May 23, 2022 Dear Owners,
On May 16, 2022, the Board of Directors adopted the annual Budget for the fiscal year, beginning July 1 , 2022 and concluding June 30, 2023. As a result, the monthly assessment will increase 5.5%, from $419 to $442/month. The Consumer Price Index, currently hovering around 8%, had the single most impact on decisions related to contracts as well. The attached Budget Summary, is broken into three basic categories: 1) Operations requires almost $405/month in assessment. Wages, Utilities and Landscaping are the big-ticket items impacting the operations expenses. Even with a 5% minimum Cost of Living increase for most of the staff, employee costs make up just over 43% of the operating budget, which sets ORPS in the middle of the 35-50% typically found in the hospitality/ resort industry. Other unsettling variables, which impacted contingency, is the effect of inflation on utilities and the insurance market. Finally, the landscape contract with Vintage, which also faces inflation challenges and minimum wage mandates, was negotiated down to a 5.5% increase from a requested 9%. 2) Reserve Fund contributions go toward a fund specifically set for repair, maintenance, and replacement of major components such as roofs, carpets, roads, pool equipment and the like. The monthly assessment contribution is almost $78, and with interest generates more than $1,150,000 annually. Reserve projects tackled over the off-season will include major road and curb/gutter repairs and replacements, primarily in Phase 1 and 2, as well as replacement furniture at the La Palma pool. Satellites will continue to be improved through the use of Reserve Funds. 3) Capital Fund contributions are for future projects, both smaller in scope and to partially fund longer- term facility improvements. The vast majority of this contribution comes from Resort fees, which will be increased to $20/night and totals more than $203,000 annually. A Dog Park, paid from the Capital Fund, is a major off-season project. If all the expenses were tallied up and divided by the 1,213 lots which make up the community, the monthly assessment would be almost $510. The Resort has significant non-assessment income, such as the daily Resort Fee, Laundry, Bar, and others, which total almost $1,110,000 and offset expenses that would ordinarily have to be borne by assessments. In the additional materials provided behind the Budget are more detailed information on the management of this almost $7.5MM corporation, including how Reserve Funds are calculated. Also find other attachments, many of which are required by California law, dealing with Collection Policies, Dispute Resolution, Insurance, etc. Included is a Request for Annual Notice of Address, Representative and Rental Status form. Key is the Annual Notice of Address form, which is a requirement per California Civil Code, Section 4041. Please note that this form does not mean you cannot receive information via email but is to confirm where you would like things such as ballots for the annual election of directors sent. There are also information sheets regarding things like Lot Maintenance, Payment Information for Assessments, and an "Opt-in" form. To receive notifications and documents electronically, the Association must have the "Opt-in" form signed by the Owner and have it on file. I encourage participation since it significantly curtails printing and postage costs for annual distributions such as this. Just follow the instructions on the form and return it to the front desk in the Administration building or email it to reservations@orps.com. The Resort is quiet right now, due to the off-season, but I look forward to another post-Covid year, which showed how much fun you can have when you’re "home again." Respectfully, Ed Vitrano, General Manager
69411 Ramon Road, Cathedral City, CA 92234 - (p)760-328-3834; (f)760-328-7852; orps.com
2022-2023 ANNUAL BUDGET REPORT
1. Budget Summary See enclosed Budget Summary for your review. The complete Budget may be obtained by a request to evitrano@orps.com. 2. Assessment & Reserve Funding Disclosure Summary See enclosed Assessment and Reserve Funding Disclosure Summary for your review, which includes a: A. Reserve Funding Summary B. Reserve Funding Plan C. Procedures for Calculating Reserves 3. Major Component Repairs The Board of Directors has not deferred or eliminated any repairs or replacements of any major reserve components . Anticipated Special Assessments The Board of Directors does not, at this time, anticipate the need to apply a special assessment during the course of the current fiscal year to repair, replace, or restore any major component or to provide adequate reserves, therefore. However, the Board reserves the right to approve a special assessment for unplanned major expenses in the upcoming year. At the present time, the Board of Directors uses that portion of the monthly assessments allocated to reserves as its mechanisms to fund reserves. 5. Outstanding Loans The Association does not have any outstanding loans. 4.
6.
Insurance Summary See enclosed Insurance Summary for your review.
7.
Charges for Documents provided See enclosed for Charges for Documents provided for your review.
