Tim 4 OC Real Estate

For most people, the only time they think about their Home Owners’ Association is when they pay the bill, or receive a notice that something is wrong.   People don’t like to pay fees, and they don’t like being told what to do, so often the HOA is only seen in a negative light. 

Actually, a good HOA will protect your investment.  Property values are higher in associations because the neighborhood is well maintained.  Having consistent rules makes the homes more desirable when they are re-sold, and that leads to a better return on the owner’s investment.

HOA policies also increase good neighbor relations.  Associations typically prohibit actions that intrude on the other residents.  Thus, you won’t see abandoned vehicles parked for months at a time on the front lawn, you won’t have streams of cars to a “residential business”, and you won’t see ugly additions / paint / landscaping.  New homeowners know all the rules before they purchase, so their rights are not being infringed upon.

A good association will also protect your long term investment.  There are common areas which must be maintained, and the cost is the responsibility of all the owners.  The use of reserve accounts makes special assessments less likely which certainly helps the owner’s budget.

For most people, the only time they interact with their association is to file a complaint.  It is helpful to remember that the board consists of volunteers who also own property in the association.  You may disagree with their policies, but they are trying to move forward in a direction they believe is best for the community.  

If you feel changes should be made, approach your board at a regular meeting.  Let the manager know you wish to be on the agenda.  Then take your suggestions to the board with plenty of material to backup what you wish to share.  You don’t have to present it all verbally, but you can certainly hand it to them for reference if they wish to explore your ideas further.  Be prepared to listen, because sometimes the comments you wish to share may have been explored previously.  If your idea is good, but not new, maybe you can share some thoughts on how to “get there from here” that doesn’t add a strong financial burden on the association.

You can communicate with your board in writing, but keep the comments focused on a positive expression and specific outcome you would like to achieve.  Offensive language has no place in verbal, or written, communications with your HOA board.

Finally, if you believe the board is truly out of touch with the realities of the community, and you can’t get the message across, maybe its time for a change of leadership.  You can wait for the next election, or move forward on a recall.  In either case, be prepared to collect proxies, campaign hard, and then be ready to devote your own time, as a volunteer, should your movement be successful.  You may get rid of some people, but unless you are ready to step in and take a leadership role, your actions will probably not be helpful.

For further study, get to know your HOA.  Read the CC&R’s you received when you moved in, and also become very familiar with the Rules and Regulations.  You can view the minutes of previous board meetings and you will have a better understanding of what is occurring at the meetings.  Also, start attending the meetings.  It is, after all, your association and being involved is a great way to know your neighbors.

Many people think a Home Owners’ Association is some distant company that tells them how to live, charges assessments, and is intent on making life unpleasant for some residents.  The residents don’t feel they have a voice, or representation.

Actually, the company who sends the bills, and those sometimes annoying letters, is hired by the Board of Directors of the Association.  There are many companies that provide management services, but they are all under the direction of the Board.

So who makes up the board ?  The property owners !  In a new development, the builder holds the seats on the board, but then releases them to residents as the units sell.  Ultimately, the board is made up of only owners. 

Every year the HOA holds an election.  The owners receive a Proxy ballot, usually with names of candidates.  This is not a simple process unfortunately.  First, the board can use Proxies to cast ballots for anyone they want if the owner returns it without designating how the votes are to be cast.  Candidates can collect proxies, even if an owner has sent one in, and they can use it if the signature date is later then the original returned to the board.  A ballot can be used to cast votes equal to the number of openings, so a proxy could be worth 3 votes if there were 3 seats available.

When a board becomes entrenched and seems intent on retaining power, they do so by collecting the ballots that are used for “quorum purposes” and don’t specify candidates.  They can then cast the votes for the individuals on the board which usually is sufficient to retain the seats.

A group of owners, concerned about the direction of the association, can get elected and take control.  This is usually done by “walking the neighborhood” of the association homes, and asking people to sign proxies on behalf of themselves, or the slate of candidates they wish to elect.  This is usually done fairly close to an election, and the ballots are then presented at the annual meeting when the officers are chosen.

Most people simply won’t get involved.  However, if you have concerns about your HOA, and how it is being run, then perhaps you, and other like minded owners, should seek seats on the board and redirect the efforts of the association in the direction you believe will be best for everyone.

Next:  The Management Company

The Home Owners’ Association brings immediate feelings to residents, some good, and some otherwise !  In reality, the HOA is simply an extension of the the owners in a community which is designed to handle issues in common.  How it works is really dependent on the involvement of the property holders.  Its success, and failures, are directly related to the involvement of the property owners.  In this series, I will discuss key issues everyone should know about HOA’s.

What is a Home Owners’ Association ?

When neighborhoods are developed, many builders now place all of the homes into an HOA ( Home Owners’ Association ).  This is done by forming a legal corporation, and binding all of the homes in that development into that entity through their deeds.  Often the association is designed to handle common areas, like slopes, parks, recreation centers, and parkways.  The association is tasked with maintaining these areas which are deeded to a group of homeowners in common. 

Where does the association get its authority ?

The Association gets its authority from a document commonly known as CC&R’s.  This stands for Covenants, Conditions, and Restrictions.  When someone purchases a home in an HOA, they sign a document agreeing to abide by the CC&R’s.  This is not optional because all homes in the domain of the HOA are bound to these CC&R’s.  This is a pretty large document, but to fully know your obligations you should read it.  CC&R’s are usually created by the original developer and rarely change.  The CC&R’s are bound to the property and transfer with it whenever ownership changes.

