Why is it necessary
to form a homeowners association?
The Declarant for the
Dreaming Summit Homeowners Association, Stardust Development, Inc., has planned
certain Common Areas and recreational amenities within the community seeking to
enhance property values for its residents. Maricopa County requires that an
entity be formed which will own and maintain these Common Areas in perpetuity.
The Declarant desires to carefully establish and to give the authority in the
future to control architectural integrity. To meet these requirements, the
Declarant has formed a homeowners association, incorporated as a non-profit Arizona corporation and has formulated deed restrictions (CC&Rs) and Bylaws which serve
as a guide to its formation and operation.
The Declarant records with the Maricopa County Recorder a Declaration of
Covenants, Conditions, Restrictions, Assessments, Charges, Servitudes, Liens,
Reservations and Easements known as CC&Rs. These documents stipulate that
all Owners of land within the community automatically become Members and are
subject to the CC&Rs. An Assessment amount is determined through the
budgeting process and becomes an obligation of each Member. Assessment revenue
finances the operation and reserve funding of the Association including, but
not limited to, landscape maintenance, insurance, management, architectural
control and violation enforcement. The CC&Rs create a continuing lien for
the Assessment obligation.
Who is in charge of
The Association is controlled by an elected Board of
Does the Association
control what I can do to my individual Lot?
CC&Rs allow for the establishment of a Design Review Committee whose
purpose includes creating, protecting and preserving the architectural
integrity of the community. It approves the original building plans for all
residential and commercial structures. Beyond that, the Committee must review
and approve all proposed changes to any Lot that are Visible From Neighboring
Property. This is accomplished through the architectural application process,
whereby an Owner requests approval in advance for any changes he or she desires
to make to his property. All Owners are bound by the decisions of the
Committee, which is empowered to ensure that the architectural integrity of the
master plan remains intact. The CC&Rs also address such restrictions as
trash container storage, overnight parking, recreational vehicles, trailers,
boats, unkempt yards and business use of residential areas. The Association is
given the power of enforcement through the CC&Rs, including legal action
whenever necessary to remedy infractions. Through the architectural control
process, as implemented by the Design Review Committee, property values should
remain high and the community remains aesthetically pleasing.
How can I be sure
that my Assessment will not keep going up?
CC&Rs detail specific procedures to control the Annual Assessment from year
to year. Originally, the Declarant sets a maximum Annual Assessment determined
by a built out budget as though all amenities and all Memberships were in
place. The Assessment may be set at any rate not to exceed the maximum. Each
year thereafter, the Maximum Annual Assessment may be increased by the Board of
Directors by 10% or the cost of living increase as determined by the Consumer
Price Index, whichever is greater, without a vote of the Membership. Any
increase beyond that requires a positive vote of two-thirds of any class of
Do homeowners have a
Association is required to hold an Annual Meeting of the Members each year for
the purpose of providing general information about the Association, presenting
a financial report and holding elections for available Board positions (when
applicable). In addition to the Annual Meeting, monthly meetings are also
held. Both of which are ideal times for homeowners to voice their concerns and
ask questions. However, it is not necessary to wait for meetings. The Board
of Directors employs a professional Managing Agent for the purpose of
administering the daily affairs of the Association. The manager will visit the
community frequently and will be available by telephone or email for any
Association related questions or problems. The management company will act as
a liaison between the Board of Directors and the Members, collect Assessments,
pay bills, oversee landscape and amenity maintenance, correspond and
communicate with Members, and regularly tour the community.
more information or additional questions, please contact Scott Coleman with Kinney Management Services
at 602-973-4825 ext 221, or by email at: firstname.lastname@example.org.