Arnold Lilac Park Homeowners Association

P.O. Box 722 Arnold, CA 95223

 

Dear members of ALPHA, during the course of the last 12 months and in compliance with the California Civil Code, your Board of Director’s has worked diligently to maintain and enhance our community facilities, as well as to preserve and improve the quality of life for all association members.

 

All of the enclosed documentation is required by law, and should be reviewed and kept with your other important documents.  Should you decide to sell your home or lot at a future date, you may need to supply this information at the time of closing.

 

Enclosures:

2007 Budget and Summary of Insurance Disclosure #1365(e)

CC&R’s and Rules of Conduct

Pro Forma Budget Civil Code #1365(a)

Assessment Amount and Reserve funding Disclosure cc#1365.2.5

Association Policy with Fine Schedule #1365(d) & #1367.1(a)

Alternate Dispute Resolution Disclosure Civil Code # 1369.590

Delinquent Assessment Foreclosure Civil Code #1365.1

 

Approved Pro Forma Budget

The approved Pro Forma Budget provides no (0) increase over the assessment level used to fund the 2006 budget.

Effective January 2007 the Annual Assessment is $130.00 per improved lot and $90.00 per unimproved lot.

Operating and Reserve expenses are funded and the property will continue to be properly maintained.  This will protect property values and will insure that “ARNOLD LILAC PARK HOMEOWNERS ASSOCIATION” will be an attractive investment for lenders and prospective owners.

 

Respectfully submitted

Arnold Lilac Park Homeowner’s Association Board of Directors

 

ARNOLD LILAC PARK HOMEOWNERS 2007 BUDGET

 

 

2007 Budget

Income

 

Lot fees

23040

Transfer Fees

500

Clean-up Fees

2030

Previous Year Dues

682

Interest Income

25

Billing Interest/ Fees

0

Pool Use, Candy, Soda

300

Discounts

-100

Miscellaneous Income

0

Returned Checks

0

To Reserves

0

Total Income

26477

 

 

Expenses

 

Electricity PG&E

1000

Water CCWD

700

SBC/AT&T

250

Total Utilities

1950

 

 

Legal

 

Tax & Audit Services

0

Liability, Errors & Omissions

5700

Worker's Comp State Fund

650

County Fees

175

Taxes, Property

200

Total Legal

6725

 

 

Office

 

Postage & Copying/ Supplies

400

Website Costs

150

Administrative Assistant

4800

Total Office

5350

 

 

Operating

 

Pool Maintenance Labor

2500

Yard Clean-up Labor

1000

Maintenance Material

1000

Pool Supplies

1500

Lifeguard & Supervisors

5000

Annual Meeting

300

Park Activities, Candy & Soda

300

Garbage Collection

125

Total Operating

11725

 

 

Miscellaneous

 

Unbudgeted Expenses

0

Bank Charges

0

Asset Repairs/Maintenance

0

EPPOC Dues

35

VIP Dinner

50

Funds from Reserves to Assets

0

Total Miscellaneous

85

 

 

Total Expenses

25835

Budget

 

Total Net Income

642

 

 

ARNOLD LILAC PARK HOMEOWNER’S ASSOCIATION “INSURANCE DISCLOSURE”

 

ALPHA carries the following insurance coverage with the “UNITED STATES LIABILITY INSURANCE COMPANY”

 

Commercial Liability                                                                        $2,000,000

Professional Liability                                                                        $1,000,000

Commercial Property                                                                       $   200,000

 

The Association does not carry flood or earthquake insurance.  This summary of the Association’s policies of insurance provides only certain information, as required by subsection (e) of Section 1365 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance.  Any association member may, upon request and provision of reasonable notice, review the Association’s policies, and upon request and payment of reasonable duplication charges, obtain copies of those policies.  Although the Association maintains the policies of insurance specified in this summary, the Association’s policies of insurance may not cover your property, including personal property or personal injuries or other losses which may occur within and around your dwelling.  Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies.  Association members should consult with their individual insurance broker or agent for appropriate additional coverage.

