Direct
questions regarding the enclosed information to the Board
of Directors through:
Huntington
West Properties
13812 Goldenwest Street, Suite 100
Westminster, CA 92683
DELINQUENT
ACCOUNT COLLECTION POLICY
The
Board of Directors believes it is in the best interest
of the Association to set forth and distribute the collection
policies and procedures of the Association in enforcing
its lien rights, and other legal remedies against Association
members for their default in the payment of monthly
assessments, including foreclosure sale of members’
property and/or court judgments to collect assessments,
charges and costs.
The Board believes that prompt payment of assessments
by all of its members is critical to both the financial
health of our Association and the enhancement of the
property values of member’s homes. The Board of
Directors takes very seriously its obligations to enforce
our members' obligations to pay assessments.
The Board of Directors has adopted this Collection Policy
in an effort to discharge such obligations in a fair,
consistent and impartial manner. The policies and practices
set forth herein shall remain in effect until such time
as they may be changed, modified or amended by a duly
adopted resolution of the Board of Directors. Therefore,
pursuant to the Association's Covenants, Conditions
and Restrictions and Civil Code Section 1365(d), the
following is the Association's Delinquent Assessment
Collection Policy:
1. Regular assessments are due
and payable on the first day of every month, a courtesy
billing statement is mailed each month to the Association
member's last known address on record with the Association.
However, it is the member's responsibility to pay all
assessments in full by the due date thereof, regardless
of receipt of a billing statement.
2. All other assessments, including special assessments,
are due and payable on the date specified by the Board
of Directors, which date will not be less that thirty
days after notification of adoption of the assessment
has been mailed to the Association's members.
3. Assessments, late charges, interest and collection
costs, including attorney's fees, if any, are the personal
obligation of the owner of the property at the time
the assessment or other sums are levied. (Civil Code
Section 1367.1 (s))
4. Payments are posted as of the date received at the
Management office or the Association Bank (Lock Box).
Assessments not received within 15 days after the due
date are delinquent and shall be subject to a late charge
of $10.00 for each delinquent assessment per unit (
Civil Code Section l 366(e) (2)) and, at the option
of the Board of Directors, interest on all sums unpaid
at the rate of 12 percent per annum from the due date
of such sums (Civil Code Section 1366 9e) (2)), or as
specified in the CC&Rs.
5.
Partial payments shall be applied first to the principal
of assessments owed, and only after the principal owed
is paid in full, to late charges, interest, or collection
costs, unless the Board of Directors and the member
agree such payments may be applied otherwise.
6. When any assessment remains unpaid more than 90 days
after its due date, the Association will mail the delinquent
member, by certified and first class mail, a pre lien
demand letter, to the member's mailing address of record,
advising of the delinquent status of the member's account
and impending collection action. The member shall be
charged $75.00 for the pre lien demand letter.
7. When any assessment remains unpaid more than thirty
days after the date of the Association's pre lien demand
letter, a Notice of Delinquent Assessment, creating
a valid and foreclosure lien on the member's property,
shall be recorded in the office of the County Recorder
and served on the delinquent member. A fee of $300.00,
for preparing, recording and serving said Notice of
Delinquent Assessment by the collection agent or attorney
employed by the Association for that purpose will be
charged to the delinquent member.
8. When any member's account remains delinquent for
a period exceeding the time limit provided by the Association's
Covenants, Conditions and Restrictions following the
date of recordation of the Association's Notice of Delinquent
Assessment, or thirty days thereafter if the Covenants,
Conditions and Restrictions are silent as to such a
time limit, the Association's collection agent and trustee,
or attorney, shall institute foreclosure proceedings
of the member's property. Such proceedings shall seek
a sale of the member's property, the proceeds of which
will be used to recover the Association's delinquent
assessments, late charges, interest thereon (if any),
notice of intent to lien, lien processing fees, and
the fees and costs of the collection agent and Trustee
or attorney conducting the sale.
