For a board to be sure that it carries out its duties in a timely manner, it needs to know not only what duties are required of it, but also when those duties must be performed. We have prepared a checklist that each board can use to assist it in determining those duties, but it is ultimately up to the board to make sure that it performs those duties in a timely manner. The use of a “perpetual” calendar with reminders of upcoming and current duties will help the board ensure that it doesn’t miss any deadlines.

At the conclusion of this article is an example of monthly reminders of various deadlines. We have set this up as if the association in question has a fiscal year that begins on March 1 and an annual meeting that is supposed to be held in June. This is just a simple 2-column table with the months of the year in the left column and the specific duty, date due within the month (if applicable) and the applicable statute or governing document authority for the duty (if applicable).

Three key duties are triggered in relation to the timing of an association’s fiscal year. First, both the annual budget report (Civil Code §5300), and the annual policy statement (Civil Code §5310) must be sent out between 30 and 90 days before the end of the fiscal year. You will note that we have identified the earliest and latest date for the budget mailing. It also shows an adjustment if the year happens to be a leap year. The next dates triggered by the fiscal year are the due dates for the state and federal tax returns. Finally, the deadline for preparing and mailing the annual audit or review of the association’s finances is 120 days after the close of the fiscal year (Civil Code §5305). Due to months with 28, 29, 30 or 31 days, 120 days after the close of the fiscal year may or may not be exactly four months later.

You will also note that we have included reminders in advance of the various deadlines. If you are going to get the budget and other disclosure information out to owners between 30 and 90 days before the end of the fiscal year, you will have to start working on the budget and get it approved enough in advance to get it copied and mailed. Likewise, if you are going to have the tax return and audit/review prepared on time, you are going to have to have an accountant selected enough in advance so the work can be done. A similar principle applies to updating the reserve study. You will have to select a person to perform the reserve study at least every three years (Civil Code §5550(a)). The board is required to review and to consider and make necessary adjustments in other years (Civil Code §5550(a)), but it is probably better to have a reserve consultant prepare your updates. For things like the reserve study, we have selected an arbitrary date when it must be done and put in reminders before that.

There are other periodic duties that are included, such as a monthly inspection of all bank statements, quarterly reconciliations, and the actual revenue and expenses compared to the budget in both the operating and reserve accounts (Civil Code §5500).

There are some key mailing addresses that rarely come into play, but they can be important if you are not aware of them. For example, most associations are not taxed on their separately-owned common area lots, but they still have assessor’s parcel numbers that can be, and in some counties, are used to generate tax bills. Occasionally we have found associations that are taxed (usually in error) or that become subject to some minor assessment that they never discover, if the address on file with the assessor’s office is a long-outdated address of the developer or a management company that the association had many years ago. Thus, at least once a year, you should take a look at the addresses that are used for infrequently received mail and make the addresses current. In many cases, it is better to have a permanent post office box that someone checks periodically for such notices. You should check not only tax bill addresses, but also the address used by the Secretary of State for sending corporate notices, in particular the Statement of Information by Domestic Nonstock Corporation (Form SI-100) that every incorporated association must file every two years. Form SI-100 is due in the anniversary month, i.e., the month in which the association was incorporated.

Whether an association is incorporated or not, it must also file a Statement of Information by a Common Interest Development (Secretary of State Form SI-CID at bpd.cdn.sos.ca.gov/corp/pdf/so/corpua_cid.pdf). Incorporated associations must file Form SI-CID every two years during the anniversary month of incorporation, and unincorporated associations must file it by July of odd-numbered years (Civil Code §5405). To see what California homeowner associations are required to file by law, see the Franchise Tax Board Form 1028 at https://www.ftb.ca.gov/forms/misc/1028.html.  If you fail to file these forms on time and pay the filing fees, the Secretary of State can suspend the corporation, which legally handcuffs you and prevents you from levying or collecting assessments, filing liens, filing a lawsuit or defending the association, if it is sued, creating valid contracts, etc. It is a very bad position to be in, as the only thing a suspended corporation may do is take the actions needed to lift a suspension.

Another important item is the expiration of contracts, particularly those that have automatic renewal provisions if you don’t cancel the contract at the proper time. Thus, you need to docket not only the expiration date, but also any deadline in advance of that date for sending a notice to terminate. It is a good idea in all reminders to give yourself at least one month’s prior notice before you have to do anything and always look ahead one month or more to see what is coming up on the perpetual calendar.

