Five Questions Every Self-Run HOA Board Should Be Able to Answer

When a self-managed association calls, something broke. These five questions map directly to the most common California compliance gaps, and most boards cannot answer all of them.

A self-managed association usually reaches out because something broke: a roof, an election, a tax notice, an angry owner, an insurance non-renewal, or a balcony inspector knocking. Most volunteer boards do not know what they do not know. These five questions map directly to the most common compliance gaps in a California HOA. If your board cannot answer all five cleanly, you have work to do, and it is almost always fixable in a defined order.

1. When was your last board election, and who ran it? You are listening for an inspector of elections (Civ section 5110), secret ballots (section 5115), and written election rules (section 5105). If the answer is we just appointed Jane, or we never actually voted, the election is non-compliant, and decisions made by a board that was not properly elected can be challenged by any owner.

2. Have you had your balcony or elevated-element inspection done? This is SB 326, Civil Code section 5551. Condominium projects with wood-supported balconies, decks, walkways, or stairs over six feet had to complete the first inspection by January 1, 2025, then repeat every nine years. If the answer is what inspection, the association is out of compliance and likely uninsured for any related loss. The 2026 date people cite comes from SB 721 and AB 2579, which apply to apartments, not HOAs.

3. When was your last reserve study, and is it funded? Civil Code section 5550 requires a full reserve study every three years with annual updates, plus a funding plan disclosed to members each year in the budget report under section 5300. If the answer is we did one in 2014, the board is running on guesses and is probably underfunded.

4. Who files your taxes, and what form? Federal Form 1120-H or 1120 is due every year, plus California Form 100. A Statement of Information (SI-100) is due every two years with the Secretary of State, along with the biennial SI-CID under Civ section 5405. If the answer is we are a nonprofit, we do not file, that is wrong. If the answer is we do not know, assume nothing has been filed, because both the IRS and the FTB charge penalties and interest for missed years.

5. Do you carry a fidelity bond, and what does it cover? Civil Code section 5806 requires coverage at least equal to reserves plus three months of assessments, plus computer and funds-transfer fraud protection, plus any management agent. Self-insurance does not count. If the board does not know what a fidelity bond is, the answer is no.

If the call keeps going, a few more quick flags. The Open Meeting Act (Civ sections 4900 to 4955) makes email, text, or phone decisions outside a noticed meeting voidable, and agendas need four-day posting. Annual disclosures under sections 5300 and 5310 must go out 30 to 90 days before fiscal year end. Fining under section 5855 requires written notice and a hearing, and AB 130 caps most fines at 100 dollars each. A CPA financial review under section 5305 is required if gross income exceeds 75,000 dollars. Resale disclosures under section 4525 must be produced within ten days, and records inspection requests under section 5200 carry their own deadlines and a recoverable-fee risk if refused.

None of this is unusual for a self-run board, and it is fixable in a defined order. Before any of it turns into a fine or a lawsuit, the cheap version is a reserve study, a CPA, and a written election process, and I can help a board find each of those and vet the finalists. This page is informational and is not legal advice. For anything involving a lawsuit, an insurance non-renewal, or a contested election, talk to counsel first.