Plans

As HOA Start-up Budgets are being created, a question we hear often is "can the dues be reduced?" More often than not, the HOA dues in the early phases are higher simply because of the way the development has been mapped. One big item that impacts the HOA dues in the early phases is quite simply that the common area lots are too large.  Unfortunately, this is something that should be addressed ...
Do's and don'ts

One question we are asked from time to time, is whether or not a client should record CC&Rs  (Covenants, Conditions & Restrictions) on their project.  The answer is often also a question:  Does the local agency require that CC&Rs be recorded?  Depending upon the type of community being created, it may be that no CC&Rs are required at all. The Department of Real Estate’s Glossary...
Stack of coins

Not all lots or units are created equal.  Sometimes the range of differences is based on square footage, location, or certain amenities like ADUs or outside patios.  Other times it may be simply that certain groups are designated as “affordable,” which requires a lower dues assessment level. If the difference is due to size, determining the variance is a function of calculating the unit sizes o...
Streets aerial view

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...
Pool under construction

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, ...
Rubber stamp

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...
Home community

A well-run Homeowners Association (HOA) can lead to an increase in property value and heightened satisfaction from owners and can considerably enhance your home ownership experience. A recent survey from The Community Associations Institute reported 84% of HOA members stated their governing board continually acted in the best interest of their community, and that 85% of HOA residents shared the sa...
Looking at graphs

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...
Swing resize

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 maint...
Ice Cream yummy

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...