Who does California §5806 apply to?

California §5806 applies to HOA associations in California.

What happens if our CID doesn't comply with §5806?

Non-compliance can expose the association and individual directors to disputes in the governing forum for California community associations. SoShiny's audit trail and documented workflows are designed to demonstrate good-faith compliance.

Where can I read the official text of California §5806?

The official text is published by the California Legislature at leginfo.legislature.ca.gov. The summary on this page is for plain-English reference only and is not legal advice.

California §5806

Fidelity bond requirements

Statute:: California §5806 · Chapter CIV-9 (Davis-Stirling Act Ch. 9 — Insurance and Liability)
Topic:: Assessments & Finance · Fidelity bond
Applies to:: HOA associations

The association shall maintain a fidelity bond (crime insurance) covering the association's officers, directors, employees, and managing agent, in an amount equal to current reserves plus three months of assessments, unless the governing documents require more.

fidelity; crime; bond; 5806; manager

📄 Read the official text at leginfo.legislature.ca.gov →

How SoShiny helps with Fidelity bond requirements

SoShiny calculates per-unit assessments automatically from ownership percentages and tracks payment status against every levy. The unit-level ledger is the audit trail your CPA, attorney, and the board need when an owner disputes a charge.

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Frequently asked

What does California §5806 require?: The association shall maintain a fidelity bond (crime insurance) covering the association's officers, directors, employees, and managing agent, in an amount equal to current reserves plus three months of assessments, unless the governing documents require more.
Who does California §5806 apply to?: California §5806 applies to HOA associations in California.
What happens if our CID doesn't comply with §5806?: Non-compliance can expose the association and individual directors to disputes in the governing forum for California community associations. SoShiny's audit trail and documented workflows are designed to demonstrate good-faith compliance.
Where can I read the official text of California §5806?: The official text is published by the California Legislature at leginfo.legislature.ca.gov. The summary on this page is for plain-English reference only and is not legal advice.
How does SoShiny help with Fidelity bond requirements?: SoShiny calculates per-unit assessments automatically from ownership percentages and tracks payment status against every levy. The unit-level ledger is the audit trail your CPA, attorney, and the board need when an owner disputes a charge. Learn more →

Not legal advice. This page is a plain-English summary of California §5806 prepared by SoShiny for board members and managers. For binding legal advice or interpretation, consult a California-licensed attorney. For the official statutory text, see the link above.

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