DESERT ROSE RESIDENTS ASSOCIATION
2015/2016 Budget Package May 01, 2015
Re: 2015/2016 Budget & Reserve Analysis; Assessment & Reserve Disclosure; Insurance Summary Disclosure; Annual
Policy Statement; Collection Policy; Enforcement Procedures; Alternative and Internal Dispute Resolution Disclosures;
Architectural Procedure Summary; Email Authorization Form; and Opt-Out form.
To: Desert Rose Homeowners
Enclosed please find the above referenced documents. The Board has approved annual reserve funding in the amount
of $152,628.00 for the 2015-2016 budget year. The Board of Directors does not anticipate the need for a special
assessment this fiscal year. The monthly assessment will increase to $178.00 per unit/per month. New coupon books
will be mailed under separate cover.
As required by California Civil Code §5300(a)-(b), we have enclosed the Association’s Insurance Summary Disclosure
form. Please be advised that even though a claim may be covered, you may be responsible for all or a portion of the
$5,000.00 deductible that applies. The Association strongly encourages you to contact your insurance agent or
broker to acquire individual unit owner coverage.
Also included per California Civil Code §5310 is the Annual Policy Statement, The collection Policy, Enforcement
procedures, Architectural Requirement Summary, and per Civil Code §5975, a summary regarding Alternative Dispute
Resolution (“ADR”) and internal dispute resolutions (“IDR”).
Upon written request and during reasonable business hours, Minutes of Board Meetings and other records are available
at Desert Resort Management, 42635 Melanie Place, Suite 103, Palm Desert, CA 92211.
The Board of Directors would like to take this opportunity to thank owners who faithfully pay their assessments, which
enables the Association to make timely payments to our service providers. Please note that in accordance with the
governing documents of the Association the late fee for assessments is $17.80. The Board of Directors has been pro-
active in addressing day-to-day maintenance as well as long-term replacement projects. This approach benefits
individual owners through increased property value, longer asset life, and increased curb appeal, keeping Desert Rose
the great place it is to live.
Should you have any questions regarding the enclosures, please do not hesitate to contact your Community Association
Manager, Ashley Layton at (760) 346-1161 or via e-mail to [email protected].
Sincerely,
Board of Directors
Desert Rose Residents Association
User: alaytonFri May 01, 2015 09:10 am
Report: dwr_bx_summary_detail_rpt2 Ashley LaytonBudget Summary Report
Desert Rose Residents
Budget 2015
Budget 2016
Budget2016 Monthly
Budget Per UnitMonthly
2015-2016 Draft Budget - 161 units
Operating Income4000 - Member Assessments 330,372.00 343,896.00 28,658.00 178.00
4710 - Late Fees 0.00 0.00 0.00 0.00
4805 - Fine Income 0.00 0.00 0.00 0.00
4835 - Miscellaneous Income 0.00 0.00 0.00 0.00
4900 - Interest Income 0.00 0.00 0.00 0.00
Total Operating Income 330,372.00 343,896.00 28,658.00 178.00
Total DESERT ROSE RESIDENTS Income 330,372.00 343,896.00 28,658.00 178.00
Administrative5010 - Bad Debt 7,008.00 2,767.00 230.58 1.43
5105 - Reserve Studies 495.00 1,224.00 102.00 0.63
5210 - Postage & Printing 4,800.00 4,800.00 400.00 2.48
5400 - Insurance Expense 30,000.00 34,500.00 2,875.00 17.86
6300 - Permits & Licenses 1,265.00 1,008.00 84.00 0.52
6495 - Professional Management 31,356.00 32,297.00 2,691.42 16.72
9908 - Misc Expenses 0.00 0.00 0.00 0.00
Total Administrative 74,924.00 76,596.00 6,383.00 39.64
Professional Services7000 - Audit 1,800.00 1,600.00 133.33 0.83
7020 - Legal & Professional Fees 2,000.00 2,000.00 166.67 1.04
Total Professional Services 3,800.00 3,600.00 300.00 1.87
Utilities6000 - Electric Service 13,000.00 10,000.00 833.33 5.18
6005 - Gas Service 800.00 500.00 41.67 0.26
6025 - Water Service 7,700.00 7,000.00 583.33 3.62
6050 - Telephone Service 2,124.00 1,716.00 143.00 0.89
Total Utilities 23,624.00 19,216.00 1,601.33 9.95
Landscaping6100 - Grounds & Landscaping - Contract 54,700.00 54,766.00 4,563.83 28.35
Total Landscaping 54,700.00 54,766.00 4,563.83 28.35
Irrigation6200 - Irrigation Repair & Maintenance 500.00 500.00 41.67 0.26
Total Irrigation 500.00 500.00 41.67 0.26
Grounds Maintenance6432 - Misc Mainteance & Supplies 1,500.00 1,100.00 91.67 0.57
6434 - Pest Control 3,600.00 5,916.00 493.00 3.06
6535 - Deck Maintenance 0.00 0.00 0.00 0.00
6545 - Lighting Maintenance 500.00 500.00 41.67 0.26
6730 - Security 1,700.00 1,700.00 141.67 0.88
6745 - Signage Repair & Maintenance 0.00 0.00 0.00 0.00
