The Condominium Governing documents of the HOA

The HOA - Home Owners Association is governed by a series of multiple documents.

 In this series I will outline these types of governing documents.

 Part One:

  The five main Governing documents are as follows:

1) The Declaration of Covenants, Conditions and Restrictions (often referred to as “CC&Rs..

2) Bylaws.

3) Articles of incorporation. 

4) Condominium plan. 

5) Operating rules. 

 The following is a basic outline of said documents and in noway is meant as legal advice. 

For detailed legal interpretation, Please consult an attorney the us fluent in HOA Law..

  Contents of CC&Rs

CC&Rs describe the rights and obligations of the homeowners’ association and of each owner. CC&Rs vary widely in content and length, but at a minimum the CC&Rs must contain a legal description of the development, a statement of the type of common interest development it is, the name of the association and any use restrictions”, typically including common area use restrictions, pet regulations, and alteration controls. The CC&Rs may contain other matters such as the following: (1) the boundaries of the common area and of each unit or lot; (2) the maintenance responsibilities of the association and the individual owners; (3) the allocation of association operating costs among the owners, and the mechanism for collecting owner payments; (4) the dispute resolution procedure; (5) the enforcement powers; and (6) the rights and protections of mortgage lenders.”

   Bylaws 

The bylaws describe the mechanics of association decision-making and management. Bylaws “vary widely in content and length, but usually include the following: (1) number of and selection methods for officers and directors; (2) notice, meeting and voting procedures for owner and board decisions; and (3) association record keeping and reporting requirements.

Although bylaws are common for both incorporated and unincorporated associations, they are required only for certain incorporated associations. Bylaws are prepared by the developer’s attorney and reviewed by a government agency (unless the project has fewer than five units or lots) at the time a condominium project or planned development is formed. But unlike articles and CC&Rs, bylaws are not recorded or filed with any government agency, and this makes them easier to change.

   Articles of Incorporation

A corporation is formed by filing of articles of incorporation (or simply “articles”) with the California Secretary of State. The articles must include the information required by both Civil Code § 4280 and Corp. Code §§ 7130-7132. Failure to strictly comply with both statutes will result in rejection when the articles are presented for filing with the Secretary of State. Because of the technical requirements, preparation and filing of articles should be handled by an attorney.

    Condominium Plan

The term “condominium plan”, sometimes called a “subdivision map”, as well as the less common terms “final map” and “parcel map”, describe types of drawings that depict the “common area, exclusive use common area and individual ownership interests in three dimensional space and illustrate how a property is divided. These drawings show the exact location and boundaries of each unit or lot, and of the common area. They are prepared by licensed land surveyors, reviewed by government agencies, and recorded with the county at the time a condominium project or planned development is formed. Once recorded, the drawings become connected to every deed and mortgage on every unit or lot within the property, and this connection makes changing the map or plan very difficult without the consent of everyone with an interest in the property. There can be several maps or plans recorded at different times as new portions of a project are added by a process called “annexation”. In some condominium projects, a condominium plan is attached to the CC&Rs rather than recorded separately”

   Operating Rules

The CC&Rs usually empower the homeowners’ association to adopt rules and give the rules the same binding power, although not the same priority, as the other governing documents. The rules often provide use restrictions relating to alterations, signage, waste disposal, parking, pets, and recreational facilities. Where the same topics are discussed in the CC&Rs, the rules may add to or explain the CC&Rs but cannot conflict with them. Association rules are usually enacted after some of the units or lots have been sold and the owners have taken control of the association. They are not subject to any governmental review and do not need to be filed or recorded with any governmental agency.

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How one flag loving SD homeowner outsmarted his HOA

A few weeks prior to Memorial Day, Aspen Hills (SD) resident Alan Gross suggested installing a flagpole at the entrance to the community. But homeowners association board president Harvey Fayer denied the request.

The entry to Aspen Hills is a common area, and not on Alan Gross’ private property.

Fayer says that the matter needs to be put to a vote of all HOA members at the annual meeting, and if the majority approve of installing the American flag at the entrance to Aspen Hills, Gross can proceed with the board’s blessing.
But, that HOA meeting will not take place until September. Of course, by that time, Memorial Day, Flag Day, Independence Day, and Labor Day would have come and gone.
On that private plot of land, Gross and Ward put up a 20-foot flag pole with the American flag, a Trump for President campaign sign (Ward’s choice), and even a POW flag, at the request of another Aspen Hills resident. Then they took photos, and when they were posted on Facebook, Gross says the response was overwhelmingly favorable from his neighbors.
But Fayer says that Gross is not being a good neighbor, because he has defied the HOA’s decision instead of waiting until the end of summer to take a vote on the American flag display.
The HOA even had the audacity to send a letter to Ward, asking him to rescind his permission for the patriotic display. Of course, the HOA cannot do anything to force a removal of the display from private property owned by individuals outside of its boundaries.
Both Gross and Ward say that this is a matter of free speech, and have no plans to remove the display. Ward says the Trump sign will come down after the election.
Regardless of whether you choose to display the American Flag or how you plan to vote in the upcoming Presidential election, Independence Day is all about the freedoms that Americans have defended for more than 200 years.
What better way to celebrate those freedoms than to respect the First Amendment rights of your neighbors, and their right to display flags and political signs on their personal property?
In the article below, you can read some particularly outrageous statements from Aspen Hills HOA board. Be sure to read the comments at the end of the article, too. Article courtesy of Deborah Goonan

