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DRE Housekeeping items – Subdivision Sales Requirements
From time to time we are contacted by Real Estate Professionals, who are working with new home or lot sales, who need a refresher course
Deferment of Assessments (for Unimproved Common Area)
When an HOA is created, the assessments are triggered when the first lot or unit is sold. For planning purposes, it’s important to note that
Cash flow or component funding: Which is best for a reserve study?
Preserving market values with sound financial management and informed budgets is a critical task for any board of directors. It’s common for board members to
Construction – especially home building – is essential
After Gov. Gavin Newsom shut down much of California’s economy Thursday to slow the spread of the coronavirus, Sacramento construction executives and elected leaders went into overdrive.
Buying in Bulk
The success of the Costco chain of stores has proven that buying in bulk makes sense to a lot of us. From retail sales to
Releasing DRE Bonds
Filing bonds on subdivisions are one of those requirements that you can’t often avoid, without delaying getting your project to market. Subdividers under a Final
Dangers of an underfunded HOA reserve fund
At first glance, it’s tricky to see the dangers of an underfunded HOA reserve. Many HOAs often don’t understand the value of an adequate HOA reserve fund — until it’s too late!
Fiduciary Obligations
According to Wikipedia, a fiduciary “is a person who holds a legal or ethical relationship of trust with one or more other parties (person or
Completion Bonding & The Approval Process
Any time that the common area improvements will not be completed in a development at the time of the first sale closing, a financial security
Subdivision Names: How To Name A Community (Tips & Examples)
Naming a residential subdivision is never easy. You’ve not only got to make sure your name ticks all the right legal boxes, but you’ve also
Reserve Fund Study: A Crucial Long-Term Budget Planning Tool
Reserve fund studies are a crucial long-term financial analysis tool for any Homeowner’s Association (HOA). Why? Well, a reserve fund study provides valuable long-term financial
Why You Should Never Neglect Your Reserve Studies!
Over the past 30 years of HOA Budget preparation and consulting, we have found that an alarming number of HOAs either neglect to have a
HOA Reserve Funds: When You Should (& Shouldn’t) Use Them
We know that financial operations like reserve funds present a unique challenge to your Homeowners Association (HOA). Proper budgeting and allocation of reserve funds can
Understanding Subdivision Sale Requirements
Let’s be frank – navigating the world of DRE can be confusing and convoluted. There are so many subdivision sale requirements and almost no resources
HOA Budgeting: Tips For Creating A Cost-Efficient HOA
Homeowners Associations (HOAs) are a vital part of a well-run, well-kept, and well-organized community. A good HOA ensures that a private community looks attractive and pristine,
This Week, in Economic News….
The U.S. Census Bureau reported a 22% jump in new construction housing over June, which was 23% higher than May. This is almost 10% higher than July of
It’s all in the ADVERTISING Name
When William Shakespeare’s Juliet said the famous quote,“What’s in a name?”, she was explaining how a name is not a big deal. While that may
A Comprehensive Guide To Subdivision Public Reports
If you are developing a subdivision in the state of California, you’ll need to obtain a subdivision public report before the units in your subdivision
Re-Phasing Your Subdivision
Remember that old saying about what happens when you ASSUME? Well… it’s still true. We have a client who bought close to 100 lots on
Waiver of Assessments for Common Areas or Maintenance Areas
DRE Regulations allow for HOA assessments to be waived for HOA-maintained improvements that are not complete. Regulation 2792.16c, in a nutshell, allows a complete deferment
It’s All in the Name
Do you develop your project in one company/entity, and then sell homes from another entity? If so, this article is for you! When the Department
The Wisdom of Creating Multiple Street Lots
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
Releasing DRE Bonds
Filing bonds on subdivisions are one of those requirements that you can’t often avoid, without delaying getting your project to market. Subdividers under a Final
Housing Is Looking Up
Last night, before going to bed, I saw the S&P Homebuilders Index (XHB) was up over 8% in after-hours trading. This morning, I checked and