Park River Oak Estates Homeowner's Association

Bylaws

ARTICLE XII
Member Assessment Obligations and Association Finances

 

[12.1] Section 1. Description of Assessments to Which Owners Are Subject.
            Owners of Lots within the Properties are subject to Annual, Special, and Special Individual Assessments as described in Article IV of the Declaration.

[12.2] Section 2. Checks.
            All checks or demands for money and notes of the association shall be signed by the President and Treasurer or by such other Officer or Officers or such other person or persons as the Board of Directors may from time to time designate. Notwithstanding the foregoing, any withdrawal of funds from Association reserve accounts shall require the signature of two Directors or an Officer (who is not also a Director) and a Director.

[12.3] Section 3. Operating Account.
            There shall be established and maintained a cash deposit account to be known as the “Operating Account” into which shall be deposited the operating portion of all Regular and Special Assessments as fixed and determined for all Members. Disbursements from such account shall be for the general need of the operation including, but not limited to, wages, repairs, betterments, maintenance, and other operating expenses of the Properties.

[12.4] Section 4. Other Accounts.
            The Board shall maintain any other accounts it shall deem necessary to carry out its purposes, including reserve accounts for replacement of capital improvements as set forth in Article IV of the Declaration. All Association books of account shall be maintained in accordance with generally accepted accounting principles.

[12.5] Section 5. Budgets and Financial Statements.
            The following financial statements and related information for the Association shall be regularly prepared and copies thereof shall be distributed to each Member of the Association:
(a) Budget.
            A pro forma operating budget for each fiscal year consisting of at least the following information shall be distributed to Members not less than 45 days nor more than 60 days prior to the beginning of the fiscal year:
(i) Estimated revenue and expenses on an accrual basis;
(ii) The amount of the total cash reserves of the Association currently set aside for the future repair or replacement of, or addition to, those major components of the Common Areas and Common Facilities which the Association is obligated to maintain and for contingencies;
(iii) An estimate of the current replacement costs of, and the estimated remaining useful life of, and the methods of funding used to defray the future repair or replacement of, or additions to, those major components of the Common Areas and Common Facilities which the Association is obligated to maintain;
(iv) A general statement setting forth the procedures used by the Board of Directors in calculating and establishing reserves to defray the casts of repair, replacement or additions to major components of the Common Areas and Common Facilities which the Association is obligated to maintain.
            In lieu of distributing the complete pro forma operating budget as specified above, the Board of Directors may elect to distribute a summary of the budget to the Members (within the time limits provided above), together with a notice that the complete budget is available at the Association’s principal office and that copies will be furnished, upon request, to any Member at the Association’s expense. If a Member requests a copy of the complete budget, the Association shall mail the material, via first-class mail, within five days. The notice required hereunder shall be presented on the frontpage of the summary of the budget in at least 10-point bold type.
(b) Year-End Report.
            Within 120 days after the close of the fiscal year, a copy of the Association’s year-end report consisting of at least the following shall be distributed to Members:
(i) A balance sheet as of the end of the fiscal year;
(ii) An operating (income) statement for the fiscal year;
(iii) A statement of changes in financial position for the fiscal year;
(iv) A statement advising Members of the place where the names and addresses of the current Members are located; and
(v) Any information required to be reported under Corporations Code § 8322 requiring the disclosure of certain transactions in excess of $50,000 per year between the Association and any Director or Officer of the Association and indemnifications and advances to Officers or Directors in excess of $10,000 per year.
            A review of the financial statement of the Association shall be prepared in accordance with generally accepted accounting principles by a licensee of the State Board of Accountancy for any fiscal year in which the gross income of the Association exceeds $75,000. If the annual report is not prepared by such a licensee, it shall be accompanied by the certificate of an authorized Officer of the Association that the statement was prepared without an audit from the books and records of the Association.
(c) Annual Statement Regarding Delinquency/Foreclosure Policy.
            In addition to financial statements, the Board of Directors shall annually distribute within 60 days prior to the beginning of the fiscal year, a statement describing the Association’s policies and practices in enforcing its remedies against Members for defaults in the payment of Regular and Special Assessments including the recording and foreclosing of liens against Members’ Lots.
(d) Review of Accounts.
            On no less than a quarterly basis, the Board of Directors shall:
(i) Review a current reconciliation of the Association’s operating accounts;
(ii) Review a current reconciliation of the Association’s reserve accounts;
(iii) Review the current year’s actual reserve revenues and expenses compared to the current year’s budget;
(iv) Review the Association’s latest account statements prepared by the financial institution(s) with whom the operating and reserve accounts are lodged; and
(v) Review the Association’s income and expense statement for the operating and reserve accounts.
            To the extent one document provides the information required in more than one of the above listed items, any such requirements listed above may be satisfied by reviewing the same document.