This is a new set of CC&Rs with many provisions being carried over from the existing CC&Rs, but it is not a revision of the existing CC&Rs. The Board and a Committee previously tried to revise the existing CC&Rs and create a “redline.” However, due to the volume of changes being made, it become an unhelpful document that was not user friendly. There were large sections that were removed that were no longer applicable like developer language, new sections added, and several sections were reorganized. Similarly, the Bylaws have been completely rewritten to remove developer language and the delegate voting system and to conform to current California law.

As requested, the full redline document is included in the documents section. As you will note, this is an incredibly messy document that is not very user-friendly. There is also a second red line which is a comparison of Article 4 of the new CC&Rs versus the various corresponding decisions of the current CC&Rs. Use restrictions are spread out in the current CC&Rs in several different sections, so attempting to compare them is not an apples-to-apples comparison. This is not a comprehensive comparison of use restrictions either because some sections were just completely removed, so there is nothing to compare them to.

The existing CC&Rs will remain in effect and nothing will change.

This also has not changed. This section refers to the rights of “Members” to assign their membership rights to their tenants or household members, but clarifies that any invited guest or tenant or occupant of the home, must abide by the governing documents of the association and that all occupants of the home must be registered with the Association. This is not limited to just renters but all invited guests. This also prevents a landlord from renting out their home, but then continuing to use the pool or other recreational amenities, which can overburden the common area if a home is rented and then both the renters and homeowners are using the facilities.

This updated language affects the timing of garage sales, but does not reduce the permitted number. The original CCRs state that the garage sales are allowed (without signage) twice in a 12-month period, and not in areas served by Common Area streets. The updated language, still allows for the garage sales however specify that the garage sales must be held in conjunction with the community wide garage sales, which can be done twice a year (signage is still not permitted). The updated language also allows for garage sales for someone moving out of the community, so someone could technically be involved in 3 garage sales in a single year.

This section has changed to be less restrictive. The existing CC&Rs heavily restrict noise. This section was modified to allow for noises commonly associated with residential use, such as law mowers, leaf blowers, and similar equipment for maintenance or construction.

There is a change here, we removed the section that specifically regulated “pit bulls” with various requirements, and replaced it with general language about vicious animals not being permitted. Language was also removed that suggested the Association could physically capture a dog and take it to the pound. Cats were added to the sentence about leashing when off of an owner’s lot, which would be applied using a reasonable application.

Section 8.02(B)(3) of the existing CC&Rs allows the Association to borrow money and secure that through a “security interest” of the Association, but if a loan will exceed the Association’s budgeted revenue for the year, or will take more than 1 year to pay back, member approval is needed. Section 6.10 of the Proposed Restated Declaration allows the Association to borrow money without member approval, but such authority is subject to the Board’s fiduciary duties, the duty to prudently manage the Association’s finances, and the authority of members to elect and recall directors, so it is not unbridled authority. If the Association were in need of money, it should not have to spend even more money to hold an election to get member approval to borrow money to make up for a shortfall. The Board is held accountable by its legal obligations and that does not change. Section 6.10 allows for pledging the Association’s assets as a security for a loan. Under the Revenue and Taxation Code, the common area has a value of $0, so it cannot be pledged as security. Rather, the Association’s assessment income stream and existing deposit accounts are considered the security, and many banks consider that “personal property” of the Association.

After the Town Hall Meetings, it was discussed with the Board of Directors and Legal team that the original language as it is currently written, will replace the proposed updated language.

72 hours relates to vehicles not moving for that period of time and is specifically relating to street parking. 04.18.06 does state that the driveway may be used for parking of vehicles subject to the 72 hour limitation (aka vehicles that aren’t going to move for 72 hours) as well as the parking of motorcycles, mobile homes / nonstandard vehicles, as well as vehicle repairs.

There is no change from the original documents surrounding this issue. Homeowners must register their vehicles and use their garage spaces first for vehicles, and then their driveway. Recreational vehicles may be registered a vehicle and must be stored in the garage. As an example; If you have a 3 bay garage, and 3 vehicles, you must park all vehicles in the garage first. If you have 4 vehicles, you must park 3 in the garage, and then 1 may be in the driveway. If you have 7 vehicles, you must park 3 in the garage, 3 in the driveway, and then you may request a permit for the 7th vehicles. The Association needs to limit the number of vehicles on the streets as too many vehicles on the streets, can cause unnecessary congestion and in the case of an emergency, emergency personnel may not be able to access homes with ease. This is for your own safety.

It should also be noted, that if you have a three-car garage and only two vehicles, you can certainly use the additional garage space for the storage of items.

After the Town Hall Meetings, the Board and Directors and Legal Counsel will be working on fine tuning these guidelines taking into consideration the Community’s feedback.

It is proposed to have a 25% cap of the community be rental units. It has been studied that rental caps can have a significantly positive impact on the community and help the HOA maintain its established culture. Renters (especially short-term) are often less invested in the property than owners; Renters have less attachment to the community itself (and by extension the rules and guidelines). In addition, although there are more reasons that could be listed, these are some of the most common benefits of rental caps:

• Rental caps make units more marketable. Some homeowners prefer the idea of moving into a community where owners, rather than renters, are the norm.

• Rental caps ensure higher community cohesion. Owners are more likely to become involved with community governance, engage in social activities, and help build a sense of community throughout your HOA.

• Rental caps have positive fiscal side effects. Stay within FHA financing guidelines for your association.

• Rental caps can lead to lower insurance costs. Fewer renters mean a lower need for liability coverage.

• Rental caps lead to less disruption. Owners are more likely to stay long-term. This leads to more stable, established communities.

• Rental caps often lead to higher property values. Owners often care more about maintaining the community as a whole and generally put more effort into their units.

It is important to note that for those homeowners who currently own, the proposed 25% cap would not impact them as homeowners would be “Grand-Fathered” in. This proposed change would impact new homeowners.