OUTDOOR RESORT - PALM SPRINGS 2022-2023 Budget Summary July 1, 2022 - June 30, 2023 Approved by the Board May 16, 2022
ITEM
ANNUAL
MONTHLY/UNIT
REVENUE
Assessments
6,433,729
442.00
Total Administration Revenue (Including Assesments)
6,740,303
463.06
Total Rental/Reimburesement Revenue
565,269
38.83
Total Lifestyles Revenue
216,000
14.84
Total Golf Revenue
21,760
1.49
TOTAL REVENUE
7,543,332
518.23
EXPENSE
Total Administration Expense
836,277
57.45
Total Resort Services Expense
204,908
14.08
Total Lifestyles Expense
341,399
23.45
Total Golf Expense
93,210
6.40
Total Grounds & Greens Expense
1,542,038
105.94
Total Security Expense
456,821
31.38
Total Mailroom Expense
63,027
4.33
Total Facilities Expense
287,094
19.72
Total Maintenance & Repair Expense
556,650
38.24
Total Vehicle Expense
82,568
5.67
Total Utilities Expense
1,039,299
71.40
Total Insurance Expense
397,842
27.33
Budget Contingency
288,678
19.83
TOTAL OPERATING EXPENSE
6,189,809
425.24
Total Reserve Contribution
1,150,124
79.01
Total Capital Contribution
203,399
13.97
TOTAL GROSS EXPENSE
(7,543,332)
518.23
NON-ASSESSMENT INCOME
1,109,603
(76.23)
ASSESSMENT INCOME
6,433,729
442.00
NET INCOME/LOSS
0
0.00
Assessment and Reserve Funding Disclosure Summary For the Fiscal Year Ending June 30, 2022 (1) The regular assessment per ownership interest is $419 per month, of which approximately $72.57 is allocated to reserves, monthly. (2) No additional regular or special assessments have been scheduled to be imposed or charged, regardless of the purpose, by vote of the board and/or members: (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? Yes X No The information contained within the reserve study includes estimates of replacement value and life expectancies of the components and includes assumptions regarding future events based on information provided by and supplied to the Association’s Board of Directors and/or management. Some assumptions inevitably will not materialize, and unanticipated events and circumstances may occur subsequent to the data of this disclosure summary. Therefore, the actual replacement cost and remaining life may vary from the reserve study and the variation may be significant. Additionally, inflation and other economic events may impact the reserve study, particularly over a thirty (30) year period of time which could impact the accuracy of the reserve study and the funds available to meet the association’s obligation for repair and/or replacement of major components during the next thirty (30) years. Furthermore, the occurrence of vandalism, severe weather conditions, earthquakes, floods or other acts of God cannot be accounted for and are excluded when assessing life expectancy of the components. The reserve study only includes items that the Association has a clear and express responsibility to maintain, pursuant to the Association’s CC&Rs. (4) If the answer to (3) is No , what additional assessments or other contributions to 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 ? Not Applicable (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 5550 of the Civil Code , the estimated amount required in the reserve fund at the end of the current fiscal year is $6,315,245 , as of June 30, 2022, based in whole or in part on the last reserve study or update prepared by SCT RESERVE CONSULTANTS, INC . The projected reserve fund cash balance at the end of the current fiscal year is $4, 2 3 5,542 , resulting in reserves being 67.07 % percent funded at this date. If an alternate, but generally accepted, method of calculation is also used, the required amount is $1,012,516 . (See explanation below). Explanation: Cash Flow Methodology - a method of developing a reserve funding plan where contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve funding plans are tested against the anticipated schedule of reserve expenses until the desired funding goal is achieved.
7) Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5550 of the Civil Code, the estimated amount required in the reserve fund at the end of each of the next five budget years is $ (see “100% Funded” column below) , and the projected reserve fund cash balance in each of those years, taking into account only assessments already approved and other known revenues, is $ (see “Cash Flow Balance with Funding Plan” column below) , leaving the reserve at (see “Percent Funded” column below) percent funding. If the reserve funding plan approved by the association is implemented, the projected reserve fund cash balance in each of those years will be $ (see “Cash Flow Balance with Funding Plan” column below) , leaving the reserve at (see “Percent Funded” column below) percent funding. Reserve Funding Plan Table Fiscal Year: July 01, 2021 - June 30, 2022
End of Year
Revenue
Expenditures Components, Taxes, Deferred Exp
Cash Flow (Balance with Funding Plan) $4 ,235,542 $3,996,565 $4,487,529 $4,471,080 $4,601,017 $4,859,770 $5,064,956 $5,282,743 $5,653,219 $5,703,170 $5,100,827 $4,882,919 $5,802,099 $4,816,568 $5,243,071 $4,806,838 $2,185,409 $3,174,689 $3,965,969 $4,416,148 $4,835,790 $4,959,416 $5,968,276 $6,441,231 $7,069,667 $7,665,090 $8,203,708 $9,598,494 $10,824,288 $11,891,276
