Cal. Civ. Code §5300
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Annual Budget Report — Required Disclosures
Requires the association to distribute an annual budget report 30 to 90 days before the end of its fiscal year. Subsection (b)(1)-(b)(12) enumerates the required contents: pro forma operating budget, reserve summary, reserve funding plan, deferred maintenance statement, projected special assessments, loan summary, insurance summary, FHA/VA certification status (condos), and a copy of the completed §4528 charges-for-documents form. The Assessment and Reserve Funding Disclosure Summary (§5570) must accompany each annual budget report.
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Financial
| Ref | Requirement |
|---|---|
| (a) | The annual budget report must be distributed in the 30-to-90-day window before fiscal year end. The statutory window overrides any contrary provision in the governing documents. |
| (b) | Subsection (b) introduces the 12-item required-contents list for the annual budget report. Governing documents may impose stricter requirements but cannot relax these statutory minimums. |
| (b)(1) | The annual budget report must include a pro forma operating budget showing estimated revenue and expenses on an accrual basis. Accrual basis is required by statute — cash-basis budgets do not satisfy §5300(b)(1). |
| (b)(12) | The completed §4528 charges-for-documents form — with each document's cost individually itemized — must be included in the annual budget report distribution. Members see the current §4525 disclosure fee schedule once per year through this requirement. |
Insurance
| Ref | Requirement |
|---|---|
| (b)(10) | Condominium projects must disclose whether they are FHA-approved. The disclosure must be in at least 10-point font on a separate piece of paper using the statutorily-prescribed language about FHA certification benefits. |
| (b)(9) | The budget report must include a summary of property, general liability, earthquake, flood, and fidelity insurance — listing insurer name, insurance type, policy limit, and deductible amount. The association may satisfy this by attaching insurance declaration pages. |
Reserves
| Ref | Requirement |
|---|---|
| (b)(2) | The budget report must include a summary of the association's reserves, prepared according to §5565. The detailed Assessment and Reserve Funding Disclosure Summary (§5570) must also accompany the budget report per §5300(e). |
| (b)(3) | The board's reserve funding plan must be summarized in the budget report, with notice that the full reserve study plan is available on request. Members can request and receive the full reserve plan at any time. |
| (e) | The standardized §5570 disclosure summary form — listing reserve calculations, percent funded, 30-year sufficiency determination, and 5-year projections — must accompany every annual budget report distribution. |
Referenced By
- Cal. Civ. Code §5550 References
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Legal references last verified May 24, 2026.
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