AB 899 places all annual association disclosures into a single table in the Civil Code, it requires an association to distribute that table upon request, and it expands the number of documents that an association may distribute electronically. It also requires the inflation and interest rate assumed in the reserve study to be included in the reserve disclosure summary.
It also reinforces that fact that a reserve study must be updated annually. Item 14 in the Disclosure Document Index calls for the “annual update” of the reserve study. The Assessment and Reserve Funding Disclosure form is also the first item on the document index. The disclosure form must also be updated annually and it can’t be filled out correctly without a reserve study from the current year.

The following statement regarding assumed inflation and interest rate must also now be included in the reserve disclosure summary:

“At the time this summary was prepared, the assumed long-term before-tax interest rate earned on reserve funds was ____ percent per year, and the assumed long-term inflation rate to be applied to major component repair and replacement costs was ____ percent per year.”

The full AB 899 Bill can be viewed at: http://info.sen.ca.gov/pub/09-10/bill/asm/ab_0851-0900/ab_899_bill_20091011_chaptered.html