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 a take-down schedule last year in an older planned development that had been stalled out.  It was a “broken” project, with 50 lots in Phase 1, with a half dozen existing homeowners who were very happy that our client was going to save the subdivision. Being ca...

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 of costs associated with improvements that are not being maintained by the HOA.  It’s actually illegal for the HOA to charge assessments for expenses that they do not incur. IF the CCRs allow for this deferment of assessmen...

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 assess...

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 Public Report must be diligent to ensure compliance with the DRE process when releasing bonds. An early or “illegal” release creates a material change to your development, necessitating an Amended Public Report filing. Each Bond is ac...

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 the Index was holding up over 4%!   Why the jump?   That’s after the NAHB and Wells Fargo released worse than expected housing data showing the effects of the shelter-in-place orders are having on the housing market. Their prelimina...

What crazy times we’re living in!  As if we all didn’t have enough going on this year already, Covid-19 has brought HOA communities throughout California to sheltering-in-place.  Reaching community members has come to another level.  While we must always be mindful of personal health, and exposure to unhealthy possibilities, HOA business must go on. As an essential business, California Builder ...

We recently had an interesting case that brought real life issues to the forefront of our Reserve Study services. Every single HOA board has at least one of these owners….the Member who doesn’t want to add one cent to the budget. No matter how many ways the increase might be justified, this person always votes it down. Understanding the fiduciary obligation of the board member is critical to...

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 ...