Total Grounds Maintenance 7,300.00 9,216.00 768.01 4.77
Building Maintenance6430 - Janitorial Services 6,000.00 6,000.00 500.00 3.11
Page 1 of 2
User: alaytonFri May 01, 2015 09:10 am
Report: dwr_bx_summary_detail_rpt2 Ashley LaytonBudget Summary Report
Desert Rose Residents
Budget 2015
Budget 2016
Budget2016 Monthly
Budget Per UnitMonthly
2015-2016 Draft Budget - 161 units
Building Maintenance6515 - Building Repair & Maintenance 2,000.00 2,000.00 166.67 1.04
6725 - Roof Maintenance 9,660.00 9,660.00 805.00 5.00
Total Building Maintenance 17,660.00 17,660.00 1,471.67 9.15
Pool & Spa Expenses6438 - Pool & Spa Contract 8,220.00 8,220.00 685.00 4.25
6700 - Pool Service Extras 1,500.00 1,470.00 122.50 0.76
Total Pool & Spa Expenses 9,720.00 9,690.00 807.50 5.01
Taxes9000 - Federal Income Tax 0.00 0.00 0.00 0.00
9005 - State Income Tax 0.00 0.00 0.00 0.00
Total Taxes 0.00 0.00 0.00 0.00
Reserve Contributions9105 - Reserve Contribution Expense 138,144.00 152,628.00 12,719.00 79.00
Total Reserve Contributions 138,144.00 152,628.00 12,719.00 79.00
Total DESERT ROSE RESIDENTS Expense 330,372.00 343,872.00 28,656.01 178.00
Capital Reserves3128 - Rsv-Common Area 0.00 0.00 0.00 0.00
3218 - Rsv-Painting 0.00 0.00 0.00 0.00
3228 - Rsv - Pools & Spa 0.00 0.00 0.00 0.00
3240 - Rsv-Roofing 0.00 0.00 0.00 0.00
Total Capital Reserves 0.00 0.00 0.00 0.00
Total DESERT ROSE RESIDENTS Equity 0.00 0.00 0.00 0.00
Total Association Net Income / (Loss) 0.00 24.00 1.99 (0.00)
Page 2 of 2
Assessment and Reserve Funding Disclosure Desert Rose
Palm Desert, CA
Date: Apr 28, 2015Units: 161
Fiscal Year End: May 31, 2015Start Date: Jun 1, 2015
1. The current average regular assessment per ownership interest is: $175.00 Per Month
Note: if Assessments vary by the size or type of unit, the assessment applicable to this unit may be found on attached pages to beprovided by Board or Management.
2. Additional assessments that have already been scheduled to be imposed or charged, regardless of the purpose, if they have beenapproved by the board and/or members:
Date Assessment is Due Average Amount Per Unit Purpose Of Assessment
Note: if Assessments vary by the size or type of unit, the assessment applicable to this unit may be found on attached pages, to beprovided by Board or Management.
3. Based on the most recent reserve study and other information available to the board of directors, will currently projected reserve accountbalances be sufficient at the end of each year to meet the association's obligation for repair and/or replacement of major components duringthe next 30 years?
Yes: * No: X
4. If the answer to #3 is no, what additional assessments or other contributions to reserves would be necessary to ensure that sufficientreserve funds will be available each year during the next 30 years?
Approximate date assessment will be due: Amount of Assessment Amount Per Unit
2026 $681,518 $4,233
Question #4 Note: Indicates the first year of a deficit based on the Current Reserve Funding Plan. The additional assessment amountindicates what will be required in that year to assure the reserve balance for the remaining years of the report will be above zero.Actual assessments may vary from year to year.
5. All major components are included in the reserve study and are included in its calculations (Note below the status of components with a30+ yr. remaining life).
Component Name Status
Emergency Vehicle Gate To be Determined
Entry/Patio Fixtures Individual Homeowner Responsibility
6. Based on the method of calculation in paragraph (4) of subdivision (b) of section 5570, the estimated amount required in the reservefund at the end of the current fiscal year is $1,233,719, based in whole or in part on the last reserve study or update prepared byBarrera & Company, Inc. as of May 31, 2015 . The projected reserve fund cash Balance at the end of the current fiscal year is$266,729, resulting in reserves being 22% at this date. If an alternate, but generally accepted, method of calculation is also used, therequired reserve amount is $ N/A.
7. Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570 of the Civil Code, the estimated amountrequired in the reserve fund at the end of each of the next 5 budget years is $ (column E), and the projected reserve fund cashbalance in each of those years,taking into account only assessments already approved and other known revenues, is $ (column D) ,leaving the reserve at (column F) percent funding. Please see the projected five year funding plan below that has been implementedand approved by the association.
