Who really controls your community? Transparency red flags for Bay Area HOA and TIC Boards

Short answer: Your association's money, records, and decisions belong to the association, not to its management company. In California, the board must review bank statements and reconciliations every month. Owners have a legal right to inspect association records. Large transfers need prior written board approval. If your manager blocks your bank access, keeps your files locked in its own system, or makes it hard to leave, those are warning signs. Ask for changes in writing.

By Sergey Maximov, CMCA

SNS Management

HOA and TIC management for the San Francisco Bay Area

Updated October 2026

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Why this matters for Bay Area boards

Many condo HOAs and TIC buildings in San Francisco, Oakland, Marin, and the Peninsula are small, often 2 to 20 units. The board is usually a few volunteer owners with full-time jobs. That makes it easy to slip into a setup where the management company holds everything: the bank login, the owner ledger, the vendor contracts, the insurance file, and the meeting minutes.

Most managers are honest. But a setup that depends on trust alone is fragile. If the board can't see the money or the files without asking the manager first, the board can't do its legal job. It also has little leverage when service gets worse.

Below are the four transparency problems we hear about most from Bay Area boards. For each one, we explain what California law says and what to ask for.

Red flag 1: The board has no direct access to its own bank accounts

What it looks like: The manager holds the only online login. Statements go to the manager's office. Board members see a summary report each month, or only once a quarter, but never the actual bank statement.

What California law says:

• The board must review, every month, a current reconciliation of the operating and reserve accounts, the latest statements from the bank, an income and expense statement, actual results against budget, and the check register, general ledger, and delinquency reports (Cal. Civil Code §5500). The board may do this review outside a meeting if every director, or a treasurer-led committee, reviews the documents and the next meeting's minutes ratify the review (FindHOALaw on §5501).

• A managing agent who receives association funds can't mix them with its own money or with other clients' money. It must also keep a separate record of all receipts and payments (Cal. Civil Code §5380).

• The board can request in writing that funds go into an account held either in the association's name or in the manager's name as trustee for the association (Civil Code §5380(b)).

• Transfers out of reserve or operating accounts need prior written board approval. The only exception is a transfer under the lesser of $5,000 or 5% of budgeted income (for 50 or fewer units), or under the lesser of $10,000 or 5% (for 51 or more units) (Cal. Civil Code §5502).

• Withdrawals from reserve accounts need two signatures, generally from two board members, or from one board member plus an officer who is not on the board (Davis-Stirling.com on Civil Code §5510).
  

What to ask for: Accounts in the association's name. Board members on the signature card. Read-only online access for at least the treasurer and one other director. Bank statements delivered straight to a board member, not only through the manager. One practical HOA finance guide recommends exactly this, so the reviewer isn't getting the statement from the person being reviewed.

Plain-English rule: If your board can't log in and see today's balance without calling the manager, the setup needs to change.

Red flag 2: Information is shared only "on request," slowly, or in pieces

What it looks like: Owners and even directors are told that documents are "proprietary," "in our system," or "need management approval." Requests go unanswered for weeks. You get a two-page summary instead of the general ledger.

What California law says:

• Owners can inspect and copy association records, including financial statements, ledgers, executed contracts, and minutes (Davis-Stirling.com on Civil Code §5200). Executed contracts, including the management agreement itself, count as association records (L.S. Carlson Law).

• Production deadlines are set by law. Current-year records must be produced within 10 business days, and records from the prior two fiscal years within 30 calendar days (Civil Code §5210).

• An association that fails to comply may face a $500 penalty per request under Civil Code §5235, plus attorney's fees (Terms.law summary).

• Managers must disclose in writing any ownership stake, profit-sharing deal, or referral fee tied to vendors they recommend. This applies before signing a management agreement and whenever they present a bid (Civil Code §5375; Civil Code §5375.5).

• Managers must also disclose each year whether their fidelity insurance covers the association's operating and reserve funds. They must confirm in writing that resale disclosure documents are the property of the association, not the manager (Bus. & Prof. Code §11504).

What to ask for: A monthly board packet that includes the bank statements themselves, not just summaries. A written conflict-of-interest disclosure. A copy of the manager's fidelity or crime insurance certificate.

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Red flag 3: The management agreement is easy to sign and hard to leave

What it looks like: Multi-year terms. Automatic renewal unless you give notice in a narrow window. Termination "for cause only." Early-termination fees. "Transition fees" or per-page copy charges to get your own files back.

What to know:

• Bay Area management agreements often run one or two years, with 30 to 90 days' notice to terminate. Some auto-renew, and some allow early termination only for cause (APM on switching companies in the Bay Area).

• Some contracts charge termination fees of 2 to 3 months of management fees, and auto-renewal can quietly close your exit window (Propty).

• Some contracts let the company charge per-page fees to produce records, or hold records for a period after termination (DryDev).

  
  

What a fair agreement includes:

1. Termination without cause on 30 days' written notice, with no penalty

2. No automatic multi-year renewal

3. A written handover deadline, for example 10 business days, with no transition or copy fees

4. Digital records in usable formats (PDF plus CSV, Excel, or accounting-software export), not just printouts

5. A clause stating that all records, data, and portal content belong to the association

   Tip for TIC owners: A TIC building has no state statute to fall back on, so the exit terms in your management agreement are your only protection. Read them before you sign.

