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COMMUNITY SERVICE ORGANIZATIONS

A 'community service organization' means a nonprofit entity, other than an association, that is organized to provide services to residents of the common interest development or to the public in addition to the residents, to the extent community common areas or facilities are available to the public.

Exempt from Fee Limitations
. As provided for in Civil Code §4580), community service organizations ('CSO') created prior to February 20, 2003 that perform environmental mitigation or to restore or maintain wetlands or native habitat as required by the state or local government as an express written condition of development are exempt from the fee limitations established by Civil Code §5600(b).

Disclose Admin Costs
. Community Service Organizations whose funding from the association or its members exceeds 10% of the organization's annual budget must prepare and distribute to the association a report that describes in detail administrative costs and identifies the payees of those costs, consistent with Corporations Code §5012, i.e. in accordance with standard accounting principles. The CSO must also allow review and inspection of these financial documents consistent with Civil Code §5200.

Disclose  Reserve Components
. If a CSO is responsible for the maintenance of major components for which an association would otherwise be responsible, the CSO must disclose information regarding those components that the association would use to complete disclosures and reserve reports. (Civ. Code §5580(b).)

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Adams Stirling PLC