Selling homes in phases? Consider structuring your next subdivision map to include multiple road lots.  Asphalt streets are definitely one of the most expensive items that HOA's maintain.  Breaking the road lot into multiple lots to match your sales plan can save thousands. Think of it this way; if you have all of the streets in one lot, it can "front load" the HOA dues program, causing assessm...

When an HOA is created, the dues start in any phase when the first lot or unit is sold. For planning purposes, it’s important to note that the DRE Regulations allow for HOA assessments to be waived for HOA-maintained improvements that are not complete. Regulation 2792.16c, in a nutshell, stipulates that any assessments for common area which has not been completed can be deferred - in other words, ...

Does your HOA common area need to be rejuvenated, but your bank account doesn't allow for much more than a new paint job?  Well, the good news is that most banks consider HOAs good investments.  Obtaining credit from a reputable agency is often much more palatable than special assessments and may be easy to obtain!  We have worked with several HOAs who have used lending to cover their financial ne...

We often get calls from clients considering a purchase of a "broken" project, who are in the due diligence period on a project.   In this situation, it is worth the effort to investigate the project from the Department of Real Estate (DRE) perspective.  Was it filed with DRE previously?  Are there any red flags in the public report?  What would an amendment filing at DRE look like for this project...

E-FILING becomes a reality in 2018 Electronic filings have been discussed for the past five years, and some thought it might never happen.  Alas, it is happening, in 2018.  Our firm will be participating in beta testing of pink report application filings in July of 2018.  Based on the success rate of the beta filings, it is possible that full electronic filings will be available as early as the...

It's official – the Department of Real Estate is back!  The former Bureau of Real Estate has regained independence and is back to operating as an independent Department within California's government structure.   Since this announcement, management has scrambled to hire administrative staff to support the Department, filling 18 new positions in July; but those are not the only positions needing to...

Here’s the scenario: you’re creating a 50-lot gated community where the monthly dues will be $100 per lot. Here’s the problem: Once you begin selling homes, the HOA will begin collecting dues on all unsold lots. You can pay monthly dues on all 50 lots until they’re all sold and eat into your profits or you can phase the project into smaller “marketing phases” during which you only pay dues on u...

The Bills Are Coming The state has been working on several bills to overcome the housing crisis, and one of the most discussed and disputed is AB 2353 (Frazier). AB 2353 (Frazier) shortens the timeframe for action against a person or business for a construction defect from ten years to five years after substantial completion of the project.   Favoring View Tightening the window of lega...

Building dream homes in a planned development is a smooth and uninterrupted process for most of our clients. It's a fairly simple process despite a few additional steps involved – we do most of the heavy lifting for you.  In the rare problematic cases, issues are usually related to HOA management or the HOA board members. In some cases, the delays have prolonged more than a year, but with a few...

California passed the famous Proposition 13 more than forty years ago to rein in exorbitant property taxes. From the taxation perspective, the initiative also made it more beneficial for homeowners to stay in their homes. Now, however, Californians are being requested to vote in favor of a tax measure that can make the tax expense more bearable for the senior citizens of the state who may want ...