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Red flag 4: Your HOA's files live only inside the manager's software

What it looks like: Governing documents, owner ledgers, violation history, work orders, insurance claims, and minutes all sit in the manager's proprietary portal. The board has no admin login, no export, and no copy on a drive the board controls. If you leave, you get a box of PDFs or nothing at all.

Why it matters: Your records belong to the association. As Davis-Stirling.com notes, the Act defines records as the association's records, not the manager's (Davis-Stirling.com). Law-firm and industry guides agree that an outgoing manager can't hold association records hostage and that boards can ask a court to order their return. But the law sets no specific deadline for the handover, so transitions can drag on for weeks (Propty). The practical answer is to never let all the files exist in only one place.

What to ask for: A shared cloud folder owned by the association (for example, a Google Workspace or Microsoft account registered to an association email). The manager should add documents to it every month. The board should keep owner-level admin access to every system: bank, portal, accounting software, website, and email.

A special note for San Francisco TIC buildings

TICs are common in San Francisco. They work differently from condos. A TIC is governed by a private TIC agreement, not by California's Davis-Stirling Act (Kaufman Dolowich). Most of the statutory protections above (monthly review under §5500, records deadlines under §5210, transfer limits under §5502) do not apply to a TIC automatically. Co-owners are also often jointly liable for shared obligations such as property taxes and, in many buildings, a shared loan (Kaufman Dolowich).

So TIC owners need these protections in writing:

• In the TIC agreement: who can see bank statements, how often, and who must approve payments

• In the management agreement: Davis-Stirling-style standards adopted by contract (monthly statements to all co-owners, two-signature approval above a dollar limit, records handover within a set number of days)

• Shared expenses and any blanket-loan payments collected into an account in the co-owners' names, with every co-owner able to view it

The Bay Area board transparency checklist

Use this at your next board meeting. For a TIC, use it with your co-owners.

#	Question	Green flag answer
1	Whose name is on the bank accounts?	The association's (or the manager as trustee, at the board's written request)
2	Can at least two board members view the accounts online right now?	Yes, without asking the manager
3	Does the board see actual bank statements and reconciliations every month?	Yes, and the minutes record the review
4	Are transfers above the §5502 limit approved in writing in advance?	Always
5	Has the manager given written conflict-of-interest and fidelity insurance disclosures?	Yes, current year
6	Can the board export all records today?	Yes, from a board-owned folder
7	Can you end the contract without cause on 30 days' notice?	Yes, with no termination or transition fees
8	Does the contract set a records-handover deadline?	Yes, in writing
9	Who holds admin logins for the portal, website, and email?	The board
10	(TIC) Are these protections written into your TIC and management agreements?	Yes

How to fix it without a fight

1. Ask in writing. Send a short board resolution asking for read-only bank access, monthly statements, and a records export. Cite the relevant Civil Code sections.

2. Set a deadline. Ten business days is reasonable, and it matches the current-year records deadline under §5210.

3. Review the contract. Find the term, the renewal date, the notice period, any fees, and the handover language. Put the renewal date on the board's calendar.

4. Plan before you give notice. If you decide to switch, pick the new manager first. Then send notice that requests a final accounting, bank access transfer, and a complete records handover (APM).

5. Escalate if needed. If records or funds are withheld, contact an HOA attorney. A CPA review of the transferred books is also worthwhile.

This article is general information, not legal advice. For your specific situation, consult a California HOA attorney.

How SNS Management works

SNS Management, LLC (Sausalito, CA) manages HOAs, condo associations, and TIC buildings across the San Francisco Bay Area. Our approach is built around the board staying in control:

• Bank accounts in the association's name, with board members on the accounts and online access

• Monthly packets that include the actual bank statements, reconciliations, and ledgers

• Association records kept in a folder the board owns, so you can see them at any time and keep them when we leave

• Cancel anytime with 30 days' notice, no termination fees

• Clear pricing and a flat onboarding fee, published here.

  
  

Not sure how your current setup compares? Book a free 20-minute transparency review and we'll go through the checklist above with your board.

Frequently asked questions

Can an HOA board member get direct access to the HOA bank account in California?

Yes. California law requires the board to review the latest bank statements and account reconciliations every month (Civil Code §5500). The board can also request in writing that funds be held in an account in the association's name (Civil Code §5380(b)). Read-only online access for directors is a common, practical way to meet that duty.

Who owns the HOA's records, the association or the management company?

The association. Under the Davis-Stirling Act, records such as financial statements, ledgers, contracts, and minutes are association records. Owners can inspect them, and an outgoing manager should hand them over when its contract ends.

How long does a California HOA have to respond to a records request?

Current fiscal year records must be produced within 10 business days, and records from the prior two fiscal years within 30 calendar days (Civil Code §5210). Failing to comply can lead to a $500 penalty per request under Civil Code §5235.

Can a management company move HOA funds without board approval?

Only small amounts. Transfers from operating or reserve accounts need prior written board approval unless they fall under the lesser of $5,000 or 5% of budgeted income (50 or fewer units), or the lesser of $10,000 or 5% (51 or more units), under Civil Code §5502.

How do we get out of an HOA management contract?

Read the term, the renewal date, the notice period (often 30 to 90 days), any termination fees, and the records-handover clause. Pick your new manager before you give notice. Then send written notice requesting a final accounting, bank access transfer, and full records handover.

Do these California HOA rules apply to San Francisco TIC buildings?

Generally not automatically. TICs are governed by a private TIC agreement, not the Davis-Stirling Act. TIC owners should write bank visibility, approval limits, and records-handover terms into their TIC agreement and their management agreement.