David M. Peters Homeowners Association Law Blog on Lawyers.com

The board of directors must obtain and maintain certain financial records and generally must maintain or hold owners responsible to maintain the properties and buildings. Most associations must have a reserve study prepared by someone qualified if there are improvements that must be maintained. A budget has to go out each year to the membership in a certain specified time period, including the reserve study information, or a summary of it. The association must disclose this information to the owners through a mailing each year, along with other information, including a collections policy, alternative dispute resolution (ADR), procedures under the law, information about where to obtain the minutes of the association, and specific information about insurance carried by the association. All of these responsibilities are outlined in California statutes, so failure to do those things may have consequences.