 

2007 PRO FORMA BUDGET DISCLOSURE:

Association Reserve Calculation Procedures:

The numbers used to formulate the Component Contribution Schedule are derived from the reserve study conducted by Reserve Data Analysis on 12/31/06.  These estimates are based on independent cost estimates, current Association cost experience and assume no irregularities, which would cause these costs to increase.  Cost estimates are reviewed annually by the Board and consultants for increase and/or decrease reconciliation.

 

Current Total Cash Reserves as of 12/31/06

The Association has $30,147.19 in their replacement reserve accounts.

 

Current total Estimated Replacement Cost

The current estimate for the total replacement reserve costs needed to fund the major components is $96,500.

 

Replacement Reserves Funding Percentage

Using cash flow funding the reserves are 32% funded.

 

Special Assessments

The Board does not anticipate a Special Assessment at this time.

 

Emergency Assessment

The Board does not anticipate an Emergency Assessment at this time.  The Association is not involved in any litigation at this time.

 

Insurance Coverage’s

See the enclosed summary provided by the carrier

 

Insurance Disclosure

See enclosed disclosure required by 1365(e)

 

Alternative Dispute Resolution

See enclosed copy of 1354

 

Notice of collection Rights & Duties

See enclosed copy of 1365.1

 

Minutes

Copies of draft/approved meeting minutes are available to homeowners, upon request, within 30 days of the meeting date and may be subject to processing costs.  Draft/approved minutes and newsletters may be obtained on our website.  www.lilacparkhomeownersassociation.org

 

Meetings

Boards of Director’s meetings are held on the first Saturday of every month, except December & a January, at 10:00 a.m. at the Arnold Library (Conference Room) and/or at the pool.  Members are encouraged to attend and may participate in the open forum session.  Owners may also contact the Association, prior to the meeting to have their issue placed on the regular agenda.

 

 

Reserve Funding Disclosure

1365.2.5

 

ARNOLD LILAC PARK HOMEOWNER’S ASSOCIATION

 

California Assessment and Reserve Funding Disclosure

 

The current annual assessment is $130.00 per improved lot and $90.00 per unimproved lot.  There are no additional assessments being contemplated.

 

Based on recent reserve study and other information available to the Board of Directors our current projected reserve balance will be sufficient at the end of each year to meet the association’s obligation to repair or replace major components during the next 30 years.

 

This disclosure has been reviewed and approved by the Association’s Board of Director’s based on the best information available to the Association at the time of its preparation. 

 

The accuracy of this information over the next 30 years will be dependent upon circumstances which are impossible to predict with specificity, and will require future action to adjust assessments over the period in accordance with the current projections and future developments.

 

The estimated current balance for the reserve fund as of December 2006 is $22,830.00.

 

The above recommended reserve contribution for the next fiscal year and future years was developed using the cash flow method.

 

Note:  The financial representations set forth in this summary are based on the best estimates of the Board of Director’s at that time.  The estimates are subject to change.

 

 

ARNOLD LILAC PARK HOMEOWNER’S ASSOCIATION

RESERVE STUDY 2006

 

 

 

 

 

 

 

Repair Cost

Useful Life

Remaining Life

Required Reserve

 

 

 

 

 

BUILDINGS

 

 

 

 

Roof, Pump House

$6,000.00

15

1

$3,000.00

Roof, Kitchen

$6,000.00

15

7

$1,000.00

Structural (non-fire)

$15,000.00

20

13

$1,800.00

Electrical

$3,000.00

20

13

$500.00

Plumbing and Appliances

$5,000.00

20

13

$750.00

Miscellaneous

$2,500.00

20

10

$500.00

Storage Building

$1,000.00

15

7

$180.00

SUB TOTAL

$38,500.00

 

 

$7,730.00

 

 

 

 

 

POOL

 

 

 

 

Concrete Deck

$15,000.00

45

33

$1,500.00

Pool Liner

$15,000.00

20

10

$1,500.00

Circulation Pump

$750.00

8

?

