Subdividing a Large Association

Started by ThomasC11 • 7 replies • 1365 views

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ThomasC11 (California)
Posts: 210

Posted:

Has anyone ever seen an Association become subdivide? We have 3 phases, 914 units. The complaint as to why things are in such disarray is because the complex is too big and difficult to manage. By splitting it up, each phase could focus on their own issues.

thanks

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Thomas:

I have known of PUD’s (Planned Unit Developments) which can consist of various phases consisting of different items such as Condos, Single Family Homes, and Business/Shopping entities, etc.

My question would be what are the common areas for the 914 Units which were done in 3 Phases? Do any share certain items such as club house, pool, etc.?

ThomasC11 (California)
Posts: 210

Posted:

There are 2 pools and 1 Clubhouse that are shared. There is a public street dividing Phase 1 (Clubhouse and Pool) from 2 and 3 (Pool).

I think those in 2 and 3 would be more than willing to give up the clubhouse since it is only used for meetings.

The public street would be the dividing line used for separation.

DennisT (Ohio)
Posts: 109

Posted:

This isn't something that can be accomplished without the help of some lawyers ... Being California I'm sure they've got a law about how to do this (as they do everything). Essentially what you've got to do is remove every unit from the existing association and have them simultaneously join whatever new association they fall under. Depending on what your documents say it might take a unanimous vote of the owners to be removed from the current association. The current association is then dissolved.

Then you've got the issue of the current amenities. If you want to guarantee everybody equal access to same they'll have to fall under the control of "master" association that is responsible for managing the amenities to the benefit of its member associations.

There's a property near me that consists of five different associations based on phase. Then there's the master association that no natural person is a member of. That association's membership consists of the five associations. The positions on that board are filled by a representative appointed by each member association's board. The amenities are managed and paid for by the master association. Each member association is then assessed their share and it's up to them to decide how to pay for it (raise dues, spend less elsewhere, etc).

So arrangements like this definitely exist although I believe that in this example the arrangement was established from the onset of the property. Can it be done? Absolutely. For the mechanics though you'd be best talking to someone well versed in California homeowners association and business law.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Thomas:

If you have club house and pools, then the only thing that comes to my mind would be as Dennis pointed out a Master Association to take care of the common areas and the 3 Phases would be sub-associations under the master. This would take an attorney and potentially cost a bit of money to initially implement and only if allowed by your state statutes.

Also this would only be potentially available option if all homeowners were to agree to this situation. Therefore, before taking a lot of time or money to pursue the board would need to insure that everyone would be willing to participate.

You in essence have a master and to which all homeowners belong, but would need to potentially make three sub-associations who would be responsible for their phase plus contribute towards the master for common area clubhouse and pool maintenance. In this manner no one would be giving up access and still be responsible for the common area facilities.

Again ... you will need an attorney.

ThomasC11 (California)
Posts: 210

Posted:

The fact that it can be done by your examples is promising. Thanks for the advise, I'll start polling the community for feedback.

TC

RichardP13 (California)
Posts: 1,767

Posted:

Thomas

What part of California are you from?

ThomasC11 (California)
Posts: 210

Posted:

We are in Laguna Hills.

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