Active adult HOA management is essential to ensure a senior community runs smoothly. Professional management is beneficial to the HOA itself and to all of the residents who are a part of it.

What is Active Adult HOA Management?

An active adult homeowners association is a development that primarily caters to residents aged 55 and over. These communities offer a trouble-free way of living for older people. 

On the other hand, active adult HOA management refers to the oversight of HOAs within senior living communities. Although senior residents enjoy independence, social connections, and activities, they are not always interested in management. As such, many active adult communities are managed professionally by an HOA management company.

An HOA management company helps address active adult developments’ and residents’ unique needs. This company ensures the community is properly maintained and remains a desirable place to call home. While preserving property values is a priority, other objectives include enforcing age restrictions and planning activities tailored to the community’s demographics.

Struggles of Managing an Active Adult Community

Like every homeowners association, an active adult HOA is also led by an HOA board. This HOA board is responsible for overseeing operations and maintenance. In many ways, they function as the leaders of the community, elected by their constituents.

Running an active adult community is no easy task, though. These communities face challenges that tend to differ from other neighborhoods.

For one thing, active adult communities have age restrictions. Usually, the requirement for 55+ percent must be met. Upholding this requirement can come as a challenge, but it’s vital in preserving the community’s identity.

Many active adult communities also boast a busy calendar of activities. Board members must plan the calendar of events right down to the nitty-gritty details and ensure a smooth execution. Beyond that, active adult communities must maintain common areas to ensure health and safety, manage funds, communicate with residents, and resolve disputes that arise.

These things, combined with the members’ personal and professional obligations, can quickly become burdensome. Senior board members who lack the time, energy, and resources to dedicate to active adult HOA management are better off hiring professionals.

Benefits of Active Senior Community Management

When done correctly, active adult HOA management poses several benefits for senior homeowners.

1. Upholding Age Restriction

Although rules can vary from one association to another, one of the defining ones for active adult communities is an age restriction. This restriction can range anywhere from 45+ to 62+, though 55+ is arguably the most common. Some associations may not have age restrictions but cater primarily to the lifestyle of active adults.

The Fair Housing Act makes it illegal to practice housing discrimination based on age. However, 55+ are the legal exception. More often than not, the rules of an active adult community will state that at least 80 percent of households have one or more 55+ residents. The policies and procedures of the HOA must also display the intent to operate as a community with age restrictions.

Professional HOA management ensures compliance with federal housing laws while enforcing these restrictions. This preserves the community’s culture and ensures that it continues to meet residents’ expectations.

2. Planning Activities and Social Events

Social interaction is a cornerstone of active adult living. Professional HOA management companies can organize events like fitness classes, book clubs, and holiday parties. These activities help foster connections among senior residents, keeping them engaged and active.

Planning events and activities, though, is much easier said than done. A lot goes into it, such as contacting suppliers and vendors, booking venues, sending out invites, promoting the events, and ensuring everything runs smoothly on the event day. For a 55+ HOA board, this can all quickly become overwhelming.

Professional companies are already well-versed in the art of event management. Having planned countless similar events, everything comes as second nature to them. These companies often have strong connections with vendors, suppliers, and the like. This leverages them in a better position to ask for discounts.

A full calendar also encourages residents to stay mentally and physically healthy. They participate in group activities tailored to their interests and needs.

3. Ensuring Smooth Financial Management

Proper financial management is essential to keep the community running. However, it’s also one of the things that most HOAs find difficult. It takes a certain level of skill and knowledge to pull off successfully.

Professional HOA managers handle everything from budget planning and fee collection to tax preparation and financial reporting. This ensures the association stays financially healthy.

For senior members, proper financial management spells transparency and accountability. They can remain aware of where their dues are going. This gives them peace of mind about their investment in the community.

4. Overseeing Rule Enforcement

Consistency is key when it comes to rule enforcement. A professional HOA management company can help enforce the rules and manage violations while ensuring the association keeps liability at bay. A manager can ensure everyone follows the guidelines, including architectural changes, pets, or parking.

Beyond identifying violations and sending out notices, managers can also help carry out penalties. Typically, this involves levying a monetary fine and/or temporarily suspending member privileges. Professional HOA managers can oversee all this while ensuring the association complies with federal and state laws.

5. Managing Amenities and Common Areas

Active adult communities often feature pools, tennis courts, and clubhouses. Proper HOA management ensures regular maintenance and, if necessary, repairs to these facilities. In doing so, residents are safe to use these amenities.

Senior board members can’t always conduct regular inspections, though. Fortunately, an HOA management company can take over, performing inspections, prompt repairs, and preventive maintenance.

6. Mediating Disputes

Conflicts between neighbors or with the board are normal in any community. However, it’s important not to let these disputes fester or escalate, as they can disrupt the community’s harmony. Managers can act as neutral mediators, helping to resolve disputes professionally and efficiently. This promotes a friendly and respectful environment for everyone in the association.

7. Managing Insurance

Active adult communities require comprehensive insurance coverage for common areas, amenities, and liability. Professional HOA managers can review and manage policies on behalf of the board. They can ensure adequate coverage while keeping costs reasonable.

Their duties don’t stop there, though. When it comes to insurance, professional managers can also assist in filing claims should the need arise. This protects the HOA’s finances and helps the community recover quickly from unexpected events or accidents.

8. Maintaining Communication

Clear communication is critical in any HOA setting. Board members must stay in contact with each other as well as the residents of the community. Without proper communication, it is easy for trust to wither. Soon enough, residents will start asking questions and accusing the board of keeping secrets.

With professional HOA management, communication can be a breeze. Managers often use various methods to keep residents informed, such as newsletters, bulletin boards, and online portals. They also handle the administrative work associated with communication, including sending notices and emails. This helps ensure that residents stay updated about what’s happening in their community.

9. Complying With Laws

Homeowners associations must adhere to federal, state, and local laws — and active adult communities are no exception. Keeping up with ever-changing legislation, though, can come as a challenge to senior board members. It is not always easy to navigate through online updates or understand these laws’ legal jargon.

Managers can help ensure that the association complies with current and changing laws. This reduces the risk of liability or legal issues. More often than not, HOA management companies have lawyers on retainer. These lawyers typically have a lot of experience dealing with HOAs and the various laws that affect them.

10. Assisting the Board

Typically, HOA boards in active adult communities consist of volunteer residents. Due to the nature of these communities, these volunteer residents are usually aged 55 and above. Moreover, these residents prioritize their active adult lifestyles, careers, and families, leaving no room for additional duties.

Professional HOA management provides these board members with administrative support, expert advice, and guidance on the best practices in the industry. Management companies can also take over such communities’ day-to-day operations and management. This leaves the HOA board members with the decision-making power and plans for the future.

A Better Option

Active adult HOA management plays a vital role in ensuring the success of senior living communities. Many board members, though, struggle with self-management and would rather dedicate themselves to other ventures. With an HOA management company, boards can delegate the more tedious tasks to professionals.

Personalized Property Management offers active adult community management services around Southern California. Call us at 760-325-9500 or fill out this form if you have any questions!

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Board members should understand the permitted HOA rental restrictions in California. There are penalties for violating the rental laws set forth by the California Legislature regarding homeowners associations.

Are There HOA Rental Restrictions in California?

In California, some laws limit the extent to which a homeowners association can prohibit or restrict rentals within the community. The goal of these laws is to protect the rights of homeowners while simultaneously keeping HOAs in check.

It is not uncommon for HOAs to have rental restrictions. Homeowners often rent out their units or properties to earn extra income, mainly if they’re located in high-tourist areas. However, many renters within a community can have negative effects.

For one thing, long-term residents feel concerned about the increased security issues of transient renters. Associations also have more difficulty enforcing the rules. Beyond that, HOAs also face higher maintenance costs and administrative expenses because rentals need more supervision.

Can HOA Restrict Rentals in California?

Whether or not an HOA can restrict rentals in California depends on state laws. The California Legislature has enacted legislation limiting the power of HOAs when it comes to rental rules.

Here are the homeowners association rental restrictions California communities must know.

No Broad Rental Prohibitions

According to Civil Code Section 4741, an HOA’s governing documents or amendment can’t prohibit, effectively prohibit, or unreasonably restrict the rental or leasing of a unit or property. This includes accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs).

Individual Room Rentals in Owner-Occupied Units

An HOA can’t prohibit owners from renting out a part of their unit or property, such as an individual room, if the owner occupies the unit or property during the rental period. The other condition is that the rental period is more than 30 days. This is according to Civil Code Section 4739.

Rental Caps Not Below Than 25%

According to Civil Code Section 4741, an HOA can place a cap or limitation on the number of rentals that can exist at any one time within the community to 25% or more. This means that rental caps can’t be lower than 25%. If an HOA has a rental cap below 25%, it must amend its governing documents to increase the cap to at least that percentage. The same applies to an HOA that does not have a rental cap and wishes to enforce one.

Short-Term Rental Prohibitions Allowed

California HOA short-term rental restrictions are quite common. Short-term rentals are defined as rentals for a period of 30 days or less.

Civil Code Section 4741 permits an HOA to enforce a rule prohibiting short-term or transient rentals. This is to protect the property values of an HOA, as short-term rentals tend to have a more significant impact.

