Association Living
Q: What is a community association?
A: Your community association is a non-profit corporation registered with the State of California. As such, it is managed by the Board of Directors whose purpose is to oversee the maintenance and operation of all common area and facilities. The Board is also responsible for governing your community in accordance with the provisions of the CC&R’s, Bylaws, and the Articles of Incorporation.
Q: What are the CC&R’s?
A: The Covenants, Conditions, and Restrictions (CC&R’s) are the legal documents that determine the guidelines for the operation of your community as a non-profit corporation. All homeowners must comply with the CC&R’s; failure to do so may result in fines.
Q: What Are Bylaws?
A: The Bylaws are the guidelines for the actual operation of the corporation. The Bylaws define the duties of various officers of the board, the terms of the directors, the members’ voting rights, required meetings, as well as other specific procedures that are necessary to run the association as a corporation.
Q: What is a community association?
A: Your community association is a non-profit corporation registered with the State of California. As such, it is managed by the Board of Directors whose purpose is to oversee the maintenance and operation of all common area and facilities. The Board is also responsible for governing your community in accordance with the provisions of the CC&R’s, Bylaws, and the Articles of Incorporation.
Q: Are there other guidelines?
A: From time to time, guidelines will be adopted by the board. These guidelines are meant to enhance the community, and may include guidance on parking, pets, pool use hours, etc. Since the common area is owned and maintained by the association, any intended changes or modifications must be consistent with the architectural guidelines. Architectural guidelines adopted by the board will include procedures for submitting requests to make exterior changes. The purpose of these guidelines is to control and protect the visual integrity of the community.
Q: What are assessments?
A: Maintaining and operating your common area requires funds. These funds are collected from you in the form of assessments levied against your home. In addition, these monies provide for a reserve fund to offset future capital expenses.
Your monthly assessment is due on the first day of the calendar month following your escrow closing, and on the first day of each month thereafter.
Q: How is your assessment determined?
A: Initially your assessment is determined by a budget approved by the California Department of Real Estate (DRE) submitted by the builder of your community. This budget includes cost of the maintenance and administrative functions as well as reserve funds. The reserve funds are set aside for future expenses based on the life expectancy of the common area. These amounts are then divided by the number of homes built in a given tract or phase of development. Subsequent budgets are developed by the board of directors.
Q: Will Assessments go up?
A: There are no hard and fast answers to this. The governing documents for your community provide for annual increases, up to a certain percentage, to cover cost of inflation. The board of directors may increase your assessments up to a percentage in order to cover the higher costs of operating and maintaining the common area and to maintain adequate reserve funding. Only a majority vote of the homeowners can increase assessments beyond the specified percentage.
Q: What if you don’t pay your assessments?
A: Hopefully, that won’t be a problem, however the association relies on your prompt payment to ensure that the association expenses are paid, thus ensuring continuation of services. Payments received after the first of the month are subject to a late charge. Since billing is a courtesy and not a requirement, failure to receive a statement does not negate your legal responsibility to pay your assessment. Unfortunately, non-payment can lead to legal proceedings.
Q: Why do assessments fluctuate during build-out?
A: Until the build-out of the community, homeowners will continue to see assessments fluctuate based on common area annexation, but they will not increase or decrease beyond the range of assessments that you were notified of during the closing process. At the build-out of the community homeowners will have one consistent monthly assessment. Homeowners may also see several adjustments to your statements based on the timing of closings and the mailing of the Association billing statements.
Q: Who makes up the Board of Directors?
A: Since your community association is a corporation by law, a governing body, the board of directors, is required to oversee its business. Initially, when a community is new, the builder holds all positions on the board. However, when sufficient number of homeowners have closed escrow, the members elect homeowners to serve on the board.
Serving on the board is a unique opportunity for you to participate in making crucial decisions about your community. Being a member of the board will not make you rich financially (the Bylaws prohibit salaries for board members) however, the rewards of participation in the management of your home and neighborhood environment are immeasurable.
Q: How else can you serve you Association?
A: if you can’t participate as a board member, you are encouraged to serve on one of the association advisory committees (Rules, Landscaping, Architectural, etc.). Participating on a committee is one more way of taking an active role in the way your community is run.
Your board meets on a quarterly basis and a voting member of your association you have the right to voice your ideas and opinions during scheduled open forum sessions. However, participation in the meeting is limited to directors only. Not all actions taken by the governing body require a vote of the members of the association. Therefore, taking an active role on the board, or on a committee appointed by the board, will allow you to make a positive impact on the quality of life within your neighborhood.
Action Property Management is here to represent your community association. We have been contracted by your board to handle the day-to-day administrative functions of the association. If you have any comments or questions regarding your community association, your assessments, or your role as a member, please feel free to call us. We look forward to hearing form you and the opportunity to assist you.