AB596 – Annual Budget Reports

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AB 596

Civil Code § 5300

Annual Budget Report / FHA & VA Status

Existing law requires an association to prepare and distribute to all of its members certain documents, including an annual budget report that includes, among other items of information, a pro forma operating budget. It also requires a notice to be provided if an insurance policy described in the annual budget report lapses, is canceled, or is not immediately renewed, restored, or replaced, or if there is a significant change as to the policy.

Beginning July 1, 2016, the law will require the annual budget report of a condominium project to also include a separate statement describing the status of the common interest development as a Federal Housing Administration (FHA) approved condominium project and as a federal Department of Veterans Affairs (VA) approved condominium project.