The Rules we live by

The specific rules that govern life in the association are in a separate Rules & Regulations document.  These are also created by the original developer, but they are often modified, enhanced, or reduced, by the HOA Board of Directors.  These rules can be very specific, ie. discussing acceptable landscaping, parking, color selection, property use, etc.  When conflicts arise between an HOA and residents, it is about these rules.

HOA assessments

Most HOA’s have property to maintain.  The actual obligation varies depending on the location, type, and size of the common areas.  There are also variations in responsibilities.  Gated communities have “private” streets so the association pays to pave and repair them.  Condominiums have structure in common, so the association usually must pay to paint the exteriors, fix all walkways, handle termites, and more.   Some gated communities hire guards.  Hillside communities must maintain the slopes, which involves plainting, trimming, watering, and damage repair.  HOA’s with recreation areas must maintain them, and pay for ongoing maintenance.  In addition, HOA’s should set aside reserves to handle unexpected needs in the future. 

All of this must be paid for by the member homeowners who actually benefit from these services.  HOA’s are not profit making companies.  They collect funds from the homeowners for actual and necessary expenses.  As costs rise, assessments may also rise.

When people fail to pay their assessments, it harms the Association and places a burden on the other residents.  The costs for the upkeep of the properties in common will not reduce or go away because someone doesn’t want to pay their assessment.  To protect the interests of the residents in common, the HOA does have authority to penalize people who miss payments, and to even place leans against properties. 

It is important to remember an HOA is not a voluntary membership.  If you purchase a property inside a development that has an HOA, you will be bound to its rules and regulations, and will be required to pay an assessment that covers costs in common.  You have no legal alternative if the property you own is governed by a Home Owners’ Association.

Next:  Who runs the HOA ?

How is your garden looking these days ?  It really may have a significant effect on your emotions.  It can have you smiling, or depressed.  Unlike so many things we face today, this is something you can actually control with a little effort and a few dollars carefully spent.

Many of us have lawns, and they can get to be looking rather dead and brown.  Their biggest need may be some good fertilizer, but before you add it, make sure you take a rake and pull out all the thatch that has built up. This also breaks the soil.  Cut your grass, rake it firmly, and then spread the fertilizer.  Finally, use a shower nozzle and soak it by hand so the water doesn’t run off, carrying away that new nutrient.   Water again by hand a day later, then water every couple of days and watch it spring back to life.

Our plants may have grown a lot, but if they look leggy, its time to prune them back and clean out the dead material.  I love to prune the inside of bushes so they can breath.  Many gardeners just cut off the tops of the branches, but I like to get inside and get rid of the ones that criss cross each other and just get in the way.  The library has some good illustrated books on the way to best prune plants to stimulate new growth.

Sometimes plants overgrow others and you get a nice mess.  Your yard will look a lot better if you thin it out so what is growing can stretch out, breath, and have room to develop.  While delving into your bushes, make sure to pull out those pesky weeds, and use a hand cultivator to break up the soil.  Then give those plants some food.

Finally, your flower beds are filled with dirt, but if you add some colored bark, they will stand out and be quite attractive.  Most bark also acts as a mulch which improves the soil quality.

Seasonal ( annual ) color flowers are a great trim and bring a lot of cheer to your yard.  You can get flats of them on sale most times at your local nursery.  Seeds are also readily available, inexpensive, and will grow into beautiful flowers.

You may be tired after a weekend cleaning up your yard, but you’ll enjoy the results for months.  Wouldn’t it be great to come home after a tiring day in the “world” and be greeted by a cheerful, colorful, bright yard ?  Not only can it soothe your soul, but it may thrill your neighbors.

With gas rapidly approaching the $5 mark, why not abandon that car and take a quiet stroll, or pedal, from the mountains to the shore ?

The Aliso Creek Bikeway is open to walkers and bike riders. It goes from El Toro Road and Ridgeline ( Trabuco Canyon ) to Awna Road north of Alicia Parkway near the ocean. This trail is fully paved, and wide enough for “traffic” in both directions. There are parking spots all along the route, and easy access to it from the adoinging streets. You can find it in your Thomas Brothers guide ( 862G2 to 951B7 ), and plan your trip.

Take along plenty of water, and a snack, and plan to stop along the way. You may find a lot of interesting spots to explore, from oak shaded groves to dry creekbed life. You may spot some little creatures who make this their home, and you will certainly meet other people along the way who like the benefits of a stroll or ride under our clear blue skies.

Whenever the trail comes to a a street, there is an easy crossing available, most of the time as an underpass. Its a relatively flat trip, although you will gain elevation as you go from the ocean inland. If you are planning a roundtrip bikeride, it might be easiest to start closer to the ocean so your return ride is downhill.

So, while others are popping $100 into their gastanks for a day trip, you can save the money, and have an enjoyable day with perhaps a lot of new experiences.

Welcome to Orange County, California. If you’re seeking a comfortable climate year round, plenty of activities, a wide range of homestyles, employment opportunities, and a solid technology infrastructure, this might be your next home.

The “OC” has been popularized on TV for its free wheeling ways, but in fact, it is a solid center for international business, outstanding schools, diverse communities, and abudant opportunities to grow, go, and show !

Careful planning provide communities where people enjoy living, have close bonds with their neighbors, and participate in an outdoor centered lifestyle. Sports and recreation are enjoyed at all ages with modern parks, recreation, and fitness centers.

The Orange County Performing Arts Center provides the finest offerings of music, drama, and theater in modern, comfortable, and accoustically tuned facilities. Several colleges and universities are here providing education, and research, opportunities for young and old.

Disneyland may be a themepark, but it exemplifies life in the county where people arrive from all over the world to enjoy a friendly, happy, social community.

Life in the OC .. it may be lifestyle you’ve been seeking so feel free to contact Tim with any questions you may have.