The California Condo King

Jason M. Gokei 

Studios to Luxury Town Homes

the Valleys to the Sea

#1 in Service #1 in Sales

Proudly Since 1989

Cal BRE#01095384

951.818.9601

Sold@TheCaliforniaCondoKing.com

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FHA Mortgages on Condos

Check that Your Condo is FHA Mortgage Approved

This may take a littlehomework if your conplex is not already appoved, but it will be well worth the effort if you can pull it off. There is a type of financing run by the Federal Housing Administration that is known as an FHA mortgage. The benefit of an FHA mortgage is the fact it allows a borrower to come up with only a 3.5% down payment.It is in fact one of the most popular forms of financing for moderate to low priced units. It is in fact one of the most popular forms of financing. By not having the ability to get a buyer who wants to purchase using this type of financing you eliminate a lot of qualified buyers. This should matter to you, because without FHA approval, your condo remains unavailable to a significant number of buyers ready and willing to give you the money you want for your place. There are a significant number of buyers who have great incomes but have not saved a large enough down payment for conventional financing. While getting your complex FHA approved may not be up to you individually, it will be important for you to convince the association of the necessity! Without a doubt having a complex with FHA mortgage approval makes every owners property worth more money. Take a look at a comprehensive explanation of why getting FHA mortgage approval for a condo complex is so important.

FHA Link

Failing to pay HOA fees can now harm your credit score

Sperlonga Data & Analytics will report homeowner association payment information to Equifax Key Takeaways Homeowners who fail to pay their HOA dues in a timely manner are now also risking their credit score, just as they would with a late mortgage payment. Sperlonga Data & Analytics agreed to become the first company to furnish homeowner association payment and account status information to Equifax, one of the three largest credit bureaus. While the percent of available credit and your on-time payment history are the two of the most important factors, the partnership between Sperlonga and Equifax joins a number of other surprising things that can affect your score. When you look outside and see maintenance diligently shoveling when it’s below zero or expertly manicuring the lawn that you barely have time to mow, you might thank your lucky stars for that homeowners’ association (HOA). Whatever a housing community’s perks may be, paying dues to the HOA can be well worth the manual labor saved and peace of mind. CK TO TWEET But the accompanying costs, which can range from a couple hundred dollars to more than $1,000, weigh heavy on the checkbook and sometimes impose strict rules and seemingly arbitrary fines — whether it’s for pouring mulch of the wrong color shade or “planting an unauthorized flower.” It doesn’t take much for the blessed HOA to join your hit list. In the past, those who defaulted on their HOA fees — in protest or because they found themselves financially strapped — might face eventual foreclosure, liens, garnishee wages, cut-off utilities or a friendly visit from the collection agency. Now, for the first time, homeowners who fail to pay their HOA dues in a timely manner are also risking their credit score, just as they would with a late mortgage payment. Sperlonga Data & Analytics partners with Equifax This month, Sperlonga Data & Analytics, a data aggregation business for alternative credit data sources, agreed to become the first company to furnish homeowner association (HOA) payment and account status information to Equifax Inc., one of the three largest credit bureaus. “Until now, HOA payments have gone largely unreported to the national credit reporting agencies,”said Matt Martin, chairman and founder of Sperlonga.O TWEET “Our service will help elevate association payments to the same level of importance as the consumer’s other financial obligations like residential mortgages, auto loans and credit card payment.” Martin added that property owners who are never late on their payments should start to see a positive impact on their credit reports, the same way they would with other traditional payment histories. “Associations and property management companies should begin to see reduced delinquencies and improved cash flow. Our goal is to empower homeowner associations and management companies with the same credit reporting tool that banks and lenders already use to manage consumer debt and credit-related payments,” he said. The Irvine, California-based Sperlonga was founded in 2011 with the goal of providing tech solutions to HOAs and the residential mortgage industry to help stakeholders mitigate loss and increase cash flow. Alternative sources of credit data The strength of your credit score can significantly impact buyers’ ability to obtain a home loan and the quality of that loan. While the percent of available credit and your on-time payment history are the two of the most important factors, the partnership between Sperlonga Data & Analytics and Equifax joins a number of other surprising things that can affect your score, including: utility and cable bill payments late library books renting a car divorce closing an account holding credit cards but not having any loans “Equifax is committed to providing consumers with additional means for building their credit histories. Introducing new sources of data beyond what has traditionally been found on credit files can provide additional insight into a consumer’s financial behavior and help deliver expanded credit access,” saidMike Gardner, senior vice president and sales leader at Equifax. Articale by- Timothy Palmer Director of Sales - Southwest at Sperlonga Data & Analytics

