WHEN ANAVERDE HOMEOWNERS WILL HAVE CONTROL OF THEIR HOA BOARD (Per Anaverde HOA CC&Rs and Bylaws)
Currently, approximately 1000 homes have been built in our community.
These terms are defined in the CC&Rs, and are relevant to understanding how board membership and voting rights work.
Initial Property = Lots 77 through 86 inclusive and lots 123 through 132, inclusive, of tract #53888-03 in City of Palmdale, as shown on the map filed in book 1294 pages 51 to 63 inclusive. This is the entire Anaverde development. CC&R Section 1.33 and Recital A
Final Subdivision Public Report = Report submitted to the CA Dept of Real Estate when a phase of work is complete in a development. More information regarding Public Reports can be found here. CC&R Section 1.27. The report filing dates are public record and can be found here.
Initial Sale Date = April 27, 2005. This is the date of the close of escrow of the First Lot in the Initial Property to a Retail Purchaser (an owner of a lot other than the developer or a builder…for the rest of this explanation, they’ll be called homeowners). CC&R Section 1.35. Date verified by Merit Property Management.
MEMBERSHIP IN THE HOA
CLASS A MEMBERSHIP is a voting class and starts out as just the homeowners. Class A Membership entitles us to 1 vote for 1 lot during elections. Bylaws Section 2.3(a)
CLASS B MEMBERSHIP is a voting class and is the Developer and Builders. Unless they specify differently in writing, the Builders automatically proxy their votes to the Developer. Class B Membership entitles them to 3 votes for each lot during elections. Bylaws Section 2.3(b)
Class B Membership eventually turns into Class A Membership.
Class B turns to Class A membership when the earliest of the following happens:
When4160 homes have been sold. This is when total votes from homeowners (Class A) equals total votes from Developer (Class B), with a twist. In determining when the votes equal, the Developer gets 5 votes to our 1 rather than 3 to our 1, so 80% of the homes must be sold for this to happen.
After Dec 20, 2015, once 3900 homes have been sold – This is 10 years from the date of issuance of the most recent Final Subdivision Public Report (which was December 20, 2005), with this caveat:
“If on that date less than 75% of the projected lots have been sold to builders, two years is added on to the 10 years until 75% of the lots are sold to homeowners” (which is when 3900 homes have been sold).
Apr 27, 2030. This is 25 years after the Initial Sale Date (Apr 27, 2005). (CC&R pg 7)
CLASS C MEMBERSHIP is rights to seats on the Board of Directors, not voting power, and is only for the Developer. Bylaws Section 2.3(c)
Class C Members are entitled to elect a majority of the members of the board.
Class C Membership shall terminate on:
Jan 23, 2009
Which is five years after submission of the Final Subdivision Public Report for the first phase of the development (Jan 23, 2004).
On that date LESS THAN 75% of the total lots have been sold to homeowners (3900 homes).
IN THAT CASE, AT THE LATEST:
April 27, 2020.
The termination date will be extended for two years at a time, until 75% of the total lots have been sold to homeowners (3900 homes)
up to 15 years after the Initial Sale Date (Apr 27, 2005).
What would change those numbers is if the specific plan for the development was revised so that the total development comprised less than 5200 homes. In that case, the number of homes that make up 75% and 80% would change.
That will take a revision of the specific plan by the developer and a public hearing before it would happen.
We do know, however, that the specific plan MUST be revised due to seismic findings, and that in the end the total number of lots in Anaverde will be much less than 5200. But that has not happened yet.