If You Change Management Companies or the Company Moves

In view of the above factors, be sure to change the address with the County Assessor on all common area tax bills. Normally you will not or should not have property tax bills, but if you don’t do this for every common area parcel, and there is some fixed fee that is levied for some reason, you could have your common area parcels sold at a tax sale, and it will be an expensive and an incredible mess to fix. Also change the address for the agent for service of process (frequently someone at the management company) on Form SI-100 to prevent your corporation from being suspended.

Other Possible Items to Insert in the Calendar

• Docket Vendor Contract Expirations and Termination Notice Dates (such as landscaping, pool, and management contracts). Many automatic renewal clauses require giving notice at least 30 to 60 days before the automatic renewal date, if you want to terminate the contract.
• Prepare Reserve Study and annual update – include the year that the 3-yr. full study is due (e.g., years evenly divisible by 3, or years leaving a remainder of one or two when divided by three, etc.).
• Check with vendors for price increases before the new fiscal year.
• Reset clocks and timers for daylight savings time: 2nd Sunday in March and 1st Sunday in November.
• Replace batteries in battery-operated smoke alarms that are the association’s responsibility (pick a date when something else is needed like the start of the fiscal year or the spring or fall time change).
• Define major objectives for the next fiscal year.
• Renew the annual pool permit.
• Inspect fire extinguishers and hoses annually.
• Test fire sprinkler and alarms annually.
• There is no rule for the format you must use for the calendar. However, we hope that by using some form of calendar customized to your association, you will be prepared to carry out all of your duties and responsibilities in a timely manner. A sample perpetual calendar follows below.

