You just completed a draft of your subdivision map and are excited about the future prospects of your project.  Suddenly you find out that the City or County will not accept a road dedication, and is requiring you create an Association to maintain the road.  Typically, this type of Subdivision is considered a Common Interest Development and will require a six to nine-month processing period with t...

As you all know, when you have a project with an existing Deed of Trust, the Department of Real Estate requires that the existing loan be made subordinate to the CC&Rs.  This is accomplished through recording a “Subordination” or “Consent of the Lien Holder”, which effectively allows the CC&RS to “jump ahead” of the CC&Rs in priority of title. Do you know why the DRE requires this a...

We often work with our clients to create a successful phasing program, being careful to annex common areas at the right time, allowing us to avoid spikes in HOA dues. Being able to plan for the eventual addition of specific common improvements to the HOA helps to avoid “front loading” the association with heavy improvements in the early phases, necessitating a developer subsidy -resulting in even ...
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...