New Rules Apply to Future Owners

According to Civil Code Section 4740, an HOA’s rental restrictions apply to all future owners. For instance, if an HOA previously did not have a rental cap and only recently enacted one, that rental cap only applies to future owners after the cap was created.

Complying With California HOA Rental Law

Homeowners associations must comply with the HOA rental restrictions in California. According to Civil Code Section 4741, HOAs must amend their governing documents to eliminate any provisions that contradict California’s laws. The deadline was set for July 1, 2022.

Amending governing documents, though, takes quite a lot of effort. It usually requires approval from the membership since it would involve changing the CC&Rs. In such situations, Civil Code Section 4741 gives HOA boards the power to amend and restate the CC&Rs without seeking approval from the membership. Instead, they can use the same process required to amend operating rules.

This exception only applies to this particular circumstance. Board members should still follow due process, including seeking membership approval for any other amendments to the CC&Rs. This expedited process was provided so board members could comply with the law before the due date.

Keep in mind that noncompliance does come with penalties. If an HOA willfully violates Civil Code Section 4741, it is liable for actual damages. The HOA must pay a civil penalty of $1,000.

Adopting California HOA Rental Restrictions

While it is common for HOAs to have existing rental restrictions, some communities have yet to regulate rentals. An HOA must comply with California laws if it wishes to adopt new rental restrictions. Additionally, the HOA must do so using the amendment process for the CC&Rs. This typically requires a vote of approval from the membership.

New HOA rental restrictions in California become effective when they are recorded. They also only affect future owners. Of course, some regulations may not require a vote from the membership to approve. However, it is on a case-by-case basis, so board members should seek legal advice to make sure.

Disclosure of Restriction

According to Civil Code Section 4525, if an association’s governing documents include restrictions on occupancy, residency, or use of a property based on age, owners must notify prospective buyers of these restrictions as soon as possible before transferring the title.

Coastal Associations

Coastal condominium associations looking to impose stricter limits on short-term rentals must account for California Coastal Commission regulations.

The Mandalay Shores Association implemented a rule requiring rentals to last at least 30 days. However, the Coastal Commission ordered the association to stop enforcing the rule. It argued that it constituted a “development” that altered the density and intensity of coastal area usage, requiring a coastal permit. 

While the trial court ruled that the 30-day minimum did not qualify as a “development,” the court of appeal overturned the decision. According to the decision, regulating or banning short-term rentals is a matter for the city and the Coastal Commission, not a homeowners association (Greenfield v. Mandalay Shores).

Due to this case, coastal associations should consult legal counsel when addressing short-term rental issues.

Rental Restrictions HOA California: Homeowner/Landlord Duties

While HOA rental restrictions in California help protect the rights of homeowners, that doesn’t mean they are not without responsibility. California law also stipulates some obligations that homeowners have toward their HOAs.

Owner-Occupied or Renter-Occupied

According to Civil Code Section 4041, members must give the HOA information concerning their preferred and alternative contact methods. Additionally, each member must also let the HOA know whether their property is owner-occupied or renter-occupied. This informs the HOA which properties are being rented out. Members must do this on an annual basis, too.

Tenant’s Name and Contact Details

Moreover, Civil Code Section 4740 requires owners to provide the HOA with the tenant’s name and contact information before they lease their units or properties.

Signed Lease Agreement for Lease Period Verification

Many homeowners associations don’t allow short-term rentals. The only way for an HOA to confirm whether or not a rental complies with this rule is to examine the lease agreement, which contains the lease period. As such, an HOA can ask for a copy of the signed lease agreement to confirm compliance with a short-term rental restriction.

Landlords and homeowners can redact personal and financial information before submitting the signed lease agreement to the HOA. This protects the tenant’s financial and personal details from third parties.

Lease Addendums

Homeowners associations can adopt lease addendums or supplement lease agreements that allocate rent to the HOA if the landlord or homeowner defaults on their dues. If an owner becomes delinquent, their rental income (or a portion of it) will go to the association to satisfy the debt.

When leasing a unit, both the owner and tenant must sign the association’s lease addendum. The addendum requires the lease to cover the entire unit. Assignments or subleases are strictly prohibited. Additionally, the lease term must be at least 30 days.

Tenants must comply with the association’s governing documents and disciplinary rules. The owner must assign unit rental income to the association if they fall behind on payments. Finally, tenants must pay the owner’s dues if the owner becomes delinquent.

Penalties for Noncompliance With HOA Rental Restrictions in California

Homeowners associations must comply with California’s laws on rental restrictions. On the other hand, homeowners also face potential consequences if they violate their HOA’s rental rules, assuming they are lawful.

An HOA can enforce its rental restrictions in several ways. More often than not, those violating these rules must pay a monetary fine. They may also lose their rental privileges or other such rights. However, it is vital to refer to the HOA’s governing documents to understand what authorities the association has when it comes to enforcement.

When it Comes Down to It

The HOA rental restrictions in California are clear and reasonable. Board members must ensure that their governing documents comply with the rental laws. Meanwhile, homeowners must understand that rental restrictions support HOAs in the long run. They exist to maintain curb appeal, community standards, and property values.

Personalized Property Management offers expert HOA management services around Southern California. Call us at 760-325-9500 or fill out this form for more information!

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Pets are an important part of many people’s lives. Dogs and cats often go beyond being pets to becoming part of the family. Homeowners should know that not all HOAs are pet-friendly. What is the rule on pet restriction in HOA communities? Can an HOA ban pets? 

Pet Restriction in HOA: is it Allowed?

Homeowners around the country might have heard that HOAs can generally restrict homeowners from owning a pet. However, these rules are subject to state laws. In California, HOA governing documents cannot ban pets entirely. HOAs must allow homeowners at least one pet within the community, subject to association rules.

In other words, homeowners associations cannot prevent residents from having at least one pet. The term “pet” in California law refers to any domesticated cat, dog, bird, or aquatic animal held in an aquarium. Pets also include other animals that have been agreed upon by the homeowner and HOA.

Can my HOA Make Me Get Rid of My Dog?

If the HOA’s regulations comply with state law and the governing documents allow it, the board may have the authority to ask homeowners to remove their pets. It usually happens when a homeowner moves into an HOA without knowing its pet restrictions beforehand. 

In addition, biting incidents may compel the board to remove a dangerous pet. The CC&Rs may address biting incidents and outline specific provisions covering their consequences. It also happens when homeowners refuse to comply with the rules, and the board files a civil lawsuit in court to ask for injunctive relief. 

Sometimes, homeowners refuse to comply with the court order to remove their pets. As a result, the judge may ask a sheriff to remove the pet by force. The homeowner will then be held in contempt, leading to monetary penalties or even jail time.

What HOA Pet Policies are Allowed?

While homeowners associations in California cannot ban pets completely, they can enforce reasonable restrictions.

1. Number of Pets

Can HOA enforce a pet limit? Yes, homeowners associations may limit the number of pets an owner can keep. Doing so allows the community to limit noise and ensures the health and safety of the people around the area.

However, HOAs should be wary about retroactively implementing the HOA pet limit. According to California law, new rules on pet limits shall not apply to prevent a homeowner from continuing to keep a pet that previously conformed to the governing documents.

For example, let’s say a homeowner has three pets at home. After a board meeting, the HOA implements a new rule limiting the number of pets to two animals. The HOA may not be allowed to force the homeowner to remove one of the pets for compliance because they were previously allowed to keep more than two.

2. HOA Pet Weight Limit and Size

The HOA may impose reasonable limits on a pet’s size and weight. Larger pets may incite fear in the neighborhood and cause disarray. Plus, they’re more likely to cause property damage. Consider enforcing a maximum weight limit of 30 pounds or so. 

3. Breed Restrictions

Homeowners associations can enforce breed restrictions to create order. Some dog and cat breeds are noisier and rowdier than others, so keeping them away makes sense. Meanwhile, some dog breeds, like rottweilers and pit bulls, are dangerous to humans.

4. Waste Disposal

Non-owners often complain about waste left all around the common areas. It’s understandable because animal waste contamination has dangerous consequences on people’s health. They can be hazardous to humans and lead to disease. 

For this reason, many homeowners associations impose rules requiring residents to clean up after their pets. This means they have to clean up cat and dog waste when pets pee or poop in the common areas. Keep in mind that common areas not only include clubhouses and gyms but also parks, roads, and sidewalks.

5. Leash Restrictions

HOAs may require the residents to keep pets on a leash when going out. Unleashed pets can be dangerous to both the neighbors and the pets themselves. The pets can run into oncoming traffic or run away outside the neighborhood.

Some homeowners might claim that their pets are not at all aggressive. However, even the most tamed pets can be unruly or dangerous when triggered. Plus, it’s essential to enforce the policy fairly to all homeowners. Allowing select pets to go out unleashed could create disputes within the HOA. 

If the homeowners insist, the HOA may designate a dog park where pets can roam freely. It’s a good compromise and an attractive amenity for pet-friendly communities aiming to appeal to potential buyers. 

6. Noise Rules

Loud noises are one of the main reasons why communities impose pet restrictions in HOA neighborhoods. To mitigate noise complaints, HOAs can ask residents to submit reports about excessive barking. HOAs can also create rules requiring homeowners to take their pets inside the home at night to insulate the sound. 