Artificial turf

A bill allowing residents of homeowners associations to install artificial turf without fear of fines was approved unanimously this week by the Senate Judiciary Committee.
The measure by Assemblywoman Lorena Gonzalez, D-San Diego, was overwhelmingly approved in the Assembly in May and subsequently had been endorsed by another Senate panel. Assembly Bill 349 is now headed to the full Senate for a vote.
“We face a very real water shortage that challenges many of our old habits, and there’s nothing fake about our responsibility to find ways to conserve wherever we can,” Gonzalez said in a release. “All Californians have tough benchmarks for reducing their water use, and it’s our job to make sure homeowners have every opportunity to achieve the conservation we need.”
Many HOAs in the state prohibit fake grass on front lawns, and threaten residents with fines if they break the rules. Gonzalez's bill would eliminate that HOA authority.
The bill expands on existing protections from HOAs after AB 2104, also authored by Gonzalez, was signed into law last year. The 2014 bill eliminated loopholes HOAs used to prevent homeowners from utilizing low water-using plants when replacing existing lawns, leaving homeowners interested in lowering their water usage unable to explore additional options for conserving water amid the fourth year of drought.
In a release, Gonzalez noted that the San Diego County Water Authority says landscape irrigation can account for more than one-half of the average household’s water use. Because residential water use as a whole makes up 35 percent of water use in California, and because more than one-quarter of the state’s entire housing stock are located in common-interest developments (which are typically governed by HOAs), Gonzalez said AB 349 is a key piece to achieving the state’s conservation goals.
Source San Diego Union Tribune
michael.smolens@sduniontribune.com

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Jason M. Gokei 

Studios to Luxury Town Homes

the Valleys to the Sea

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Cal BRE#01095384

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Pre Listing Prep

Always have a Professional Home Inspection on any property
You are purchasing,regardless of the Age or Condition.
I recommend using Professional Inspectors Who are Licensed Contractors
and Members of A.S.H.I.and orN.A.H.I.,
As well I advise prospective Sellers to order A Home Inspection in advance
of selling, so You know potential issues in advance...

The California Condo King

Jason M. Gokei 

Studios to Luxury Town Homes

the Valleys to the Sea

#1 in Service #1 in Sales

Proudly Since 1989

Cal BRE#01095384

951.818.9601

Sold@TheCaliforniaCondoKing.com

www.TheCaliforniaCondoKing.com

#thecaliforniacondoking

#californiacondos

#condolistings 

#condosales 

#condominiums

#townhomes 

#townhouses 

#studios

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#patiohomes 

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#countryclubliving 

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#realtor

What are CC&R's

“The Declaration of Covenants, Conditions and Restrictions (often referred to as “CC&Rs”)

(a) Contents of CC&Rs

CC&Rs describe the rights and obligations of the homeowners’ association and of each owner. CC&Rs vary widely in content and length, but at a minimum the CC&Rs must contain a legal description of the development, a statement of the type of common interest development it is, the name of the association and any” “use restrictions, typically including common area use restrictions, pet regulations, and alteration controls. The CC&Rs may contain other matters such as the following: (1) the boundaries of the common area and of each unit or lot; (2) the maintenance responsibilities of the association and the individual owners; (3) the allocation of association operating costs among the owners, and the mechanism for collecting owner payments; (4) the dispute resolution procedure; (5) the enforcement powers; and (6) the rights and protections of mortgage lenders.”

“If a development is located in a “airport influence area” or within the jurisdiction of the San Francisco Bay Conservation and Development Commission, the CC&Rs must contain a notice specified by statute. See Civil Code §§ 4255.”

 This is not intended as legal advice, if you require legal advice, please contact an attorney.

The California Condo King

Jason M. Gokei 

Studios to Luxury Town Homes

the Valleys to the Sea

#1 in Service #1 in Sales

Proudly Since 1989

Cal BRE#01095384

951.818.9601

Sold@TheCaliforniaCondoKing.com

www.TheCaliforniaCondoKing.com

#thecaliforniacondoking

#californiacondos

#condolistings 

#condosales 

#condominiums

#townhomes 

#townhouses 

#studios

#lofts 

#patiohomes 

#waterfrontliving 

#countryclubliving 

#golfcoursecondos

#highrisehomes 

#hoa 

#mls 

#realtor