Anthony Lam Nguyen vs. The Townhomes associationMotion for Summary JudgmentAdjudicationCal. Super. - 4th Dist.April 19, 2017 THE TOWNHOMES ASSOCIATION HOLD HAR (Complete ad Return) This agreement, effective as of the date of approval by the Association as set forth below, is made by and between the Townhomes Association, a California non-profit corporation (herein called “the Association”) and , member of the Association and owner (herein referred to as “the Owner”) of certain real property and improvements thereon located at , Garden Grove, CA 92844 (herein referred to as “‘Subject Property”). Homeowner wishes to make the following Architectural Modification: This approval is predicated upon the installation being made in strict conformity with the owner’s attached drawing/plans and written specifications on the following terms and conditions; application to Owner, his heirs, successors and assigns. 1. Owner shall insure that installation meets all building code requirements currently in effect for City of Garden Grove. 2. Owner, for himself, his heirs, successors and assigns indemnifies the Association, its directors, officers and members and agrees to hold the Association harmless from any loss incurred in connection with the construction, use or maintenance of the here-in approved alteration. 3. Owner, for himself, his heirs, successors and assigns hereby agrees to be responsible for and to pay for repair of any damages that may be caused, in any way, by installation of the herein- approved installation. 4, Owner understands that the Association will not assume maintenance responsibilities relative to this architectural variance. Owner, for himself, his heirs, successors and assigns hereby agrees to be solely responsible for correcting any damages to common area and neighboring properties that may result from the installation of this variance. PROPERTY OWNER(S By: Date Homeowner Signature By: Date Homeowner Signature PLEASE RETURN TQ: Board of Directors, The Townhomes Association c/o Amber Property Management 27261 Las Ramblas, Suite 100 Mission Viejo, CA 92691 THE TOWNHOMES ASSOCIATION Purpose - The Townhomes Homeowners Association Board of Directors believes that homeowners desire a high quality community that contributes to an imcrease in the value of their property over time. In this way, homeowners can maximize the enjoyment of their property today amd in the future. Without strong, consistent enforcement of our Covenants/Bylaws, this appreciation cammot be accomplished. With this geal, the Townhomes Board of Directors has enacted the following Fime Schedule (as allowed for in the Associations CC&R’S). Pre-Fining Procedure - The association and/or its management company will send 2 noncompliance letter to the homeowner’s last kmown address, identifying the violation, the date reported, the recommended correction, and given a timeframe to correct the violation (Usually 10 to 30 days). If the violation is mot corrected, or the violation occurs again, the association and/or its management company will send a second noncompliance letter, or proceed with the fine procedure outlined below. Fining Procedure - If the homeowszer has mot resolved the matter within the time frame given, or if circumstances warrant sooner, the Board shall send a written “Fine” notice detailing the violation, the assessment of fines and procedures for payment. For each month that the HOA levies a fine against the homeowner, written notice of the violation, the date reported and the current fine shall be sent to the homeowner. Fines - The Board shall assess monetary fines to the Homeowners account each month according to the following schedule: First month (30 days) after written request: $25 Second month (60 days) after first written request $50 Each subsequent month thereafter. $100 per month* # These fines are in addition to the previous month's fines, For example, the total fines for three months of written notices would be $25 plus $50 plus $100 for a total of $175. Fines shall be in addition to an assessment equal to any applicable cost of repair. For the purposes of this Fine Schedule, a “continuing or repeatéd violation” shall be one that is assessed to a single lot within a twelve (12) month period. However, should a twelve month period pass without any vielations, a first motice to correct the viclation will be sent by the Association prior to imposing any fines. Appeal - A homeowner may appeal a formal or informal notice of violation to the HOA by contacting the property manager in writing. Once the Board has assessed a fine(s), the homeowner may, within 30 days, make a written request for reconsideration. The homeowner, at his or her option, may request a hearing before the Board. The Board may reduce or retract the fines, if the Board finds that such fimes are not necessary to obtain compliance with the rules and requirements of the HOA. For the purposes of this and other motices from the HOA, if the homeowner does not reside at the subject property, it shall be the homeowner's responsibility to provide, in writing, the property manager or a member of the Board with a proper mailing address. Notices shall be sent by first class mail or equivalent mail service. The HOA shall not be required to send notices certified or registered mail. 27261 Las Ramblas, Suite 100 Mission Viejo, CA 92691 Office: (949) 429-5831 Fax: (949) 429-5933 THE TOWNHOMES HOMEOWNERS ASSOCIATION Clo Amber Property Management 27261 Las Ramblas, Suite 100 Mission Viejo CA 92691 Office: (949) 429-5831 Fax: (949) 429-5933 IMPORTANT NOTICE To: The Townhomes Membership Date: November 20, 2014 From: Board of Directors Subject: January 1, 2015 Budget (FYE 12/31/15) In accordance with California Civil Code 5300(b); enclosed is a copy of the approved fiscal year budget efféctive January 1, 2015 plus various disclosures. After thoughtful review and consideration, the Board of Directors has approved a budget for the fiscal year ending December 31, 2015, which it believes is reasonable and prudent to meet the funding needs of the association. As a result of this review, the Board has determined that the current level of assessments is sufficient to maintain the financial integrits of your Association and to meet the ongoing maintenance costs. As required by California law, the Board of Directors had a reserve study performed for the major capital components in 2013. The Board contracted with Reserve Data Analysis, California, LLC. to provide the report. The replacement-funding program reflects assumpiions about future events based on manufacturer’s specifications, information from subcontractors, construction pricing and scheduling manuals and the reserve company’s experience. These were used to calculate and establish the reserve amounts needed to defray the future repairs, replacement or additions to the components that the association is obligated to maintain. At the end of the current fiscal year, the association reserves are projected to be funded 6% of the required amount. A summary of the reserve report is enclosed; a copy of the entire report is available from Amber Property Management. Copying and postage fees apply. Special Assessment - The Board of Directors does not, at this time, anticipate the need to levy a special assessment for planned expenditures, however, it reserves the right in accordance with California Civil Code to approve a special