9. If the Association's lien rights are destroyed by
mortgage foreclosure or in some other manner, the Board
of Directors may seek a personal judgment against the
former delinquent member, individually, for the amounts
so destroyed.
10.
If any member, within thirty days after a lien is recorded
upon the member's property, pays under protest all amounts
specified in Civil Code Section 1366. 3 (the amount
of the assessments in dispute, plus late charges, interest
thereon if any, pre lien and lien processing charges,
and the costs of preparation, recording and service
of the Association's Notice of Delinquent Assessment),
and the member has not exceed the statutory limit on
the times the procedure is available to the member,
the Association through it's Management company, shall
inform the member that the member may resolve the dispute
by Alterative Dispute Resolution, as outlined in Civil
Code Section 1354; by Civil Action, or by other procedures
available as determined by the Association's Management
Company.
IMPORTANT
NOTICE: IF YOUR SEPARATE INTEREST IS PLACED IN FORECLOSURE
BECAUSE YOU ARE BEHIND IN YOUR ASSESSMENTS, IT MAY BE
SOLD WITHOUT COURT ACTION.
11. All Members are entitled to
inspect the accounting books and records and minutes
of proceedings of the members and the Board and committees
of the Board shall be open to inspection upon the written
demand on the corporation of any member at any reasonable
time, for a purpose reasonably related to such person's
interests as a member, pursuant to Corporations Code
Section 8333. When it is determined that a member has
paid the member's assessments on time, the member will
not be liable for payment of late charges, interest,
or cost of collection associated with those assessments.
12.
When extenuating circumstances exist, which in the sole
discretion of the Board of Directors warrant granting
an extension of time to any delinquent member for payment
of such member's delinquent assessments and other fees
and costs, and the Board of Directors has received reasonable
assurances that no loss will accrue to the Association
by virtue thereof, the Board of Directors may, from
time to time, make exceptions to the foregoing policies
and practices and allow the delinquent member to enter
into a payment plan under which the delinquent member
may pay arrearages over a period of time. Payment plan
request will be considered in a case by-case basis and
the Board of Directors shall be under no obligation
to grant payment plan requests. A fee of $30.00 shall
be charged each member for monitoring and administrating
a payment plan.
13.
The Association will charge a fee of $25.00 for any
retuned or dishonored check.
14.
All charges listed herein shall be subject to change
upon thirty days written notice.
15.
The foregoing Delinquent Assessment Collection Policy
shall remain in full force and effect until such time
as it may be changed, modified or amended in its entirety,
by a duly adopted Resolution of the Board of Directors
of the Association.
16.
BE IT FURTHER RESOLVED, that within sixty days of the
adoption of an amendment or modification to the Delinquent
Assessment Collection Policy, a copy of the Association's
policies and practices, as adopted, or as subsequently
modified or amended, shall be delivered to all members
of the Association in the manner and pursuant to the
requirements of California Civil Code Section 1350 et
seq.
Adopted
and approved by the Board of Directors, October 3, 2005.
President/LVMHOA, City of Orange, County of Orange, CA
NOTICE
OF AVAILABILTY OF MEETING MINUTES
As
required by Civil Code § 1363(1), meeting minutes
shall be distributed to any member of the Association
upon written request to the current management company
and reimbursement of the Association’s costs in making
that distribution.
NOTICE:
ASSESSMENTS AND FORECLOSURE
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 NONJUDICIAL FORECLOSURE
The
failure to pay Association assessments may result in the
loss of an owner's property without court action, often
referred to as nonjudicial foreclosure. When using 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 lien is not paid. Assessments become delinquent
15 days after they are due, unless the governing documents
of the Association provide for a longer time. (Civil Code
§ 1366 and § 1367.1)
In a nonjudicial foreclosure, the Association may recover
assessments, reasonable costs of collection, reasonable
attorney 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 member or a member's guests, if the governing
documents provide for this. (Civil Code § 1366 and
§ 1367.1)
The Association must comply with the requirements of §
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. (Civil Code § 1367.1)
At least 30 days prior to recording a lien on an owner's
separate interest, the Association must provide the owner
of the record with certain documents by certified mail.