$300.00

Solar Pump

$750.00

8

3

$600.00

Solar Panels

$10,000.00

10

3

$5,000.00

Piping

$7,500.00

15

6

$2,500.00

SUB TOTAL

$49,000.00

 

 

$11,400.00

 

 

 

 

 

GROUNDS

 

 

 

 

Playground Equipment

$7,500.00

30

18

$900.00

Walks & Walls

$1,500.00

15

4

$300.00

SUB TOTAL

$9,000.00

 

 

$1,200.00

 

 

 

 

 

TOTALS

$96,500.00

 

 

$20,330.00

 

 

 

 

 

Note:  Pool blasted, sealed and painted in June 2006 @ cost of $12,000

 

ARNOLD LILAC PARK HOMEOWNERS ASSOCIATION

P.O. BOX 722, ARNOLD, CA 95223

 

NOTICE ASSESSMENTS AND FORECLOSURE #1365.1

 

This notice outlines some of the rights and responsibilities of owners of property in common interest developments and the associations that manage them.  Please refer to the sections of the Civil Code indicated for further information.  A portion of the information in this notice applies only to liens recorded on or after January 1, 2003.  You may wish to consult a lawyer if you dispute an assessment.

 

ASSESSMENTS AND FORECLOSURE

 

Assessments become delinquent 45 days after they are due, unless the governing documents provide for a longer time.  The failure to pay association assessments may result in the loss of an owner’s property through foreclosure.  Foreclosure may occur either as a result of a court action known as judicial foreclosure or without court action, often referred to as nonjudicial foreclosure.  For liens recorded on and after January 1 2006, an association may not use judicial or nonjudicial foreclosure to enforce that lien if the amount of the delinquent assessments or dues, exclusive of any accelerated assessments, late charges, fees, attorney’s fees, interest, and costs of collection, is less than one thousand eight hundred dollars ($1,800).  For delinquent assessments or dues in excess of one thousand eight hundred dollars ($1,800) or more than 12 months delinquent, an association may use judicial or nonjudicial foreclosure subject to the conditions set forth in Section 1367.4 of the Civil Code.  When using judicial or nonjudicial foreclosure, the association records a lien on the owner’s property.  The owner’s property may be sold to satisfy the lien if the amounts secured by the lien are not paid. (Sections 1366, 1367.1 and 1367.4 of the Civil Code)

 

In a judicial or nonjudicial foreclosure, the association may recover assessments, reasonable costs of collection, reasonable attorney’s fees, late charges, and interest.  The association may not use nonjudicial foreclosure to collect fines or penalties, except for costs to repair common areas damaged by a member or a member’s guests, if the governing documents provide for this. (Sections 1366 and 1367.1 and 1367.4 of the civil Code)

 

In a judicial or non judicial foreclosure, the association may recover assessments, reasonable costs of collection, reasonable attorney’s fees, late charges, and interest.  The association may not use non judicial foreclosure to collect fines or penalties, except for costs to repair common areas damaged by a member or a member’s guests, if the governing documents provide for this. (Secions 1366 & 1367.1 of the Civil Code)

 

The association must comply with the requirements of Section 1367.1 of the Civil Code when collecting delinquent assessments.  If the association fails to follow these requirements, it may not record a lien on the owner’s property until it has satisfied those requirements.  Any additional costs that result from satisfying the requirements are the responsibility of the association. (Section 1367.1 of the Civil Code)

 

At least 30 days prior to recording a lien on an owner’s separate interest, the association must provide the owner of record with certain documents by certified mail, including a description of its collection and lien enforcement procedures and the method of calculating the amount.  It must also provide an itemized statement of the charges owed by the owner.  An owner has a right to review the association’s records to verify the debt. (Section 1367.1 of the Civil Code)

 

If a lien is recorded against an owner’s property in error, the person who recorded the lien is required to record a lien release within 21 days, and to provide an owner certain documents in this regard. (Section 1367.1 of the civil Code)

 

The collection practices of the association may be governed by state and federal laws regarding fair debt collection.  Penalties can be imposed for debt collection practices that violate these laws.