assessment for unplanned major expenses, if necessary, in the upcoming fiscal year. Per the Association's Governing Documents, Assessments are due and payable on the first day of the month. The monthly assessment shall become delinquent if not paid on or before the Thirtieth (30%) day of the month. A courtesy statement is sent to each Homeowner on a monthly basis, as a reminder of the assessment due. Homeowners are obligated by law to tender payment of the assessment in a timely manner, even if the courtesy statement is lost in the mail. or somehow is never received at the mailing address. The Assessment Collections Policy for your association is enclosed. Also, included, as required by California State Law, is a copy of Civil Code Section 5920, known as the Internal Dispute Resolution and Civil Code Section 5965, known as the Alternative Dispute Resolution. Both of which require that certain types of disputes between Associations and the Membership, provide for an independent forum to resolve the dispute before filing of a lawsuit by any party. Effective January 1, 1996 The California Civil Code was amended to require the Association to prepare and distribute summaries of certain insurance policies carried by the Association. A summary of the Association's Property and General Liability policies are enclosed. ~0over~ The Townhomes Budget Cover letter continued... Notice of Board Minutes Access - Members of the Association are hereby advised that in addition to the information required by law, minutes or summary minutes of the meetings of the Board of Directors are available to any member upon written request and with the submission of payment for the cost of distribution. Secondary Address Notification Request - Upon receipt of a written request by an owner identifying a secondary address for purposes of collection notices, the association shall send additional copies of any legally required notices to the secondary address provided. The owner's request shall be in writing and shall be mailed to the association in a manner that shall indicate the association has received it. The owner may identify or change a secondary address at any time, provided that, if a secondary address is identified or changed during the collection process, the association shall only be required to send notices to the indicated secondary address from the point the association receives the request. 1 Financial Statement Notice - The Association shall obtain an independent certified audit, which will be prepared in accordance with generally accepled accounting principles by a licensee of the California Board of Accountancy. A copy of the audit shall be distributed to all Owners within 120 days after the close of each fiscal year. SECURITY DISCLAIMER. As much as we would like it to be, the Association can never be free of crime. For example, it is possible for someone to enter the property under false pretenses to commit crimes, for residents to commit crimes against their neighbors, for guests of residents to commit crimes, and for employees to commit crimes. As a result, the Association is not and can never be free of crime and cannot guarantee your safety or security. You should NOT rely on the Association to protect you from loss or harm- -you should provide for your own security by taking common sense precautions such as carrying insurance against loss; keeping your doors locked; refusing to open your door to strangers; stalling a peep hole in your front door; asking workmen for identification; installing a security system; locking your car; etc. It is suggested that you keep these reports with all other documents pertaining to your home, as you may be required to show it to any prospective buyer of your property. Respectfully, The Townhomes Homeowners Association Board of Directors Enclosures (Disclosure Documents Index) Ttem Description : Reference Code 1 Budget Cover Letter, including: o Notice of Board Minutes Access Civ. Code .§4950(b) o Secondary Address Notification Request Civ. Code §4040(b) o Review of Financial Statement Notice Civ. Code §5305 2 Pro Forma Operating Budget Civ. Code §5300(b)(1) 3 Assessment Collection Policy Civ. Code 5310(a), (7) & 5650(a) 4 Notice/Assessments and Foreclosure Civ. Code §5730; 4040(b) 5 Annual Update of Reserve Civ. Code §5300(b) 6 Assessment & Reserve Funding Disclosure Summary Civ. Code §5570 7 Reserve Funding Plan Civ. Code §5300(b)(3) 8 Internal Dispute Resolution (IDR) Rights Civ. Code §5920 9 Alternative Dispute Resolution (ADR) Rights Civ. Code §5965 10 Insurance Coverage Summary Civ. Code §5300(b)(9) 11 Architectural Changes Notice Civ. Code §4765(c) 12 Monetary Penalties Schedule Civ. Code §5855 The Townhomes Homeowners Association Approved Operating Budget January 1, 2015 - December 31, 2015 Monthly Annually INCOME Assessment 4194782 | $ 503,373.84 140.00 1,680.00 3 3 EXPENSES Utilities Electricity 3 3,000.00 % 36,000.00 Gas $ 4.300.001 % 51,600.00 Waste Removal $ 2,000.00 | $ 24,000.00 $ $ Land Maintenance Contract Landscape $ 2,950.00 | $ 35,400.00 Landscape Extras $ 400.00 | $ 4,800.00 Irrigation Repair $ 300.00 | $ 3,600.00 Tree Maintenance/ Trimming 3 600.00 | $ 7,200.00 Backflow Inspection $ 20.00% 240.00 Water Features $ 995.00 | $ 11,940.00 $ 100.00 | $ 1,200.00 Spa Maintenance Contract Spa $ 125.001 % 1,500.00 Spa Extras $ 50.00 | $ 600.00 Pool Equipment Repairs : 3 ] 20.001 % 240.00 The Townhomes Homeowners Association Approved Operating Budget January 1, 2015 - December 31, 2015 Common Area Loan 6,345.00 | $ 76,140.00 Contract Janitorial 205.00 | $ 2,460.00 Janitorial Supplies 4500 % 540.00 Roof Repairs : 600.00 | $ 7,200.00 Electrical Supplies 50.00 | $ 600.00 Common Area Repairs 500.00 | $ 6,000.00 Lighting Maintenance/Supplies 575.00 | $ 6,900.00 Boiler Maintenance 400.00 | $ 4,800.00 Termite 100.00 | $ 1,200.00 Plumbing Repairs 1,200.00 | $ 14,400.00 Administration Bad Debt $ 100.00 $ 1,200.00 Audit/Tax Preparation $ 4500 | $ 540.00 State Taxes $ 10.00 | § 120.00 Licenses ~ Permits & Fees $ 25.001 % 300.00 Insurance $ 2,500.00 | $ 30,000.00 Legal Services $ 100.00 | § 1,200.00 Management Services $ 1,400.00 | $ 16,800.00 Printing/Mailing $ 475.00 | $ 5,700.00 Reserve Study $ 106.00 | $ 1,200.00 1099 Preparation $ 20.00% 240.00 i 0.00 240.00 TOTAL OPERATING EXPENSES $ 33,175.00 | $ 398,100.00 Reserve Allocations e Allocations [TOTAL BUDGET K 42,087.82 | $ 505,053.84 THE TOWNHOMES HOMEOWNERS ASSOCIATION 2015 MONTHLY ASSESSMENT MATRIX 2014 ASSESSMENTS 2015 ASSESSMENTS $333.60 $333.60 $380.83 #380.84 $393.64 $393.64 $396.18 $396.18 THE TOWNHOMES ASSOCIATION ASSESSMENT COLLECTION POLICY Regular monthly assessments are due and payable in full on the first day of each month. Any other assessments, including special assessments, are due and payable on the date specified in the notice of assessment. All other charges including but not limited to late fees, interest, collection costs and fines are due as incurred. All assessments, late fees, interest and collection costs are subject to the Assessment Collection Policy. Payments received will be applied in the following order: unpaid principal including assessments and special assessments levied in accordance with the Declaration and Civil Code, late fees, collection fees, interest, and CC&R violation fees. ACTION TO BE COMMENCED NUMBER OF DAYS | CHARGED TO AFTER DUE DATE | HOMEOWNER I. Assessments are delinquent 30 days after they are due. Late fee will be charged 30 $10.00 + Late on assessments not paid in full within 30 days after the due date Interest of 10% Annum 2. A “late reminder” letter is sent to the owner(s) by mail. 30 $25.00 3. A “Pre-lien” letter is sent to the owner(s) by certified mail. Charges incurred for 60 $75.00 this letter will be levied against the delinquent account. This includes documents and processing provided in accordance with Civil Code including Account Detail and Assessment Collection Policy. NOTE: Prior to the recording of a Board authorized lien for delinquent assessments, a homeowner that is delinquent has the right to participate in an internal dispute resolution (IDR) pursuant to the “meet and confer" program commencing with California Civil Code Section 5900. Prior to recording a lien, the Board will approve such action by a majority vote of the Board Directors. 