Annual Policy Statement

Civil Code Section 5310 requires an association to distribute an annual policy statement that provides members with information about the association’s policies. The annual policy statement must include all of the following information:

  1. Person Receiving Communications to the Association – The name and address of the person designated by the association to receive official communications to the association pursuant to Civil Code Section 4035. (Civ. Code § 5310(a)(1).)
  2. Right to Request an Alternative Mailing Address – A statement explaining that a member may submit a request to have association documents and notices sent to up to two (2) different specified addresses, pursuant to Civil Code Section 4040(b). (Civ. Code § 5310(a)(2).)
  3. Location for Posting of General Notice – The location, if any, designated by the association for posting of a general notice, pursuant Civil Code Section 4045(a)(3). (Civ. Code § 5310(a)(3).)
  4. Right to Receive General Notices by Individual Delivery – Notice of a member’s option to receive general notices by individual delivery, pursuant to Civil Code Section 4045(b). (Civ. Code § 5310(a)(4).)
  5. Right to Receive Copies of Meeting Minutes – Notice of a member’s right to receive copies of meeting minutes, pursuant to Civil Code Section 4950(b). (Civ. Code § 5310(a)(5).)
  6. Statement of Assessment Collection Procedures – The statement of assessment collection policies and procedures required under Civil Code Section 5730. (Civ. Code § 5310(a)(6).) This statement includes a notice that members who are delinquent in the payment of assessments may request to meet with the board to discuss a payment plan. (Civ. Code §§ 5730(a); See also “Payment Plans.”)
  7. Assessment Collection Policy – A statement describing the association’s policies and practices in enforcing lien rights or other remedies for delinquent assessments. (Civ. Code § 5310(a)(7)See also “Collection Policy.”)
  8. Discipline Policy & Schedule of Penalties – A statement describing the association’s discipline policy, if any, including any schedule of penalties for violations of the governing documents pursuant to Civil Code Section 5850. (Civ. Code § 5310(a)(8)See also “Fine Policy & Schedule.”)
  9. Dispute Resolution Procedures – A summary of the dispute resolution procedures, pursuant to Civil Code Sections 5920 and 5965. (Civ. Code § 5310(a)(9)See also “Internal Dispute Resolution (IDR)” and “Alternative Dispute Resolution (ADR).”)
  10. Architectural Standards – A summary of any requirements for association approval of a physical change to property, pursuant to Civil Code Section 4765. (Civ. Code § 5310(a)(10)See also “Architectural Standards” and “Architectural Application & Approval Process.”)
  11. Address for Overnight Assessment Payments – The mailing address for overnight payment of assessments, pursuant to Civil Code Section 5655. (Civ. Code § 5310(a)(11).)
  12. Additional Required Information – Any other information that is required by law or the governing documents, or information which “the board determines to be appropriate for inclusion” in the annual policy statement. (Civ. Code § 5310(a)(12).)

When Distributed
The annual policy statement must be distributed to the members within thirty (30) to ninety (90) days before the end of the association’s fiscal year. (Civ. Code § 5310(a).)

How Distributed
The annual policy statement must be distributed to all members by individual delivery. (Civ. Code §§ 5310(b), 5320(a).)  An association is permitted to distribute the annual policy statement in one of the following forms: (Civ. Code § 5320(a)(1)-(2).)

  1. The full annual policy statement; or
  2. A summary of the annual policy statement. The summary must include a general description of the content of the annual policy statement, as well as instructions on how the member may request a complete copy of the annual policy statement at no cost to the member. Those instructions must be printed in at least 10-point boldface type on the first page of the summary.

Notwithstanding the above, if a member has requested to receive association reports in full, the association must deliver the full annual policy statement to that member, rather than the summary referenced above. (Civ. Code § 5320(b).)