Sample Perpetual Calendar¹

Month	Deadlines – Upcoming Deadlines – Check Next Month, too
At or Before Each Board Meeting	Provide Board Meeting Notices & Agendas by “general delivery” (Civil Code §4045) before each board meeting (Civil Code §4920). Review the Latest Statements from the financial institutions where the HOA has its operating and reserve accounts: Monthly or when each comes in (Civil Code §5500). Review Reconciliation of Operating & Reserve accounts (Civil Code § 5500). Review current year’s actual operating revenues and expenses compared to the current year’s budget (Civil Code § 5500). Review income & expense statement for operating & reserve accounts (Civil Code § 5500). Review check register, monthly general ledger, and delinquent assessment receivable reports (Civil Code § 5500).
February (Previous fiscal year)	Annual Meeting: Review election rules and determine if any amendments are required.  Proposed amendments that are not required by law must be submitted for member comment no less than 28 days prior to adoption. (Civil Code § 4360.)  The election rules may not be amended any less than 90 days before the election of directors. (Civil Code § 5105(h).)   Annual meeting date: June 13. Annual Meeting: Provide by General Notice or Delivery (Civil Code § 4045) (unless Individual Notice or Delivery (Civil Code §§ 4040) is requested by a member, in such case Individual Delivery will be required) of the procedure and deadline for submitting a nomination at least 30 days before any deadline for submitting a nomination (Civil Code § 5115(a)).   This must be done no less than 90 days before annual meeting (Civil Code § 5115(a)-(c)).  This notice may also include a statement regarding a member’s right to IDR before disqualification as a candidate (Civil Code § 5105(e)). Annual Meeting: Appoint Nominating Committee (if required; review bylaws and election rules).
March	March 1 – New Fiscal Year Begins March 152 – 4th “Quarterly” Estimated Tax Due Select Accountant and Send Accountant Information for Annual Audit/Review; Check with accountant to see if an annual surplus funds resolution needs to be voted on at the annual meeting and obtain accountant’s language (See June 13 anniversary ± time allowed by Bylaws) Annual Meeting: Appoint election inspector(s) before the Notice of the Annual Meeting is sent (Civil Code §5110). Annual Meeting: Upon deadline for submission of candidate nominations, determine whether any candidate should be disqualified from running for the Board in accordance with the election rules.  Notification of candidate disqualification and notice of the opportunity for IDR should ideally go out before the Notice of Annual Meeting is sent, which includes the candidate list. (Civil Code §§ 5105(e), 5900.) Annual Meeting: Send out Notice of Annual Meeting (by General Delivery, unless Individual Delivery is requested), including the list of candidates; date, time and physical address of meeting location; and where and when ballots are to be returned by mail or handed to inspector of elections; no earlier than the deadline for nominations or 90 days before annual meeting (Corporations Code § 7511), and no later than 30 days before mailing the ballot. (Civil Code § 5115(b).). Annual Meeting: Prepare voter list and allow verification of voter information.  This voter list must be made available at least 30 days before mailing the ballots.  Correct any errors on the voter list no more than 2 business days after receiving notice of any error, and prior to mailing the ballot. (Civil Code § 5105(a)(7).) Check items in “At or Before Each Board Meeting” above
April	Annual Meeting: If not done in March, send out Notice of Annual Meeting (by General Delivery, unless Individual Delivery is requested), including the list of candidates; date, time and physical address of meeting location; and where and when ballots are to be returned by mail or handed to inspector of elections; no earlier than the deadline for nominations or 90 days before annual meeting (Corporations Code § 7511), and no later than 30 days before mailing the ballot. (Civil Code § 5115(b).) Annual Meeting: If Notice of Annual Meeting was sent in March, no less than 30 days after such Notice was provided, prepare and mail ballots with voting instructions (plus annual surplus funds resolution from accountant, only if applicable), and election rules* at least 30 days before Annual Meeting (Civil Code §§ 5115(g)(4), 5115(c)).  *Election rules can be posted via website in lieu of physical mailing only if the following language is included on the ballot in 12-point font: “The rules governing this election may be found here (www…)”. Annual Meeting: Most HOAs don’t prepare and send proxies any longer (check bylaws). If not done, and you do use proxies, be sure the proxy meets bylaw and Civil Code § 5130 requirements. Check items in “At or Before Each Board Meeting” above
May	May 15 – Deadline to file federal tax return (15th day of the 3rd month after FY ends for IRS Form 1120-H, but check with CPA). Usually State returns are required too (usually both FTB Form 100 and 199). California return is usually due on the 15th day of the 5th month after end of FY. See July 15) Pool Contract Expires August 1. Nonrenewal/Termination Notice Required by June 1 (60 days) Annual Meeting: If Notice of Annual Meeting was sent in April, no less than 30 days after such Notice was sent, prepare and mail ballots with voting instructions (plus annual surplus funds resolution from accountant, only if applicable), and election rules* at least 30 days before Annual Meeting (Civil Code §§ 5115(g)(4), 5115(c)).  *Election rules can be posted via website in lieu of physical mailing only if the following language is included on the ballot in 12-point font: “The rules governing this election may be found here (www…)”. Annual Meeting: Most HOAs don’t prepare and send proxies any longer (check bylaws). If not done, and you do use proxies, be sure the proxy meets bylaw and Civil Code § 5130 requirements. Check items in “At or Before Each Board Meeting” above
June	June 1 (60 days before August 1) 60-day Nonrenewal/Termination Notice Required before August 1 Pool Contract Expiration June 13 – Anniversary of First Annual Meeting – Hold Annual Meeting ± time allowed by Bylaws), elect board, (be sure you check with accountant to see if annual tax resolution regarding surplus funds is needed and get proper language.)  Voting deadline may not be any sooner than 30 days after the ballot was mailed (Civil Code § 5120). June 153 – 1st “Quarterly” Estimated Tax Due June 28 or 29 (leap year dependent)-Deadline for mailing annual Audit/Review information (120 days after FY End) (Civil Code § 5305). Check items in “At or Before Each Board Meeting” above