Percent Funded (EOY)
Contribution, Interest, Spec Assess
Year
100% Funded
Contribution Unit/Month
Contribution % Change
2022 $6,315,245 2023 $6,219,586 2024 $6,730,948 2025 $6,763,284 2026 $6,927,206 2027 $7,199,832 2028 $7,418,262 2029 $7,647,806 2030 $7,974,344 2031 $8,039,757 2032 $7,633,512 2033 $7,506,213 2034 $8,250,787 2035 $7,621,419 2036 $7,935,868 2037 $7,661,962 2038 $6,101,665 2039 $6,909,692 2040 $7,474,947 2041 $7,782,971 2042 $8,061,272 2043 $8,087,121 2044 $8,851,970 2045 $9,043,857 2046 $9,458,228 2047 $9,782,803 2048 $9,998,304 2049 $10,864,116 2050 $11,417,788 2051 $11,823,678
67.07 % $1,092,848 64.26% $1,133,934 66.67% $1,182,860 66.11% $1,229,013 66.42% $1,278,218 67.50% $1,330,655 68.28% $1,384,656 69.08% $1,440,859 70.89% $1,500,712 70.94% $1,559,849 66.82% $1,615,001 65.05% $1,676,013 70.32% $1,750,595 63.20% $1,810,155 66.07% $1,885,165 62.74% $1,955,425 35.82% $2,007,494 45.95% $2,096,215 53.06% $2,187,806 56.74% $2,279,450 59.99% $2,374,185 61.32% $2,469,751 67.42% $2,577,451 71.22% $2,684,379 74.75% $2,796,698 78.35% $2,913,066 82.05% $3,033,350 88.35% $3,166,428 94.80% $3,303,094 100.57% $3,443,212
$72.57 $75.51 $78.57 $81.75 $85.06 $88.50 $92.09 $95.82 $99.70 $103.74 $107.94 $112.31 $116.86 $121.59 $126.52 $131.64 $136.97 $142.52 $148.29 $154.30 $160.55 $167.05 $173.81 $180.85 $188.18 $195.80 $203.73 $211.98 $220.56 $229.50
$1,012,516 $1,294,701 $691,896 $1,245,462 $1,148,280 $1,071,902 $1,179,469 $1,223,072 $1,130,236 $1,509,897 $2,217,344 $1,893,922 $831,414 $2,795,687 $1,458,661 $2,391,658 $4,628,923 $1,106,935 $1,396,526 $1,829,271 $1,954,542 $2,346,125 $1,568,591 $2,211,424 $2,168,263 $2,317,642 $2,494,731 $1,771,642 $2,077,300 $2,376,223
4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05%
Note: 1) T he financial representations set forth in this summary are based on the best estimates of the preparer at that time. The estimates are subject to change. At the time this summary was prepared, the assumed long-term before-tax interest rate earned on reserve funds was 1.00% per year, and the assumed long-term inflation rate to be applied to major component repair and replacement costs was 3.00% per year. 2) "Percent Funded" is as of the end of the 202 1 -2 2 Fiscal Year. I t incorporates an anticipated expense of $595,915 for roadwork , which has been authorized under contract . However, t he work is expected to protect the roads from such future expenses, therefore the stated Board goal of a 70% funded Reserve can be r ealized in subsequent years.
CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*
Property Address
69-411 RAMON ROAD LOT____,CATHEDRAL CITY, CA. 92234 _________________________________________________________
Owner of Property
_____________
Owner's Mailing Address
_____________________________________
(If know or different from property address.) Provider of the Section 4525 Items: __________________________________________________OUTDOOR RESORT PSOA
Date ________
Print Name
Position or Title
Association or Agent
Date Form Completed
Check or Complete Applicable Column or Columns Below
Not Available (N/A) Mark for
Document
Civil Code Section
Included
or Not Applicable
Purchase
Articles of Incorporation or statement that not incorporated
Section 4525(a)(1)
10.00
________
CC&Rs
Section 4525(a)(1)
40.00
_________
Bylaws
Section 4525(a)(1)
20.00
_________
Operating Rules
Section 4525(a)(1)
10.00
_________
Age restrictions, if any
Section 4525(a)(2)
X
Pro forma operating budget or summary, including reserve study
Sections 5300 and 4525 (a)(3)
10.00
_________
Assessment and reserve funding
Sections 5300 and 4525(a)(4)
10.00
_________
disclosure summary
Financial statement review
Sections 5305 and 4525(a)(3)
10.00
_________
Assessment enforcement policy
Sections 5310 and 4525(a)(4)
10.00
_________
Insurance summary
Sections 5300 and 4525(a)(3)
10.00
_________
Regular assessment
Section 4525(a)(4)
10.00
_________
Special assessment
Section 4525(a)(4)
X
Emergency assessment
Section 4525(a)(4)
X
Other unpaid obligations of seller
Sections 5675 and 4525 (a)(4)
X
Approved changes to assessments
Sections 5300 and 4525(a)(4), (8)
X
Settlement notice regarding common Sections 4525(a)(6), (7) , 6000, & 6100
X
Area defects
Preliminary list of defects
Sections 4525(a)(6), 6000, and 6100
X
Notice of violation
Sections 5855 and 4525(a)(5)
X
Required statement of fees
Section 4525
X
Minutes of regular meetings of the board of directors conducted over the previous 12 months, if
Section 4525(a)(10)
60.00
_________
(5.00 each)
requested
Total fees for these documents: * The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 may be charged separately. A seller may request to purchase some or all of these documents but shall not be required to purchase ALL of the documents listed on this form. $ 200.00
Annual Policy Statement
1.
Designated Recipient Any document required to be delivered to the Association pursuant to the Davis-Stirling Common Interest Development Act and/or any other official document shall be addressed to:
Outdoor Resort Palm Springs Owners Association Attn: Edwin J. Vitrano, General Manager 69411 Ramon Road Cathedral City, CA 92234
2.
