Frequently Asked Questions for New Association Members

It is a nonprofit corporation registered with the State of California and managed by a duly elected Board of Directors. Its purpose is to maintain all common areas and to make the community an enjoyable place to live.

The recorded Declaration of Covenants, Conditions and Restrictions, commonly referred to as CC&R’S, are the guidelines established in order for the Common Interest Community to enhance and protect the value of the project. These guidelines usually cannot be changed without a specified majority vote. This change then becomes an amendment and is recorded with the County Recorder office. Failure to abide by the CC&R'S can possibly result in a fine if the Board determines a violation has occurred.You should carefully review the CC&R'S.

The Bylaws are the adopted guidelines and rules established for the operation of the Homeowner's Association. These Bylaws aid in the election of the Board of Directors, define duties and responsibilities of the Board and Officers and set other specifics which are necessary to properly operate the Association. Again, you should carefully review the Association's Bylaws

The common areas and facilities that the Association is responsible to maintain include the lake, wetlands, landscaping, and wrought iron fences. In addition, there are common services such as water and electricity, which the Association is responsible for paying through the collection of Assessments from the owners. Some of these common facilities will be completed in Phase Two of the project.

The Homeowner's Association is a corporation by law and, therefore, a governing body is needed to oversee the business. The Board of Directors is the elected governing body of the Association. The affairs of the Association are managed by a Board of five (5) Directors. These Directors create the rules and regulations for enforcement within the community, oversee budgeting and expenditure of funds, as well as work with the managing agent in maintaining Association common areas. The Board of Directors usually organizes several committees to aid the community in decision making. Examples of this would be: Architectural and Landscaping Committees, Nominating and Election Committees, etc.

It is normal that the initial Board of Directors consist of representatives of the Builder. This is done to provide the Owner holding the majority ownership of the project, with adequate protection of their interests. At the first Members Meeting the homeowners will elect at least one representative to the Board.

The Bylaws state the frequency of the Board meetings. Board meetings are open to all homeowners, but the Board has the right to limit participation by individual homeowners. Depending upon the business to be transacted, Board meetings may occur only once a quarter or as often as monthly.

The assessment is the monthly installment of the annual assessment amount due from each property. This assessment is used to operate and maintain the property that is commonly owned or controlled by the Association. The annual assessment is based upon the estimated expenses required to operate the Association and maintain the common areas and facilities (budget).

The Department of Real Estate requires proforma operating budgets to be submitted by the developer for the first year’s operation of the Association. The budgets are reviewed by the Department of Real Estate, utilizing their guideline figures for all common areas and facilities which are the responsibility of the Association. The budgets adopted by the Association are generally based upon these budgets. There are two basic areas to the Association's budget: the Operating accounts such as utilities, landscaping, etc., and the Reserve accounts for replacement of components such as gates, walls, fencing, paving, etc. These amounts are difficult to predict accurately and even if accurately estimated initially, these amounts can increase with the age of facilities and with increased costs of living. An additional cumulative budget showing additional lots and common areas for the next phase has also been prepared and reviewed by the Department of Real Estate.

The assessments may increase after the first year due to changes in the operations and cost increases for utilities and services. Your Board of Directors will prepare a new budget each year to reflect changes and cost increases or decreases. The Board must obtain the majority vote of the members to increase the budget more than 20% from the prior year's budget. As this is a phased project in which additional lots and common areas may be annexed, it is possible that your assessments may increase or decrease when this happens.

Not paying the assessment is not going to help solve problems. In fact, the CC&R’S state that not paying the monthly installment of the annual assessment causes the homeowner to be subject to late charges of $10.00 or 10% of the delinquent installment, whichever is greater, as well as interest and collection charges. In addition, the Association can accelerate your installments and demand that the remaining balance of the annual assessment be paid in full if you are delinquent in the payment of your monthly installment. If there is no payment from the homeowner, a lien can be filed which could eventually result in foreclosure of your home. Remember that all the owners share the responsibility of assuring payment to the Association so that the property can be properly maintained. Be sure to closely review the Association's current adopted Assessment Collection Policy included in this manual.

A Management Company is hired to act as the agent for the Homeowner's Association. Typical responsibilities include:

1. Assessment Collection: Collection of the installments of the arinual assessments and delinquent installments.
2. Supervision of all Subcontractors: Hiring, supervising and working with landscapers and other contractors. The Management Company does not perform these services, but acts in a supervisory capacity only.
3. Accounting: Submitting monthly assessment installment billings to the homeowners, maintaining current lists of homeowner addresses as received, processing of the Association payables, and submitting monthly financial reports to the Board.
4. Communication: Performing as a liaison for the Association to the developer, providing information from the Board and Management to homeowners, as well as communication between homeowners, through distribution of periodic newsletters or mailings.
5. Architectural Approval: Coordination and tracking of requests for approval from the Architectural Committee for plans for construction, alterations or improvements.
6. Problem Solving: Working with the Board of Directors in interpreting and enforcing the CC&R'S, Bylaws and Rules and Regulations of the Association. Responding to homeowners requests regarding the common areas and the operation of the Association.
7. Consulting: Providing the Board with information pertaining to proper maintenance of the community, suggested project improvements and to keep the Board advised of current Association Management procedures and laws.

First of all, the monthly assessments are still the responsibility of the homeowner. Screening of tenants before rental is very important, not only to the owner, but also in consideration of the other residents. Disturbances and disorderly conduct by tenants and can result in a fine to the OWNER for their behavior. Preservation of the community as well as harmony among residents is the ultimate goal of any association. If a tenant violates these rights, the owner is expected to take the necessary measures to correct the situation. Each owner should be certain that his tenant is familiar with the Association rules and regulations.

The Association has governing regulations concerning additions or changes to the exterior of any premise. The regulations encompass the installation of landscaping and fences, adding a patio cover, building a patio or pet enclosure, color of paint, etc. You should review the Covenants, Conditions and Restrictions and the adopted Design Guidelines to determine the exact requirements which will need approval.

The Architectural Committee must approve all exterior changes. Applications and plans should be submitted to the Management Company. If a homeowner completes an exterior change without Committee approval, the owner may be required to remove the modification and be subject to enforcement proceedings. This regulation is set up to maintain the overall appearance of the community and protect the property values. Also, The City of Fairfield requires that any structural changes be submitted and approved through its office for proper building permits.

Within the first year, if you have bought a home and are having warranty related concerns, contact the Customer Service Representative of the builder. Reports must be made in writing and it is advisable to send a letter certified, to guarantee that the builder did, in fact, receive the work request. Should concern not be reported by the homeowner or declined under the warranty by the builder, then the homeowner is responsible for pursuing repairs.

1. Common Area Concerns
   Issues or complaints concerning common area maintenance or usage should be submitted through the Management Company or to the Board of Directors. As the Homeowner's Association matures, committee heads may be set up to monitor all complaints and aid in the timely correction of any problem area.
2. Difficulty With Neighbors
   Hopefully this will not occur, however, sometimes there does develop a difficulty with a neighbor over the parking of vehicles, loud and excessive noise, animals, etc. These complaints should be made to the Management Company. The Management Company, in turn, will send a letter stating the violation or disturbance and enforce, through the Board of Directors, any fine which the Association has established. At times the enforcement may necessitate the notification of local police.
3. Utility. Water. Gas, Fire
   Depending upon the nature of the concern or emergency, contact the appropriate agency FIRST. It is best to receive immediate service in the event of these type problems or in the event of an emergency. The Management Company should also be aware of these situations, as it allows for a monitor of recurring problems. Be sure to keep handy the emergency telephone numbers for the local companies and official agencies.