Loading

Amend Your CC&Rs - $350


CC&Rs can be restated or amended. A restatement occurs when the existing document is completely replaced with a new document. When existing CC&Rs are more than six or seven years old, a restatement is more practical and takes less attorney time than making a large number of amendments. A restatement also results in a document that is easier to read. Individual amendments make sense when the existing CC&Rs are only a few years old, or it is the intention of the association to make only one or a few specific amendments.

The homeowner association attorneys with Michael T. Chulak & Associates have restated and amended CC&Rs for all types of Common Interest Developments in California.

Following are examples of amendments that are available. Some, but not all, may be appropriate for your homeowner association:

1.   Prohibits buyers from renting their unit for a fixed period of time after the close of escrow. Intended to increase the percentage of owner occupied homes over time. Includes grandfather provision for existing unit owners.
     
2.   Prohibits smoking in defined locations within the common area. Examples would be hallways, lobby, and subterranean parking garage.
     
3.   Requires that all members purchase loss assessment coverage to protect the entire membership in the event of a major fire or earthquake loss.
     
4.   Requires that the individual unit owner(s) pay the insurance deductible in connection with any claim made against the association's insurance policy for the benefit of a specific unit(s).
     
5.   Gives the association the right to collect the rent from the tenant of an owner who is delinquent in paying his or her assessments to the association.
     
6.   Prohibits any board member from receiving compensation from the association. Compensation does not include expense reimbursements.
     
7.   Limits the number of units one person may own within the community. The purpose is to prevent an owner from purchasing enough units to control the board, or at the minimum, to buy a position on the board, possibly for life.
     
8.   Requires that the association engage the services of a professional property management firm at all times. The purpose is to prohibit a board from assuming direct control over the management of the association.
     
9.   Establishes a schedule of fines, including continuing fines, for violating existing provisions of the CC&Rs.
     
10.   Changes the percentage of members required for future amendments to the CC&Rs.
     
11.   Grants authority to the board, without membership approval, to borrow funds for specific purposes.
     
12.   Prohibits certain breeds of dogs such as pitbulls within the community.
     
13.   Requires that anyone running a business out of their unit be subject to certain conditions such as: (1) naming the association as an additional insured under a liability insurance policy, (2) providing proof that the city or county has issued a license for the specific address, and (3) avoiding the creation of a nuisance as defined in the CC&Rs.
     
14.   Requires owners who rent their unit to include an addendum to the lease, provided by the association, that explains the difference between a common interest development and an apartment, and the tenant's obligation to comply with all association Rules and CC&Rs. Further, it explains the importance and requirement that the tenant obtain renter's insurance.
     
15.   Makes any second trust deed loan placed on a unit, subordinate or junior in priority, to any assessment lien of the association unless the deed of trust existed prior to the amendment. This is intended to avoid situations where owners borrow out all or most of the equity and then default, leaving the association with no protective equity.
     
16.   Prohibits the use of water, paid for by the association, for the washing of vehicles, trailers, and boats.
     
17.   Establishes requirements for the installation of satellite dishes by members of the homeowner association.
     

Any of the amendments described above or other individual amendments can be customized for your association. Every proposed amendment will include a schedule of fines applying to the proposed CC&R provision and an explanation of its intended purpose. When we prepare more than one proposed amendment for an association, each is prepared separately so that each is voted upon separately.

The cost of our legal services is $290 for each proposed amendment plus $10 for postage and copies up to two proposed amendments. Thereafter, the cost is $250 for each proposed amendment plus $10 for postage and copies. Our legal service includes reviewing your existing CC&Rs, including any existing amendments, consulting with the board or its representative, and then preparing the proposed amendment. Any experienced homeowner association management company should be able to handle the approval process.

Please do not hesitate to call with any questions. Initial consultations are provided at no cost.



 
 





All contents ©2017 MTCLaw.com. All rights reserved.