hoa audit

Most HOAs are not required to conduct and distribute a complete formal audit. Most do. All HOAs are required to distribute an annual report to all owners. The annual report includes a balance sheet and income and expense statement, a report on the status of reserves, every 3 years a new reserve study needs to be performed and included, a report on delinquencies, and a disclosure of the HOA's policy on collecting delinquencies. Your CC&Rs determine whether the HOA is responsible for clean streets, gutters and mail areas. Even if the CC&Rs require the HOA to make sure it is done, the city or a tax district may have accepted responsibility for performing those services. If so, then your HOA just needs to make sure the city or district is doing so. The HOA Board is granted very broad discretion in determining how clean to maintain the streets, guttters and mail areas. Courts don't get into how often or how well such services are performed, as long as the Board has not totally failed or refused to perform its obligations. Judges are not supposed to subsitute their own opinions for those of the Board. If you would like to discuss your situation, please first send me a copy of your CC&Rs, and I'll call you after I have taken a look at them. Dana Sack 510-286-2200