Allocation Per Unit PerMonth
Disbursements Year-EndBalance
Fully Funded $ PercentageFunded
A B C D E F2015-2016 $152,628 $79.00 $103,596 $318,673 $1,316,391 24%2016-2017 $157,207 $81.37 $429,740 $47,964 $1,070,199 4%2017-2018 $161,923 $83.81 $27,822 $183,215 $1,235,291 15%2018-2019 $166,781 $86.33 $4,589 $348,050 $1,434,121 24%2019-2020 $171,784 $88.92 $10,748 $513,372 $1,637,573 31%
NOTE: The financial representations set forth in this summary are based on the best estimates of the preparer at that time. The
Assessment and Reserve Funding Disclosure Desert Rose
Palm Desert, CA
Date: Apr 28, 2015Units: 161
Fiscal Year End: May 31, 2015Start Date: Jun 1, 2015
estimates are subject to change. At the time this summary was prepared, the assumed long-term interest rate earned on reserve fundswas 1% per year, and the assumed long-term inflation rate to be applied to major component repair and replacement costs was 3%per year.
The preparer of this form will be indemnified and held harmless against all losses, claims, actions, damages, expenses or liabilities,including reasonable attorneys' fees, to which we may become subject in connection with this engagement, because of any false,misleading or incomplete information which has been relied upon by others, or which may result from any improper use or reliance onthe disclosure by you or a third party.
The reserve study report completed and reviewed for the purposes of completing the enclosed summary was finalized based onapproval from the Board of Directors. Therefore, the final decisions for implementation, updating or revising the information obtained inthis report, for any changes in assumptions, is the sole right and responsibility of the Board of Directors. This report and the numbersgenerated herein are for use only for the year it was developed. The preparer of this form is not responsible for the use of theAssessment and Reserve Disclosure Summary in any subsequent year, or in updating the summary in any subsequent year, or inupdating the summary for events and circumstances occurring after the date of this report.
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2015 – 2015 Insurance Disclosure Statement (As required by California Civil Code Section 5300)
DESERT ROSE RESIDENTS
The California Civil Code Section 5300 requires that the Association send insurance disclosure statement to each of its members. Accordingly, we are providing you the following information in compliance with the Civil Code.
The following is a summary of the association’s insurance coverage for policy period 2015 – 2016:
Coverage for Items 1, 2, 5, 6, 7, & 8 below are provided by: Prendiville Insurance Agency phone: (949) 487-9696 / fax: (949) 487-9626
1. Property Insurance: Policy #01505-82-25
(A) Insurance carrier: Truck Insurance Exchange (Farmers) (B) The type of insurance: Property – Walls In (C) The policy limits of the insurance: $32,109,800
(D) The amount of deductible, if any: $ 5,000
(E) The policy term is: 06/11/2015 – 06/11/2015
2. Liability Insurance: Policy #01505-82-25
(A) Insurance carrier: Truck Insurance Exchange (Farmers) (B) The type of insurance: Commercial General Liability
(C) The policy limits of the insurance: $ 2,000,000 Per Occurrence $ 4,000,000 General Aggregate
(D) The amount of deductible, if any: N/A
(E) The policy term is: 06/11/2015 – 06/11/2015
3. Earthquake Insurance: N/A
(A) Insurance carrier: N/A (B) The type of insurance: Earthquake Coverage
(C) The policy limits of the insurance: N/A
(D) The amount of deductible, if any: N/A (E) The policy term is: N/A
4. Flood Insurance: N/A
(A) Insurance carrier: N/A (B) The type of insurance: Flood Coverage
(C) The policy limits of the insurance: N/A
(D) The amount of deductible, if any: N/A
(E) The policy term is: N/A
5. Fidelity Insurance (Fidelity Bond/Employee Dishonesty) Coverage: Policy #01505-82-25
(A) Insurance carrier: Truck Insurance Exchange (Farmers)
(B) The type of insurance: Crime
(C) The policy limits of the insurance: $ 150,000
(D) The amount of deductible, if any: $ 500
(E) The policy term is: 06/11/2015 – 06/11/2015
6. Directors & Officers Liability Insurance Coverage: Policy #01505-82-25
(A) Insurance carrier: Truck Insurance Exchange (Farmers)
(B) The type of insurance: D&O Liability
(C) The policy limits of the insurance: $ 2,000,000 per occurrence $ 2,000,000 per aggregate (D) The amount of deductible, if any: $ 1,000
(E) The policy term is: 06/11/2015 – 06/11/2015
7. Umbrella Liability Insurance Coverage: Policy #01506-52-52
(A) Insurance carrier: Truck Insurance Exchange (Farmers)
(B) The type of insurance: Umbrella Liability
(C) The policy limits of the insurance: $ 1,000,000 per occurrence $ 1,000,000 per aggregate (D) The amount of deductible, if any: N/A
(E) The policy term is: 06/11/2015 – 06/11/2015
8. Workers’ Compensation Insurance Coverage: Policy #A0930-72-69
(A) Insurance carrier: Farmers Insurance Exchange
(B) The type of insurance: Workers’ Compensation Insurance
(C) The policy limits of the insurance: $ 1,000,000 (D) The amount of deductible, if any: N/A
(E) The policy term is: 06/11/2015 – 06/11/2015
This summary of the Association’s policies of insurance provides only certain information, as required
by subdivision (b)(9) of Section 5300 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 polices 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, or personal injuries or other losses that occur
within 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.