Among these documents, the Association must send 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. (Civil Code § 1367.1)
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. (Civil Code § 1367.1)
State and federal laws regarding fair debt collection
may govern the collection practices of the Association.
Penalties can be imposed for debt collection practices
that violate these laws.
PAYMENTS
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. (Civil
Code § 1367.1 and § 1367.1)
An owner may dispute an assessment debt by giving the
Board of the Association a written explanation, and the
Board must respond within 15 days if certain conditions
are met. An owner may pay assessments that are in dispute
in full under protest, and then request alternative dispute
resolution. (Civil Code § 1366.3 and § 1367.1)
MEETINGS
AND PAYMENT PLANS
An
owner of a separate interest that is not a time share
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. Civil Code § 1367.1)
The Board of directors must meet with an owner who makes
a proper written request for a meeting to discuss a payment
plan when the owner has received a notice of delinquent
assessment. These payment plans must confirm with the
payment plan standards of the Association, if they exist.
(Civil Code § 1367.1)
ASSESSMENT
AND RESERVE FUNDING DISCLOSURE SUMMARY
(1)
The current assessment per unit is $245 per month.
(2) Not Applicable
(3) Based upon the most recent reserve study and other
information available to the board of directors, will
currently projected reserve account balances be sufficient
at the end of each year to meet the association's obligation
for repair and/or replacement of major components during
the next 30 years? YES
(4) Not Applicable
(5) Not Applicable
(6) As of the last reserve study or update, the current
balance in the reserve fund is $159,819. Based on the
method of calculation in paragraph (4) of subdivision
(b) of § 1365.2.5, the required amount in the reserve
fund is $447,485.
NOTE: The financial representations set forth in this
summary are based on the best estimates of the preparer
at that time. The estimates are subject to change.
MONTHLY
ASSESSMENT MAILING ADDRESS
Homeowners
should NOT mail payments to the Management Company or
give payments to Board Members. Payments should be sent
to:
Huntington West Properties, Inc.
c/o Sunwest Bank
PO Box 2088
Tustin, CA 92781-2088
Failure to mail to the above address
may delay receipt of your payment and may result in a
late fee.
RULES
& REGULATIONS ENFORCEMENT
The
Board of Directors is empowered by the documents of
the Association to enforce the Association’s Rules
& Regulations, By-laws and CC&Rs. The need for
enforcement arises when owners and residents or their
guests are negligent in their responsibility to the
community in such matters as:
1. Payment of regular monthly assessments and fine assessments;
2. Damaging community property;
3. Conduct negatively affecting the safety, security,
and right to quiet enjoyment of others in their use
of community property;
4. Construction, improvements or alterations affecting
the architectural and aesthetic integrity of the community,
initiated without first submitting plans and obtaining
Board approval.
The Board may levy fine assessments for violations of
rules and conduct or may obtain court injunctions to
restrain continuing violations. Legal action on behalf
of the Association is expensive but necessary to protect
the best interest of all Homeowners and residents. Individuals
who act contrary to the Association’s documents,
which we have all agreed to abide, create a financial
burden on each and every homeowner.
NOTICE
OF VIOLATION
A
Notice of Violation will be issued for each observed/reported violation of
the Rules & Regulations. Notices will be issued by
the management company representing the Board of Directors.
Ten (10) days will be given to correct the violation.
Subsequent violations for the same offense may or may
not have a specified correction time and may result in
a fine assessment to the homeowner.
SCHEDULE
OF FINE ASSESSMENTS
FIRST
OFFENSE
$50.00
SECOND
OFFENSE (SAME VIOLATION)
$75.00
THIRD
OFFENSE (SAME VIOLATION)
$150.00
ADDITIONAL
OFFENSES (SAME VIOLATION)
$150.00
UNAPPROVED
ARCHITECTURAL CHANGES
$500.00
Because
certain violations of the Rules & Regulations are
extremely serious, the Board of Directors has instituted
a system of Automatic Fines. No warnings will be given
for these violations because they pose an immediate risk
of injury or liability to Association Homeowners. A list
of these fines is available in the current version of
the Rules & Regulations Handbook.