7. Pet Registration

Homeowners associations may require the residents to register their pets as part of community rules. Doing this allows them to keep track of how many pets there are in the neighborhood. It also gives the HOA more information about the pets, including their size, age, breed, habits, and vaccination history. Plus, pet registrations make rule enforcement much easier.

HOAs may ask new homeowners to register their pets straight away. Meanwhile, residents currently residing in the community may submit registration forms before buying or adopting a new pet.

8. Liability Policy

One way to protect the HOA from liability is to create a pet liability policy. The goal is to clearly outline who is liable for the injuries, damages, or disturbances the pets may cause. It will protect the HOA from lawsuits and costly legal fees. 

When are HOA Pet Restrictions Not Allowed?

As reasonable as some pet restrictions are, there are exceptions to imposing pet restrictions.

Service Animals

The Fair Housing Act protects people with disabilities and requires HOAs to provide reasonable accommodations for service animals. According to the U.S. Department of Housing and Urban Development (HUD), service animals are not considered pets. They are assistance animals that perform tasks, do work, assist, and offer therapeutic emotional support to persons with disabilities.

This means that even if an animal exceeds the weight and size limit of the HOA, the board cannot prevent the homeowner from having it. The board must also allow service animals in all parts of the neighborhood — including common areas where they are normally restricted. 

In addition, the HOA cannot refuse certain breeds because of HOA rules. The association board must make an exception to accommodate the service animal. However, the board can ask for official documentation. The document should verify that the animal is a service animal, not just a pet. 

Moreover, HOAs may still hold the homeowner accountable for the animal’s bad behavior. They must take responsibility for and control their service animal’s behavior. Homeowners must also follow other applicable rules like leash restrictions and waste disposal. 

When can an HOA refuse a service animal? The only exception is when the animal threatens the other residents’ health and safety — with no alternative accommodation to remedy the problem. Nonetheless, it’s crucial to consult a legal professional and decide things on a case-by-case basis. 

Grandfather Clause

Homeowners associations may enforce new pet policies for succeeding pets and homeowners. However, the new policies may not apply to existing pets. This means that even if the HOA imposes a 30-pound weight limit, it cannot remove existing pets of a higher weight class.

Of course, there are exceptions to grandfather clauses. Exceptions may no longer apply if the homeowner’s animal passes away or is given to someone else. They may also be void if the property changes ownership. It’s also essential to determine which animals are eligible for grandfather clauses and which are not.

How to Enforce Pet Restriction in HOA

Homeowners associations must enforce HOA pet restrictions consistently. The board cannot play favorites and enforce the rules selectively on some animals but not others. If a homeowner violates one of the rules, the HOA can do the following to ensure compliance: 

1. Send a Notice

The board must send a notice of violation to the homeowner. Doing this gives the homeowner time to cure the violation. Most homeowners break the rules unintentionally, so a simple notification is enough to deter future violations. Notices also work for first-time offenses. 

2. Monetary Penalties

Homeowners associations may levy fines on violating homeowners who do not cure the violation on time. The fine must be proportionate to the violation in question. Moreover, some fines can be levied for each day the violation is not cured. Consult the governing documents and work with an HOA manager to create a reasonable fine schedule.

3. Suspension of Rights & Privileges

HOAs may suspend a homeowner’s rights and privileges if they refuse to comply. The board can remove their right to use amenities such as pools, gyms, and clubhouses until they cure the violation.

4. Legal Action

As a last resort, HOAs may take legal action against violating homeowners. Remember that this is a drastic enforcement measure that should not be taken lightly. Lawsuits are often long, cumbersome, and costly, so HOA boards should tread carefully. Save them for major violations that threaten people’s health and a

Know Your Pet Restrictions

HOAs impose pet restrictions to foster a safe and peaceful living environment. In turn, the HOA’s residents can enjoy better curb appeal and higher property values. Home buyers who are considering living in an HOA should understand the pet restriction in HOA communities before moving in.

Personalized Property Management offers extensive HOA management services to associations across Southern California. Call 760-325-9500 or contact us to learn more!

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It takes a lot to operate a homeowners association. The board must enforce the rules, update policies, conduct meetings, collect fees, and work with various contractors. If the responsibilities are too much for the board members, they often consult an HOA management company for help.

What is an HOA Management Company?

An HOA management company is a professional business that can take over a planned community’s operations. HOA management staff work full-time, allowing them to fully focus on community matters. This helps relieve the board members of their burden as most directors work on a volunteer basis.

Apart from dedicated manpower, management companies are helpful because they have years of experience running planned communities. They are familiar with everything related to HOAs including financial management, legal requirements, and even taxation. Moreover, they have well-established relationships with relevant vendors. HOA management companies can connect communities with reliable contractors to help with maintenance, repairs, and even construction.

When Should You Consult an HOA Management Company?

HOA management consultation is a big step for many planned communities. After all, management companies usually charge high prices for their services. When is the time to bring in an HOA management company? Here are some signs a community needs it.

1. Lack of Board Experience and Expertise

HOA consulting might be a good idea if the board members need help figuring out where to begin when it comes to managing communities. Hiring an HOA management company might be a better alternative to self-management in these cases.

Otherwise, the board might have trouble with upkeep, financial management, and legal compliance with California HOA laws. The latter two can be costly and even lead to liability.

2. Difficulty Enforcing Rules

An HOA’s governing documents dictate what community residents can and cannot do with their property. They also outline the homeowners’ maintenance and assessment obligations. However, just because the rules are written does not mean the homeowners will follow them.

In fact, many communities struggle with enforcing the rules. The board might not have enough time to inspect the entire community for architectural violations. Alternatively, the board may struggle to create fee schedules and policies that ensure consistent and fair enforcement.

If this is the case, it’s best to hire a management company to help. HOA management companies are well-versed in rule enforcement and even know about local laws. They can not only issue violation notices but also advise the board when there are tricky circumstances to navigate.

3. Fee Collection Problems

HOA management companies are experts at collecting fees, tracking down unpaid charges, and doubling down on delinquent accounts. If the HOA board is struggling to keep up with collections, professional help may be warranted. It’s especially important if the collection issues lead to budget shortfalls, fee increases, and constant special assessments.

4. Poor Quality Vendors

Homeowners associations must hire reliable vendors to keep the community in good shape. Otherwise, the members might complain that the HOA board is not doing its job. It could lead to claims of a breach of fiduciary duty and even legal disputes.

One way to get around this is by hiring an HOA management company. Management companies often have a large pool of vendors to contact within the area. They know who is reliable and who is not. Furthermore, since their relationships are well-established, the management company won’t have problems working with the vendor.

5. Board Burnout

Regardless of how skilled the board members are, managing a planned community with just a few people can be taxing. Board member burnout is quite common and can lead to mass resignations.

To avoid this, HOAs should consult an HOA management company to help them with minor tasks. Doing so allows the board to devote more time to major community projects and pressing issues. 

6. Member Dissatisfaction

Self-management is not always in the community’s best interest. While it can save money, it can lead to dissatisfaction if the board does not know what it is doing. For example, the board may hire good vendors but have poor processes for work orders and maintenance requests. 

In addition, members can sometimes be dissatisfied if they suspect the board is not making the best decisions for the neighborhood. Hiring in a management company brings fresh eyes to the community’s concerns and facilitates better accountability. 

7. Disorganized Record Keeping

Homeowners associations must keep many records to keep the community running. Required records include financial statements, receipts of expenditures, homeowner invoices, payments, membership lists, vendor contracts, and meeting minutes. The HOA board must also keep a record of the governing documents and all their amendments. 

When record keeping becomes disorganized, it can lead to tons of issues. The board may need to remember the promises it has made to the homeowners. They may also need help abiding by the terms of vendor contracts or keeping track of insurance policies. In the worst-case scenario, they may lose records and even lose a lot of money.

A management company can help by organizing all of the community’s paper trail and documents. It can also use specialized software and provide an online portal for easy access. 

8. Lack of Volunteers

Self-managed communities rely on volunteers to handle the bulk of their operations. Volunteer committees handle architectural reviews, budget planning, and even maintenance.

However, when a community lacks volunteers, it may be time to consider professional management. HOA management companies have several teams of community managers who can dedicate their time and resources to the community. The community can thrive even with a few volunteer members. 

How an HOA Management Company Helps Communities

Consulting with an HOA management company is usually a good call for communities that can afford it. This is because professional companies can help take over most of the HOA board’s responsibilities. These include the following:

• Agenda creation and meeting minutes recording
• Meeting scheduling, notification, and facilitation
• HOA budgeting, accounting, and financial statement preparation
• Fee collection, account tracking, and delinquency management
• Common area maintenance and vendor management
• Receiving, processing, and managing maintenance requests and work orders
• Board guidance on insurance, legal, and financial matters
• Rule enforcement
• Facilitating member communication
• Dispute resolution

How Much is Professional Management?

HOA management companies have different pricing structures that determine how much a community pays. Generally, though, they often charge a flat fee based on the number of units in the community. On average, the residents should expect to pay $10-$60 per month.

In other cases, HOA management companies charge fees based on a percentage of HOA assessments. For instance, if the fees cost $300 monthly, the management company may take ten percent ($30) from the fees. 

Finally, homeowners associations should expect to pay more if they have more amenities. Management contracts also cost more when there are more units in the HOA. 