DESERT ROSE RESIDENTS’ ASSOCIATION
ANNUAL POLICY STATEMENT
This Annual Policy Statement is provided to members of the Desert Rose Residents’ Association
(Association) as required by Civil Code Section 5310(a). The Annual Policy Statement is a
disclosure of the following:
(1) Name and Address of Person Designated to Receive Official Communications to the
Association (Civil Code Section 4035)
Board of Directors
c/o Desert Resort Management
Attn: Ashley Layton
42-635 Melanie Place, Suite 103
Palm Desert, California 92211
Telephone: (760) 346-1161
E-mail: [email protected]
The Association consents to receiving notice by email, facsimile and personal delivery. For personal
delivery, the Association will provide a written receipt acknowledging delivery of the document.
(2) Right to Request To Have Notices Sent to Two Different Addresses (Civil Code Section
4040(b)) Notices provided by the Association pursuant to Civil Code Section 4040(b) will be sent to
the Member at the address last shown on the books of the Association. Members have the right to
identify one additional secondary address for delivery of these notices. If you wish to identify a
secondary address for purposes of such notices, please identify such address in writing and send to the
Person identified in Section 1 above.
(3) Location for Posting General Notices (Civil Code Section 4045(a)(3)) The Association
hereby designates the following location for posting of those items which may be provided to
members by “General Notice/General Delivery”:
Window of office/pool building onsite
(4) Member’s Option to Receive Individual Notice/Individual Delivery of Items to be
Provided by General Notice/General Delivery (Civil Code Section 4045(b)) Members may elect to
receive any notice that may be delivered by General Notice/General Delivery by Individual
Notice/Individual Delivery instead. “General Notice” and “Individual Notice” are defined below. If
you wish to elect to receive by Individual Notice/Delivery that material which would otherwise be
delivered by General Notice, please provide a written request to the Person identified in Section 1
above. Upon receipt of such request in writing, notices delivered pursuant to Section 4045 will be
delivered to you by Individual Delivery pursuant to Civil Code Section 4040.
“General Notice” is defined pursuant to Civil Code Section 4045 as follows:
(1) Any method provided for delivery of an individual notice.
(2) Inclusion in a billing statement, newsletter or other document that is delivered by one of the
methods provided in this Section.
(3) Posting the printed document in a prominent location accessible to all members as designated
in the Association’s Annual Policy Statement.
(4) By broadcast television programming, if such is used by the Association for the purpose of
distributing information as to association business to its members.
“Individual Notice” is defined pursuant to Civil Code Section 4040 as follows:
(1) First class mail, postage prepaid, registered or certified mail, express mail, or overnight mail,
addressed to the address last shown on the books of the Association.
(2) Email, facsimile or other electronic means, if the recipient has consented in writing to that
method of delivery, which may be revoked in writing by the recipient.
(5) Notice of Member’s Right to Receive Copies of Meeting Minutes (Civil Code Section
4950(b)) Members have the right to obtain a copy of minutes, including drafts of proposed minutes,
of meetings of the Board, other than executive sessions, within 30 days of the Board meeting. The
Member shall reimburse the Association for any costs associated with copies of same. To obtain
minutes, you may do the following:
Send written request to Management as indicated in Section (1)
(6) Statement of Assessment Collection Policies (Civil Code Section 5730) See attached
Collection Policy Statement.
(7) Statement of Association’s Policies and Practices in Enforcing Lien Rights or Other Legal
Remedies for Default in the Payment of Assessments. See attached Collection Policy Statement.
(8) Statement Describing Association’s Discipline Policy, Including Schedule of
Penalties/Fines for Violations of the Governing Documents (Civil Code Section 5850) See
Attached Enforcement Policy.
(9) Summary of Dispute Resolution Procedures (Internal Dispute Resolution (“IDR”)
pursuant to Civil Code Section 5920) and Alternative Dispute Resolution (“ADR”) pursuant to
Civil Code Section 5965) See attached disclosures re: IDR and ADR.
(10) Summary of Requirements for Association Approval of a Physical Change to the Property
(Civil Code Section 4765) See attached summary regarding architectural approval.
