SAMPLE HOMEOWNERS ASSOCIATION

FINANCIAL REPORT

Pursuant to the California Civil Code §5300, California Corporation Code §8321, the Board of Directors is required to notify all Association members of their right to receive the most recent Annual Financial Report and to advise where the names and addresses of all current members can be obtained.

The Corporation Code further requires that the Annual Financial Report include the Association's (1) Balance Sheet; (2) Income Statement; and (3) Statement of Changes in Financial Position and be distributed to the members within ninety (90) days after the close of the fiscal year.

The Association's By-Laws impose an additional requirement that the Annual Financial Report be submitted for independent audit. (_______ Article __, Section __)

A copy of the most recent Annual Financial Report and the names and addresses of current Association members may be obtained from the Association's management company, identified below:

Board of Directors

___________ Homeowners Association