Right to Notice to Two Addresses A member may submit a request to have notices sent to up to two (2) different specified addresses, pursuant to the Davis-Stirling Common Interest Development Act of the California Civil Code Section 4040 General Notices to Members The Civil Code also requires that the membership be notified of the designated area for the posting of general notices. General notices (including meeting notices and agendas) are posted on the bulletin board adjacent to the Board office in the La Palma Clubhouse. All owners have the option to receive general notices by individual delivery upon written notification, provided that the request is made in writing and mailed to the Association in a manner that indicates the Association has received it.
3.
4. Right to Individual Delivery . A member has the option to receive General Notices by individual delivery upon written request to the Association in accordance with the Davis- Stirling Common Interest Development Act of the California Civil Code
5.
Right to Minutes The minutes proposed for adoption that are marked to indicate draft status, or a summary of the minutes, of any meeting of the Board of Directors, other than an Executive Session, shall be available to members within 30 days of the meeting. Thereafter, minutes may be obtained in the Association administration office upon payment of the Association’s costs for providing such copies.
6.
Collection Policy See enclosed Collection Policy for your review.
7.
Lien Policy The Lien policy can be found by referencing the Collection policy.
8.
Rules Enforcement Policy See enclosed Rules Enforcement Policy for your review.
9.
Dispute Resolution Procedures See enclosed Internal Dispute Resolution and Alternative Dispute Resolution procedures for your review.
10.
Architectural See enclosed Architectural & Aesthetics Requirements for your review.
11.
Overnight payments Overnight payment of assessments may be sent / delivered to the following address: OUTDOOR RESORTS PALM SPRINGS OWNERS ASSOCIATION HOA Accounting Office 69-411 Ramon Rd. Cathedral City, CA 92234-3376
SECTION 16 – RULES & REGULATIONS
ENFORCEMENT PROCEDURES The Association and/or any owner has the right generally to enforce the Association’s Governing Documents. This right includes requesting the violator to cease the offending action, taking legal action against the violator, and/or making a complaint to the Board of Directors. If a resident gives the Board of Directors, a written complaint alleging that a rule has been violated, the Board will investigate the allegation and may take action against the offending resident, including but not limited to fining or special assessing, if appropriate, suspending privileges, or instituting legal actions. However, nothing in this document obligates or requires the Board of Directors or authorized committee to take any action against an individual resident. The Board of Directors, in making this decision, will determine the costs and benefits of taking such action. 16.A ENFORCEMENT PROCEDURES Upon notification of an alleged violation of the Association’s Governing Documents by an Owner/Resident, a Board member, A&A Committee member, Association’s Compliance Officer, access control personnel, or another designated representative of the Association, the General Manager will investigate and upon verification of the violation, will take the following steps: 1. Violations of the Association’s Architecture and Aesthetics (A&A) Rules (architectural and landscape violations): a. Provide Homeowner a courtesy warning by personal contact, telephone or email specifying the violation of the Governing Documents and requesting the Homeowner cure the violation within ten (10) days of contact. If the Association is unable to make contact as specified, the Homeowner will be sent a Courtesy Warning Notice by first class mail. b. If the violation is not cured by date indicated following notification as provided in A.1.a above, or if there was a re-occurrence of the violation for which the courtesy notice was sent, the Association will issue a Violation Notice by personal delivery or first-class mail, requesting the owner cure the violation within ten days of the date of the Violation Notice. c. If a Violation Notice is sent and the violation is remedied by the date specified, a Hearing Notice is sent to the Homeowner in accordance with Section 16.B, Homeowner Hearing Procedure and Due Process Rights. d. Steps A.1 and A.2 may be skipped, and a Hearing Notice sent if the seriousness of the situation requires immediate action, or if it is a re-occurring violation. 2. Non-Architectural Violations and Violations of the Association’s Rules and Regulations. a. Upon verification, the Homeowner will be scheduled for a hearing before the Board of Directors pursuant to Section 16.B, Homeowner Hearing Procedure and Due Process Rights. b. Initiation of a Citation by the Association’s Security staff is considered verification that a violation has occurred. It is the discretion of the officer whether a citation is to be written. In many cases a warning is sufficient, such as if the violation is immediately corrected without protest by the violator and there is no knowledge of a recurring problem. If a citation is issued by Security staff for a violation of the Rules & Regulations and a fine assessed as authorized under Section 16.C.2, the Homeowner may either: i. Pay the fine indicated on the citation within 15 days of the citation date. If a person chooses
