Frequently Asked Questions
- What is a Homeowner Association?
- Who pays for the Howowner Association's Maintenance Obligations?
- Can the Home Owner Association Assessment go up?
- What are CC & R's?
- How does the Homeowner Association affect your ability to make improvements to your home?
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What is a Homeowner Association?
A Homeowner Association is a mutual benefit corporation registered with the State of California and controlled by a duly elected board of directors. Its purpose is to protect a planned community's property values by maintaining the appearance of all common areas within the community.
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Who pays for the Howowner Association's Maintenance Obligations?
The association is funded by a pre-determined monthly assessment collect from each individual property owner. Maintenance expenses are paid from these funds.
The Department of Real Estate has budget guideline figures for on-going maintenance of various areas within a planned community. These include areas covered by operating accounts such as utilities, landscaping, etc as well as areas requiring reserve accounts such as reroofing, repaving etc. Prior to actual property sales, a developer is required to submit a detailed association budget to the Department of Real Estate. Upon approval, the budget then determines the total monthly assessment passed on to each homeowner.
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Can the Home Owner Association Assessment go up?
Yes. However, this depends on the effects of the overall economy and the costs of various services. The assessment will remain the amount quoted unless: a certain majority of the homeowners vote to increase services that demand an increased assessment, or
the board of directors increases the assessment with a 'board action' in accordance with the association's legal documents. There are limitations on the amount by which an assessment can be increased each year. These limitations are contained within existing lay as well as in the CC & Rs (Covenants, Conditions and Restrictions). -
What are CC & R's?
A Homeowner Association's Convenants, Conditions and Restrictions usually follow state regulations regarding the establishment of a non-profit corporation. These guidelines, commonly called the CC & R's can not be changed without a specific vote of the homeowners. If approved, these changes become amendments and are recorded with the state. The CC & R's provide the guidelines and rules for setting up the association's operation, outline procedures for electing the board of directors, define duties and responsibilities, and otherwise set specifics regarding association management.
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How does the Homeowner Association affect your ability to make improvements to your home?
The CC & Rs contain regulations concerning additions or changes to the exteriors of any structure within the community. The purpose of the regulations is to maintain the community's overall look and to protect property values. Depending on the type of structure, regulations can cover the addition of screen doors, visible patio plants, putting up fencing or railing, adding a patio cover, pet or tool enclosure etc. The board of directors must approve all exterior changes. If you don't get the board's approval and conform with community standards, the board may ask you to remove the addition.