IN RESPONSE TO A NUMBER OF QUESTIONS FROM OUR MEMBERS REGARDING THE PROPOSED BYLAW AMENDMENTS, WE HAVE PREPARED THE FOLLOWING BULLET POINTS HOPING THAT THIS WILL HELP CLARIFY THE PROPOSED CHANGES.
ARTICLE 1 SECTION 3
This was added to incorporate the State Mandated Laws governing Homeowner Associations
(new bylaws) This Law is commonly known as the Davis-Sterling Act and was heavily modified in 2014
ARTICLE II SECTION 1
Under the 1960 Master Lease our Community Association was to consist of three parcels of land,
(new bylaws) identified as parcel’s 1, 2, and 3. At that time only parcel #3 had been formally subdivided and assigned a tract number (tract 772). Under the terms of the original Master Lease parcel #1 would be subdivided into residential lots (at a future date). Parcel #1 is the land that now contains the 7 homes and the parking/landscape area on Canal Circle. When completed the County assigned Tract # 4601 to these 7 homes. Therefore we are adding the tract designation 4601 to this section. Parcel 2 was eventually developed into our Community Recreational Facility.
ARTICLE II SECTIONS 2-6
In the 1960’s the majority of homeowners entered into Sub-Leases with the developer. The (old bylaws) bylaws made many reference’s to these OWNERS as having a leasehold interest and as such were entitled to membership in the association, with both voting privileges and the right to serve on the Board. A question arose recently asking if a Tenant of our community could hold voting or a Board
Position since they occupied the property under a “lease agreement “. This question was thoroughly discussed with our legal counsel and while a lease grants both peaceful occupancy of a residential unit and the access to enjoy the community facility, it does not transfer OWNERSHIP of the property. Voting rights and the ability to serve on the Board remain with the Owner- Landlord.
Since the vast majority of homes are no longer subject to a sublease and to clarify the “who is a member“ issue we have reworded these sections.
ARTICLE II SECTION 4 – 7
Proof of ownership is the grant deed and automatically creates membership status. No Board approval is certificates are needed (old bylaws) therefore this section was eliminated
ARTICLE II SECTION 8
The Davis-Sterling act supersedes our current Bylaws regarding dues caps. The Davis-Sterling act, which now must be followed, contains numerous guidelines and procedures on the frequency and amount of annual fees increases and assessments.
ARTICLE II SECTION 9
Current State Law requires all association lien enforcement actions to conform to Civil Code Section 2924, so that was added.
ARTICLE II SECTION 10
Minor rewording , no substantial changes.
ARTICLE III SECTION I
Current bylaws allowed meetings to be held anywhere in California. Changed to anywhere in Orange County in proposed bylaws
ARTICLE III SECTION 2
Proposed bylaws incorporated CC Section 5100 to comply with current law.
ARTICLE IV SECTION D
Sections D, G, H, and I have been reworded or eliminated to conform to current law.
ARTICLE V SECTION 6
Eliminated, we don’t have a “Chairman of the Board “position.
ARTICLE VI SECTION 2
Reworded to incorporate current law and include CC Section 5200
ARTICLE VI SECTION 4
Eliminated, annual Notice Requirements are now defined by the Davis-Sterling Act and CC Section 5310
ARTICLE VII SECTION 1
Amended as previously stated. All other sections of Article VII were incorporated into new bylaws or covered by the Davis-Sterling Act.
Should you have any questions prior to voting please direct them our Board Secretary and Bylaws committee chair: Howard Rich at [email protected]
THE BOARD APPERCIATES ALL OF THE MEMBERS INPUTS AND
WE HOPE THAT THIS GUIDE WILL AID IN UNDERSTANDING THE
PROPOSED CHANGES AND WE ONCE AGAIN
ASK FOR YOUR “YES” VOTE.