What are the Drawbacks of Professional Management?

HOA management companies offer tremendous benefits to communities. However, they are not always fit for everyone. Professional management has its downsides, too. These include the following:

• Cost. HOA management contracts can cost a lot. Homeowners will have to pay higher HOA fees to cover the cost.
• Less Control. HOA board members may have less control over the community’s operations. The HOA management company becomes more involved in daily operations and may make choices without approval from the board.
• Homeowner Issues. HOA management companies may not be as empathetic toward the homeowners as the board members. The company’s decisions may not consider the residents’ feelings or wants as much, leading to disputes.
• Overzealous Enforcement. HOA management companies often implement rule enforcement processes to make things more efficient. However, this efficiency can sometimes lead to overzealous enforcement that drives potential residents away.

Can Self-Management Work?

Many communities choose professional management to boost quality of life and make processes more efficient. But, are there cases wherein self-management can work? Can board members truly do everything themselves?

To put it simply, yes, self-management can work for some communities. However, whether it will work for a community depends on several factors, including:

• Size. Smaller communities can get by with self-management as there are fewer units to inspect and few amenities to manage.
• Budget. Self-management may be better for communities with little room in the budget to hire an HOA management company or HOA manager.
• Desire for Control. HOA board members who want full control over community matters may choose self-management. The board can better implement its vision for the community without third-party involvement. 
• Number of Volunteers. HOAs with plenty of willing volunteers can make self-management work. The HOA can create committees that handle different aspects of community life like vendor management, landscaping, and architectural review. 
• Access to Tools. Communities may be able to get by using just HOA software. Good software will help the board manage meetings, enforce rules, collect fees, and even manage work orders. 

Find a Reliable HOA Management Company Today

Homeowners associations should recognize when it’s time to consult an HOA management company. Make sure to watch out for the tell-tale signs that the board is not enough to sustain the community’s operations. Otherwise, the HOA may face financial issues and struggle to survive.

Personalized Property Management provides top-tier HOA management services to Southern California communities. Call us at 760-325-9500 or leave us a message!

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Condominiums and single-family homes or townhouses have a lot of differences, but it’s not just the vertical and horizontal orientation that is different. These communities also differ in the amount of HOA fees they charge. Condo fees are typically much higher than the average homeowners association fees. Moreover, condos use them for more than just upkeep.

What is a Condominium?

Condo fees differ because condominium complexes work differently than regular subdivisions with single-family homes, townhomes, or duplexes. What is a condominium exactly? Simply put, a condominium is a private residential building with multiple units. Each unit is sold separately to buyers for residential purposes.

Apart from dwelling spaces, condominium owners share common amenities such as gyms, co-working spaces, and swimming pools. The condominium owners pay various contractors and staff to maintain these facilities. Condominiums are a popular choice because they offer a wide range of amenities.

Conversely, unlike other planned communities, condominium owners often share other elements like plumbing, electrical, and HVAC systems.

What is an HOA Community?

Homeowners association communities, unlike condominiums, are developed horizontally. HOA communities consist of several single-family homes on a large plot of land. Like condo associations, HOAs may have shared spaces and amenities like clubhouses, pools, and tennis courts. 

In addition, HOAs often have community rules that govern property use and maintenance obligations. The homeowners must abide by a certain maintenance standard, or they will be penalized. HOAs also have strict rules about where to park their cars, what decorations they can put up, and what architectural changes they can or cannot make.

What are Condo Fees for?

Condominium complexes require a lot of upkeep. Not only do condos have recreational facilities like gyms or pools, but they also have tons of shared spaces. These include condominium hallways, balconies, patios, roof decks, elevators, staircases, and even parks. Condominiums also have shared roofs, pipes, electrical wiring, and HVAC systems. Condo fees are the charges unit owners pay for all of the condo building’s maintenance. 

Additionally, condo fees pay for all of the condo’s operations. Condos could not operate without security, cleaning, and administrative staff. They also require insurance and access to trash disposal, snow removal, and sewage or water services. Moreover, some condos provide shared utilities like internet, heating, and air conditioning. 

Finally, condo associations in California are required to conduct reserve studies to set aside funds for emergencies and major repairs. Condo association boards divide the burden among all the unit owners so everyone contributes to the reserve funds. 

Condo Fees vs HOA Fees: Breaking Down the Differences

What makes condo fees different from HOA fees? Here are the key factors that set them apart.

1. Different Ownership Structure

Condominium owners own their units individually and have joint ownership over the common elements. In contrast to condos, homeowners in an HOA individually own their units, but the one that owns the common areas is the association itself.

While HOA fees help maintain HOA property, condo fees support common property. This difference in ownership explains why condo association fees are different.

2. Higher Fees

The average condo association fee is much higher than that of regular associations because condo owners must pay to repair the entire building in addition to the common areas. On the flip side, homeowners associations only need to pay to maintain shared spaces like roads, sidewalks, and amenities. The homeowners are left to take care of their own homes.

3. Division of Assessments

Homeowners associations divide assessments equally among all homeowners. They all have equal access to the community’s facilities and shared spaces. The only exception is usually when a few homeowners have exclusive access to limited common areas. Meanwhile, condo associations follow a different system to compute assessments.

Condo associations do not always split the costs evenly among all the unit owners. Members with larger units often have larger ownership over the common elements. As a result, they may pay higher condo association fees because they have bigger responsibilities. 

4. Coverage

Condo associations charge fees for various reasons. They typically cover the following:

• Maintenance of common facilities and recreational amenities like lounges, courtyards, and swimming pools
• Landscaping within and around the grounds
• Maintenance of the building’s exterior walls, roads, and roofs
• Provision of services like wastewater management, recycling, and security
• Parking lot maintenance
• Master insurance policy
• Staff salaries
• Reserve fund allotment
• Utilities like heating, air-conditioning, and internet

While homeowners association fees cover similar things, their amenities, and shared spaces are often different. HOA common areas usually include walking trails, parks, clubhouses, and roads. Additionally, while many offer services like trash disposal and snow removal, only some will cover security and utilities.

How Much are the Average Condo Fees in California?

The average condo HOA fees in California range between $300 and $400 monthly. However, some condo associations may charge much higher fees depending on the number of units, amenities, and common elements. The condo’s location and its services also play a role in determining the fee amount.

If a condo is located in an accessible area or with a higher cost of living, they may charge higher condo fees. Similarly, condos with better or more luxurious amenities typically charge more. 

Apart from these, condo fees depend on the association’s financial health. Financially healthy condo associations can afford slightly lower fees if they have other income streams or enough money in the reserves. Meanwhile, condos with poor financial management may suffer from constant fee increases and special assessments. 

What is a Condominium Special Assessment?

Condo associations levy monthly fees to cover the cost of operations. When the money they’ve collected is not enough, the board may charge a condo special assessment.

Special assessments are often used to cover the cost of operations that normal fees could not cover. The board may also levy special assessments if the association needs more reserves to cover repairs from natural disasters or emergency maintenance.

Additionally, some condos charge special assessments to cover the cost of unexpected litigation. For example, one of the unit owners may file a lawsuit against the board for what they think is an unfair violation notice. Legal battles are not only long but also costly. The board may end up levying a special assessment if they do not have enough money to pay legal fees.

What are Condo Fines?

Both homeowners associations and condominium associations have rules about property use and conduct. One main way associations enforce the rules is by levying fines. After all, unit owners are less likely to break the rules if they know they have to pay money for a violation.

Condo fines are the condo equivalent to HOA fines. However, most condo associations have fewer rules regarding property use and architectural improvements. Hence, they may not use fines as often as homeowners associations. Regardless, unit owners can review their governing documents—particularly the CC&Rs and bylaws—to understand how and when the association may levy fines. 

It’s important not to confuse fines with fees. Fines are charges levied only because of violations. Meanwhile, fees are monthly charges everyone has to pay to maintain the condo building. Unit owners must pay both, but they differ in purpose, amount, and frequency. 

Why do Condos Charge Fewer Fines Than HOAs?

Unlike homeowners associations, condominiums have little room for exterior architectural changes. Unit owners rarely redesign their condo exteriors because they only face long hallways. Meanwhile, homeowners can get more creative when decorating or outfitting their homes in a single-family or townhome community.

In addition, homeowners in HOAs have more to maintain. They must mow their lawns and ensure their fence and home exterior paint are in good shape. They may be penalized if they do not maintain these according to the HOA’s standards. On the other hand, condo unit owners have less to maintain in their exterior.

Frequently Asked Questions

Can Condo Fees Increase?

Yes, condo association fees can increase if necessary. California law requires fee increases to be approved by a majority vote if they are above a certain percentage. 

Do Unit Owners Need to Pay the Fees?

Yes, condo owners must pay their association fees. The fees are legally binding upon the unit owners the moment they purchase a unit from a condo association.

Understanding Condo Fees

Many people assume that HOA and condo fees are the same. However, they differ in many ways. Homeowners can expect to pay much more when living in a condo. Due to the shared nature of their infrastructure, condominiums have much more ground to cover and offer more services.

Personalized Property Management provides a wide array of condo management services to condominium associations in Southern California. Call us at 760-325-9500 or leave us a message.

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Navigating master-planned community management can be challenging for inexperienced leaders. The first step in mastering it is understanding how it differs from traditional HOA management. While the two share similarities, important distinctions set master-planned communities apart.