4. An “intent to lien” letter will be filed against the delinquent property and charges 90 $85.00 + for its processing will be levied against the delinquent account. A copy of the Certified mail fee document will be sent to the owner(s) of record by certified mail in accordance with Civil Code. 5. Upon Board action, the account will be referred to the Association attorney or : 120 $95.00 collection agent and a notice of Delinquent Assessment will be recorded against Resolution to the property. Charges for processing and recording will be levied against the Lien Fee + delinquent account. A copy of the recorded lien will be mailed to the owner(s) of Attorney & record. Filing Costs 6. A Notice of Intent to Foreclose or a Notice of Impending Lawsuit will be sent to As directed by the Legal fees as the owner(s) in accordance with California Civil Code requirements. Delinquent California Civil incurred owner(s) will be liable for payment of fees and costs. Copies will be sent to the Code owner(s) of record. NOTE: Prior to a Board decision to initiate a foreclosure for delinquent assessments, a homeowner that is delinquent has the right to participate in dispute resolution pursuant to the association's "meet and confer" program required in Article 5 of the California Civil Code (commencing with Section 5900) of Chapter 4 or alternative dispute resolution with a neutral third party pursuant to Article 2 of the California Civil Code (commencing with Section 5925) of Chapter 7. The decision fo pursue dispute resolution or a particular type of alternative dispute resolution (ADR) shall be the choice of the owner(s), except that binding arbitration shall not be available if the association intends to initiate a judicial foreclosure. 7. Copies of documents to multiple owners of record in accordance with Civil Code: a. One copy only No charge b. Handling fee for additional copies and/or notary fees $25.00 ea. *All fees may be subject to change. For overnight payments, mail to: Amber Property Management 27281 Las Ramblas, Suite 120 Mission Viejo, CA 92691 Dats; Jeuay 2013 DISTRIBUTION OF WRITTEN NOTICE OF ASSESSMENTS, FORECLOSURE, AND PAYMENT PLANS CIVIL CODE 5730 NOTICE ASSESSMENTS AND FORECLOSURE This notice outlines some of the rights and responsibilities of owners of property in common interest developments and the associations that manage them. Please refer to the sections of the Civil Code indicated for further information. A portion of the information in this notice applies only to liens recorded on or after January 1, 2003. You may wish to consult a lawyer if you dispute an assessment. ASSESSMENTS AND FORECLOSURE Assessments become delinquent 15 days after they are due, unless the governing documents provide for a longer time. The failure to pay association assessments may result in the loss of an owner's property through foreclosure. Foreclosure may occur either as a result of a court action, known as judicial foreclosure or without court action, often referred to as nonjudicial foreclosure. For liens recorded on and after January 1, 2006, an association may not use judicial or nonjudicial foreclosure to enforce that lien if the amount of the delinquent assessments or dues, exclusive of any accelerated assessments, late charges, fees, attorney's fees, interest, and costs of collection, is less than one thousand eight hundred dollars ($1,800). For delinquent assessments or dues in excess of one thousand eight hundred dollars ($1,800) or more than 12 months delinquent, an association may use judicial or nonjudicial foreclosure subject to the conditions set forth in Article 3 (commencing with section 5700) of Chapter 8 of Part 5 of Division 4 of the Civil Code. When using judicial or nonjudicial foreclosure, the association records a lien on the owner's property. The owner's property may be sold to satisfy the lien if the amounts secured by the lien are not paid. (Section 5700 through 5720 the Civil Code, inclusive) In a judicial or nonjudicial foreclosure, the association may recover assessments, reasonable costs of collection, reasonable attorney's fees, late charges, and interest. The association may not use nonjudicial foreclosure to collect fines or penalties, except for costs to Tepair common areas damaged by a member or a member's guests, if the governing documents provide for this. (Section 5725 of the Civil Code) The association must comply with the requirements Article 2 (commencing with section 5650 of Chapter 8 of Part 5 of Division 4 of the Civil Code when collecting delinquent assessments. If the association fails to follow these requirements, it may not record a lien on the owner's property until it has satisfied those requirements. Any additional costs that result from satisfying the requirements are the responsibility of the association. (Section 5675 of the Civil Code) At least 30 days prior to recording a lien on an owner's separate interest, the association must provide the owner of record with certain documents by certified mail, including a description of its collection and lien enforcement procedures and the method of calculating the amount. It must also provide an itemized statement of the charges owed by the owner. An owner has a right to review the association's records to verify the debt. (Section 5660 of the Civil Code) Notice of Assessments and Foreclosure Continued... If a lien is recorded against an owner's property in error, the person who recorded the lien is required to record a lien release within 21 days, and to provide an owner certain documents in this regard. (Section 5685 of the Civil Code) The collection practices of the association may be governed by state and federal laws regarding fair debt collection. Penalties can be imposed for debt collection practices that violate these laws. PAYMENTS When an owner makes a payment, he or she may request a receipt, and the association is required to provide it. On the receipt, the association must indicate the date of payment and the person who received it. The association must inform owners of a mailing address for overnight payments. (Section 5655 of the Civil Code) An owner may dispute an assessment debt by submitting a written request for dispute resolution to the association as set forth in Article 2 (commencing with Section 5900) of Chapter 10 of Part 5 of Division 4 of the Civil Code. In addition, an association may not initiate a foreclosure without participating in alternative dispute resolution with a neutral third party as set forth in Article 3 (commencing