(11) Address for Overnight Mail for Purposes of Assessment Payments (Civil Code Section
5655) Desert Resort Management
Attn: Accounts Receivable
42-635 Melanie Place, Suite 103
Palm Desert, California 92211
Desert Rose Residents Association
1. REGULAR AND SPECIAL ASSESSMENTS: All Regular Assessments shall be due and payable, in advance, in equal monthly installments, on the first day of each month. The Association shall provide notice by first-class mail to each Owner of any increase in the regular assessments of the Association, not less than thirty (30) no more than sixty (60) days prior to the increased assessment becoming due. Special Assessments shall be due and payable on the due date specified by the Board in the notice imposing the assessment or in a ballot presenting the special assessment to the members for approval. In no event shall a Special Assessment be due and payable earlier than thirty (30) days after it is imposed. 2. PAYMENT RECEIPTS/OVERNIGHT PAYMENT LOCATION: Owners can request a receipt from the Association which shall indicate the date of payment and the person who received it. Any request for a receipt of payment must be submitted directly to the Association’s business address (separately from any actual payment). Overnight payment of assessments may be sent/delivered to the following address:
DESERT ROSE RESIDENTS ASSOCIATION c/o Desert Resort Management 42635 Melanie Place. Ste 103
Palm Desert, CA 92211 3. APPLICATION: Payments received on delinquent assessments shall be applied to the Owner’s account as follows: payment shall be applied to the principal owed first. Payments on principal shall be applied to the Owner’s account by the “balance forward payment” method, i.e., in reverse order so that the oldest arrearages of the principal are retired first. Only after the principal owed is paid in full shall such payments be applied to interest, late charges, collection expenses, administration fees, attorneys’ fees, or any other amount due to the Association which result in continued delinquencies. 4. LATE CHARGE: All assessments shall be delinquent if not paid within fifteen (15) days after they become due and will result in the imposition of a late charge of Ten Percent (10%) of the delinquent assessment or ten dollars ($15.20), whichever is greater Furthermore, the Association shall be entitled to recover any reasonable collections costs, including attorneys’ fees, that the Association then incurs in its efforts to collect the delinquent sums. 5. INTEREST: If an assessment payment is not paid within Forty Five (45) days of its original due date, interest may be imposed on all sums due, including the delinquent assessment, collection costs, and late charges, at an annual percentage rate of twelve percent (12% ) OR the rate specified within the CC&Rs, whichever is less. 6. SECONDARY ADDRESS: Upon receipt of a written request by an Owner identifying a secondary address for the purposes of assessment collection notices, the Association shall send additional copies of any collection notices required by this Collection Policy to the secondary address provided. The Owner’s notice of a secondary address must be in writing and mailed to the Association in a manner that shall indicate that the Association has received it. The Association shall only send notices to the indicated secondary address at the point in time the Association receives the written request. 7. PAY OR LIEN LETTER If an assessment payment from the Owner is not paid within Forty Five (45) days after its original due date (for example, if an Owner fails to pay an assessment which was due on January 1 and the failure to pay continues through February 15, then the January assessment would not have been paid within 45 days after its original due date), a notice of delinquency (Pre Lien Letter) may be sent to the Owner by regular first-class mail and certified mail, return receipt requested. The Pre Lien Letter shall provide at least 30 days’ written notice to a delinquent Owner prior to recording an Assessment Lien and further provide an itemized statement of the charges owed, including a breakdown of: (a) the principal amount owed; (b) any late charges with method of calculation used to determine such charges; (c) any attorneys’ fees incurred; and (d) a description of collection practices, including the right of the Association to the reasonable costs of collection. A copy of the Association’s collection policy shall be attached to the Pre Lien Letter.
ASSESSMENT COLLECTION AND FULL PAY POLICY FOR
ASSESSMENTS
Pay under Protest. An owner may, but is not obligated to, pay under protest any disputed charge or sum levied by the association, including, but not limited to, an assessment, fine, late fee, collection costs, or monetary penalty imposed as a disciplinary measure, and by so doing, specifically reserve the right to contest the disputed charge or sum in court or otherwise 8. INTERNAL DISPUTE RESOLUTION PROCESS*: The Association shall offer to meet and confer with a delinquent owner to resolve any dispute related to the total amount due from the delinquent Owner to the Association and/or the Association’s Collection Policy (“Meet and confer Offer”). The Association’s Meet and Confer Offer shall either be placed within the Association’s Pay or Lien Letter or in a separate written communication to the delinquent Owner. An Owner who wishes to accept the Meet and Confer Offer must do so by submitting his/her/its written request to facilitate the meet and confer with the Association, which written request must be received by the Association within twenty (20) days of the date of the Meet and Confer Offer. The Association shall designate a prompt date and time for the meet and confer, at a location that shall either be the Association’s principal office or another convenient location as designated by the Association. The Association shall designate a Board officer, along with it’s CID Manager to participate in the meet and confer with the delinquent Owner. Prior to recording a lien for delinquent assessments, the Association shall participate in any meet and confer so accepted by the delinquent Owner, provided, however, that the Owner’s acceptance of the Association’s Meet and Confer Offer is made within twenty (20) days of the date of the Meet and Confer Offer. 9. SHOW CAUSE HEARING: Additionally, a delinquent Owner may be given a written notice (either in the Pay or Lien Letter or in a separate written document, as determined by the Board of Directors) of a hearing before the Board of Directors, wherein the Owner shall be invited to show good cause why (a) the Owner’s voting privileges; and/or (b) the Owner’s privileges for use of the common area/recreational facilities (hereinafter collectively “Membership Privileges”) should not be suspended for non-payment of the delinquent assessment(s) (“Show Cause Hearing”). The notice and hearing procedures shall be in accordance with the following rules and restrictions: a. Written notice shall be mailed to the Owner not less than ten (10) days prior to the date of such hearing by first class or certified mail at Owner’s last known address as shown on the Association’s records. The notice shall set forth the amount of delinquency owed by the Owner and the time, date and place on which the hearing shall be held; b. The Board of Directors shall provide an opportunity for the Owner to be heard, orally or in writing, at the Show Cause Hearing prior to making any determination on the suspension of any Membership Privileges; c. In the event good cause is not shown and the Owner’s account has not been brought current, then the Board may suspend any of the Owner’s Membership Privileges. The Board shall hold the hearing in Executive Session; provided, however, if the Board is requested by a Member to have his/her matter be heard in an open Board meeting, then the matter must be heard in an open Board meeting, and not in Executive Session. d. After the Show Cause Hearing, the Board of Directors shall provide within fifteen (15) days written notice to the Owner of the suspension of any membership Privileges. 10. ASSESSMENT LIEN: a. If the delinquent Owner does not bring his/her account current within the deadline set forth in the Pay or Lien Letter, the Board of Directors shall proceed with the recording of an assessment lien against the delinquent Owner’s property. The Board’s decision to record the assessment lien shall be by a majority vote of a quorum of the Board members at an open Board meeting. The Board’s action should refer to the account number of the property that is delinquent, rather than the name of the owner. The Assessment Lien shall be recorded in the County Recorder’s Office itemizing all sums that are then delinquent, including the delinquent assessments(s), the then current monthly assessment amount which will also accrue and be a part of the lien, interest, late charges, collection costs and reasonable attorneys’ fees. Recording this notice creates a lien, which is subject to foreclosure, against the delinquent Owner’s property.