Understanding Master-Planned Community Management

The concept of master-planned communities has become increasingly popular as of late. Developers continue to create large, self-contained neighborhoods that offer a mix of residential, commercial, and recreational spaces. 

These meticulously planned communities often provide a wide variety of amenities, from parks and schools to shopping centers and entertainment venues.

Managing a master-planned community is significantly different from managing a traditional homeowners association. This is because such communities’ scale, complexity, and needs are vastly greater.

What is a Master-Planned Community?

A master-planned community is a large-scale, planned development that typically includes a variety of property types, such as single-family homes, townhouses, condos, and even commercial spaces like retail shops or offices. 

These communities often feature extensive amenities such as parks, swimming pools, golf courses, schools, and shopping centers—all designed to create a self-sustaining and attractive environment for residents and businesses alike. Unlike a traditional neighborhood, a master-planned community is developed with long-term growth and functionality in mind. It offers numerous services and amenities that cater to residents’ daily needs.

What is a Homeowners Association?

A developer creates an HOA to manage and regulate the common areas within a residential community. These associations enforce community rules, collect dues from residents, and maintain amenities such as clubhouses, pools, and landscaping. 

HOAs focus on preserving property values and maintaining a high quality of life for residents. However, they typically govern much smaller, more localized areas than master-planned communities.

Differences Between a Master-Planned Community and an HOA

Although a master-planned community may include multiple HOAs, several key differences exist in the structure and management of these two types of developments. These differences are apparent in the size and scope, types of properties, amenities and infrastructure, and governance and structure of these communities.

1. Size and Scope

The most prevalent difference between a master-planned community and a traditional HOA is the size. A master-planned community is significantly larger, often spanning hundreds or thousands of acres. It includes residential units, commercial areas, parks, and schools. 

In contrast, a typical HOA governs a smaller, residential neighborhood with more limited common areas and fewer amenities. Traditional homeowners associations often do not have commercial establishments, too. Sometimes, a master-planned community consists of several HOAs within its development. 

2. Types of Properties

In a master-planned community, you will find a variety of property types. These include single-family homes, townhomes, condos, and even commercial spaces. 

Because of the diversity of the properties in a master-planned community, it can be difficult to narrow down the right management approach. Varied properties call for varied management styles, as each type of property might have its own set of unique characteristics and problems, as well as different needs and requirements.

On the other hand, a traditional HOA usually governs a more uniform neighborhood. Property types do not differ as much, and if they do, there are only small distinctions. Unlike a master-planned community, which often calls for a broader management approach, a traditional HOA can focus on residential management.

3. Amenities and Infrastructure

Master-planned communities are known for their extensive amenities. This can include everything from golf courses and walking trails to retail centers and schools. 

Managing these amenities requires more sophisticated infrastructure and long-term planning than managing an HOA, which typically manages fewer amenities, such as pools, parks, or clubhouses.

4. Governance and Structure

A master-planned community often includes multiple sub-HOAs. Each one governs a specific section of the community (such as a condo association or a townhome section) and reports to a larger, overarching master association that oversees the entire development. In a traditional HOA, only one board of directors is typically responsible for the entire community.

Differences in HOA Management for Master-Planned Community vs. HOA

Master-planned community management presents unique challenges that go beyond typical HOA management. Here are some key differences between the two types.

1. Scale of Operations

Master-planned community management requires oversight of much larger infrastructure and more extensive amenities compared to an HOA. For instance, a master-planned community with a vast network of parks, roads, and commercial spaces requires more complex maintenance. In comparison, a small neighborhood with only a community pool or shared clubhouse does not need a comprehensive maintenance plan.

Communication and member management are also more difficult to navigate in master-planned communities. Because these communities tend to have a larger population, the board might receive hundreds of messages, emails, and work orders every week. A smaller community, on the other hand, might have to deal with a few requests a month.

2. Financial Management

Due to its size and variety of amenities, a master-planned community requires a more complex financial management system. The budget must account for the maintenance of large parks, recreational centers, commercial areas, and potentially even schools. Fees can amount to tens—even hundreds—of thousands a month. Projects requiring significant budgets and reserves tend to be more demanding because there is more to consider.

This contrasts HOA budgets, which typically focus on maintaining smaller common areas and enforcing community rules. Boards in traditional HOAs don’t usually have large amounts of money to deal with. Furthermore, financial reports and statements may be more detailed in master-planned communities than small HOAs.

3. Coordinating Multiple Sub-HOAs

In a master-planned community, the master association must coordinate with multiple sub-HOAs, each responsible for different community sections. This adds layers of complexity to governance. Each sub-HOA has its own rules, responsibilities, and board of directors.

However, even if each sub-HOA is a moving part, a master-planned association must step in for cohesiveness. All of the development’s components have to come together to work in unity. 

4. Community Growth and Development

Master-planned communities often grow in phases. Management must handle ongoing development, future expansion, and new property integration. All of these things require long-term planning and flexibility. In contrast, once an HOA’s development is complete, its management focuses primarily on maintaining the status quo.

Benefits of Hiring a Professional for Master-Planned Community Management

Due to the complexity of master-planned community HOA management, hiring a professional management company can provide significant benefits. Here’s how a management company can help.

1. Expertise in Large-Scale Operations

Professional management companies have experience overseeing large developments, coordinating the maintenance of vast common areas, and ensuring all amenities function smoothly. They also know how to handle the complex financial planning required to maintain a master-planned community.

While the board can try to take on this task, it is often challenging. Board members have other priorities on their plates. They also often lack the skills and experience necessary to manage a large community. Hiring a management company is a wise choice.

2. Financial Oversight and Budgeting

With extensive amenities and infrastructure, master-planned communities require careful financial management. A professional management company can help create and manage budgets, collect dues, and prepare financial statements. The company can also maintain a healthy reserve fund for future repairs or upgrades.

3. Legal and Compliance Support

Juggling the management of multiple sub-HOAs with legal compliance is often hard to achieve. There are plenty of federal laws, state regulations, and local ordinances to keep up with, not to mention numerous building codes and zoning laws.

A management company is well-versed in all aspects of legal compliance. Most companies have a dedicated legal team or, if not, have a law firm on retainer. Associations function differently than corporations, even though they are usually classified as such. Therefore, not all laws apply to them.

With a management company, master-planned developments can stay up-to-date on new legislation and ensure compliance with current ones. These include the Davis-Stirling Act and the California Corporations Code.

However, Federal, state, and local laws are not the only things to consider when it comes to legal compliance. The master-planned community’s governing documents usually include provisions and stipulations. Failure to comply with these documents can lead to potential liability.

4. Coordinating Vendors and Services

A master-planned community can’t function alone. It must rely on vendors to take care of tasks such as landscaping, maintenance, facility management, security, and more. Professional companies can handle the hiring and management of vendors and ensure that all services are provided cost-effectively and efficiently.

Moreover, management companies usually already have a network of pre-vetted vendors and contractors. This will help the master-planned community save time in the selection process. Vendors also typically offer discounted rates to long-time clients, allowing the community to save money.

Master-Planned Community Management Made Easy

While master-planned community management shares some similarities with traditional HOA management, some differences set it apart. Managing such a large development requires careful coordination and long-term planning. Often, it is much more prudent to hire the services of a professional management company.

Personalized Property Management offers expert master-planned community management services around Southern California. Call us at 760-325-9500 or email us at info@ppminternet.com for more information!

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A commercial association differs from a homeowners association and a condominium, but they do share some similarities. It is important to understand how these entities differ in terms of structure, members, governance, and responsibilities.

What is a Commercial Association?

A commercial association is an organization responsible for managing and maintaining shared spaces and services in commercial properties, such as office parks, retail centers, and industrial complexes. It operates similarly to a homeowners association, but instead of governing residential communities, it oversees properties used for business purposes. 

Some may wonder what a commercial owner is or how these associations work. It’s important to understand that a commercial association serves the collective interests of the businesses or property owners within its jurisdiction. 

What is the Purpose of a Commercial Association?

A commercial property association is formed to manage common areas and services for commercial properties. For example, in a shopping mall or office park, the association takes care of shared spaces such as parking lots, landscaping, exterior lighting, and even security services. Commercial owners contribute to the upkeep of these areas by paying regular fees, similar to how residential homeowners pay dues to an HOA.

A commercial association’s primary goal is to maintain the value and functionality of the commercial properties it oversees. It also enforces rules and guidelines to ensure that businesses within the association comply with standards related to property maintenance, signage, and overall aesthetics.

Differences Between Commercial Associations and Other Associations

How does a commercial association differ from an HOA and a condominium association? Although they share some similarities, they have features that make them vastly distinct. Understanding these features is essential before entering one community or another.

Commercial Association vs. Homeowners Association

A commercial owners association operates differently from a residential HOA. While an HOA manages residential communities to enhance the quality of life for homeowners, a commercial association focuses on business interests. Its goal is to maintain an environment favorable to businesses and commerce in general.

An HOA typically prioritizes resident satisfaction, common area maintenance, and property value preservation. In contrast, a commercial association usually prioritizes accessibility, functionality, and appearance to attract customers, clients, or tenants.