with Section 5925) of Chapter 10 of Part 5 of Division 4 of the Civil Code, if so requested by the owner. Binding arbitration shall not be available if the association intends to initiate a judicial foreclosure. An owner is not liable for charges, interest, and costs of collection, if it is established that the assessment was paid properly on time. (Section 5685 of the Civil Code) MEETINGS AND PAYMENT PLANS An owner of a separate interest that is not a timeshare may request the association to consider a payment plan to satisfy a delinquent assessment. The association must inform owners of the standards for payment plans, if any exist. (Section 5665 of the Civil Code) The board of directors must meet with an owner who makes a proper written request for a meeting to discuss a payment plan when the owner has received a notice of a delinquent assessment. These payment plans must conform with the payment plan standards of the association, if they exist. (Section 5665 of the Civil Code) The Townhomes Association Garden Grove, California RDA Qwner's Summary. RDA Summary of Calculations Monthly cy (81,0 08 © 451,04 417 1/18 to 12/31/14: $123,824.88 RDA Reserve Management Software Copyright 2013, Edwin G. Edgley All Rights Reserved RESERVE DATA ANALYSIS © (714) 434-8396 e PAGE 1 = The Townhomes Association RDA Owner's Summary REPORT DATE: November 6, VERSION: ACCOUNT NUMBER: FULLY USE +/- REM CURRENT FUNDED ASSIGNED DESCRIPTION LIFE LIFE COST RESERVES RESERVES Streets - Asphalt Overlay 20 +12 4 196,232 171,703 0 Streets - Asphalt Repairs 4 0 1 18,073 18,073 0 Streets - Asphalt Slurry Sealing 4 0 1 21,080 21,080 0 Streets - Concrete, Repairs 25° 0 1 30,000 30,000 0 *%+% CATEGORY SUMMARY: 265,385 240,856 0 Roofs - Replacement 20 0 9 472,329 259,781 0 *%% CATEGORY SUMMARY: 472,329 259,781 0 Paint - Light Poles 4 0 ili 13,900 13,900 0 Paint - Restrooms 8 0 1 1,002 1,002 0 Paint - Woodwork 5 0 1 179,049 179,049 0 Paint - Wrought Iron 3 0 1 6,547 6,547 0 «%% CATEGORY SUMMARY : 200,498 200,498 0 Fencing - Boiler Areas 16 0 14 10,000 1,250 0 Fencing - Wood Railing 20 0 1 143,049 143,049 0 Fencing - Wrought Iron 25 +9 6 35,246 29,026 0 Walls - Block, Repairs 30 +4 6 25,823 21,266 0 **% CATEGORY SUMMARY : 214,118 194,591 0 Lighting - Bollard Fixtures 30 0 2 185,000 172,667 0 Lighting - Exterior 20 +11 3 19,248 17,385 0 Lighting - Streets 30 0 2 15,092 14,086 0 *%% CATEGORY SUMMARY: 219,340 204,138 0 Spa - Deck Caulking 4 0 1 384 384 0 Spa - Expansion Joint Covers 4 0 1 8,472 8,472 0 Spa - Filter 10 0 1 1,954 1,954 0 Spa - Heater 10 0 1 2,332 2,099 0 Spa - Pump & Motor, Replace 10 0 1 3,405 3,065 0 Spa - Replastering & Tile 10 0 1 5,959 57959 0 **#% CATEGORY SUMMARY: 22,506 21,932 0 Cabana - Ceramic Tile 30 +4 6 9,158 7,542 0 Cabana - Counter Top 22 -11 0 1,512 1,512 1,512 Cabana - Partitions 15 +16 3 2,275 2; 055 0 Cabana - Plumbing Fixtures 30 0 19 4,364 1,600 0 Cabana - Shower 30 +4 6 2,031 1,673 0 *%% (CATEGORY SUMMARY: 19,340 14,381 1,512 Boilers - Pumps/Motors 8 0 0 11,725 11,725 11,725 16 0 4 80,862 60,647 0 Boilers - Replacement RESERVE DATA ANALYSIS = °e PAGE 2 = (714) 434-8396 The Townhomes Association DESCRIPTION Boilers - Storage Tanks *%* CATEGORY SUMMARY: Waterscapes - Dredging Waterscapes - Liner Waterscapes - Pump/Motors -*%% CATEGORY SUMMARY: Decks - Clean & Seal Decks - Resurfacing Decks - Wood Replacement *%* CATEGORY SUMMARY: Stairs - Wood #%%* CATEGORY SUMMARY: Bridges - Replacement *%% CATEGORY SUMMARY: Siding - Replacement *%% CATEGORY SUMMARY: Doors - Garages, Unfunded Doors - Utility *#*% CATEGORY SUMMARY: Mailboxes - Replacement *%% CATEGORY SUMMARY : Irrigation - Backflow Devices Irrigation - Controllers *#%% CATEGORY SUMMARY: Landscape - Tree Trimming *#%% CATEGORY SUMMARY: Termite Control - Fumigation #%% CATEGORY SUMMARY: TOTAL ASSET SUMMARY: CONTINGENCY @ 3.00%: GRAND TOTAL: Percent Fully Funded: RDA Owner's Summary a? USE +/- REM LIFE LIFE 16 0 4 5 0 1 50 0 22 8 0 1 4 0 0 12 0 0 25 0 1 25 +6 3 20 +6 12 1 0 1 30 0 2 22 0 10 15 0 4 24 0 10 15 0 1 1 0 1 15 0 1 : RESERVE DATA ANALYSIS PAGE 3 FULLY CURRENT FUNDED ASSIGNED COST RESERVES RESERVES 15,145 11,359 0 107,732 83,730 11,725 12,984 12,984 0 107,118 59,986 0 13,920 13,920 0 134,022 86,890 0 9,719 9,719 9,719 22,768 22,768 22,768 549,554 549,554 89,026 582,041 582,041 121,513 29,868 26,978 0 29,868 26,978 0 52,352 28,190 0 52,352 28,190 0 42,852 42,852 0 42,852 42,852 0 0 0 0 21,216 11,386 0 21,216 11,386 0 22,519 16,514 0 22,519 16,514 0 3,795 2,214 0 11,310 10,556 0 15,105 12,770 0 6,000 6,000 0 6,000 6,000 0 143,865 143,865 0 143,865 143,865 0 2,571,088 2,177,393 134,750 65,322 4,042 2,242,715 138,792 (714) 434-8396 The Townhomes Association Assessment and Reserve Funding Disclosure Summary. For the Fiscal Year January 1, 2014 through December 31,2014 (1) The regular assessment per ownership inferest is $variable, per unit. Note: If assessments vary by the size or type of ownership interest, the assessment applicable ta this ownership interest may be found on page I of the attached summary. (2) Additional regular or special assessments that have already been scheduled to be imposed or charged, regardless of the purpose, if they have been approved by the board and/or members: g Date assessment Amount per ownership interest per month or year (If assessments Purpose of the assessment: will be due: are variable, See note immediately below): January 1, 2014 Variable rates ] | Fund operating and reserves Total: ] Note: If assessments vary by fhe size of the type of ownership interest, the assessment applicable to this ownership interest may be found on page of the attached report. (3) Based upon the most recent reserve study and other information available to the board of directors, will currently projected reserve account balances be sufficient at the end of each year to meet the association’s obligation for repair and/or replacement of major components during the next 30 years? No (4) If the answer to (3) is no, what additional assessments or other contributions fo reserves would be necessary to ensure that sufficient reserve funds will be available each year during the next 30 years that have not yet been approved by the board or the members? Approximate date assessment will be due: Amount per ownership interest par month or year; January:throush December 2014 | $1,498 per unit:per month i Ce Total: $2,048,922 oe (5) All major components are included in the reserve study and are included in its calculations. (6) Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570, the estimated amount required in the reserve fund at the end of the current fiscal year is $2,242,714 based in whole or in part on the last reserve study or update prepared by Reserve Data Analysis California, LLC as of November 6, 2013. The projected reserve fund cash balance at the end of the current fiscal year is $138,792 resulting in reserves being 6 percent funded at this date. If an alternate, but generally accepted, method of calculation is also used, the required reserve amount is $N/A. The current deficiency in reserve funding expressed on a per unit basis is $18,455. (7) Based on the method of calculation in paragraph (4) of subdivision (b) of section 5570 of the Civil Code, the estimated amount required in the reserve fund at the end of each of the next five budget years is (b), and the projected reserve fund cash balance in each of those years, taking into account