 

PAYMENT

 

When an owner makes a payment, he or she may request a receipt, and the association is required to provide it.  On the receipt, the association must indicate the date of payment and the person who received it.  The association must inform owners of a mailing address for overnight payments. (Section 1367.1 of the Civil Code)

 

An owner may dispute an assessment debt by submitting a written request for dispute resolution to the association as set forth in Article 5 (commencing with section 1368.810) of Chapter 4 of Title 6 of Division 2 of the Civil Code.  In addition, an association may not initiate a foreclosure without participating in alternative dispute resolution with a neutral third party as set forth in Article 2 (commencing with section 1369.510) of Chapter 7 of Title 6 of Division 2 of the Civil Code), if so requested by the owner.  Binding arbitration shall not be available if the association intends to initiate a judicial foreclosure.

 

An owner is not liable for charges, interest, and costs of collection, if it is established that the assessment was paid properly on time (Section 1367.1 of the Civil Code)

 

MEETINGS AND PAYMENT PLANS

 

An owner of a separate interest that is not a timeshare may request the association to consider a payment plan to satisfy a delinquent assessment.  The association must inform owners of the standards for payment plans, if any exist (section 1367.1 of the Civil Code)

 

ALTERNATIVE DISPUTE RESOLUTION DISCLOSURES

#1369L520

 

Effective January 1994, the law in California stipulates procedures alternative to litigation to resolve disputes between homeowner’s and homeowner’s associations and its residents/owners.

 

There are various forms of Alternative Dispute Resolution (hereinafter referred to as “ADR”), including mediation and arbitration.  If the association is considering suing a homeowner relating to enforcement of the Declaration of Covenants, Conditions, and Restrictions (CC&R’s), the association must go through the preliminary steps of the procedure that are outlined below.  If a homeowner is considering suing the association for failure to enforce the governing documents or some other CC&R based claim, the homeowners must go through the preliminary procedure before filing a lawsuit.  The steps are:

 

1. Either party must serve a “Request for Resolution” on the other party, either by certified mail (return receipt requested) or personal delivery.  If a certified letter is sent out and no response is forthcoming, the personal delivery is required.  The person who “serves” the Request for Resolution may not be a party to the action.

This Request for resolution must include:

2.  The party receiving a request for Resolution has 30 days from the date he or she receives it to accept or reject ADR and, if not accepted, it shall be deemed rejected.

3.  If the party receiving the request for Resolution agrees to ADR, the parties have 90 days to complete the process (more by agreement of the parties).

4.  The costs of ADR shall be paid by the parties.

5.  At the time either party files a civil action in court, that party must file a certificate stating that ADR has been completed in compliance with the law.  Failure to file the certificate might be grounds for the other party to seek dismissal of the complaint.  Conversely, the certificate might be grounds for the other party to seek dismissal of the complaint.  Conversely, the certificate should state that where the party filing the complaint served a Request for Resolution, it was either rejected of “deemed rejected” by the other party.

6.  Exceptions to the process:

 

Failure to follow the steps above would give a judge the right to decrease any attorney’s fees award where either party of the lawsuit would otherwise be entitled to reimbursement of all reasonable attorney’s fees under statute or contract.

 

Failure of a member of the Association to comply with the alternative dispute resolution requirements of Section 1369.520 of the Civil Code may result in the loss of your right to sue the Association or another member of the Association regarding enforcement of the Governing Documents or the applicable law.

 

ARNOLD LILAC PARK HOMWOWNER’S ASSOCIATION

 

DELINQUENCY POLICY

 

Timely payment of regular and Special Assessments is of critical importance to the Association.  Member’s failure to pay assessments when due creates a cash-flow problem for the Association and causes those owners who make timely payments of their assessments to bear a disproportionate share of the community’s financial obligations.  Therefore, the Board of Directors has enacted the following policies and procedures concerning the collection of delinquent assessment accounts:

 

  1. All regular assessments shall be due and payable on the first of January.  All Special Assessments shall be due and payable on the date(s) specified by the Board upon their adoption.

 

  1. Assessments shall be delinquent on the 45th day of the month after they become due, if not actually received prior to such date.

