California Bill AB 596 – FHA and VA Disclosures

California Bill AB 596 has passed.  This bill will amend Civil Code 5300 relating to Common Interest Developments and Budget Disclosures:

AB 596 CA Bill

What does AB 596 mean for California Associations?

As of July 1, 2016 all California budgets disclosures must include the following:

  1. All Associations will need to be identified as a Condominium, or not a Condominium
  2. All Condominium Associations will need to disclose if they are FHA Certified in their annual budget disclosure.
  3. All Condominium Associations will need to disclose if they are VA Certified in their annual budget disclosure.
Custom AB 596 Disclosure by FHA Review

Associations can avoid liability by having a 3rd Party like FHA Review prepare the required ab 596 disclosures. Navigating the VA and FHA approval lists can be a daunting task because many associations are listed under their tract numbers, an outdated developer assigned name, or incorrect address.  For this reason, we recommend using our custom disclosures for accuracy.

Attorneys agree that preparing these disclosures incorrectly can result in unwanted litigation.  Our Team has the experience necessary to generate accurate AB 596 disclosures for your community. We can create the custom disclosure for your community within 2-3 business days of the request.

AB 596 Disclosures by FHA Review

Prepare your own disclosure

Property Managers will need to include the new policy statements in ALL Condominium Association budget disclosures, including site condominiums. Some Legal opinions recommend including the policy statements in attached PUD budget disclosures as well.

The current legal language of the new bill can be misleading because it does not address Site Condominiums, PUDs, or Single-family homes. Also, disclosing the current approval status can prove difficult for casual users of the FHA and VA sites because properties are not always listed under their common/marketing/legal name.  Click below to learn how to create your own disclosure.

Prepare Your Own AB 596 Disclosure