Pursuant to a 1994 California decision, Park Place Estates Homeowners Association, Inc. v. Naber (1994) 29 Cal.App. 4th 427, the appellate court held that homeowners have an independent obligation to pay monthly assessments and do not have a right to set off or withhold payments of assessments.
b. At the same time, the Association shall advise the Association’s collection agent/bank that it should accept no further monies from this delinquent Owner until the assessment lien has been paid in full. Owners shall not send any assessment payments to the Association once the matter has been turned over to the Attorney for collection; such payments shall only be accepted by the law firm. Any payments delivered to the collection agent shall be forwarded to the attorney’s office; the attorney shall then release the lien if payment in full was made by the delinquent Owner. Attorneys’ fees shall be charged to the Owner at this stage (pursuant to Civil Code § 1366.3(a)). 11. Pre-Foreclosure Actions: a. No earlier than thirty (30) days after the Notice of Assessment lien has been recorded, the Association shall make a written pre-foreclosure offer to meet and confer with the delinquent Owner, consistent with the process identified in paragraph 8 herein (except that the timeline for the delinquent Owner to accept a meet and confer would be thirty (30) days from the date of the Owner’s receipt of this pre-foreclosure offer) or alternative dispute resolution consistent with Civil Code § 1369.50, et. seq.(“IDR/ADR Offer”). Owner shall have thirty (30) days from the date of the IDR/ADR Offer to decide whether or not Owner wishes to pursue dispute resolution or a particular type of alternative dispute resolution (except that binding arbitration is not available to any delinquent Owner if the Association intends to initiate a judicial foreclosure.) b. Prior to initiating foreclosure, the Board of Directors must, in executive session, approve the decision to proceed with foreclosure by a majority vote of a quorum of the Board of Directors. The Board shall record the Board’s executive session decision in the minutes of the next meeting of the Board open to the members by referencing the lot/parcel number of the property that is delinquent. c. The Board of Directors shall not proceed with any form of foreclosure unless and until the amount of delinquent assessments (exclusive of any accelerated assessments, late charges, fees, costs of collection, attorney’s fees or interest) equals or exceeds One Thousand Eight Hundred Dollars ($1,800.00) or the assessments have been delinquent for more than twelve (12) months (“Threshold”). Once the Threshold has been met and all other requirements identified above have been completed, the Board may proceed with foreclosure of the assessment lien pursuant to the Association’s governing documents and Civil Code §1367. The procedure used shall be private foreclosure pursuant to Civil Code §1367. The foreclosure action shall include but is not necessarily limited to the following procedure: i. A Notice of Default and Election to Sell shall be recorded at the County Recorder’s Office and a ninety-date action shall begin. ii. A Title Report shall be obtained from a title company and this shall also be charged to the delinquent Owner. iii. Notice of Trustee’s Sale If the delinquency is still not cured ninety (90) days after the Notice of
Default and Election to Sell was recorded, the attorney shall proceed to record and publish the Notice of Trustee’s Sale. This notice must also be published three (3) times during a three-week period and posted in a public place. At this final stage, there shall be additional publication costs, as well as attorneys’ fees. If a non-judicial foreclosure sale is completed by the Association against the delinquent Owner’s property, the Owner shall have the right to redeem the property for a period of time up to and including ninety (90) days after the date of the Trustee’s Sale.
