Civil Code Boards & Governance
Financial Statement Review
Chapter 6 · Association Governance · Annual Reports
Text current as of 2026-07-07 · Last amended by AB 805, eff. 2014-01-01
The code says CIV §5305
Unless the governing documents impose more stringent standards, a review of the financial statement of the association shall be prepared in accordance with generally accepted accounting principles by a licensee of the California Board of Accountancy for any fiscal year in which the gross income to the association exceeds seventy-five thousand dollars ($75,000). A copy of the review of the financial statement shall be distributed to the members within 120 days after the close of each
fiscal year, by individual delivery pursuant to Section 4040.
(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)
How courts have read this
Editorial summaries — not the court’s words.
- Branches Neighborhood Corp. v. CalAtlantic Group, Inc. 26 Cal. App. 5th 743 · 2018 Upheld a CC&R member-vote precondition to developer suits — later voided by statute.
mentioned in passing
- Smart Corner Owners Assn. v. CJUF Smart Corner LLC 64 Cal. App. 5th 439 · 2021 Developer-drafted pre-suit member-vote requirements can’t block construction-defect claims.
mentioned in passing