Final Public Reports that are issued to a Subdivision are subject to maintaining an accurate representation of the property. Sometimes what sparks the need for an Amendment filing can correspond to more than one aspect of the Public Report, such as the date of expiration.
Material changes to the Subdivision after issuance of the Final Report may require that a Subdivider needs to file for an Amended Report. Material changes may include:
- The ownership entity or structure has changed
- Sale of 5 or more lots to a single entity
- Changes in advertising/offering promotional incentives to attract prospective buyers
- Creation or annexation into an assessment district that is not disclosed in the existing Public Report
- Change in the common areas and amenities (common interest subdivisions)
- Change in the Phasing program (common interest subdivisions)
- A 20% increase or 10% decrease in the originally approved HOA budget.
Other components of an Amendment Filing
If the development is a common interest project, and the Public Report has been issued for more than 2 years, it is likely that that amendment process would involve a review of the HOA financial health, and most likely a Reserve Study would need to be conducted prior to submittal to the DRE.
It is important to note that the examples above are only a few of the possible changes that could impact the validity of a Public Report. Please refer to Regulations of the Real Estate Commissioner section 2800 – Notification of Material Change.