this option, they must print, date, and sign their name in the space provided on the reserve side of the citation and return the citation to Accounting, Outdoor Resort Palm Springs, 69411 Ramon Road, Cathedral City, CA 92234, or ii. Contest the violation. If an Owner/Resident fails to remit payment within 15 days of the citation date and/or chooses to contest the citation, the Owner/Resident will be scheduled for a hearing before the Board of Directors, pursuant to Section 16.B, Homeowner Hearing Procedure and Due Process Rights. Any person who contests the citation and is determined to be in violation of the Association’s Governing Documents could face the imposition of administrative expenses, further disciplinary action such as suspension of privileges or use of the recreational amenities, in addition to imposition of a fine as authorized under Section 16.C.2. 16.B HOMEOWNER HEARING PROCEDURE AND DUE PROCESS RIGHTS Prior to the imposition of any fine, special assessment, or suspension of rights or privileges, a hearing will be held before the Board of Directors pursuant to the following Homeowner Hearing Procedures and Remedies: 1. Homeowner Hearing Notice: Homeowner will provide a written notice by certified mail at least ten (10) days prior to the meeting at which disciplinary action may be considered or proposed. The Notice will contain the following: a. The date, time and place of the hearing. b. The nature of the alleged violation for which a member may be disciplined or the nature of the damage to the common area and facilities for which a monetary charge may be imposed, and c. A statement that the member has the right to attend the hearing either in person or by the teleconference and present evidence in his/her defense in writing, rather than make an appearance at the hearing. 2. Homeowner Hearing Procedures Homeowner hearings will be held in accordance with the following procedure: a. Review of all documentation submitted by the Association staff. b. Statement of Violation by acting chairperson. c. Review requirements of Association’s Governing Documents. d. Statement by Homeowner. e. Statement by any third-party witnesses. f. Discussion and questioning of the Homeowner by the Association. g. Questions (if any) and final statement by the Homeowner. h. Hearing ends. Homeowner is excused. i. Board deliberates. 3. Penalties If it is determined a violation has taken place, the Board of Directors may take any or all of the following actions: a. Imposition of Fines/Monetary Penalties. b. Imposition of Reimbursement Assessments for damage to the Common Area or to reimburse the Association for costs incurred to bring an Owner or his/her family members, guests, tenants, invitees, and occupants into compliance with the Governing Documents. c. Suspension of Rights: The Association may suspend voting rights and the right to use the Common Facilities and may disconnect bulk cable services for up to thirty (30) days due to violation of the Governing Documents by an Owner, or his/her family members, guests, tenants, invitees, and occupants. In addition, the Association may suspend the voting rights and right to use the Common Facilities and disconnect bulk cable services for any period during which any Assessments remain unpaid.
4. Ruling Notice Within fifteen (15) days after the date that disciplinary action is taken, the Homeowner shall be given a Ruling Notice containing the following: a. The Board’s findings as it relates to the violation of the Governing Documents with facts. If no violation is found, then no remedy is required, and the Association would then issue a Ruling Notice affirming no violation. b. The penalties imposed, if any, against the Homeowner; and c. If a fine/monetary penalty or assessment is imposed against the Homeowner, a statement that such fine or assessment must be paid within thirty (30) days after the Ruling Notice. Failure to pay as required may result in the imposition of additional penalties after notice and hearing, as set forth in these Enforcement Procedures or the Association’s Collection Policy. 16.C ENFORCEMENT GUIDELINES Generally, though not necessarily, the Association will adhere to the following schedule for violations of the Association’s A&A Rules: 1. First Offense: a. Warning Letter and Request to Correct Violation (if applicable); and/or b. Possible fine not to exceed $250.00; and/or a. Possible fine not to $500.00; and/or b. Reimbursement Assessment; and/or c. Suspension of rights and privileges; and/or d. Institute Alternative Dispute Resolution and/or Internal Dispute Resolution; and/or filing of lawsuit. 3. Third Offense a. Possible fine not to exceed $1,000.00; and/or b. Reimbursement Assessment; and/or c. Suspension of rights and privileges; and/or d. Institute Alternative Dispute Resolution and/or Internal Dispute Resolution; and/or filing of lawsuit. Depending on the severity and frequency of the violation and/or violator, the choice of enforcement procedure(s) and/or the enforcement remedy utilized may vary. Fines will usually fall within the above- referenced enforcement guidelines. However, in extreme cases, the fines imposed may be substantially higher. The Association reserves the right to institute any of the above-referenced enforcement measures regardless of whether it is first offense, second offense, etc. Violation of certain provisions of the Association’s Rules and Regulations regarding Motor Vehicles Operation& Safety, Parking, and Pets will be fined according to the following schedule, for the first violation. All other violations will be subject to hearing and guidelines set forth in Section 16.C.1 above. Motor Vehicles Operation & Safety ( including Golf Carts and Motorcycles) Speeding: Up to 5 mph over limit: 25.00 6 to 14 mph over limit: 50.00 15 plus mph over limit: 150.00 Failure to stop at posted stop sign: 50.00 Reckless or erratic driving: Hearing – see remedies in C.1 above. c. Reimbursement Assessment; and/or d. Suspension of rights and privileges. 2. Second Offense:
Driving without a valid driver’s license:
50.00 25.00 25.00 50.00
Driving a golf cart without a functioning headlight/taillight:
Parking Violation: Pet Violation:
SECTION 17 – RULES & REGULATIONS
ADMINISTRATION AND ENFORCEMENT In accordance with Article 15 of the Association’s CC&Rs, it is the obligation of each owner, lessee, licensee, guest, resident, and occupant to comply with the provisions of the Association’s Governing Documents, including these Rules & Regulations. Failure to comply with any of these rules shall be grounds for enforcement action by the Association, as set forth in the Association’s Enforcement Policy. Enforcement of these rules will be administered by the General Manager, his/her designee and/or Security staff.
