutory record inspection timelines.
• Email communications may be considered association records.
• Boards should maintain organized digital records.

Open Meeting & Executive Session Compliance

• Agendas must be posted within statutory timeframes.
• Executive session topics are limited to specific categories.
• Improper closed meetings can invalidate board actions.

Important: Management assists with implementation and monitoring; however, the Board retains fiduciary and statutory responsibility for compliance. If your Association has not reviewed these items within the past 12 months, a compliance review is strongly recommended.