only assessments already approved and other known revenues, is (a), leaving the reserve at (c) percent funding, (See recommendation below) Year j Reserve Balance (a) | Estimated Amount Required in Reserves Percent Funded If the reserve funding plan gppfoved by the association is implemented, the projected reserve fund cash balance in each of those years will be (8), leaving the reserve at (b) percent funding. (See approved budget below) Year Reserve Percent Fully Funded At the time this summary was prepared, the assumed long-term before tax interest rate earned on reserve funds was 1% per year, and the assumed long-term inflation rate to be applied to major component repair and replacement costs was 2% per year. Nate: The financial representations set jorth in this summary are based on the best estimates of the preparer at that time. The estimates are subject fo change. The preparer of this form will be indemnified and held harmless against all losses, claims, actions, damages, expenses or liabilities, including reasonable attorney's fees, to which may become subject in connection of this engagement, because of any false, misleading or incomplete information which has been relied upon by others, or which may result from any improper use or reliance on the disclosure by you or any third party, REPORT DATE: VERSION: ACCOUNT NUMBER : November The Townhomes Association RDA Staridard Projections Beginning Accumulated Reserves: YEAR 114. 115. '16 "17 ig ‘19 120 121 '22 123 124 125 126 27 '28 '29 '30 3d v.32 133 134 135 '36 137 '38 r39 "40 41 142 143 CURRENT REPLACEMENT COST 2,571,088 2,622,510 2,674,960 2,728,459 2,783,029 2,838,689 2,895,463 2,953,372 3,012,440 3,072,688 3,134,142 3,196,825 3,260,76L 3,325,977 3,392,496 3,460,346 3,529,553 3,600,144 3,672,147 3,745,530 3,820,502 3,896,912 3,974,850 4,054,347 4,135,434 4,218,143 4,302,505 4,388,556 4,476,327 4,565,853 ANNUAL CONTRBTN 1,480,486 381,816 316,978 309,198 304,724 291,132 291,308 295,827 301,373 303,582 308,121 312,308 318,608 324,678 331,656 339,016 343,238 349,083 356,651 364,164 360,631 367,411 366,745 364,333 384,866 386,850 404,741 384,665 386,929 426,987 6, 2013 018 1999 $138,792 ANNUAL INTEREST ANNUAL CONTRBTN EXPENDTRS 5,412 45,724 3,608 1,240,005 4,287 259,002 5,771 106,379 5,081 411,190 6,355 122,290 5,967 352,649 7,623 63,637 9,193 82,363 6,362 714,681 7,865 98,020 7,875 316,483 8,953 169,553 10,207 151,751 12,036 77,654 14,012 65,749 12,416 582,132 13,697 175,987 15,756 73,023 17,553 119,870 18,610 229,695 16,404 696,439 17,316 253,586 19,252 107,387 1B, 743 465,315 20,061 216,938 13,335 1,372,938 15,620 83,385 17,278 165,373 12,973 1,035,479 PROJECTED ENDING RESERVES 1,578,967 724,385 786,648 995,238 893,853 1,069,050 1,013,676 1,253,489 1,481,692 1,076,956 1,294,921 1,288,622 1,456,629 1,639,764 1,905,801 2,193,081 1,966,604 2,153,397 2,452,781 2,714,629 2,864,174 2,551,550 2,682,025 5,958,522 2,896,517 3,086;490 2,131,628 2,448,528 2,687,361 2,091,843 FULLY PERCENT FUNDED FULLY RESERVES FUNDED 2,303,576 69% 1,270,287 57% 1,251,442 63% 1,397,848 71% 1,235,795 72% 1,378,860 78% 1,288,319 79% 1,504,653 83% 1,710,787 87% 1,261,982 85% 1,457,398 89% 1,432,669 91% 1,568,186 93% 1,730,816 ~~ 95% 1,980,359 96% 2,253,331 97% 1,995,299 99% 2,164,972 99% 2,452,506 100% 2,702,992 100% 2,849,653 101% 2,515,565 101% 2,646,867 101% 2,941,340 101% 2,872,751 101% 3,070,965 101% 2,066,022 103% 2,403,305 102% 2,668,869 101% 2,033,436 103% NOTE: In some cases, the projected ending reserves may exceed the fully funded This is a result of the provision for a contingency in the report, which in the projections, is never reserves during years following high expenditures. expended. and any excess is redistributed among all assets considered. RESERVE DATA ANALYSIS © o PAGE2-4 » (714).434-8396 The contingency is continually adjusted according to present needs INTERNAL DISPUTE RESOLUTION CIVIL CODE 5900 through 5920 California Civil Code Sections 5900 through 5920 requires community associations and their homeowners to participate in some form of Internal Dispute Resolution (“IDR”) prior to initiating certain types of disputes in superior court. An association shall provide a fair, reasonable, and expeditious procedure for resolving a dispute between an association and a member involving their rights, duties, or liabilities under the Davis-Stirling Common Interest Development Act, the Corporations Code or the association’s governing documents. The IDR process supplements, and does not replace ADR. Statutory dispute resolution procedure. Either party to a dispute within the scope of California Civil Code Sections 5900 through 5920 may invoke the following procedure: A B. G. The party may request the other party to meet and confer in an effort to resolve the dispute. The request shall be made in writing. A member of an association may refuse a request to meet and confer. An association may not refuse a request to meet and confer. The association’s board of directors shall designate a member of the board to meet and confer. The parties shall meet promptly at a mutually convenient time and place, explain their positions to each other, and confer in good faith in an effort to resolve the dispute. A resolution of the dispute agreed to by the parties shall be memorialized in writing and signed by the parties, including the board designee on behalf of the association. An agreement reached under this section binds the parties and is judicially enforceable if both of the following conditions are satisfied: 1. The agreement is not in conflict with the law or the governing documents of the common interest development or association. 2. The agreement is either consistent with the authority granted by the board of directors to its designee or the agreement is ratified by the board of directors. A member of the Association may not be charged a fee to participate in the process. Each homeowner should consult with his or her own attorney regarding appropriate compliance with the ADR and IDR statutes. ALTERNATIVE DISPUTE RESOLUTION CIVIL CODE 5925 through 5965 California Civil Code Sections 5925 through 5965 requires community associations and their homeowners fo offer to participate in some form of Alternative Dispute Resolution (“ADR”) prior to initiating certain types of lawsuits in superior court. ADR means mediation, arbitration, negotiation, conciliation, or other non- judicial procedure that involves a neutral party in the decision making process. ADR may either be binding or non-binding, with the voluntary consent of the parties. This provision does not apply to the filing of cross complaints. An association, owner or member of an association may not file an enforcement action in the superior court unless the parties have endeavored to submit their dispute to ADR. The ADR requirement applies only to an enforcement action that is solely for declaratory, injunctive or writ relief, or for that relief in conjunction with a claim for monetary damages under $5,000.00 or for enforcing the Davis-Stirling Common Interest Development Act, the Corporations Code or association’s governing documents. ADR required gwior to filing an enforcement action, It is not necessary to offer ADR prior to filing any type of small claims action. Except as otherwise provided by law, the ADR requirement does mot apply to an assessment dispute. Service of Request for Resolution. Any party to a dispute may