Collection Policy for Delinquent Assessments
1.
Due Dates All Regular Assessments shall be due and payable, in advance, in equal monthly installments, on the first day of each month. Special and Special Individual Assessments shall be due and payable on the due date specified by the Board in the notice imposing the assessment or in the ballot presenting the special assessment to the members for approval. In no event shall a Special and/or Special Individual Assessment be due and payable earlier than thirty (30) days after it is imposed. Payment receipts/ Overnight Payment location Owners can request a receipt from the Association which shall indicate the date of payment and the person who received it. Any request for a receipt of payment must be submitted directly to the Association's business address (separately from any actual payment). Overnight payment of assessments may be sent/delivered to the following address:
2.
OUTDOOR RESORTS PALM SPRINGS OWNERS ASSOCIATION HOA Accounting Office 69-411 Ramon Rd. Cathedral City, CA 92234-3376
3.
Application Payments received on delinquent assessments shall be applied to the Owner's account as follows: payment shall be applied to the principal owed first. Payments on principal shall be applied to the Owner's account by the "balance forward payment" method, i.e., in reverse order so that the oldest arrearages of the principal are retired first. Only after the principal owed is paid in full shall such payments be applied to interest, late charges, collection expenses, administration fees, attorneys' fees, or any other amount due to the Association which result in continued delinquencies. Late Charge All assessments shall be delinquent if not paid within 15 days after they become due and will result in the imposition of a late charge of ten percent (10%) of the delinquent assessment or ten dollars ($10.00), whichever is greater. Furthermore, the Association shall be entitled to recover any reasonable collections costs, including attorneys' fees, that the Association then incurs in its efforts to collect the delinquent sums.
4.
5.
Interest If an assessment payment is not paid within thirty (30) days of its original due date, interest may be imposed on all sums due, including the delinquent assessment, collection costs, and late charges, at an annual percentage rate of twelve percent (12%).
6. Secondary Address Upon receipt of a written request by an Owner identifying a secondary address for the purposes of assessment collection notices, the Association shall send additional copies of any collection notices required by this Collection Policy to the secondary address provided. The Owner’s notice of a secondary address must be in writing and mailed to the Association in a manner that shall indicate that the Association has received it. The Association shall only send notices to the indicated secondary address at the point in time the Association receives the written request. 7. Pay or Lien Letter If an assessment payment from the Owner is not paid within forty-five (45) days after its original due date (for example, if an Owner fails to pay an assessment which was due on June 1 and the failure to pay continues through July 15, then the June assessment would not have been paid within 45 days after its original due date), a notice of delinquency (Pay or Lien Letter) shall be sent to the Owner by regular first-class mail and certified mail, return receipt requested. The Pay or Lien Letter shall provide at least 30 days' written notice to a delinquent Owner prior to recording an Assessment Lien and further provide an itemized statement of the charges owed, including a breakdown of: (a) the principal amount owed (b) any late charges with the method of calculation used to determine such charges (c) any attorneys' fees incurred; and (d) a description of collection practices, including the right of the association to the reasonable costs of collection. A copy of the Association's collection policy shall be attached to the Pay or Lien Letter.
8.
Internal Dispute Resolution Process The Association shall offer to meet and confer with a delinquent owner to resolve any dispute related to the total amount due from the delinquent Owner to the Association and/or the Association’s Collection Policy (“Meet and Confer Offer”). The Association’s Meet and Confer Offer shall either be placed within the Association’s Pay or Lien Letter or in a separate written communication to the delinquent Owner. An Owner who wishes to accept the Meet and Confer Offer must do so by submitting his/her/its written request to facilitate the meet and confer with the Association, which written request must be received by the Association within twenty (20) days of the date of the Meet and Confer Offer. The Association shall designate a prompt date and time for the meet and confer, at a location that shall either be the Association’s principal office, or another convenient location as designated by the Association. The Association shall designate a Board officer, along with its CID Manager to participate in the meet and confer with the
delinquent Owner. Prior to recording a lien for delinquent assessments, the Association shall participate in any meet and confer so accepted by the delinquent Owner, provided, however, that the Owner’s acceptance of the Association’s Meet and Confer Offer is made within twenty (20) days of the date of the Meet and Confer Offer. Show Cause Hearing Additionally, a delinquent Owner may be given a written notice (either in the Pay or Lien Letter or in a separate written document, as determined by the Board of Directors) of a hearing before the Board of Directors, wherein the Owner shall be invited to show good cause why (a) the Owner's voting privileges;(b) the operation of the cable television service to the Owner's Lot; and/or (c) the Owner's privileges for use of the common area/recreational facilities (hereinafter collectively "Membership Privileges") should not be suspended for non-payment of the delinquent assessment(s) ("Show Cause Hearing").
9.