 

  1. A twenty-five dollar ($25.00) service fee will be charged on all checks returned by the bank.

 

  1. Prior to the time the Association retains counsel to handle an assessment delinquency, the mailing address for overnight payment of assessments to the Association is:

 

ARNOLD LILAC PARK HOMEOWNERS ASSOCIATION,

P.O. BOX 722,

ARNOLD, CA 95223

 

  1. If any assessment is not received in full prior to the delinquency date, a late charge of ten dollars ($10.00) of the assessment amount shall be due, and the Association may then commence enforcement action in any manner permitted by law, subject to and in accordance with all applicable legal requirements.  In such event, the Association may recover from the delinquent owner any reasonable costs, including attorney’s fees, that the Association incurs in its efforts to collect the delinquent sums, and may require that all such charges be paid in full, together with all delinquent assessments, late charges, interest or other charges due, to cure the delinquency.
  2.   If any assessment payment is due and unpaid for more than 90 days, interest shall be imposed on all sums due, including the delinquent assessments, collection costs (including attorney’s fees), and late charges, at the rate of 10% per annum.
  3.   Once any assessment is delinquent, the Association may cause a notice to be issued by certified mail to the owner’s address of record of the existence and amount of the delinquency, and providing other relevant information (“Delinquency Notice”).
  4. Owners who dispute any amounts specified in a Delinquency Notice may submit a written request for dispute resolution to the Association under the Association’s “meet and confer” dispute resolution program.  If any such request is received by the Association, the Association will meet and confer with the owner making such request in accordance with the Association’s “meet and confer” procedure.
  5. Owners desiring a payment plan to resolve the delinquency giving rise to a Delinquency Notice may submit a written request for a meeting with the Board to discuss a payment plan.  Provided that such request is mailed with 15 days of the date of the postmark on the Delinquency Notice, and a regular meeting of the Board is scheduled to occur with 45 days, the Board will meet with the owner in Executive Session.  If there is no such scheduled meeting during such period, a committee of one or more members may be designated by the Board to meet with the owner and discuss such request.  Payment plans shall contain such terms as the Board, or its designated committee, may approve on a case by case basis, shall be in writing, and shall be signed by the owner(s) and an authorized representative of the Association.
  6.  If a delinquency has not been paid within 30 days after the mailing of a Delinquency Notice, the Association may cause to be recorded in the County Recorder’s Office a Notice of Delinquent Assessment (“Lien”) concerning all sums which are then due, including any assessments , late charges, costs, and reasonable attorney’s fees, to confirm and give public notice that the Association claims a lien against the delinquent owner’s property which may be subject to foreclosure by either nonjudicial or judicial foreclosure.
  7. From and after the recordation of a Lien, the Association may enforce the Lien, or otherwise pursue its rights to recover all unpaid assessments and related amounts due, in any manner permitted by law, including without limitation judicial or nonjudicial foreclosure, as the Association determines to be appropriate, subject to and in accordance with all applicable legal requirements.
  8.  Subject solely to the provision of Paragraphs 8 and 9 above, (i) from and after the issuance of a Delinquency Notice, the Association, acting through counsel or any other authorized representative of the Association, may give written notice to the delinquent owner establishing a new address for all further communications to the Association relating to delinquent and/or newly accruing obligations for assessments and other charges due to the Association, and restricting the authorized addresses and/or recipients for any notices or other communications to the Association concerning, or during the pendency of, any delinquency proceedings relating to such Delinquency Notice; and (ii) once the Association has retained counsel to handle an assessment delinquency for the Association, communications concerning such matters on behalf of the Association shall be conducted exclusively by counsel for the Association and/or the trustee designated in the Lien until any such delinquency is fully satisfied.
  9.  Owners have the right to submit a written request to the Association identifying a secondary address for the purposes of collection notices.  If the Association receives any such written request designating or changing any such secondary address, the Association shall send a second copy of any legal notices or other required correspondence issued in support of the Association’s assessment enforcement procedures to such secondary address from and after the time of actual receipt by the Association of any such request.