NOTE:
All payments made to the Homeowner's Individual Assessment
Account will be applied towards monthly Association assessments.
TENANT
VIOLATIONS
Tenants are bound by the same Rules & Regulations,
By-laws and CC&Rs as homeowners and are subject
to enforcement by the Board of Directors. The homeowner
has primary responsible to the Association for payment
of regular monthly assessments, fine assessments due
to violations, and special assessments resulting from
damage caused to community property by tenants or their
guests. The tenant’s responsibility, if any, for
payment of assessments and fine assessments is a matter
of agreement between the homeowner and tenant.
STATEMENT
OF COVERAGE & NOTICE OF HOMEOWNER LIABILITY
Pursuant
to CA Civil Code § 1365.9, La Veta Monterey Homeowners’
Association (LVMHOA) is notifying all Members of the amounts
of General Liability and Directors & Officers insurance
that the Association carries.
LVMHOA
consists of 212 separate interests as defined by CA Civil
Code § 1351. LVMHOA carries five million dollars
($5,000,000) of General Liability Insurance per occurrence.
The Association also carries five million dollars ($5,000,000)
of Directors and Officers Insurance per occurrence. Homeowners
may be individually liable for a proportional share of
assessments levied, if any, to pay the amount of any judgments,
which exceed the limits of the Association’s insurance.
GENERAL
LIABILITY & D/O INSURANCE LIMITS
CA
Civil Code §1365.9 states that: “Any cause of
action in tort against any person arising solely by reason
of an ownership interest in the common area of a common
interest development shall be brought against the Association
and not against the individual owners of the separate
interests, as defined in subdivision (1) of § 1351,
provided that all of the following insurance requirements
are met:
(a) The Association maintained and had in effect at
the time the alleged act or omission occurred and
at the time a claim is made, one or more policies
of insurance which include coverage for (1) general
liability of the Association, and (2) individual liability
of officers and directors of the Association for negligent
acts or omissions of those persons acting in their
capacity as officers and directors.
(b) Both types of coverage described in paragraphs
(1) and (2) of subdivision (a) are in the following
minimum amounts: (1) at least two million ($2,000,000)
per occurrence if the common interest development
consists of 100 or fewer separate interests, and (2)
at least three million dollars ($3,000,000) per occurrence
if the common interest development consists of more
than 100 separate interests.
(c) The Association shall, upon issuance or renewal
of insurance, but no less that annually, notify its
homeowners as to the amount and type of insurance
carried by the Association, and it shall accompany
this notification with statements to the effect that
the Association is or is not insured to the levels
specified by this section, and that if not so insured,
owners may be individually liable for the entire amount
of a judgment, and if the Association is insured to
the levels specified in this section, then the owners
may be individually liable only for their proportional
share of assessments levied to pay the amount of any
judgment which exceed the limits of the Association’s
insurance.”
GENERAL
INSURANCE INFORMATION
This
summary of the association’s policies of insurance
provides only certain information, as required by subdivision
(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 insurance
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, real property improvements to or 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.
In
accordance with Civil Code § 1365.9, an association
of 100 units or less must carry liability insurance in
the minimum amount of $2,000,000 and an association of
more than 100 units must carry liability insurance in
the minimum amount of $3,000,000.
