In September, a revised RE 618H form was published by the DRE. This revision allows for budget assessment changes in the Public Report. With the new process, we simply need to file an amendment application and $600 fee, then the DRE will approve use of the RE 618H form to be used with the existing report. The result is that our clients can then continue to open escrows without waiting for the b...
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By in Budgeting, DRE, Home Building, Regulations, Timeline

With the new solar requirements coming into effect in 2020, we have confirmed that the DRE will maintain their “hands off” approach to reviewing solar (lease/sale) documents. That is, unless the Subdivider is a party or related subsidiary to the solar installer. In that case, the DRE will want to review every document, to ensure that consumer protection mechanisms are in place. The movement fro...
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By in Budgeting, DRE, Home Building, Regulations

You have a new project and you’re ready to get going! You’re just not sure the best course of action to take? Many questions may be crossing your mind, such as, “How many phases should there be?” or “How much money is this going to cost me?” No worries! We’ll help you put the best foot forward with our “Phasing Predictor”. The Phasing Predictor will assist you in creating a marketing phasing pr...
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By in Budgeting, DRE, Home Building, Phasing Predictor, Timeline

If you are a landlord, by now you’ve no doubt heard of Assembly Bill 1482, the Tenant Protection Act of 2019. This Bill was designed primarily to cap rent spikes from year to year.  Over the next 10 years, AB1482 will restrict annual rent increases to a maximum of 5%, plus inflation.  This 5% cap will be irrelevant to apartments built within the last 15 years and/or single-family home rentals, unl...
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By in Home Building

On August 30th, a new balcony bill went into legislation. Unlike its predecessor, Senate Bill 726, Senate Bill 326 focuses primarily on condominiums and has a more in-depth inspection process. With this new bill, community associations are required to inspect balconies and other Exterior Elevated Elements (EEE), such as stairways, decks, and railings. Bill 326 requires that all new construction...
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By in Home Building, Permitting, Regulations

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...
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By in HOAs, Home Building, Regulations

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...
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By in DRE, HOAs, Home Building, Regulations

The construction loan is recorded and construction is well underway. The DRE process is clicking along, and you just found out you need to negotiate with the Lender... Again. In an effort to fulfill their mission of consumer protection, the Department of Real Estate requires that certain documents be protected against any possibility of a loan foreclosure. In other words, certain documents that...
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By in DRE, Home Building, Regulations

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 ...
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By in Budgeting, HOAs, Phasing Predictor
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 ...
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By in Budgeting, DRE, HOAs