July	July 15 – Deadline to file CA tax returns (15th day of the 5th month after end of FY, but check with CPA). Usually Federal form is required earlier (See May 15). Usually needs FTB Form 100 and Form 199 too, but check with CPA. July-Landscaping Contract Expires Oct. 1 annually. 30-day Nonrenewal/ Termination Notice Required by Sept. 1 (30 days) Check items in “At or Before Each Board Meeting” above
August	July-Landscaping Contract Expires Oct. 1 annually. 30-day Nonrenewal/ Termination Notice Required by September 1 (30 days) August 154 – 2nd “Quarterly” Estimated Tax Due August 22 (12:01 am) – Property and General Liability Insurance expires August 22 (12:01 am) – D&O Insurance expires August 22 (12:01 am) – Umbrella Insurance Policy expires August 23 (Even Years) – 8/23/86 Anniversary Date of Corporation. Must file both Statement of Information by Domestic Nonstock Corporation (Form SI-100) and Statement of Information for Common Interest Development (Form SI-CID) this month. Note: At the same time SI-100 is due, it is a good idea to check the County Assessor’s records to be sure that the Association’s mailing address is correct. If it is not and you change management companies, or they change addresses, and then the County levies some flat fee, you could lose your common area property, because you never got the bill. Check items in “At or Before Each Board Meeting” above
September	September 1: 30-day Nonrenewal/Termination Notice Required on Landscaping Contract expiring Oct. 1 annually. Reserve Study Consultant – Get Bids. See “Reserve Study” in January and Reserve Information required at least 30 days before new fiscal year (March 1) in the Annual Budget Report and Annual Policy Statement September 27 (12:01 am). Workers Compensation Insurance expires Check items in “At or Before Each Board Meeting” above
October	Start Preparing Annual Budget Report, Annual Policy Statement and any non-mandatory disclosures. Review checklist of all items to include – Review & Update Reserve Study – Check with vendors about increases for budgeting. Add other non-mandatory information or disclosures owners should know (e.g., location of gas and water shutoffs for emergencies). Latest date: January 28 (or 29 in leap years) (Civil Code §§ 5300 & 5310 – trump contrary provisions in governing documents) For mandatory disclosure in Annual Policy Statement – Any contract or other transaction in which any Director has a material financial interest? (Corp. Code § 8322) Check items in “At or Before Each Board Meeting” above
November	November 155 – 3rd “Quarterly” Estimated Tax Due November 30 (December 1 in leap years) – (December 1 in leap years – Earliest date to deliver by Individual Delivery (Civil Code §§ 4040 & 5320) Annual Budget Report, Annual Policy Statement and any non-mandatory disclosures – 90 days before fiscal year begins). Latest date: January 28 (or 29 in leap year). Start Preparing Annual Budget Report, Annual Policy Statement and any non-mandatory disclosures. Review checklist of all items to include – Review & Update Reserve Study – Check with vendors about increases for budgeting. Add other non-mandatory information or disclosures owners should know (e.g., location of gas and water shutoffs for emergencies). Latest date: January 28 (or 29 in leap year) (Civil Code §§ 5300 & 5310 – trump contrary provisions in governing documents). For mandatory disclosure in Annual Policy Statement – Any contract or other transaction in which any Director has a material financial interest? (Corp. Code § 8322). Check items in “At or Before Each Board Meeting” above
December	If not done previously, approve Annual Budget Report, Annual Policy Statement and any other mandatory or optional disclosures. Review Civil Code §§ 5300 & 5310 for all items to include. Include latest Reserve Study or annual update. Include disclosure of any contract or other transaction in which any Director has a material financial interest (Corp. Code § 8322). Include adjustments for any vendors’ increases. Latest date: January 28 or 29 (leap year) December 1 in leap years – Earliest date to deliver by “Individual Delivery” (Civil Code §§4040 & 5320) Annual Budget Report, Annual Policy Statement and any non-mandatory disclosures – 90 days before fiscal year begins). Latest date: January 28 (or 29 in leap year) (Civil Code §§5300 & 5310 trump contrary provisions in governing documents). Check items in “At or Before Each Board Meeting” above
January	If not done previously, approve Annual Budget Report, Annual Policy Statement and any other mandatory or optional disclosures. Review Civil Code §§ 5300 & 5310 for all items to include. Include latest Reserve Study or annual update. Include disclosure of any contract or other transaction in which any Director has a material financial interest (Corp. Code §8322). Include adjustments for any vendors’ increases. Latest date: January 28 or 29 (leap year) January 29 (30 in leap year) – Deadline to deliver by Individual Delivery (Civil Code §§4040 & 5320) Annual Budget and Disclosure Package (30 days before fiscal year begins) Annual Budget Report, Annual Policy Statement and any non-mandatory disclosures (Civil Code §§5300 & 5310 trump contrary provisions in governing documents) Check correct HOA mailing addresses for all common area tax bills, Corp. Agent for service of process (Secy. of State Forms SI-100 and SI-CID) and other notices to Association Reserve Study – New Study due in years divisible by 3 with a remainder of 1 (e.g., 2014, 2017, etc.). Must be updated annually in other years Review and Update Perpetual Calendar for next fiscal year Check items in “At or Before Each Board Meeting” above
February	February 156 – 4th “Quarterly” Estimated Tax Due February 28 (29 in leap year) – Fiscal Year Ends See Annual Meeting Requirements for February (previous fiscal year) above. Check items in “At or Before Each Board Meeting” above

 

¹ IMPORTANT NOTE: We have set up this sample calendar as if the association in question has a fiscal year that begins on March 1 and an annual meeting that is supposed to be held in June. Your association’s fiscal year and annual meeting timing may differ, resulting in necessary changes to this sample. Please consult legal counsel to verify that the dates you use are appropriate for your community. Also see IRS Publication 509 regarding tax calendar issues.
² See footnote 1.
³ Check with your accountant whether you are required to file estimated tax payments and when they are due. If you do, these are typically due on the 15th day of the 4th, 6th, and 9th months of your tax year and on the 15th day of the 1st month after your tax year ends. This is for a fiscal year ending February 28 or 29. CA estimated payments dates may be different. Verify state and federal due dates with your accountant.
⁴ See footnote 1.
⁵ See footnote 1.
⁶ See footnote 1.