The structure works differently, too. An HOA is usually a neighborhood association with individual homes and common amenities. A commercial association is generally a building or complex primarily consisting of businesses. There are no homeowners.

A development that combines businesses and residential units is commonly referred to as a mixed-use development.

Commercial Association vs. Condominium Association

A commercial building association is distinct from a condominium association, which typically manages residential units in multi-family buildings. While a condo association focuses on residential common areas like pools, hallways, and lobbies, a commercial association focuses on business infrastructure. These include parking, public signage, and exterior maintenance of commercial buildings.

Condo communities are more similar to homeowners associations. Both types of associations are home to unit owners or homeowners. People use the building or development as a place of residence, with shared facilities in common spaces. A commercial association is more distinct from these two, chiefly catering to businesses and customers.

Key Responsibilities of a Commercial Association

A commercial association management team is responsible for a wide array of tasks. These tasks help maintain the functionality and appeal of the commercial properties under their care. 

Here are the key responsibilities of a commercial association.

1. Maintenance of Common Areas

The association manages shared spaces such as parking lots, outdoor areas, building facades, and landscaped areas. Keeping these spaces clean, safe, and visually appealing is essential to maintaining a professional and inviting environment for businesses and customers.

The association must ensure proper cleaning, regular maintenance, and prompt repairs when necessary. When common areas aren’t properly maintained, tenants will complain as they can potentially lose customers. This is because poorly maintained buildings tend to scare away customers and visitors.

2. Enforcement of Rules and Regulations

A commercial association enforces rules regarding property appearance, signage, and the use of common areas. For example, restrictions may govern how storefronts display signs or use outdoor space. Rules and regulations help ensure uniformity, appeal, and professionalism. Again, it all circles back to attracting customers and other businesses who wish to lease a space in the development.

3. Financial Management

One of the association’s main roles is managing finances. Tasks include collecting fees from tenants, creating a budget, and maintaining a reserve fund for future repairs or improvements. The association is also responsible for preparing financial reports.

Of course, financial management is one of the most difficult aspects of running a commercial association. Therefore, many associations seek the help of an accountant or association management company.

4. Vendor Coordination

The association is responsible for hiring and overseeing vendors who provide cleaning, repairs, landscaping, and security services. To avoid problems, it is important to select the right vendors for the job. Similarly, it is essential to manage contracts effectively to ensure smooth operations.

How is a Commercial Association Managed?

Managing a commercial association is no easy feat. Several moving parts are involved, and roles must be fulfilled to ensure success.

Here are the key contributors to commercial association management.

Board of Directors

Like an HOA, a commercial property association is typically governed by a board of directors. However, unlike an HOA, a commercial association’s board typically consists of property owners or business representatives within the association. In an HOA or condo association, the board consists of members or homeowners within the community.

The board is responsible for making key decisions about the property’s management and operations. It sets policies, manages finances, and oversees the maintenance of common areas. The association’s bylaws provide more detailed responsibilities and details on how board members are selected.

Governing Documents

The association operates under legal documents, such as bylaws and declarations. These documents outline the responsibilities of the board, the property owners, and the tenants. They dictate how the association collects fees and assessments, resolves disputes, and makes decisions.

Annual Meetings and Voting

Property owners within the association typically vote on significant matters, such as budget approval, rule changes, or electing board members. These votes often take place at annual meetings, at which the board also provides updates on the association’s operations and financial health.

How a Professional Management Company Helps

Many commercial associations hire a professional management company to handle day-to-day operations. These companies specialize in managing commercial properties and can offer various benefits.

Here are the aspects of commercial association management that a company can help with.

1. Day-to-Day Operations

A management company can handle routine operations like maintenance, financial reporting, and administrative tasks, allowing the board to focus on larger strategic decisions. They also ensure that common areas are well-maintained and that all essential services run smoothly.

2. Compliance and Legal Support

A professional management company ensures that the association is compliant with state and local regulations and can offer legal support if disputes arise. This is particularly important when managing complex commercial properties where local zoning laws or safety regulations may affect operations.

The Commercial & Industrial Common Interest Development Act governs commercial associations in California. The Davis Stirling Act used to apply to commercial associations, but that changed in 2014.

3. Financial Planning and Budgeting

These companies help the board create and manage budgets, collect fees, and plan for future repairs or improvements by maintaining a healthy reserve fund. Board members may choose to take on this job alone, but they often struggle with this part of management. Therefore, a management company comes in handy.

4. Vendor Management

Professional managers coordinate and negotiate contracts with service providers. They ensure that vendors are reliable, that work is completed on time, and that the services provided are of high quality.

5. Tenant and Owner Management

A management company can also handle tenant and owner management. This includes communicating with them, sending notices and updates, fielding concerns, and responding to requests or work orders.

Benefits of a Well-Managed Commercial Association

A well-managed commercial association offers many benefits to commercial building association members, including the following.

• Increased Property Value. Proper maintenance and professional appearance help maintain or increase property values, making the area more attractive to businesses and investors.
• Efficient Business Operations. When common areas and services are well-managed, businesses can focus on their operations without worrying about exterior maintenance or security issues. This, therefore, improves efficiency and customer satisfaction.
• Conflict Resolution. A well-managed commercial association can help resolve conflicts between business owners, tenants, or the association. This ensures smooth operations and avoids unnecessary disputes.

A Wise Decision

A commercial association plays a vital role in managing shared spaces, maintaining property values, and ensuring smooth operations within commercial properties. Given the mountain of responsibilities, most commercial boards opt to hire a management company.

Personalized Property Management offers expert commercial management services around Southern California. Call us at 760-325-9500 or email us at info@ppminternet.com for more information!

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What is the Davis Stirling Act? The Davis Stirling Act is significant to homeowners associations in California. It serves as the legal framework for common interest developments in the state. Both board members and homeowners should understand the provisions of this act to avoid liability and protect their rights.

What is the Davis-Stirling Act in California Law?

The Davis Stirling Act functions as the primary legal framework governing common interest developments (CIDs) in California, including homeowners associations.

Is the Davis Stirling Act a law? Yes, the Davis Stirling Act is a law in California. It was enacted in 1985 and consists of a comprehensive set of laws that regulate various topics, including HOA governance, homeowner rights, and board responsibilities.

Considering the wide range of subjects it covers, the Davis Stirling Act should be understood by homeowners and board members alike. This is crucial to ensuring the smooth and transparent operations of the community.

The Davis Stirling Act is within Civil Code Section 4000 to 6150.

The History of the Davis Stirling Act

Community associations started growing in popularity in the 1970s, but they had existed before. However, regulations governing the operation and management of such communities, including condominiums and cooperatives, were scarce. It was not until 1985 that Governor Deukmejian signed the Davis Stirling Act into law. The Act went into effect the following year.

Legislators in California introduced the Davis Stirling Act to address the need for more uniform regulations for common-interest developments as they expanded in number. Before the passing of the Act, there was a lot of confusion surrounding the governance and management of these communities. This confusion ultimately led to conflicts between HOA boards and residents.

The Davis Stirling Act derives its name from its legislative authors, Assemblymen Lawrence W. Sterling and Gray Davis. The two legislators aimed to create a legal framework that consistently regulated associations. Today, the Act applies to all CIDs, including homeowners associations, cooperatives, and condominium associations.

The Purpose of the Davis Stirling Act

As previously mentioned, the Davis-Stirling Act is designed to regulate the operations and management of associations. This is its core purpose. The Act’s many provisions address various aspects of community management, including voting, elections, meetings, rights, and more. Its objective is to promote transparency, ensure accountability, and protect homeowners’ rights.

Within the Davis Stirling Act, you will find clear procedures for governance, among other things. The Act also covers financial management and dispute resolution. This law helps ensure the efficient running of HOAs and the fair treatment of homeowners. It aims to strike a balance between the association’s powers and the rights of individual homeowners.

Key Provisions of the Davis Stirling Act for Homeowners Associations

The Davis Stirling Act contains several important provisions that dictate how HOAs in California must operate. Some of the most critical Davis Stirling Act rules and regulations tackle the governing documents, elections and voting rights, HOA board responsibilities, assessments and financial management, dispute resolution, and open meetings and records.

Let’s discuss each item below.

1. Governing Documents

Homeowners associations are governed by a set of “the governing documents.” These include the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), the bylaws, and the operating rules and regulations.

The Davis Stirling Act requires that HOAs make these documents available to homeowners. All residents, including board members, must adhere to the provisions of their HOA’s governing documents. You will find the rights and responsibilities of homeowners and the HOA board within these documents.

You will find more information on an HOA’s governing documents under the Davis Stirling Act (Sections 4205 to 4370).

2. Elections and Voting Rights

The Act ensures that HOA elections are fair and transparent. It sets out clear procedures for voting, qualifications for board members, and the use of secret ballots. Homeowners also receive the right to vote on significant community matters, ensuring the association is run democratically.

You will find more information on elections and voting rights under the Davis Stirling Act (Sections 5100 to 5145).

3. HOA Board Responsibilities

The Davis Stirling Act outlines the duties and responsibilities of the HOA board. These include managing the association’s finances, maintaining common areas, and enforcing the community’s rules. The board has a fiduciary duty to act in the community’s best interest. Thus, any misuse of power or funds can result in legal action.

Of course, more detailed responsibilities and limitations can be found in the HOA’s own governing documents. For this information, it is important to read the community bylaws.

