HOACart.AI
Back to Blog
HOA Management

HOA Communication and Transparency: Legal Requirements and Best Practices

California law requires extensive HOA disclosure and communication. Learn what's mandatory and how to build trust through transparency.

Emmett ClarkNovember 14, 20257 min read

Transparency as Governance Foundation

California's Davis-Stirling Act imposes extensive disclosure and communication requirements on HOAs. But beyond legal compliance, transparency builds the trust that makes communities function.

Required Disclosures (Annual Policy Statement)

Under Civil Code §5310, associations must annually provide:

  • Assessment and reserve funding disclosure
  • Insurance summary
  • Contact information for association
  • Statement of association's policies on:

    • - Collections

    - Meetings

    - Member discipline

    - Dispute resolution

    - Document access

    Reserve Funding Disclosure

    The "Annual Budget Report" must include:

  • Current reserve balance
  • Percent funded calculation
  • Reserve study date
  • Whether reserves are "adequate" or "inadequate"
  • Statement of any planned special assessments

    • Meeting Notice Requirements

    Member Record Access Rights

    Owners can inspect association records within **10 business days** of written request, including:

  • Financial statements and budgets
  • Board meeting minutes
  • Membership lists (with restrictions)
  • Contracts currently in effect
  • Election materials
  • Written communications to members

    • Associations cannot charge more than:

  • $0.10/page for copies
  • Actual cost for labor (not to exceed $10/hour)

    • What Associations Can Withhold

    Protected from disclosure:

  • Attorney-client privileged communications
  • Personnel records
  • Individual owner payment records (to other owners)
  • Litigation strategy documents
  • Third-party contracts with confidentiality clauses

    • Best Practices Beyond Legal Minimums

    Regular Communication

  • Monthly or quarterly newsletters
  • Email updates on ongoing projects
  • Community website/portal
  • Annual meeting presentation reviewing accomplishments

    • Financial Transparency

  • Monthly financial statements to board
  • Quarterly summaries to members
  • Clear explanation of any assessment increases
  • Reserve study summaries in plain language

    • Decision Transparency

  • Explain the "why" behind board decisions
  • Share vendor selection criteria
  • Publish enforcement actions (anonymized)
  • Post meeting agendas and minutes promptly

    • Technology and Transparency

    Modern HOA management platforms enable:

  • Online document libraries
  • Payment portals with account history
  • Maintenance request tracking
  • Digital voting systems
  • Community forums

    • The Trust Dividend

    Associations that communicate proactively experience:

  • Fewer disputes and complaints
  • Better meeting attendance
  • Higher voluntary compliance
  • Easier volunteer recruitment
  • Stronger community bonds

    • The most dysfunctional HOAs I've encountered share a common trait: they operate in secrecy. When owners don't understand what their board does or why, they assume the worst. Transparency isn't just legally required—it's the foundation of effective governance.

    Meeting TypeNotice RequiredContents
    Board Meeting4 daysAgenda, time, place
    Emergency BoardNotice posted ASAPNature of emergency
    Member Meeting10-60 daysAgenda, proxy materials
    Annual Meeting10-60 daysAgenda, election materials

    Tags

    HOA Transparency
    Davis-Stirling
    Communication
    Disclosure
    Record Access
    Emmett Clark

    Emmett Clark

    California Real Estate Broker #01408122

    Emmett Clark is a California licensed real estate broker with over 20 years of experience in property management, landlord advisory services, and HOA management consulting. He holds two Master of Arts degrees and founded HOACart to bring enterprise-level management tools to communities of all sizes.

    Learn more about Emmett →