The notice and hearing procedures shall be in accordance with the following:
a. Written notice shall be mailed to the Owner not less than ten (10) days prior to the date of such hearing by first class or certified mail at Owner's last known address as shown on the Association's records. The notice shall set forth the amount of delinquency owed by the Owner and the time, date, and place on which the hearing shall be held. b. The Board of Directors shall provide an opportunity for the Owner to be heard, orally or in writing, at the Show Cause Hearing prior to making any determination on the suspension of any Membership Privileges. c. In the event good cause is not shown and the Owner's account has not been brought current, then the Board may suspend any of the Owner's Membership Privileges. Cable television services shall be reinstated upon the Owner's account being brought current and upon payment to the Association of a reinstatement assessment in an amount equal to what the Association is charged by the cable company to facilitate reinstatement of cable service. The Board shall hold the hearing in Executive Session; provided, however, if the Board is requested by a Member to have his/her matter be heard in an open Board meeting, then the matter must be heard in an open Board meeting, and not in Executive Session. d. After the Show Cause Hearing, the Board of Directors shall provide within fifteen (15) days written notice to the Owner of the suspension of any Membership Privileges. Assessment Lien a. If the delinquent Owner does not bring his/her account current within the deadline set forth in the Pay or Lien Letter, the Board of Directors shall approve the recordation of an assessment lien against the delinquent Owner’s property. The Board’s decision to record the assessment lien shall be by a majority vote of a quorum of the Board members at an open
10.
Board meeting. The Board’s action should refer to the Lot/parcel number of the property that is delinquent, rather than the name of the owner. The Assessment Lien shall be recorded in the County Recorder's Office itemizing all sums that are then delinquent, including the delinquent assessment(s), then current monthly assessment amount which will also accrue and be a part of the lien, interest, late charges, collection costs and reasonable attorneys' fees. Recording this notice creates a lien, which is subject to foreclosure, against the delinquent Owner's property. b. At the same time, the Association shall advise the Association's collection agent/bank that it should accept no further monies from this delinquent Owner until the assessment lien has been paid in full. Owners shall not send any assessment payments to the Association once the matter has been turned over to the Attorney for collection; such payments shall only be accepted by the law firm. Any payments delivered to the collection agent shall be forwarded to the attorney's office; the attorney shall then release the lien if payment in full was made by the delinquent Owner. A charge of up to $425.00 for attorneys' fees shall be charged to the Owner at this stage (pursuant to Civil Code §1366.3(a) 5650(a)). Pre – Foreclosure Actions a. No earlier than thirty (30) days after the Notice of Assessment lien has been recorded, the Association shall make a written pre-foreclosure offer to meet and confer with the delinquent Owner, consistent with the process identified in paragraph 8 herein (except that the timeline for the delinquent Owner to accept a meet and confer would be thirty-five (35) days from the date of the Owner’s receipt of this pre-foreclosure offer) or alternative dispute resolution consistent with Civil Code §1369.50 5925, et. seq. (“IDR/ADR Offer”). Owner shall have thirty-five (35) days from the date of the IDR/ADR Offer to decide whether or not Owner wishes to pursue dispute resolution or a particular type of alternative dispute resolution (except that binding arbitration is not available to any delinquent Owner if the Association intends to initiate a judicial foreclosure). b. Prior to initiating foreclosure, the Board of Directors must, in executive session, approve the decision to proceed with foreclosure by a majority vote of a quorum of the Board of Directors. The Board shall record the Board’s executive session decision in the minutes of the next meeting of the Board open to the members by referencing the lot/parcel number of the property that is delinquent. c. The Board of Directors shall not proceed with any form of foreclosure unless and until the amount of delinquent assessments (exclusive of any accelerated assessments, late charges, fees, costs of collection, attorney’s fees or interest) equals or exceeds One Thousand Eight Hundred Dollars ($1,800.00) or the assessments have been delinquent for more than twelve (12) months (“Threshold”). Once the Threshold has been met and all other requirements
11.
identified above have been completed, the Board may proceed with foreclosure of the assessment lien pursuant to the Association's governing documents and Civil Code §1367 5700. The procedure used shall be a private foreclosure, pursuant to Civil Code § 2924, et seq. and Civil Code §1367 5700. The foreclosure action shall include: • A Notice of Default and Election to Sell shall be recorded at the County Recorder's Office and a ninety-day reinstatement period shall begin. • A Title Report shall be obtained from a title company at a cost of approximately $350.00 and this shall also be charged to the delinquent Owner.
• Furthermore, an additional $300.00 attorneys' fees and costs shall be charged at this stage.
