HOA ABCs for Newbies

We initially named this tutorial HOA ABC’s for Dummies. Then it dawned on us that our so-called dummies have a unique common quality. They all live at Fountaingrove Ranch. And this takes ‘em out of the dummies class. It is a smart move to relocate to Fountaingrove Ranch.

So what do we mean by “Newbies”? A newbie is a person who has not lived in a community governed by a Homeowner’s Association (HOA). In California, fewer and fewer people are newbies as more and more real estate developers achieve project approval based on HOA benefits and governance. It is now estimated that about 30% of California’s housing stock is in HOA’s. And, most new multi-home projects seek HOA status because it’s good marketing. This article will tell you why.

What does governance mean? Basically, it means that a legal relationship exists between the property owner and the HOA, a relationship that specifies covenants, conditions and restrictions (CC&Rs) relative to the property.

A typical covenant might be a requirement to install plants from an approved horticultural list in your landscape.

A typical condition might be to pay monthly dues to the HOA.

A typical restriction might be to not park RV’s or boats in the open on your property or on the street.

An owner of property within an HOA must abide by the CC&Rs as well as any applicable requirements for land use or homeownership imposed by the City.

The HOA derives its powers from federal, state and local laws as well as the CC&R’s, the By Laws (that deal with voting and other “member” rights) and the Articles of Incorporation (which created the FRMA).

A fact worth noting is that most HOA’s — especially mature HOA’s like we have at Fountaingrove Ranch — are operated by your neighbors working as unpaid volunteers. Administration by your elected peers generally means golden rule treatment and a friendly interface.

In some cases, however, treatment at some HOA’s can be arbitrary, and Legislatures tackle such situations with laws that protect homeowner’s rights. At Fountaingrove Ranch, your all-volunteer HOA Board of Directors pledges fairness.

What is your legal relationship with the HOA? When you purchased your property, you were supplied with a copy of the CC&R’s during the escrow period (click here to read our Master CC&R’s). Your real estate agent no doubt encouraged you to read the document. At close of escrow, you acknowledged receipt and acceptance of the CC&R’s. Not sure if you received this document? Look in your closing papers. The CC&R’s will probably be the largest single document. In the case of Fountaingrove Ranch, CC&Rs spans more than 100 pages (many of those pages are legal property descriptions known as “Metes and Bounds.” These pages have been left out of our download version. The actual CC&R’s span less than 65 pages).

If you need a paper copy of the CC&R’s (or the By Laws or Articles of Incorporation, for that matter), please e-mail Gigi LaFontaine or call her at (707) 575-5171. Or go to our Documents page to download and print a PDF version.

Some homeowners receive two sets of CC&Rs — one for the Master homeowner’s association (that’s us), and one for a neighborhood subassociation. There are four subassociations at Fountaingrove Ranch (Stonefield, Fairway Knoll, Second Fairway and The Oaks), and each one supplies a small set of additional CC&Rs.

We encourage all homeowners to read the CC&Rs, and to question them. The good news is that CC&R’s represent the consent of the governed. The better news is that CC&Rs can be changed through democratic process (however, prior attempts to add restrictions to the Fountaingrove Ranch CC&R’s have failed at the ballot box).

Say you have read the CC&Rs and have questions. The first important thing to know about your HOA is who to contact for clarifying information. Our HOA is called the Fountaingrove Ranch Master Association or FRMA. The FRMA is self managed — we don’t use an outside property management company — and our office is located at 3554 Round Barn Blvd., Suite 309. Click here for a map. Our administrative assistant is Gigi LaFontaine. Her office hours are 9 to 5, M-F. You may call her at (707) 575-5171; fax (707) 575-5174 and e-mail her here. Gigi is a first-class resource and either knows the answers or knows the correct person for the answers.

For Subassociation CC&R contact information, please also call or e-mail Gigi.

Now that we have the basics covered, let’s deal with some newbie issues, starting with “What do I get for my dues payment?”

What do I get for my dues payment?
During or prior to close of escrow, you probably learned that the FRMA assesses dues. By law and under our CC&R’s, each owner must pay assessments (sometimes called dues) which are levied by the FRMA. Subassociations also assess dues (primarily for the cost of required landscape maintenance on private and subassociation public grounds).

