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ASSESSMENT AND RESERVE FUNDING DISCLOSURE SUMMARY

This Form Provided Courtesy of James H. Smith, Esq of Grokenberger & Smith
Santa Barbara, CA 805-965-7746

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California Civil Code section 1365.2.5 requires that this Assessment and Reserve Funding Disclosure Summary be distributed to all owners not less than thirty (30) days nor more than ninety (90) days prior to the beginning of the Associations fiscal year.  The Summary is to be provided with, and accompany, the Association’s Proforma Operating Budget or Summary thereof that is delivered to all owners pursuant to California Civil Code section 1365.

(1)     The current assessment per unit is $________ per __________.

Note:  If assessments vary by the size or type of unit, the assessment applicable to this unit may be found on page ____ of the attached report.

 

(2)     Additional 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:

 

 

Date assessment is due:

 

Amount per unit per month

(If assessments are variable, see note immediately below):

 

Purpose of the assessment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

Note:  If assessments vary by the size or type of unit, the assessment applicable to this unit 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?

 

 

Approximate date assessment will be due:

 

Amount per unit per month:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

(5)     The following major components, which are included in the reserve study, are NOT included in the existing reserve funding:

 

 

Major Components:

 

Useful remaining life in years:

 

Reason this major component was not included:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6)     As of the last reserve study or update, the current balance in the reserve fund is $________.  Based on the method of calculation in paragraph (4) of subdivision (b) of Section 1365.2.5, the required amount in the reserve fund is $___________, and if an alternate, but generally accepted, method of calculation is also used, the required amount is $___________.  (See attached explanation)

 

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.

SUPPLEMENT TO ASSESSMENT AND RESERVE

FUNDING DISCLOSURE SUMMARY

[Civil Code section 1365.2.5(b)(3)]

 

Due to factors beyond the control of the Directors, including but not limited to the rate of inflation, the rate at which the major components actually deteriorate, unanticipated damage to the major components, fluctuations in material and labor costs and changes in building codes and regulations, the accuracy of the information set forth in paragraphs 3, 4 and 5 above is not, and cannot be, guaranteed.  Depending upon the accuracy of the present and future assumptions used in providing the information in paragraphs 3, 4 and 5, the information and conclusions set forth in said paragraphs may not be correct.  Therefore, any person reviewing this Assessment and Reserve Funding Disclosure Summary should not, without conducting their own independent investigation and analysis, rely upon the accuracy of the information set forth in paragraph 3, 4 and 5.   

Please note, for purposes of this Assessment and Reserve Funding Disclosure, the words and phrases stated below are given the following meaning: 

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 thirty (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. 

Dated: ______________________    

By:_______________________________

 

"Caution"

This form is provided as a courtesy by James H. Smith, Esq. of the law firm of Grokenberger & Smith.  Telephone:  (805) 965-7746.  Your Association's Governing Documents and/or changes in the law may require this form to be modified.

 

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