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DAVIS-STIRLING
ACT
Civil Code
§1365.2.5. Assessment and Reserve Funding Disclosure Summary
(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
(1) The current 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:
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Amount per Ownership |
Interest per Month or Year (if assessments are variable see note immediately
below) |
Date
Assessment Will be Due |
Purpose of the Assessment |
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Total: |
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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
|
Amount per ownership interest
per month or year |
Approximate date assessment
will be due |
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Total: |
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(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 1365.2.5, 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 calculation
in paragraph (4) of subdivision (b) of Section 1365.2.5 of the Civil
Code, the estimated amount required in the reserve fund at the end of
each of the next five budget years is $______, and the projected reserve
fund cash balance in each of those years, taking into account only
assessments already approved and other known revenues, is $______,
leaving the reserve at ______ percent funding. If the reserve funding
plan approved by the association is implemented, the projected reserve
fund cash balance in each of those years will be $______, leaving the
reserve at ______ percent funding. Note: The financial representations
set forth in this summary are based on the best estimates of the
preparer at that time. The estimates are subject to change.
(b) For the purposes of preparing a summary
pursuant to this section:
(1) "Estimated remaining useful life" means
the time reasonably calculated to remain before a major component will
require replacement.
(2) "Major component" has the meaning used
in Section 1365.5. Components with an
estimated remaining useful life of more than 30 years may be included in a
study as a capital asset or disregarded from the reserve calculation, so
long as the decision is revealed in the reserve study report and reported in
the Assessment and Reserve Funding Disclosure Summary.
(3) The form set out in subdivision (a)
shall accompany each pro forma operating budget or summary thereof that is
delivered pursuant to this article. The form may be supplemented or modified
to clarify the information delivered, so long as the minimum information set
out in subdivision (a) is provided.
(4) For the purpose of the report and
summary, the amount of reserves needed to be accumulated for a component at
a given time shall be computed as the current cost of replacement or repair
multiplied by the number of years the component has been in service divided
by the useful life of the component. This shall not be construed to require
the board to fund reserves in accordance with this calculation.
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