4. Assessments and Financial Management

One of the Davis Stirling Act’s most important aspects is its regulation of assessments. The Act mandates that HOAs maintain accurate financial records and set aside adequate reserve funds for future repairs. It also requires a review of the association’s finances and proper reserve planning.

The Act covers this information from Section 5500 to 5580. However, it is essential to note that other parts of the Act also tackle financial management.

Additionally, Davis Stirling sets rules for how the association can levy and collect dues and assessments. It tackles topics such as handling delinquent accounts, liens, and foreclosures. The goal is to ensure transparency in how the board spends the homeowners’ money. 

You will find more information on assessments and collections from Section 5600 to 5740.

5. Dispute Resolution

Disputes between homeowners and HOA boards are not uncommon, and the Davis Stirling Act provides mechanisms to resolve these conflicts. An HOA should have an internal dispute resolution procedure in place. However, the Act also encourages using mediation, arbitration, and other alternative dispute resolution (ADR) methods. ADR is a prerequisite to litigation, which can be costly and time-consuming.

You will find more information on dispute resolution from Section 5850 to 5986.

6. Open Meetings and Records

The Act requires HOA board meetings to be open to all homeowners, with limited exceptions (Section 4900 to 5000). These include litigation or personnel issues, which can be discussed in executive sessions. Open meetings ensure transparency in how the board makes decisions. 

The Act also grants homeowners the right to access certain records, including financial statements, meeting minutes, and governing documents. You will find more information about records inspection from Section 5200 to 5260.

How the Davis Stirling Act Impacts HOAs

The Davis Stirling Act profoundly impacts how HOAs operate in California. It standardizes procedures for running associations, giving homeowners a clearer understanding of their rights and responsibilities. 

The Act bounds board members to follow certain protocols, from holding elections to maintaining financial transparency. This law ensures that homeowners have a chance to express their voices and promotes the fair and accountable governance of communities.

Amendments and Updates to the Davis Stirling Act

Since its original passage in 1985, the Davis Stirling Act has undergone several amendments to keep up with changing legal and community needs. One of the most significant updates occurred in 2014 when the Act was reorganized for clarity and ease of use. 

The update didn’t change the substance of the law but reorganized the sections to make it easier for boards and homeowners to navigate. New provisions are regularly introduced to address issues like electronic voting, dispute resolution, and financial management.

Who Enforces the Davis Stirling Act?

Although no single agency oversees the Davis Stirling Act, enforcement is still a priority. What happens when boards violate the Davis Stirling Act?

The California courts primarily enforce the Davis Stirling Act. However, the Department of Real Estate (DRE) may also become involved in some cases.

Homeowners who believe their HOA has violated the Act can take legal action. As per the Act, though, homeowners must first go through ADR methods before litigation. If violations continue, homeowners can file lawsuits. Courts can then impose penalties on HOAs that fail to comply with the law.

Why Understanding the Davis Stirling Act is Important for Homeowners

Understanding the Davis Stirling Act is vital for both homeowners and HOA boards. Homeowners familiar with the Act are better equipped to protect their rights. They can ensure they are not subject to unfair treatment by their HOA. 

Knowledge of the act ensures that board members govern legally and transparently, helping to avoid conflicts and potential legal issues. Overall, the act helps to create a stable and fair environment within California’s common interest developments.

What is the Davis-Stirling Act? Explained!

The Davis Stirling Act plays a pivotal role in the governance of homeowners associations in California. It sets clear guidelines for how HOAs should operate – ensuring transparency, fairness, and legal compliance. Whether you’re a homeowner or an HOA board member, understanding the provisions and implications of this critical law is crucial to maintaining a well-functioning community.

Personalized Property Management offers HOA management services around Southern California, including assistance with HOA governance. Call us at 760-325-9500 or email us at info@ppminternet.com for more information!

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Mixed-use associations have become popular around the United States. They provide a good avenue for people who want a home but value proximity to essential services. While they are undoubtedly convenient, they also come with important considerations. What should residents expect from a mixed use community association? Let’s find out.

What is a Mixed Use Community Association?

A mixed-use community association combines residential and commercial properties in one neighborhood. It often consists of several buildings and outdoor spaces. 

There are two main types of mixed-use associations:

• Vertical Mixed-Use Development. A vertical mixed-use development combines residential, commercial, and retail spaces in one building. Public units are often on the ground floor, while private spaces are on the upper floors and units. Private units may include residential units, hotel rooms, and office spaces.
• Horizontal Mixed-Use Development. A horizontal mixed-use development combines a single-use building inside a mixed-use property comprising multiple buildings. The entire development has a variety of uses. The community is larger and more walkable.

Many mixed-use community associations are located in dense urban areas. They offer the ideal environment for people who want their home, work, and recreational spaces in one area.

Structure of a Mixed-Use Community Association

Like other planned communities, the developer of a mixed-use community association will work with a lawyer to create the community’s governing documents. These documents outline the HOA and residents’ responsibilities, perks, and obligations. 

Mixed use associations are distinct in that there are varying interests within the community. Residents may want more privacy, while retailers and commercial establishments prefer to be more open to the public. A mixed-use community’s governing documents must protect the interests of all parties. 

In many cases, a mixed-use community association will have several sub-associations for the residential and commercial properties. A master association will often govern both, though some communities may create entirely separate associations for either type of property. Some communities also opt for one large association, with either type of property represented in the board of directors. 

Regardless of how a mixed-use association is organized, residential and commercial property owners must learn to coexist and strive to achieve the community’s overall goal and vision. 

What to Expect Living in a Mixed-Use Community Association

Mixed-use communities come with many considerations. Homeowners should think about the following aspects of mixed-use community living before purchasing a property:

• Limitations in the governing documents and their amendments
• Allocation of expenses for common, limited common, and shared facilities
• Structure and cost of assessments
• Allocation of voting rights
• Individual unit boundaries
• Permitted user controls
• Operation hours and special event abilities
• Management, operation, reconstruction, and maintenance responsibilities
• Dispute resolution processes
• Residential protections for adverse use or deterioration of parcels

Each mixed-use development is different. Hence, it’s essential to thoroughly ask questions about the HOA’s operations and how expenses are divided. Understanding the association’s financial, legal, and social responsibilities is also crucial. These can affect the homeowners’ quality of life and financial investments. 

Benefits of Living in a Mixed-Use Community Association

Mixed-use community living has many benefits, including the following:

• Convenience. Mixed-use properties provide many conveniences for the residents. Unit owners can often find laundry facilities, restaurants, fitness centers, and groceries in one area. They no longer need to travel far to access essential items and services.
• Walkability. Mixed-use developments foster a strong sense of community by allowing customers, tenants, residents, and guests to walk to various establishments. Residents are less pressured to purchase a vehicle to reach their destination.
• Economic Development. Mixed-use developments earn money not just through association dues but also through rental income. Both business owners and residents can benefit from this added income source, which offers economic benefits and encourages investment.
• Physical Health. Creating a walkable environment encourages residents to exercise and prioritize their physical health while accessing other establishments. 

Challenges of Mixed-Use Community Association Management

How do homeowners associations manage mixed-use community developments? There are several considerations and management challenges involved in mixed-use developments, such as the following:

1. Communication

Communication is required in mixed-use developments. They often schedule regular maintenance and inspection activities to ensure the residents’ quality of life. Moreover, frequent events and gatherings in shared spaces may need to be announced to other occupants.

Landlords must prioritize communication to ensure good relationships with tenants. They must provide constant updates concerning responsibilities, routine maintenance, and rental rules. Otherwise, they may manage numerous emails or calls from residential and commercial occupants.

In addition, they must ensure that all occupants are well-informed about the community’s activities. They must also keep track of vendor expenses, events, lease agreements, accounts, invoices, and rent.

2. Conflicting Needs

Residential tenants or unit owners may sometimes complain about noise, too much foot traffic, and unpleasant odors from the other floors and units. This is one of the biggest challenges when mixing residential and commercial properties, especially if the property is built vertically.

One way to avoid this is to manage the expectations of both parties. For instance, residential owners and tenants may need to know that certain businesses will be open late into the evening. Meanwhile, commercial establishments may need to operate at certain hours to maintain business without disturbing the residents. 

3. Maintenance

Many of the lower-floor common areas are open to the public, making maintenance difficult for the development’s management team. Both residential and commercial areas often share mechanical, electrical, and plumbing systems. It’s important for the association to manage these wisely. Otherwise, one party will feel like they are being abused by the other to cover all the maintenance costs.

The board of directors can reduce conflict by establishing a clear maintenance schedule for both areas. They should also create policies outlining the consequences of failure to maintain individual properties and follow through on tenant responsibilities.

In addition, it may help to purchase property management software dedicated to mixed-use properties to manage maintenance schedules, work orders, and other requests. The tenants and residents can see who is in charge of which task and when these tasks will be completed.

4. Parking

Parking is often a big challenge for landlords and management teams. Residents want to be reassured that they have somewhere to park their vehicles. Meanwhile, commercial tenants will wish to have many parking spaces for their staff and customers. They also do not want the residential unit owners to cause any inconvenience to their patrons. 

The best way to handle this is to create separate parking spaces for commercial and residential property owners, tenants, and guests. This is especially important for vertical mixed-use developments, which often have shared or one designated parking area. 

