Yes. Under Civil Code § 5550 (Davis-Stirling Act), a California association's board must cause a diligent visual inspection of major components at least once every three years as part of a reserve study, whenever the replacement value of those components equals at least half the association's gross budget — a threshold nearly all associations meet. The board must also review the study annually, though California imposes no minimum reserve funding level.
Verified against the statute 2026-07-06
All common interest developments under the Davis-Stirling Act — condominiums, planned developments, stock cooperatives, and community apartment projects — whenever the current replacement value of the major components the association maintains is equal to or greater than one-half of its gross budget (excluding the reserve account). This covers HOAs and condo associations alike, not just condos.
Visual-inspection reserve study at least every 3 years, with annual board review and adjustment (Civ. Code § 5550).
California sets no minimum reserve funding level and no percent-funded requirement. The board must adopt a reserve funding plan showing how it will fund repair and replacement of major components with a remaining life of 30 years or less, but the actual funding level is a board decision that must simply be disclosed to members.
The annual budget report distributed to members must include the reserve summary and the statutory Assessment and Reserve Funding Disclosure Summary form (Civ. Code §§ 5300, 5565, 5570), disclosing the current reserve balance, percent funded, anticipated special assessments, five-year projections, and the assumptions used.
Requires a reasonably competent and diligent visual inspection of accessible major components at least every three years, annual board review, and a reserve funding plan for components with a remaining life of 30 years or less. Applies when major-component replacement value is at least one-half of the gross budget; amended by Stats. 2024, ch. 288 (SB 900, effective Jan 1, 2025) to include gas, water, and electrical service the association is responsible to repair or replace.
Prescribes the statutory disclosure form showing current assessments, scheduled special assessments, projected reserve balances, percent funded, five-year projections, and the interest/inflation assumptions used. Must accompany the annual budget report under § 5300.
Re-fetched Civ. Code §§ 5550 and 5570 on the official leginfo.legislature.ca.gov site, confirming the 3-year visual inspection cycle, annual board review, the one-half-of-gross-budget threshold, the 30-year remaining-life scope, the Stats. 2024, Ch. 288 (SB 900) amendment effective January 1, 2025 adding gas, water, and electrical service to major components, and the disclosure form's percent-funded, 30-year sufficiency, five-year projection, and interest/inflation assumption items. Informational only — not legal advice. Confirm with the primary source and a community-association attorney licensed in California. Report an issue.
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