What the Davis-Stirling Act requires: the CPA review above $75,000, the annual budget report, reserve studies, quarterly board reviews and inspections, plus tax filings, with dates for your fiscal year.
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Associations with gross income over $75,000 need a review of their financial statements by a California-licensed CPA, distributed to members within 120 days of year-end.
Your governing documents can require an audit instead.
Distribute the annual budget report to members 30 to 90 days before the fiscal year ends. Details →
Issue Form 1099-NEC to unincorporated vendors (landscapers, handymen, attorneys of any entity type) paid $600 or more during the calendar year. Details →
Most HOAs and condo associations file Form 1120-H, which taxes only non-exempt income (interest, rentals to non-owners, laundry or cell tower income) at a flat 30%, if at least 60% of gross income is member assessments and 90% of spending is for association property. Details →
A California-licensed CPA prepares a review of the financial statements under GAAP, and the association distributes it to members within 120 days after year-end. Details →
At least quarterly, the board reviews current reconciliations of operating and reserve accounts, the reserve account statements, budget-to-actual figures, and the delinquent assessment report. Details →
Associations need a reserve study with a diligent visual inspection of major components at least every three years, reviewed every year. Details →
Associations file the Statement by Common Interest Development Association with the Secretary of State every two years, keeping the association's contact and management information current. Details →
California sets clear financial reporting and board oversight rules for common interest developments.
A California-licensed CPA prepares a review of the financial statements under GAAP, and the association distributes it to members within 120 days after year-end.
At least quarterly, the board reviews current reconciliations of operating and reserve accounts, the reserve account statements, budget-to-actual figures, and the delinquent assessment report.
California requires an annual budget report with reserve disclosures and a reserve study with a site inspection at least every three years.
Distribute the annual budget report to members 30 to 90 days before the fiscal year ends. It includes the pro forma budget, reserve summary, assessment and reserve funding plan, and insurance disclosures.
Associations need a reserve study with a diligent visual inspection of major components at least every three years, reviewed every year. The reserve funding plan and summary go in the annual budget report.
Every year-end step and document your CPA will ask for, plus California's reporting and reserve rules, on two printable pages.
Associations are taxable corporations unless they qualify for an election or exemption. Most file a federal return every year even when little or no tax is due.
Most HOAs and condo associations file Form 1120-H, which taxes only non-exempt income (interest, rentals to non-owners, laundry or cell tower income) at a flat 30%, if at least 60% of gross income is member assessments and 90% of spending is for association property. The alternative is Form 1120 with a Rev. Rul. 70-604 election, which can be cheaper when there is a surplus to roll over. It is due the 15th day of the 4th month after year-end, with a 6-month extension available.
California associations can get state exemption under R&TC 23701t by filing FTB Form 3500, then file Form 199 annually. Without it, they file Form 100 and pay at least the $800 minimum franchise tax.
Issue Form 1099-NEC to unincorporated vendors (landscapers, handymen, attorneys of any entity type) paid $600 or more during the calendar year. Collect W-9s when you hire vendors, not in January.
California has extra inspection and filing duties for associations.
Associations with buildings of three or more units must have balconies, decks and other elevated elements inspected by a licensed professional every nine years, and plan repairs through the reserve study.
Associations file the Statement by Common Interest Development Association with the Secretary of State every two years, keeping the association's contact and management information current.
These are the items your CPA will ask for first. Having them ready shortens the engagement and lowers the fee.
Bank and investment reconciliations for every operating and reserve account at year-end, with statements. Reserve funds should be held separately and match the reserve balance on the books.
An owner-by-owner aging of delinquent assessments, liens and collection status, plus assessments owners paid in advance (a liability, not income).
Major vendor contracts (management, landscaping, insurance), unpaid invoices at year-end, and support for any large repair or capital project.
The current reserve study. GAAP statements for associations include supplementary information on future major repairs and replacements, which comes from it.
Minutes approving the budget, special assessments, reserve transfers and major contracts, plus the governing documents' rules on financial reporting.
When gross income exceeds $75,000. The review goes to members within 120 days of year-end.
30 to 90 days before the end of the fiscal year.
A site inspection at least every three years, with the study reviewed every year.
Download the HOA Year-End Financial Checklist (PDF).
Greywood CPA works with association boards and managers across California, with fixed, transparent pricing and statements delivered on time for your owners.
See our California servicesThis guide is general information as of October 2026 and is not legal or tax advice. Statutes change and your declaration, bylaws or offering plan may require more than state law. Confirm your obligations with your association attorney and CPA.