12. If the Association determines that the property is over-encumbered, or otherwise makes a determination that a lawsuit is appropriate, the Association shall file a personal lawsuit against the delinquent Owner to recover all delinquent assessments owing to the Association. If a lawsuit is necessary to collect the delinquent assessments from the Owner, all expenses, costs and attorneys' fees in connection with said lawsuit, including but not limited to pre- and post- judgment costs for filing fees, personal service, witness fees, interest, execution of judgment and/or writ fees shall be recovered from the Owner defendant. 13. If the delinquency is still not cured ninety (90) days after the Notice of Default and Election to Sell was recorded, the attorney shall proceed to record and publish the Notice of Trustee's Sale. This Notice must also be published three (3) times during a three-week period and posted in a public place. At this final stage, there shall be additional publication costs, as well as attorneys' fees of $125.00. If a non-judicial foreclosure sale is completed by the Association against the delinquent Owner’s property, the Owner shall have the right to redeem the property for a period of time up to and including ninety (90) days after the date of the Trustee’s Sale. 14. When a delinquent Owner has paid in full all delinquent assessments and charges, the attorney shall prepare a Release of Lien which shall be recorded in the County Recorder's Office of Riverside County, California within 21 days of receipt of the sums necessary to satisfy the delinquent amount and mail a copy of the lien release to the Owner of the residential lot. 15. PAYMENT PLAN STANDARDS The Association hereby establishes the following payment plan standards: a. Payment Within 60 Days : If an Owner can bring himself/herself/itself current withinsixty(60) days, inclusive of assessments which accrue within the sixty (60) days of the payment plan, the Association will forbear filing an Assessment Lien and the Owner will not incur the Assessment Lien costs if the payment plan is strictly followed. The payment plan shall include an administrative cost of $75.00. By agreeing to the 60 day payment plan, the Owner further agrees that if he/she/it fails to make any of the
payments identified in the payment plan, the Association shall have the right to file an Assessment Lien without recommencing the pre-lien or Pay or Lien Notice process. b. Payment Exceeding 60 Days : In light of the length of time of this payment plan, payment plans exceeding sixty (60) days shall require that the Association record its Assessment Lien to establish itself as a secured creditor. The payment plan shall also include an administrative cost of $100 or $25.00 per month of each month of the plan, whichever is greater. All costs related to the recordation of the Assessment Lien shall be part of this payment plan. The payment plan would require payment of all delinquent assessments amortized over the length of the payment plan, along with all assessments which will accrue during the payment plan. The Association shall further require that the Owner sign a Forbearance Agreement which identifies his/her/its obligations of repayment consistent with the payment plan and further provides that if there is a default under the payment plan, the Association can proceed with the collection process as particularly identified within the Forbearance Agreement. Payment plans under this paragraph 15.b should normally not exceed six (6) months.
16.
Request for Payment Plan An Owner may submit a written request to the Associationfor a payment plan consistent with either paragraph 15.a or 15.b above. An Owner can also submit a written request to meet with the Board to identify which payment plan the Owner chooses, as identified in paragraph 15 above. The Board is required to meet with the Owner in executive session within 45 days of the postmark of the request for the meeting, if the request is mailed within fifteen days of the date of the postmark of the Pay or Lien Notice. If there is no regularly scheduled board meeting within the 45-day timeline, the Board has designated the Assessment Dispute Resolution Committee to meet with the Owner. Partial Payments Owners may make partial payments without a written payment plan as described in paragraph 15 above; provided, however, that any such partial payment shall: a. not stop any collection action. b. not invalidate any assessment lien alreadyfiled. c. not stop an already existing non-judicial foreclosure action d. not obviate the obligation to pay all collection fees and costs inclusive of late charges, interest, management fees/bookkeeping fees, title charges, lien fees and costs, trustee’s fees and / or attorney’s fees; and e. further require (due to the additional bookkeeping and other administrative expenses incurred with a partial payment) that any Owner who submits a partial payment (without an approved payment plan as described in paragraph 15 above) will incur an administrative expense of $45.00 for each partial payment tendered and received by, or on behalf of, the Association.
17.
If this document contains any restriction based on race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, genetic information, national origin, source of income as defined in subdivision (p) of section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to section 12956.2 of the Government code. Lawful restrictions under State and Federal Law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.
Summary of Dispute Resolution Procedure
Per California Civil Code 5915 1. Either party to a dispute within the scope of this article may invoke the following procedure: a. The party may request the other party to meet and confer in an effort to resolve the dispute. The request shall be in writing. b. A member of an association may refuse a request to meet and confer. The association shall not refuse a request to meet and confer. c. The board shall designate a director to meet and confer. d. 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. The parties may be assisted by an attorney or another person at their own cost when conferring. e. 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 ofthe association. 2. A written agreement reached under this section binds the parties and is judicially enforceable if it is signed by both parties and both of the following conditions aresatisfied: a. The agreement is not in conflict with law or the governing documents of the common interest development or association. b. The agreement is either consistent with the authority granted by the board to its designee or the agreement is ratified by the board. c. A member shall not be charged a fee to participate in the process. Per California Civil Code 5925 1. “Alternative dispute resolution” means mediation, arbitration, conciliation, or other nonjudicial procedure that involves a neutral party in the decision-making process. The form of alternative dispute resolution chosen pursuant to this article may be bindingor nonbinding, with the voluntary consent of the parties. 2. “Enforcement action” means a civil action or proceeding, other than a cross-complaint, for any of the following purposes: 3. Enforcement of this act. 4. Enforcement of the Nonprofit Mutual Benefit Corporation Law (Part 3 (commencing with Section 7110 of Division 2 of Title 1 of the Corporations Code) 5. Enforcement of the governing documents. Per California Civil Code 5930 1. An association or a member may not file an enforcement action in the superior court unless the parties have endeavored to submit their dispute to alternative dispute resolution pursuant to this article.
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