initiate the ADR process by serving on all other parties to the dispute a Request for Resolution, which shall include the following: A. A brief description of the dispute between the parties. B. A request for ADR. C. A notice that the party receiving the Request of Resolution is required to respond within 30 days of receipt or the request will be deemed rejected. D. If the party on whom the request is served is the owner of a separate interest, a copy Civil Code Sections 5925 through 5965. Service of the Request for Resolution shall be by personal delivery, first-class mail, express mail, facsimile transmission, or other means reasonably calculated to provide the party on whom the request is served actual notice of the request. A party on whom a Request for Resolution is served has 30 days following service to accept or reject the request. If a party does not accept the request within that period, the request is deemed rejected by the party. Completion of resolution process within 90 days. If the party on whom a Request for Resolution is served accepts the request, the parties shall complete the ADR within 90 days after the party initiating the request receives the acceptance, unless the period is extended by written stipulation signed by both parties. The cost of ADR shall be borne by the parties. Filing certification of compliance. If a civil suit is filed, the filing party must submit to the court a certificate of compliance indicating the party has complied with the requirements of Sections 5925 through 5965. Failing to do so will be grounds for challenging the lawsuit. Court discretion in awarding fees and costs based upon participation in ADR. In an enforcement action in which fees and costs may be awarded, the court, in determining the amount of the award, may consider whether a party’s refusal to participate in ADR before commencement of the action was reasonable. “Failure of a member of the Association to comply with the alternative dispute resolution requirements of Section 5930 of the Civil Code may result in the loss of your right to sue the association or another member of the association regarding enforcement of the governing documents or the applicable law.” THE TOWNHOMES HOMEOWNERS ASSOCIATION INSURANCE NOTIFICATION - CALIFORNIA CIVIL CODE 5310(a)(7) IMPORTANT ASSOCIATION INSURANCE INFORMATION In order to provide Association insurance coverage and policy information for the mortgage company or to answer questions regarding the Association’s Master Insurance Policies, please contact the insurance agent listed below: Farmers Insurance 2727 Via Cascadita St G, San Clemente, CA 92672 Tel (949)-373-3828 Fax (866)-510-3684 Policy # - 605051895 Truck Ins. Exchange General Liab Coverage 1. Name of Insurer: 2. Policy Limits: 3. Deductible: 4, Inception Date Property Coverage 1. Name of Insurer: 2. Policy Limits: 3. Deductible: 4. Inception Date: D & O Coverage 1. Name of Insurer: 2. Policy Limits: 3. Deductible: 4. Inception Date: Fidelity Bond Coverage: 1. Name of Insurer; 2, Policy Limits: 3, Deductible: 4. Inception Date: Umbrella Coverage 1. Name of jnsurer: $2,000,000 per occurrence $2,500 11/01/2014 Expiration Date: 11/01/2015 Policy # - 605051895 Truck Ins. Exchange $6,123,600 $2,500 per occurrence 11/01/2014 Expiration Date: 11/01/2015 Policy # -605051895 Truck Ins. Exchange $1,000,000 $1,000 « 11/01/2014 Expiration Date: 11/01/2015 Policy # - 605051895 Truck Ins. Exchange $275,000 $2,500 11/01/2014 Expiration Date: 11/01/2015 Policy # - 605051926 Truck Ins. Exchange 2. Policy Limits: $10,000,000 3. Deductible: None 4. Inception Date: 11/01/2014 Expiration Date: 11/01/2015 In accordance with Scction 5310(a)(7) (a) Within 30 to 90 days before the end of its fiscal year, the board shall distribute an annual policy statement that provides the members with information about association policies, The annual policy statement shall include all of the following information: (1) The name and address of the person designaled to receive official communications to the association, pursuant to Section 4035. (2) A statement explaining that 2 member may submit a request to have notices sent to up to two different specified addresses, pursuant to subdivision (b) of Section 4040. (3) The location, if any, designated for posting of a general notice, pursuant to paragraph (3) of subdivision (a) of Section 4045. (4) Notice of a member's option to receive general notices by individual delivery, pursuant to subdivision (b) of Section 4045. (5) Notice of a member's right to receive copies of meeting minutes, pursuant fo subdivision (b) of Section 4950. (6) The statement of assessment collection policies required by Section 5730. (7) A statement describing the association’s policics and practices in enforcing lien rights or other legal remedies for default in the payment of assessments. (8) A statement describing the association’s discipline policy, if any, including any schedule of penalties for violations of the governing documents pursuant to Section 5850, (9) A summary of dispute resolution procedures, . pursuant to Sections 5920 and 5965. (10) A summary of any requirements for association approval of a physical change to property, pursuant to Section 4765, (11) The mailing address for overnight payment ef assessments, pursuant to Section 5655. (12) Any other information that is required by law or the governing documents or that the board determines to be appropriate for inclusion. (b) The annual policy statement shall be made available to the members pursuant to Section 5320. THE TOWNHOMES HOMEOWNERS ASSOCIATION Architectural Review Procedures A) Article V of the CC&R’s requires owners to obtain written approval from the Association prior to making any architectural modifications. Civil Code Section 4765 requires the Association implement the following procedures. B) Any owner who wishes to modify their unit shall submit written requests for any proposed alteration to the Association via the Management Company. The request shall be submitted on the approved architectural request form used by the Association and shall include complete plans, specifications and all applicable contractor information. C) No Alterations shall be made to the interior structural components of the units or exteriors prior to obtaining written approval from the Board of Directors. Responses will be required from the Board of Directors pursuant to the timeframes referenced herein. Unauthorized changes are considered a violation of the Governing Documents and subject to the established fine policy. D) The modifications shall be consistent with applicable building code requirements. If the E) F) modification requires a building permit, the owner is required to obtain the building permit and provide it to the Board of Directors. The Owner shall utilize licensed contractors to complete all modifications. The Board of Directors shall notify the requesting owner of its decision in writing within thirty (30) days of receipt of the completed architectural request form. If the Board of Directors does not provide a response within 30 days, the request will be considered approved unless the Management Company does not receive the application. The Board of Directors can request additional information from owners and deny a request until said information is provided. Upon providing any supplemental information, the Board of Directors shall have thirty (30) days to notify the owner if the request is being approved. The Association shall provide owners with a written decision that includes the reason for denial of a proposed change. All work shall be completed within 90 days of notice of approval. If not completed within this timeframe, the Owner shall resubmit the request with any new changes and paperwork plus all previous paperwork for Board consideration. G) Applicants are entitled to reconsideration by the Board of Directors at an open meeting of the Board to address any decisions made by an architectural committee. Decisions made by the Board of Directors are not entitled to reconsideration. A written request must be received not more than thirty (30) days following the Architectural Review Committee's final decision. Within forty-five (45) days following appeal receipt, the Board of Directors will render a written decision.’ THE TOWNHOMES HOMEOWNERS ASSOCIATION Architectural Review Procedures Architectural Review Procedures continued... H) Owners are entitled to modify their units at their expense to facilitate access for persons who are blind, visually handicapped, deaf, or physically disabled, or to alter conditions that could be hazardous: to these persons. Homeowners are permitted to make alterations to the intediors of their unit that do not impair the structural integrity or mechanical systems or lessen the support of any portions of the structures. Homeowners are also permitted to make modifications outside of their units to provide access to the unit. Prior to making any alterations, owners are required to comply with the following: ’ 1. The modifications shall be consistent with applicable building code requirements. The alteration would require a building permit, the owner is required to obtain the building permit and provide it to the Board of Directors. 2. Modifications shall be done in a way that is consistent with the aesthetics within the community and any safety concerns to other residents. 3. Modifications to the exterior of the buildings will not be permitted if they prevent reasonable passage by other residents or create a safety hazard. Owmers making modifications to the exterior of buildings may be required to remove said alterations when the unit is no longer occupied by persons requiring those modifications who are blind, visually handicapped, deaf, or physically disabled. The Association shall consider all requests for alterations based on the aesthetics within the community, compliance with the governing documents, facilitation of access for handicapped individuals, and taking into consideration the benefit to the community as a whole. The Board of Directors will not make decisions based on the structural integrity adequacy of the proposed alteration. The Board of Directors has the right to require owners submit information from licensed contractors, architects and/or engineers should there be concerns regarding the structural integrity of the modification. THE TOWNHOMES ASSOCIATION Purpose - The Townhomes Homeowners Association Board of Directors believes that homeowners desire a high quality community that contributes to an increase in the value of their property over time. In this way, homeowners can maximize the enjoyment of their property today and in the future. Without strong, consistent enforcement of our Covenants/Bylaws, this appreciation cannot be accomplished. With this goal, the Townhomes Board of Directors has emacted the following Fine Schedule (as allowed for in the Associations CC&R’S). Pre-Fining Procedure - The association and/or its management company will send a noncompliance letter to the homeowner’s last known address, identifying the violation, the date reported, the recommended correction, and given a timeframe to correct the violation (Usually 10 to 30 days). If the violation is not corrected, or the violation occurs again, the association and/or its management company will send a second noncompliance letter, or proceed with the fine procedure outlined below. Fining Procedure - If the homeowner has not resolved the matter within the time frame given, or if circumstances warrant sooner, the Board shail send 2 written “Fine” notice detailing the violation, the assessment of fines and procedures for payment. For each month that the HOA levies a fine against the homeowner, written notice of the violation, the date reported and the current fine shall be sent to the homeowner. Fines - The Board shall assess monetary fines to the Homeowners account each month according to the following schedule: ) First month (30 days) after written request: $25 Second mouth (60 days) after first written request $50* Each subsequent month thereafter. $100 per month* * These fines are in addition to the previous month's fines, For example, the total fines for three months of written notices would be $25 plus S50 plus $100 [or a total of $175. Fines shall be in addition to an assessment equal to any applicable cost of repair. For the purposes of this Fine Schedule, 2 “continuing or repeated violation” shall be one that is assessed to a single lot within a twelve (12) month period. However, should a twelve month geriod pass without any violations, a first notice to correct the violation will be sent by the Association nrior to imposing any fines. Appeal - A homeowner may appeal a formal or informal notice of violation to the HOA by contacting the property manager in writing. Once the Board has assessed a fine(s), the homeowner may, within 30 days, make a written request for reconsideration. The homeowner, at his or her option, may request a hearing before the Board. The Board may reduce or retract the fines, if the Board finds that such fines are not necessary to obtain compliance with the rules and requirements of the HOA. For the purposes of this and other notices from the HOA, if the homeowner does not reside at the subject property, it shall be the homeowner's responsibility to provide, in writing, the property manager or a member of the Board with a proper mailing address. Notices shall be sent by first class mail or equivalent mail service. The HOA shall not be required to send notices certified or registered mail. 27261 Las Ramblas, Suite 100 Mission Viejo, CA 92691 Office: (949) 429-5831 Fax: (949) 429-5933 THE TOWNHOMES ASSOCIATION C/o Amber Property Management 27261 Las Ramblas, Suite 100 Mission Viejo CA 92691 Office: (949) 429-5831 Fax: (949) 429-5933 IMPORTANT NOTICE To: The Townhomes Membership Date: December 17,2015 From: Board of Directors Subject: January 1, 2016 Budget (FYE 12/31/16) In accordance with California Civil Code 5300(b); enclosed is a copy of the approved fiscal year budget effective January 1, 2016 plus various disclosures. After thoughtful review and consideration, the Board of Directors has approved a budget for the fiscal year ending December 31, 2016, which it believes is reasonable and prudent to meet the funding needs of the association. As a result of this review, the Board has determined that the current level of assessments is sufficient to maintain the financial integrity of vour Association and to meet the ongoing maintenance costs: As required by California law, the Board of Directors had a reserve study performed for the major capital components in 2015. The Board contracted with Reserve Data Analysis, California, LLC. to provide the report. The replacement-funding program reflects