Cal. Civ. Code §5560
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Reserve disclosure summary — Annual delivery
Requires an annual reserve summary be distributed to members. The summary reports current reserve balances, components inventory with remaining useful life and replacement cost, percent-funded ratio, and the cash flow projection of when major components must be repaired or replaced.
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Statutory Text
Verified Aug 5, 2026 · CA_LEG_INFO
Civil Code - CIV DIVISION 4. GENERAL PROVISIONS [3274 - 9566] ( Heading of Division 4 amended by Stats. 1988, Ch. 160, Sec. 16. ) PART 5. Common Interest Developments [4000 - 6150] ( Part 5 added by Stats. 2012, Ch. 180, Sec. 2. ) CHAPTER 7. Finances [5500 - 5580] ( Chapter 7 added by Stats. 2012, Ch. 180, Sec. 2. ) ARTICLE 3. Reserve Planning [5550 - 5580] ( Article 3 added by Stats. 2012, Ch. 180, Sec. 2. ) 5560. (a) The reserve funding plan required by Section 5550 shall include a schedule of the date and amount of any change in regular or special assessments that would be needed to sufficiently fund the reserve funding plan. (b) The plan shall be adopted by the board at an open meeting before the membership of the association as described in Article 2 (commencing with Section 4900) of Chapter 6. (c) If the board determines that an assessment increase is necessary to fund the reserve funding plan, any increase shall be approved in a separate action of the board that is consistent with the procedure described in Section 5605. (Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
Reserves
| Ref | Requirement |
|---|---|
| (a) | Each year owners must receive a reserve report listing every major component, what's left of its useful life, what replacement will cost, how much is currently in reserves, and what percentage of the reserve target the HOA has actually funded. |
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Legal references last verified July 4, 2026.
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