What Every California Homeowner Needs to Know About HOA Reserve Funds (Part 2-Conclusion)

In this episode, Michael Kushner concludes this 2-part series by exposing how some boards don’t just underfund reserves, they engage in actual fraud. In this episode, Kushner exposes the deceptive tactics bad HOAs use to manipulate reserve studies, inflate their “percent funded” numbers, and avoid disclosing the true financial condition of their HOAs. From delisting major components and tampering with useful life calculations, to simply skipping reserve contributions altogether, Kushner walks you through how these schemes work, and how to recognize them. 

You’ll also learn what kinds of financial red flags to watch for in your HOA’s disclosures, how to compare reserve summaries and full reserve studies, and what legal obligations your board has to maintain and report truthfully on your common areas.  

🎯 What You’ll Learn in This Episode: 

✅ Why special assessments are often the direct result of underfunded reserves.

✅ How some boards cheat by delisting assets, fudging useful life, or skipping reserve contributions.

✅ What Civil Code section 5600 requires your board to do, and what it looks like when they don’t.

✅ How to compare multiple reserve studies and summary disclosures for red flags.

✅ Why low percent funded ratios can damage property values, trigger lawsuits, and ruin resale opportunities.

✅ What to do if your HOA refuses to disclose, or manipulates, its reserve data. 

This episode gives you a step-by-step breakdown of how to spot reserve fraud and protect your property value before it’s too late. 

🔔 Subscribe for more full-length episodes and shorts to help you fight back against abusive HOA practices. 

🎧 Listen on YouTube @hoahellpodcastofficial or wherever you get your podcasts. 

🌐 📞Need help? Contact MBK Chapman at www.mbkchapman.com. Mention the HOA HELL podcast for a discounted consultation. 

Disclaimer:  

This content constitutes attorney advertising.  

The content of this podcast is for general informational purposes only and does not constitute legal advice. No attorney-client relationship is created by listening to this podcast, submitting a question, or receiving a response. Always consult with a licensed attorney regarding your specific legal situation. MBK Chapman and Michael Kushner disclaim any liability for actions taken or not taken based on the information provided in this podcast.  

This communication does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.  

About:  

Michael Kushner is the attorney who pioneered this niche area of the law—representing homeowners in disputes with their HOAs—in California. He created and taught the systems now used by the biggest law firms in the state focused on HOA litigation. Through his firm, MBK Chapman, and now through HOA HELL, Kushner continues to give homeowners practical legal tools to fight back. 

#MichaelKushner #MBKChapman #HOALaw #CaliforniaHOA #BadHOA #LSCarlsonLaw #HOAReserves #ReserveStudyFraud #DavisStirlingAct 

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