assumptions about future events based on manufacturer’s specifications, information from subcontractors, construction pricing and scheduling manuals and the reserve company’s experience. These were used to calculate and establish the reserve amounts needed to defray the firture repairs, replacement or additions to the components that the association is obligated to maintain. At the end of the current fiscal year, the association reserves are projected to be funded 10% of the required amount. A summary of the reserve report is enclosed; a copy of the entire report is available from Amber Property Management. Copying and postage fees apply. Special Assessment - The Board of Directors does not, at this time, anticipate the need to levy a special assessment for planned expenditures, however, it reserves the right in accordance with California Civil Code to approve a special assessment for unplanned major expenses, if necessary, in the upcoming fiscal year. Per the Association's Governing Documents, Assessments are due and payable on the first day of the month. The monthly assessment shall become delinquent if not paid on or before the Thirtieth (30").day of the month, A courtesy statement is sent to each Homeowner on a monthly basis, as a reminder of the assessment due. Homeowners are obligated by law to tender payment of the assessment in a timely manner, even if the courtesy statement is lost in the mail. or somehow is never received at the mailing address. The Assessment Collections Policy for your association is enclosed. Also, included, as required by California State Law, is a copy of Civil Code Section 5920, known as the Internal Dispute Resolution and Civil Code Section 5965, known as the Alternative Dispute Resolution. Both of which require that certain types of disputes between Associations and the Membership, provide for an independent forum to resolve the dispute before filing of a lawsuit by any party. Effective January 1, 1996 The California Civil Code was amended to require the Association to prepare and distribute summaries of certain insurance policies carried by the Association. A summary of the Association's Property and General Liability policies are enclosed. ~over~ The Townhomes Budget Cover letier continued... Notice of Board Minutes Access - Members of the Association are hereby advised that in addition to the information required by law, minutes or summary minutes of the meetings of the Board of Directors are available to any member upon written request and with the submission of payment for the cost of distribution. ) Secondary Address Notification Request - Upon receipt of a written request by an owner identifying a secondary address for purposes of collection notices, the association shall send additional copies of any legally required notices to the secondary address provided. The owner's request shall be in writing and shall be mailed to the association in a manner that shall indicate the association has received it. The owner may identify or change a secondary address at any time, provided that, if a secondary address is identified or changed during the collection process, the association shall only be required to send notices to the dicated secondary address from the point the association receives the request. Financial Statement Notice - The Association shall obtain an independent certified audit, which will be prepared in accordance with generally accepted accounting principles by a licensee of the California Board of Accountancy, A copy of the audit shall be distributed to all Owners within 120 days after the close of each fiscal year. SECURITY DISCLAIMER. As much as we would like it to be, the Association can never be free of crime. For example, it is possible for someone to enter the property under false pretenses to commit crimes, for residents to commit crimes against their neighbors, for guests of residents to commit crimes, and for employees to commit crimes. As a result, the Association is not and can never be free of crime and cannot guarantee your safety or security. You should NOT rely on the Association to protect you from loss or harm- -you should provide for your own security by taking common sense precautions such as carrying insurance against loss; keeping your doors locked; refusing to open your door to strangers; installing a peep hole in your front door; asking workmen for identification; installing a security system; locking your car; etc. It is suggested that you keep these reports with all other documents pertaining to your home, as you may be required to show it to any prospective buyer of your property. Respectfully, The Townhomes Association Board of Directors Enclosures (Disclosure Documents Index) Item Description Reference Code 1 Budget Cover Letter, including: o Notice of Board Minutes Access Civ. Code §4950(b) o Secondary Address Notification Request Civ. Code §4040(b) o Review of Financial Statement Notice Civ. Code §5305 2 Pro Forma Operating Budget Civ. Code §5300(b)(1) - 3 Assessment Collection Policy Civ. Code 5310(a), (7) & 5650(a) 4 Notice/Assessments and Foreclosure Civ. Code §5730; 4040(b) 5 Annual Update of Reserve Civ, Code §5300(b) 6 Assessment & Reserve Funding Disclosure Summary Civ. Code §5570 7 Reserve Funding Plan - Civ. Code §5300(b)(3) 8 Internal Dispute Resolution (IDR) Rights Civ. Code §5920 9 Alternative Dispute Resolution (ADR) Rights Civ. Code §5965 10 Insurance Coverage Summary Civ. Code §5300(b)(9) 11 Architectural Changes Notice Civ. Code §4765(c) 12 Monetary Penalties Schedule Civ. Code §5855 The Townhomes Homeowners Association Approved Operating Budget January 1, 2016 - December 31, 2016 Description Monthly Annually INCOME Assessment 41,947.82 1 § 503,373.84 "Collection Fee $ 3 Cards/Transmitters $ - Key Income $ - Interest Reserves , 3 600.00 Late Charges $ 1,680.00 Interest Charges $ 13 EXPENSES Utilities Electricity $ 3,500.00} § 42,000,00 Gas $ 3,500.00 | $ 42,000.00 Waste Removal $ 1,400.00 | $ 16,800.00 Water | § 3,500.00 { § 42,000.00 Buk 00807 Land Maintenance Contract Landscape $ 2,950.00 | $ 35,400.00 Landscape Extras $ 50.00 | $ 600.00 Irrigation Repair $ 375.00 | $ 4,500.00 Landscape Improvements $ 1,000.00 | $ 12,000.00 Tree Maintenance/T rimming $ 600.00 | § 7,200.00 Backflow Inspection $ 15.00 $ 180.00 Water Features $ 995.00 | § 11,940.00 Stream Extras $ 550.00 | $ 6,600.00 Bante: Spa Maintenance Contract Spa 3 150.001 $ 1,800.00 Spa Extras 3 50.00 | § 600.00 Pool Equipment Repairs $ 50.00 | $ 600.00 $ $ Common Area Contract Janitorial 185.00 ¢ $ 2,220.00 Janitorial Supplies 30.00 | $ 360,00 Electrical Supplies 50.00} $ 600.00 Lighting Maintenance/Supplies 650.00 { $ 7,800.00 Boiler Maintenance 915.00] $ 10,980.00 $ 18,000.00 The Townhomes Homeowners Association Approved Operating Budget January 1, 2016 - December 31, 2016 Description Administration Bad Debt $ - § - Audit/Tax Preparation $ 135.007 $ 1,620.00 State Taxes $ 10.00 | 120.00 Licenses - Permits & Fees $ 50.00 | $ 600.00 Insurance $ 5,000.00 | $ 60,000.00 Legal Services $ 150.00 | $ 1,800.00 Management Services $ 1,400.00 | $ 16,800.00 Management Extras $ - 1% = Printing/Mailing $ 500.001 $ 6,000.00 Reserve Study $ 60.00 | $ 720.00 1099 Preparation $ 20.00} $ 240,00 Miscellaneous 3 20.00} $ 240.00 PRS EET Zn] RT SapicEzR 20: GB TOTAL OPERATING EXPENSES ls 29,380.00 | $ 352,560.00 Reserve Allocations rve Al i TOTAL BUDGET $ 42,137.82 | § 505,653.84
