It’s the first Monday of 2016, and while some of us might still be shaking off the eggnog, time passes and deadlines arrive. Remember to comply with your annual disclosure and registration obligations before your deadlines arrive, and take some time for education while you’re at it!
Annual Disclosures. Within 90 days of the conclusion of the fiscal year, an HOA must notify its members, at no cost, of certain information. It may do this by posting the information on its website with mailed notice to members, maintaining a notebook at its principal place of business, or by mail or personal delivery. The required information includes the following:
- The date on which the fiscal year commences;
- The HOA’s operating budget for the current fiscal year;
- A list, by unit type, of the HOA’s current assessments (both regular and special);
- The annual financial statements, including any amounts held in reserve for the fiscal year immediately preceding the current annual disclosure;
- The results of the HOA’s most recent financial audit or review;
- A list of all association insurance policies, including company names, policy limits, policy deductibles, additional named insureds, and expiration dates;
- The HOA’s bylaws, articles of incorporation and rules and regulations;
- The minutes for board and member meetings for the fiscal year immediately preceding the current annual disclosure;
- The HOA’s Responsible Governance Policies, often referred to as "SB 100 Policies."
Division of Real Estate Registration. An HOA’s registration is good for one year. Check your registration and re-register, or contact us to register for you. Registration is required if the HOA is going to undertake enforcement activity.
Secretary of State Reports. While you are re-registering with the Division of Real Estate, verify that your HOA has filed its annual report and is in good standing with the Secretary of State. This is another filing required for the HOA to have the power to assert its legal rights.
Board Education. If your HOA held its annual meeting in the fourth quarter, you likely have one or more new board members. Educate new board members, and remind veteran members, of their obligations under the Revised Nonprofit Corporation Act and CCIOA. Proper education can prevent unintentional bad acts, and the expenses related to education can be accounted for as a common expense.
Happy New Year from everyone at Winzenburg, Leff, Purvis & Payne!