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Why is it
necessary to form a homeowners association?
The Declarant for the
Rancho Gabriela Homeowners Association, Stardust
Development, Inc., has planned certain Common Areas and
recreational amenities within the community seeking to
enhance property values for its residents. Maricopa
County requires that an entity be formed which will own
and maintain these Common Areas in perpetuity. The
Declarant desires to carefully establish and to give the
authority in the future to control architectural
integrity. To meet these requirements, the Declarant has
formed a homeowners association, incorporated as a
non-profit Arizona corporation and has formulated deed
restrictions (CC&Rs) and Bylaws which serve as a guide to
its formation and operation.
Is
membership optional?
No. The Declarant
records with the Maricopa County Recorder a Declaration of
Covenants, Conditions, Restrictions, Reservations and
Easements known as CC&Rs. These documents stipulate that
all Owners of land within the community automatically
become Members and are subject to the CC&Rs. An
Assessment amount is determined through the budgeting
process and becomes an obligation of each Member.
Assessment revenue finances the operation and reserve
funding of the Association including, but not limited to,
landscape maintenance, insurance, management,
architectural control and violation enforcement. The CC&Rs
create a continuing lien for the Assessment obligation.
Who is in
charge of the Association?
The
Association is controlled by an elected Board of
Directors. There are two classes of voting memberships.
The Declarant, as well as the Builders, are Class B
Members and are given three votes for every Membership
they hold. All other Owners are considered Class A
Members and are entitled to one vote for each Membership.
The CC&Rs set forth determination of memberships. Voting
is weighted in favor of the Declarant and Builders during
the development period in order to allow the Declarant to
implement its original vision before it turns control of
the Association over to the homeowners. That ‘transition
of control’ commences when 75% of the Lots in the Rancho
Gabriela Homeowners Association are sold from the Builders
to individual Members.
Does the
Association control what I can do to my individual Lot?
The CC&Rs allow for
the establishment of a Design Review Committee whose
purpose includes creating, protecting and preserving the
architectural integrity of the community. It approves the
original building plans for all residential and commercial
structures. Beyond that, the Committee must review and
approve all proposed changes to any Lot that are Visible
From Neighboring Property. This is accomplished through
the architectural application process, whereby an Owner
requests approval in advance for any changes he or she
desires to make to his property. All Owners are bound by
the decisions of the Committee, which is empowered to
ensure that the architectural integrity of the master plan
remains intact. The CC&Rs also address such restrictions
as trash container storage, overnight parking,
recreational vehicles, trailers, boats, unkempt yards and
business use of residential areas. The Association is
given the power of enforcement through the CC&Rs,
including legal action whenever necessary to remedy
infractions. Through the architectural control process,
as implemented by the Design Review Committee, property
values should remain high and the community remains
aesthetically pleasing.
How can I
be sure that my Assessment will not keep going up?
The CC&Rs detail
specific procedures to control the Annual Assessment from
year to year. Originally, the Declarant sets a maximum
Annual Assessment determined by a built out budget as
though all amenities and all Memberships were in place.
The Assessment may be set at any rate not to exceed the
maximum. Each year thereafter, the Maximum Annual
Assessment may be increased by the Board of Directors by
10% or the cost of living increase as determined by the
Consumer Price Index, whichever is greater, without a vote
of the Membership. Any increase beyond that requires a
positive vote of two-thirds of any class of members.
Do
homeowners have a voice during the period of Developer
control?
The Association is
required to hold an Annual Meeting of the Members each
year for the purpose of providing general information
about the Association, presenting a financial report and
holding elections for available Board positions (when
applicable). This is an ideal time for homeowners to
voice their concerns and ask questions. However, it is
not necessary to wait for meetings. The Board of
Directors employs a professional Managing Agent for the
purpose of administering the daily affairs of the
Association. The manager will visit the community
frequently and will be available by telephone or email for
any Association related questions or problems. The
management company will act as a liaison between the Board
of Directors and the Members, collect Assessments, pay
bills, oversee landscape and amenity maintenance,
correspond and communicate with Members, and regularly
tour the community. Even though the Declarant’s voting
power assures it control of the Board of Directors up
until at least 75% of the lots are sold to individual
Owners or entities, it is constantly preparing for the
turnover of the Association to homeowner control.
For more information
or additional questions, please contact Peri Swenson with
Kinney Management Services at (480) 820-3451 ext. 202, or
by email at:
Peri@KinneyManagement.com. |
