Cal. Civ. Code §5570
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Assessment and Reserve Funding Disclosure Summary
Mandates the statutorily-prescribed "Assessment and Reserve Funding Disclosure Summary" form that must accompany the annual budget report (§5300). Subsection (a) sets out the form template (a complete one-page reserve disclosure covering regular assessment amounts, scheduled and special assessment status, reserve calculations, percent funded, 30-year sufficiency determination, and 5-year projections). Subsection (b) defines key terms and contains the statutory reserve calculation formula (current cost × years in service ÷ useful life).
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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. ) 5570. (a) The disclosures required by this article with regard to an association or a property shall be summarized on the following form: Assessment and Reserve Funding Disclosure Summary For the Fiscal Year Ending _____ (1) The regular assessment per ownership interest is $_____ per ____. Note: If assessments vary by the size or type of ownership interest, the assessment applicable to this ownership interest may be found on page _____ of the attached summary. (2) Additional regular or special assessments that have already been scheduled to be imposed or charged, regardless of the purpose, if they have been approved by the board and/or members: Date assessment will be due: Amount per ownership interest per month or year (If assessments are variable, see note immediately below): Purpose of the assessment: _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ Total: _____ Note: If assessments vary by the size or type of ownership interest, the assessment applicable to this ownership interest may be found on page ____ of the attached report. (3) Based upon the most recent reserve study and other information available to the board of directors, will currently projected reserve account balances be sufficient at the end of each year to meet the association’s obligation for repair and/or replacement of major components during the next 30 years? Yes _____No _____ (4) If the answer to (3) is no, what additional assessments or other contributions to reserves would be necessary to ensure that sufficient reserve funds will be available each year during the next 30 years that have not yet been approved by the board or the members? Approximate date assessment will be due: Amount per ownership interest per month or year: _____ _____ _____ _____ _____ _____ _____ _____ _____ Total: (5) All major components are included in the reserve study and are included in its calculations. (6) Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570, the estimated amount required in the reserve fund at the end of the current fiscal year is $____, based in whole or in part on the last reserve study or update prepared by ____ as of ____ (month), ____ (year). The projected reserve fund cash balance at the end of the current fiscal year is $____, resulting in reserves being ____ percent funded at this date. If an alternate, but generally accepted, method of calculation is also used, the required reserve amount is $____. (See attached explanation) (7) Based on the method of …
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Reserves
| Ref | Requirement |
|---|---|
| (a) | The reserve disclosures required by Article 7 must be summarized on the statutorily-prescribed form set out in §5570(a). The form is a one-page disclosure covering regular assessment amounts, scheduled and special assessments, reserve calculations, percent funded, 30-year sufficiency determination, and 5-year projections. |
| (b)(1) | Estimated remaining useful life is the statutory term for how long a reserve component is expected to last before replacement. It anchors the §5570(b)(4) reserve funding calculation. |
| (b)(2) | Major component is defined by §5550. Components with more than 30 years of remaining life may be either treated as capital assets in the study OR excluded from the reserve calculation — but either decision must be disclosed in both the reserve study and the §5570 summary. |
| (b)(3) | The §5570 form must accompany every annual budget report distribution under §5300. The form may be supplemented or modified for clarity, but the §5570(a) minimum information must be preserved. |
| (b)(4) | The statutory reserve calculation is current replacement cost × years in service ÷ useful life. The result is what should be saved for that component. Note: this formula is for disclosure purposes — §5570(b)(4) explicitly does NOT require the board to fund reserves at that level. The board sets the actual funding policy. |
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Legal references last verified July 4, 2026.
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