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 collect dues on all unsold lots. You can pay monthly on all 50 lots until they’re all sold and slowly eat into your profits, or you can phase the project into smaller “Marketing Phases”.  You only pay dues on unsold lots withi...

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 leg...

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 rare cases, any issues experienced are mostly 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 ...

The balcony collapse at U. C., Berkeley in 2015, killing six people, was caused by a series of preventable failures. The balcony was poorly designed, badly constructed, and not inspected and maintained effectively. To target this safety measure gap, the Senate passed Senate Bill 721 (SB721) in January (the bill is currently at the State Assembly as of this writing), which requires properties wi...

Making headlines this month was the story of an HOA being successfully sued for $20-Million Dollars because of a faulty swing set. The Nevada court jury agreed that the playground equipment was improperly maintained, and not inspected regularly.  When the swing set finally broke, it caused a serious head injury to one of the tenant’s children. This case highlights the importance of regular main...

Although the State of California Business and Professions Code 11010.4 releases developers from the Public Report requirements if all criteria are met, a Public Report is still considered a necessity by some. According to the B&P, a public report is not required when; Purchase money is deposited with escrow and proper releases and obtained; The development is not a common interest d...

A vote in November could provide a major change for the current California rent control laws and the housing crisis. Although the specifics aren’t completely clear, one thing is certain: Big changes are headed our way. The ballot initiative aims to repeal the Costa-Hawkins Rental Housing Act which places limits on rent control and prohibits “vacancy control.”  (For more info on Costa-Hawking cl...

When you need to get somewhere fast... Use the Hennessy Venom F5.  When you need to amend a public report fast... use the 635A. Public Reports must be received and read by every prospective buyer before entering into a contract to purchase. It is always in your best interest to have an expert consultant in your corner, making sure you have the proper documents required to move forward with your...

When a common interest subdivision includes common facilities or services that are provided to a limited number of lots or units as a special benefit available to some purchasers but not all, then a cost center should be created. It would be unreasonable to collect assessments from all members of the HOA if only a limited number of lots/units are benefitting; thus the creation of the “Cost Cent...