QUESTION: During the time when the Declarant has three votes, is he also obligated to pay three times the HOA dues? When does the Declarant start paying dues?
ANSWER: The number of votes and the assessments per unit are set in the CC&Rs. In every one I have seen, the Declarant does not pay three times the HOA dues when he has three times the vote. The Declarant pays the same assessment that other owners pay.
Start of Payments. When the Declarant starts paying is also found in the CC&Rs. In smaller, single phase projects, assessments typically commence on the first day of the first month following the first close of escrow in the project. Larger projects are usually divided into smaller portions called phases. Assessments on all separate interests commence on a phase by phase basis and start on the first day of the first month following the first close of escrow in each phase.
Rental Community. In some cases, the developer may keep a portion of a project and operate it as a rental community. If the rental community is separate from the common interest development, the developer may not have to pay assessments. If the rental units are a part of the common interest development, then the CC&Rs may require the developer to start paying assessments when the units are first rented.
Services for Assessments. Also, particularly in large master planned communities, the developer may provide maintenance services in exchange for a reduction in assessments.
ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.
