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November 19, 2009
The New Davis Stirling "Disclosure Index" for HOAs and Condos
After putting out information about the new additions to the Davis Stirling Act for 2010, I got the following question:
"We already include all items in the index in the year end disclosure packet. Are we now suppose to include the index along with all the disclosures beginning next year??"
My first thought was "yes" - I mean, what is the purpose of the Index?
The legislative summary of the bill says: "This bill would also require an association to distribute annually to its members a Disclosure Documents Index, as specified."
However, after rereading the statute, it appears that the association has to provide the index to any owner only upon a request from the owner. Here is the language:
"1363.005. DISCLOSURE INDEX. The association shall, at the request of any member, distribute to the member, in the manner described in Section 1350.7, the following Disclosure Documents Index [see statute for the index] ..."
So it appears that it is not a requirement to send it out with the annual package. However, it seems to me that it has little meaning by itself, other than to inform an owner of what "should be" in the annual package.
So, in order to make it make sense, and to prevent having to send it out individually, upon request, any HOA or Condo Association could simply send it with the annual package.
Another legislative accident ... or on purpose .... or asleep at the wheel. It seems very likely that the intent of the sponsor (Executive Council of Homeowners) was that the index would become a useful tool - which will not happen if HOAs and Condo Associations do not use it.
Posted by Beth Grimm at November 19, 2009 9:38 PM