What are the requirements for HOA bank accounts?

In California, Homeowners’ Associations (HOAs) are required to open and maintain bank accounts for the purpose of collecting and disbursing funds for their own use. All HOA bank accounts must comply with the Davis-Stirling Common Interest Development Act, which governs the management of these associations. The requirements for HOA bank accounts include maintaining a separate bank account for each HOA. No single account should include funds from more than one HOA. The accounts must be maintained with a financial institution that is insured by the FDIC or another state or federal agency. The accounts must be kept separate from the personal accounts of directors, officers, and employees of the HOA. The HOA board needs to create and maintain a policy that addresses deposit procedures and the handling of funds. It is also important for the board to approve the use of the funds before they are spent. The bank account should be used to deposit all funds collected by the HOA, as well as any funds disbursed by the HOA. In addition, all checks must be signed by two officers of the HOA, each of whom must have the authority to sign on behalf of the organization. Finally, the HOA must keep accurate records of all deposits, disbursements, and balances in the account. These records should be updated regularly and must remain available to the board for inspection.

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What are the requirements for HOA bank accounts?

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