If the association consists of one building with one parking lot, consider dividing the lot between commercial and residential use. On the other hand, buildings with multi-level parking can dedicate particular floors to commercial use and others to residential use.

In addition, it may be wise to hire parking security guards to prevent conflict. The guards may quickly punish or enforce the rules on violating tenants, guests, customers, and residents. 

Tips to Manage a Mixed-Use Community Association

Mixed-use communities can be difficult to operate and manage. Here are some tips to keep in mind to ease tensions and ensure success:

1. Review the Governing Documents

The residents and HOA board members must be familiar with the ins and outs of the governing documents. They must remember that the residential community can only control what they are allowed to do within the development. While the homeowners may file complaints, they must understand that the CC&Rs may be partial to residential or commercial owners.

2. Work Together

Residential and commercial associations must work together to create a harmonious environment. One way to do this is to form a usage committee with representatives from both sides. The usage committee can guide and manage all the logistical issues within the property. It can help develop policies on pest contracts, exterminators, deliveries, and signages.

3. Involve the Commercial and Residential

To build goodwill, commercial establishments can become more involved in the residential community. For example, one of the restaurants can provide catering services to the HOA during the annual meeting. It may also send discounts to the development’s residents to improve the relationship. 

4. Fine-Tune Nuisance Provisions

One of the most common complaints in mixed-use associations is the noise and disturbances. Make sure to fine-tune the governing documents’ nuisance provisions so the HOA can act on enforcement. Communities may also rely on these provisions to bolster their case in case of a lawsuit. 

Get Professional Help

Managing a mixed-use community association can be difficult. Often, the residential and commercial tenants conflict. Nevertheless, the association provides many benefits and conveniences to the occupants.

Personalized Property Management offers comprehensive mixed-use association management to communities in Southern California. Call us now at 760-325-9500 or request a quote, and we’ll get back to you.

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Shifting from a developer-controlled community to an HOA-managed neighborhood can be challenging. There are many considerations and potential conflicts along the way. The process can take several months or even years. Moreover, there’s a lot of legal paperwork and construction phases involved. HOAs need to plan carefully to ensure a successful transition.

What is a Developer Controlled Community? 

Most homeowners associations do not start as self-managed communities. More often than not, a developer establishes the planned community and sets out its scope. It creates the HOA by developing and filing the governing documents with the Secretary of State. The HOA also establishes a budget and appoints a board.

In a developer-controlled community, the board of directors is made up of the developer and people related to the developer. The developer-appointed board has a fiduciary duty to act in the best interest of the community. It manages all aspects of community life, including maintenance, assessment collection, meetings, and enforcement.

The developer may act independently or hire a management company to handle operations. The management company will take over many of the menial tasks and follow the board’s directives. 

How Developer-Controlled Communities Form

Developer communities form through three phases.

• Expansion Project. The developer starts with an expansion project. It looks for land to develop, conducts a study, and purchases the property to establish an HOA. 
• Pre-Development. During this phase, the developer obtains the required approvals and permits before construction. It also consults with a legal professional to create the association’s governing documents.
• Formation. The developer controlled community is established during formation. It establishes a non-profit corporation and sets the obligations, ownership, and rights of the community. 

Developer Responsibilities

The developer has several responsibilities while it controls the community, including the following:

• Declaration of Covenants, Conditions, and Restrictions (CC&Rs). The developer must create and file the community’s CC&Rs to establish the HOA. The CC&Rs serve as a contract between the HOA and the residents, outlining either party’s obligations and responsibilities. They also inform the bylaws and other community rules.
• Rule Enforcement. The developer must enforce the rules found within the governing documents. When someone moves into the home, they must pay their monthly assessments and abide by the rules. Developers may do this themselves or hire an HOA management company to help them with enforcement.
• Budget. The developer must create a budget for community operations. It must be enough to cover the community’s regular expenses, operations, and reserve funds.
• Fees and Assessments. The developer-appointed board must collect assessments from the homeowners. They will be established based on the annual budget. 
• Governance. The developer must appoint a board to govern the community. Often, the developer appoints its staff to become board members. The board must then hold meetings, manage operations, and vote on important decisions. 

How Much Authority Does a Developer Have?

The developer has a lot of power in a developer controlled community. Homeowners will rarely influence the developer-appointed board’s decisions. The board not only runs the board but also creates the CC&Rs. Moreover, developers have a lot of voting rights because they still own a bulk of the community’s property. Residents may voice their concerns and suggestions, but ultimately, the power rests on the developer.

However, not all developers work like this. Some may proactively seek volunteers to join the HOA board. Potential buyers should do their research before buying a home in a planned development. Otherwise, they may not be happy with the board’s decisions.

Regardless of who controls the board, the directors have a fiduciary responsibility to act in the community’s best interest. If not, the homeowners may eventually file a lawsuit against the HOA. This means developers should follow the governing documents and acknowledge the homeowners’ rights. 

How Long Does a Developer Control a Community?

When does a developer transition to an HOA? Is there a time limit? Unfortunately, there is no standard time limit to developer control. It is often determined by the community’s governing documents and property sales.

For many communities, the developer must begin transitioning when a certain percentage of the properties are sold. For example, the governing documents may require 20% of the board members to be homeowners when 50% of properties are sold. Many communities also require the board to be exclusively comprised of homeowners when 75% of homes are sold.

On the other hand, developer turnover does not just happen when the community has sold most of its homes. Developers may also transition control when they face bankruptcy or if the court appoints a receiver. 

Some communities may also place a time limit on developer control. For instance, the governing documents may require the developer to release control when a certain number of years have passed since the CC&Rs were established. 

How to Transition from a Developer-Controlled Community

Eventually, the developers responsible for managing the HOA must give up control. How does the transition from a developer-controlled community to an HOA-controlled community work? Here are the common phases.

1. Pre-Transition

During the pre-transition phase, the developer may appoint a transition committee to help the board with all transition processes. The committee may then review the community’s finances, perform an audit, check the reserves, review insurance policies, and assess the HOA’s need for professional management. Afterward, the transition committee may recommend how to proceed to the current board. 

2. Turnover Meeting

The HOA may conduct an official turnover meeting to deliver all the documents to the HOA members. Developers must provide the following records to the community:

• A copy of the governing documents and its amendments
• Previous meeting minutes
• All community policies and rules
• Director resignation letters after the developer has turned over control
• Financial reports, statements, and records
• Bank accounts, signature cards, and inventory records
• Membership list
• Architectural, engineering, structural, electrical, plumbing, and mechanical plans
• Underground site services, site grading, drainage, and landscaping plans 
• Insurance policies
• Official permits
• Contractor lists
• Lease agreements and vendor contracts

During the meeting, the community residents may elect a new board of directors comprised of HOA members.

3. Post-Turnover

Developers may still attend HOA meetings for a few months after the official turnover. This time frame allows them to ensure a smooth transition. The developer can advise the new board on operations and provide insights on certain decisions.

Tips for Developer Transition

What should developers and homeowners associations keep in mind during the transition? Here are some tips that might help.

1. Create the Transition Team Early

HOAs should create the transition team at least one year before the turnover meeting. This gives them time to review the HOA’s records and plan for the transition. 

2. Hire Professionals

The HOA may require professional help to turn over documents and operations. Consider hiring an HOA manager who can support the association throughout the process. The HOA manager can liaise between the developer and the community. They may also handle operations and guide the board in their new responsibilities.

In addition, it may help to hire a civil engineer and lawyer. The civil engineer can review the project’s common elements and spot potential problems. Meanwhile, the lawyer may help the developer with the transition’s legal requirements. 

Finally, the community may hire an accountant to audit its financial records. The accountant may check for inconsistencies, discrepancies, and signs of fund mismanagement or fraud.

3. Audit Each Contract and Document

The transition committee may audit all the executed contracts, insurance certificates, correspondence, and maintenance records. They may review and reconsider unreasonable contracts or agreements that do not work in the HOA’s favor. It may help to consult an attorney during the review. 

Apart from this, they should copy and store the documents in a secure vault or online storage platform. The HOA may need to invest in additional security measures to ensure the documents are safeguarded.

4. Inspect the Community

The transition team should schedule an inspection with the community engineer. This way, they can find potential problems with the community’s facilities. The HOA can then ask the developer to address these issues before they transition control. 

A thorough inspection also informs the community of where important utility lines are. The community can also obtain a copy of the neighborhood’s permits and warranties. 

5. Perform and Record Maintenance

The transition team should establish an exact date to transition control over maintenance activities. Doing so can help the board prepare for maintenance duties after the transition.

6. Set Regular Meetings

The new board, transition team, and developer should hold regular meetings to ensure a successful transition. A board email may also be necessary so all directors can access important communications. 

7. Take Financial Control

The new board should review all accounting records and ensure they have control over all community accounts. The developer should also be asked to turn over all bank accounts, investments, and loans to the board. 

A Successful Transition

It’s not always easy to transition from a developer controlled community to an HOA-managed one. The new board may not have the knowledge or experience to run a planned community. Hence, it’s important to create a transition team early and plan the turnover in phases.

Personalized Property Management helps developers and homeowners associations with management and community transition. Call us now at 760-325-9500 or visit our website to learn more!

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