What does the FRMA provide for your annual dues? First and foremost, please review our most recent Financial Report . The range of our activities may surprise you. As you’ll see, our largest expense is for public open space landscape maintenance. These open spaces span more than 40 acres (confirm), and contractors selected through competitive bidding provide maintenance. Driving our costs is the periodic need to replace aging irrigation equipment and wear and tear due to the abundant wildlife at the Ranch.

The second largest expense is office management and administration. In prior years, the FRMA has incurred significant legal expenses related to annexations and enforcements, but these have tapered off. Architectural control continues to be one of our larger expenses, with the money going for consultants who guide the studies and decisions needed to fairly and clearly administer our CC&R’s.

Each year as part of the budgeting and accounting process, the FRMA reviews and adjusts our dues to reflect current realities. Dues have actually declined over the last few years. This brings us to the second newbie issue, “Why do I need to obey to these CC&R’s.”

Why do I need to obey these CC&Rs?
The short answer: you agreed to be bound by the CC&R’s when you completed the purchase of your property at the Ranch. CC&Rs constitute an enforceable contract.

The longer answer is that CC&R’s create fair and equitable rules that maximize property values through common criteria surrounding property use. Fountaingrove Ranch neighborhoods are uniformly beautiful, blight free and uncluttered. Our celebrated architecture is uniform and consistent even as it ranges from traditional to experimental. House colors are drawn from an approved stylebook to avoid jarring differences. Landscaping shows professional attention to design and maintenance. Compared with more eclectic neighborhoods not governed by an HOA, Fountaingrove Ranch is highly desirable.

The bottom line of our long answer is investment value. Our homes are the investments we live in and enjoy daily. Through CC&Rs, we maximize the upside investment potential. We do not need to worry about a neighbor who is planning to paint his home bright lime green or Day-Glo orange; and if another neighbor wants to permanently park a 40 foot motor home in front of your place, CC&R’s bring fair, pre-agreed relief.

Who administers the CC&Rs?
The administration task falls primarily on the shoulders of our active Architectural Control Committee (Please visit the ACC’s home page here). Staffed entirely by homeowner-volunteers but supported as needed by professional consultants, the ACC begins its involvement with each lot when the builder applies for development. In this task, the ACC is a proxy for the City of Santa Rosa. All city development rules must be strictly observed, and the ACC acts to assure that the building permit process includes CC&R compliance. ACC members work with City planning staff to ensure satisfaction of all laws and ordnances.

Once a home is built and occupied, the ACC becomes the homeowner’s destination for external property modification. On brand new homes, where the contractor installs pre-approved front landscaping, the homeowner is usually required to submit plans for rear / side landscaping, gaining approval prior to installation.

Down the road, the ACC is also the place to go when it’s time to repaint, add a deck or concrete pad, gazebo or what-have-you. If you are in doubt, just click the ACC link above for more guidance.

Please note that the ACC’s charter is the exterior of your home and your landscaping / hardscaping. There are no CC&Rs governing what you do inside (unless it changes the exterior of your home in some way, such as the addition of a window or door).

What happens to scofflaws?
It’s a rare homeowner who violates the CC&R’s. To keep violations low, the ACC actively seeks to discuss and resolve issues directly with the homeowner. In the event that resolution is not possible, CC&R enforcement is referred to the FRMA Board. The Board may invite the homeowner into an executive session to achieve resolution. Failing this, legal action may be needed.

Such drastic action is rare at Fountaingrove Ranch. When you think about it, you’ll realize that our Homeowner’s Association is acting as a legal proxy for the city; it’s easy to understand that the FRMA must enforce the CC&R’s lest the city revoke our charter.

In the highly unlikely event that a property owner acted egregiously — for example, removed dozens of mature trees and bulldozed an unauthorized lengthy driveway, further damaging the environment with hundreds of truckloads of base rock, mitigation would certainly bring city planning and legal staff, and perhaps the District Attorney into the situation.

OK, if you’ve read this far, you are no longer a newbie. Any questions you might have now fall into the veteran class. For more information, please check back in order to refer to our Frequently Asked Questions document, now under construction.