How to Get the Most From Associations

Orange County has hundreds of homeowners associations. We have all heard the less-than-pleasant stories about associations. However, being an informed homeowner is important to ensuring that you understand your rights and make the most of association living.

As members of an association, we have had to learn by experience and would like to share a few pointers with current as well as prospective home buyers.

When buying a home, we are usually diligent about researching our loan packages and realty agents, and checking out the school and areas. As much effort should be put into researching the homeowners association you are about to join.

This is important because once you are in, you will be bound by the association’s governing documents as well as the politics of the community. Richard Roll, president of American Homeowners Assn., says, “Even a perfect-looking home must still be judged by the community association it is in.”

First and foremost, read carefully the covenants, conditions and restrictions as well as the bylaws of the association. These are the governing documents. Adhering to them is the responsibility of the homeowner.

Equally important is that the governing documents are properly upheld and equitably enforced by the board of directors and managers.

To gain valuable insight into these matters, ask for at least a year’s worth of minutes of homeowners association business meetings. The managers should be happy to provide them through escrow for a small fee.

Secure a copy of the Davis-Stirling Common Interest Development Act from the local library. This civil code may supersede the association’s covenants and bylaws.

It was enacted to regulate the business of common-interest developments, and sets forth requirements for conduct of meetings, the Common Interest Development Open Meeting Act, managing agents’ duties, disposition of association funds and financial documents.

The documents section includes guidelines for the timely mailings to homeowners of such financial documents as the operating budget and the financial statements of the association.

With respect to the management company, find out if it is board-certified. Certification provides for a continued source of educational requirements, standards of practice, code of ethics, knowledge of association law and such regulatory items as the Davis Stirling Civil Code.

The National Board of Certification for Community Assn. Managers ([703] 836-6902) and the California Assn. of Community Managers ([714] 263-CACM) can provide information on board-certified managers. As a homeowner and member of an association, you can join the Community Assns. Institute ([949] 380-7360).

And finally, talk to the people who live there. Talk to the neighbors next door and across the street. Probably you will learn a lot.

Purchasing a home is a big step. Purchasing one in an association requires a slightly bigger step.

A well-run association is paramount to maintaining the fiscal as well as aesthetic value of your home and community and ensuring that it will be a positive experience. Make sure that perfect looking home isn’t home to a less than perfect association.

ALISA and REGINALD ROSS

Irvine