iv. Furthermore, attorneys’ fees and costs shall be charged at this stage. 12. If the Association determines that the property is over-encumbered, or otherwise makes a determination that a lawsuit is appropriate, the Association may file a personal lawsuit against the Delinquent Owner to recover all delinquent assessments owing to the Association. If a lawsuit is necessary to collect the delinquent assessments from the Owner, all expenses, costs and attorneys’ fees in connection with said lawsuit, including but not limited to pre-and post-judgment costs for filing fees, personal service, witness fees, interest, execution of judgment and/or writ fees shall be recovered from the Owner defendant. 13. When a delinquent Owner has paid in full all delinquent assessments and charges, the attorney shall prepare a Release of Lien which shall be recorded in the County Recorder’s Office of Riverside County, California within 15 days of receipt of the sums necessary to satisfy the delinquent amount and mail a copy of the lien release to the Owner of the residential unit.. 14. PAYMENT PLAN STANDARDS: The Association hereby establishes the following payment plan standards:
a. Payment Within 45 Days: If an Owner can bring himself/herself/itself current within forty-five (45) days, inclusive of assessments which accrue within the forty-five (45) days of the payment plan, the Association will forbear filing an Assessment Lien and the Owner will not incur the Assessment Lien costs if the payment plan is strictly followed. The payment plan shall include administrative costs. By agreeing to the 45 day payment plan, the Owner further agrees that if he/she/it fails to make any of the payments identified in the payment plan, the Association shall have the right to file an Assessment Lien without recommencing the pre-lien or Pay or Lien Notice process. b. Payment Exceeding 45 days: In light of the length of time of this payment plan, payment plans exceeding forty five (45) days shall require that the Association record its Assessment Lien to establish itself as a secured creditor. The payment plan shall also include administrative costs each month of the plan. All costs related to the recording of the Assessment Lien shall be part of this payment plan. The payment plan would require payment of all delinquent assessments amortized over the length of the payment plan, along with all assessments which will accrue during the payment plan. The Association shall further require that the Owner sign a Forbearance Agreement which identifies his/her/its obligations of repayment consistent with the payment plan and further provides that if there is a default under the payment plan, the Association can proceed with the collection process as particularly identified within the Forbearance Agreement. Payment plans under this paragraph 13.b should normally not exceed six (6) months. 16. REQUEST FOR PAYMENT PLAN: An Owner may submit a written request to the Association for a payment plan consistent with either paragraph 15.a or 15.b above. An Owner can also submit a written request to meet with the Board to identify which payment plan the Owner chooses, as identified in paragraph 15 above. The Board is required to meet with the Owner in executive session within 45 days of the postmark of the request for the meeting, if the request is mailed within fifteen days of the date of the postmark of the Pay or Lien Notice. If there is no regularly scheduled board meeting within the 45 day timeline, the Board has designated the Assessment Dispute Resolution Committee to meet with the Owner. This Collection Policy has been approved by the Developer Board of Directors.
ANNUAL NOTICE TO BE SENT TO THE MEMBERSHIP IN COMPLIANCE WITH ADR LAW
DESERT ROSE RESIDENTS ASSOCIATION
Homeowner / Member
Re: SUMMARY OF THE PROVISIONS OF THE ALTERNATIVE DISPUTE
RESOLUTION LEGISLATION, ENUMERATED UNDER CIVIL CODE §§
5965 (“ADR Laws”) AND THE INTERNAL DISPUTE RESOLUTION
PROCEDURE UNDER CIVIL CODE §§ 5900 TO 5920 (“IDR Process”)
Dear Member:
Pursuant to the ADR Laws, this letter will notify you of a law, which requires owners within the subdivision, as
well as the Association, to participate in some form of Alternative Dispute Resolution (“ADR”) prior to
initiating litigation to enforce the Association’s governing documents, the Davis-Stirling Common Interest
Development Act or the Nonprofit Mutual Benefit Corporation Law (CID Dispute). Subject to exceptions
specified within the ADR Laws, an Association and its owner members must offer to submit their dispute to a
form of ADR, such as arbitration or mediation, before filing a civil action to enforce the governing documents.
If the form of ADR chosen is arbitration, it may be either binding or non-binding at the option of the parties.
The ADR Laws also provide that the failure of either the Association or any owner to offer ADR prior to
initiating litigation is a potential basis for having your lawsuit dismissed. Additionally, the ADR Laws further
provide that the reasonableness of any party’s refusal to participate in ADR (prior to filing a lawsuit) will be
considered by the court in its determination of the amount of attorney’s fees awarded to the prevailing party.
Finally, this statue specifically requires that the Association send a summary of this legislation, which
specifically includes the following provision of Civil Code §§5965:
Failure by any member of the association to comply with the prefiling requirement of Section 5965 of the Civil
Code may result in the loss of your rights to sue the association or another member of the association regarding
enforcement of the governing documents or the applicable law.
The Association also has an internal dispute resolution process in place, as required by Civil Code §§5900
through 5920. Prior to any Owner or the Association pursuing litigation related to any CID Dispute, the Owner
or the Association must comply with the internal dispute resolution process identified in Exhibit A to this
Notice, attached hereto and made a part hereof by this reference.
If you have a dispute with a member or with the Association regarding a CID Dispute, we strongly suggest that
you review the ADR Laws and consult with an attorney to ascertain your rights and remedies.
Sincerely,
Board of Directors
DESERT ROSE RESIDENTS ASSOCIATION
EXHIBIT A
RESOLUTION OF THE BOARD OF DIRECTORS OF DESERT ROSE RESIDENTS ASSOCIATION
(hereinafter “Association”)
A California Nonprofit Mutual Benefit Corporation
Re: Internal Dispute Resolution Process
WHEREAS, Civil Code §§5900 through 5920 identifies an internal dispute resolution process (“IDR” Process) that an
Owner and Community Association must pursue as a prerequisite to an enforcement action.