GENERAL
INFORMATION
Number
of Units
212
Name
of Insurer
CIBA
Policy
Number
ELF712363-05
Agent
Information
Colony
West (714) 542-4870
Renewal
Date
March
31, 2006
General
Liability Policies
Policy
Limits:
Underlying:
$1,000,000
per occurrence
Umbrella:
$5,000,000
per occurrence
Limit
:
$21,700,000
Deductible:
$10,000
Directors
& Officers Policy:
United
States Liability
Policy
Limits:
Underlying:
$1,000,000
per occurrence
Umbrella:
$75,000,000
per occurrence
Earthquake
Policy:
NONE
Flood
Policy
NONE
Fidelity
Bond :
$250,000
Workers
Compensation
NONE
Verified
October 3, 2005, by Jack L. Williams, Account Manager,
Huntington West Properties
The
above signature verifies the Association coverage is
equal to or greater than the requirements set forth
in the California Civil Code.
ALTERNATIVE
DISPUTE RESOLUTION
CA
Civil Code § 1354 deals with enforcement of the Governing
Documents of the Association. One of the requirements
is this information be submitted to the membership on
an annual basis.
This
section requires that before either the Association or
a member of the Association can file a lawsuit for Declaratory
Relief or Injunctive Relief, either exclusively or in
conjunction with a claim for Monetary Damages not to exceed
$5000 (other than Association Assessments), the parties
shall submit the matter to Alternative Dispute Resolution
(ADR) prior to filing the lawsuit.
ADR
means submitting the claim to mediation or arbitration.
In mediation a mediator tries to resolve the differences
between the parties and tries to get them to agree to
a compromise. Arbitration is a process whereby an arbitrator,
usually a retired judge or lawyer or somebody with special
expertise in a particular field, listens to both sides
of the case and makes a decision in the same manner as
if a Judge would in court. Mediation and arbitration are
non-binding under this section, however, the parties may
agree to make it binding.
To
submit a dispute to ADR, the claimant must serve the other
party with a "Request for Resolution" which
briefly describes the dispute, requests that the dispute
be submitted to ADR, and notifies the other party that
they must respond within thirty (30) days of receipt of
the Request for Resolution, or it will be deemed rejected.
If the other party accepts the Request for Resolution,
the parties may mutually decide which form of ADR (mediation
or arbitration) they wish to submit the dispute to and
whether it will be binding or non-binding. If accepted,
the ADR must be completed within 90 days of receipt of
acceptance of the Request for Resolution, unless extended
by the parties. The parties share equally the costs of
ADR.
Anything
said in the course of ADR, or any documents prepared for
or admissions made in the course of ADR, are inadmissible
in a civil action. Testimony cannot be compelled unless
consented to by both parties. This section requires that
at the time a lawsuit is filed a certificate must be filed
certifying that ADR has been completed or one of the following
exceptions applies:
1.
The statute of limitations for bringing the civil
action would run within 120 days (thus barring the
civil action);
2.
The other party who received the Request for Resolution
refused to submit the dispute to ADR prior to the
filing of the complaint;
3.
The court finds that dismissal of the civil action
for failure to certificate would result in substantial
prejudice to one of the parties; or
4.
The court finds that preliminary or temporary relief
is necessary.
Failure
to file the required certificate, unless the exceptions
apply, would make the lawsuit subject to dismissal. This
section would also allow a court to stay a pending action
and refer to ADR upon stipulations of the parties.
Generally
in an action for Declaratory Relief or Injunctive Relief
related to enforcement of governing documents of an Association,
the prevailing party would be entitled to an award of
attorney’s fees and costs. However, if that prevailing
party were offered an opportunity to submit the dispute
to ADR and refused to do so, the court could take this
into consideration in making such an award of attorney’s
fees and costs.
Failure
of any member of the Association to comply with the prefiling
requirements (CA Civil Code § 1354) may result in
the loss of rights to sue the Association or another member
of the Association regarding enforcement of the governing
documents.
MONTHLY
ASSESSMENT MAILING ADDRESS
Homeowners
should NOT mail payments to the Management Company or
give payments to Board Members. Payments should be sent
to:
Huntington
West Properties, Inc.
c/o Sunwest Bank
PO Box 2088
Tustin, CA 92781-2088
Failure
to mail to the above address may delay receipt of your
payment and may result in a late fee.