NOW, THEREFORE, BE IT RESOLVED that INDIAN SPRINGS HOMEOWNERS ASSOCIATION adopts the IDR
Process contained within Civil Code §§5915 (deemed within the statue to be fair, reasonable, and expeditious) as follows:
1. This IDR Process applies to the Association as well as an Owner as a prerequisite to the filing of any litigation related
to a dispute involving their respective rights, duties or liabilities under the governing documents, the Davis Stirling
Common Interest Development Act (“D-S Act”) and/or the nonprofit mutual benefit corporation law (collectively “CID
Dispute”). It does not relate to any collection of assessments unless the Association determines it needs to file litigation to
collect same.
2. Either party (Association or Owner) to a CID Dispute may invoke the following procedure:
A. The party may request the other party to meet and confer, in an effort to resolve the CID Dispute. The request
shall be in writing.
B. An Owner may refuse an Association request to meet and confer. The Association may not refuse an Owner’s
request to meet and confer.
C. The Board hereby designates the President or in his/her absence, the Vice-President (“Board Designee”), as well
as the CID Manager to meet and confer with the Owner. The Board Designee shall also have the right to request the
Chairperson of any applicable Committee involved in the CID Dispute to assist the Board and attend the meet and confer
session with the Owner. If the Association is pursuing litigation related to a delinquent assessment, the Board designates
the Treasurer in lieu of the President as the Board Designee.
3. Although not precluded, attorney participation in the IDR is discouraged in order to maintain direct discussions
between the principals of the CID Dispute and to maintain the goal of resolution through an expeditious process. To the
extent Owner requires that hi/her/its attorney attend the IDR Process, the Owner shall be required to give five (5) business
days’ notice to the Association so that the Association can ascertain if it desires its corporate counsel to also attend.
4. The parties shall meet promptly at a mutually convenient time and place, explain their positions to each other and
confer in good faith in an effort to resolve the CID dispute.
5. A resolution of the CID Dispute agreed to by the parties shall be memorialized in writing and signed by the parties,
including the Board Designee on behalf of the Association.
6. The Agreement reached by the Owner and the Board Designee binds the parties and is judicially enforceable if both
the following conditions are satisfied:
A. The Agreement is not in conflict with the law or the governing documents of the Association: and
B. The Agreement is ratified by the Board of Directors within thirty (30) days of the date that the Agreement is
executed by the Owner and the Board Designee.
7. The Owner participating in the IDR Process shall not be charged a fee to participate in the IDR Process.
Published DESERT ROSE RESIDENTS ASSOCIATION
Dec 2011
DESERT ROSE RESIDENTS ASSOCIATION (“Association”) now offers all Owners the ability to
receive notices and other correspondence from the Association electronically. If Owners accept delivery
electronically, the Association hopes to reduce expenses associated with copying, mailing and postage,
while also helping reduce the Association’s carbon footprint and effect on the environment. Please
complete and return this consent form to take advantage of this offer and to begin receiving
communications electronically. Please note this form must be renewed annually, this helps to insure we
have the most current email address on file.
The undersigned Owner/Member hereby agrees to accept delivery of all legally permissible documents and
notices from the Association in electronic form, via e-mail in Adobe PDF or similar format.
By signing below, you confirm that you are Owner of the property listed below and/or authorized to make
decisions for and bind the property. You further consent to the matters described herein and understand
that with certain legally required exceptions by signing below you will no longer receive notices and
documents from the Association via U.S. mail. You can revoke this authorization and again receive
notices, disclosures and other documents from the Association in printed copy by sending a revocation
notice to the Association’s Community Manager, Ashley Layton, by email at [email protected],
by facsimile (760-346-9918), or by 1st class mail to P.O. Box 14387, Palm Desert, CA 92255-4387.
No more than one (1) primary e-mail addresses will be accepted for delivery of the above documents, per
property address. This signed form may be returned to the Association by e-mail, facsimile, personal
delivery or 1st class mail by using the information listed above.
I understand and agree that delivery of any notices, documents, communications or disclosures are
complete at the time of e-mail transmission from the Association. I further understand that it is my
obligation to notify the Association through the means described in this form if the e-mail address at
which I wish to receive notice changes. I understand that I have the right, at any time, to have the
documents delivered electronically pursuant to this consent form made available to me in paper
form upon my written request.
___________________________________________ _____________________________________
Signature of Owner/Authorized Representative Printed Name
______________________________________________________ ______________________________________
Address within the Association Primary E-Mail Address
(Please Print Legibly)
DESERT ROSE RESIDENTS ASSOCIATION
MEMBERSHIP LIST – OPT OUT FORM
I, ______________________________, am the current owner of real property located
within the Desert Rose Residents Association, with the common street address of
___________________________________________, and have full authority to make
legal decisions affecting my residence/lot.
Pursuant to Civil Code section 5220, and any successor statute, I hereby exercise my
right to opt out of sharing my name, property address, mailing address or any of my
personal information with any other member of the Association. I prefer to be
contacted by an alternative process as described in Corporations Code section 8330(c).
This opt out shall remain in effect until changed by me or my legal representative. ______________________________ ______________________________ NAME OF MEMBER SIGNATURE OF MEMBER ______________________________ ______________________________ ASSOCIATION ADDRESS DATE ______________________________ ALTERNATE MAILING ADDRESS
Please fax this form to Desert Resort Management at 760-346-9918 or mail to:
P.O. Box 14387 Palm Desert, CA 92255-4387
