Coto de Caza Community Association

11 flags identified. Top findings below. Get the full list.

• High

  CC&R restatement is unsigned and may never have been recorded

  The certification page (p. 42) of the 2019 restatement has blank date and signature lines. If the membership never voted to approve this document or it was never recorded with the Orange County Recorder, then the 1970 original CC&Rs and all subsequent amendments control instead. Acting on an unrecorded draft would be a material error. Buyer’s attorney should pull the operative recorded documents from the County Recorder before removing contingencies.

  Certification page, p. 42 of draft restatement.

• High

  Special assessment authority appears uncapped - Board can levy without member vote

  Section 5.7 authorizes the Board to levy a special assessment whenever regular assessments prove inadequate, with no stated dollar or percentage threshold requiring member approval. California Civil Code Section 5605 imposes a 5% of budget cap on board-only special assessments, but the CC&R document does not reference or incorporate this limit. Buyer’s attorney should confirm the operative assessment authority and compare against Davis-Stirling defaults.

  Draft CC&Rs, Section 5.7, p. 13.

• High

  Broad architectural discretion - "sole discretion" standard; noncompliance remedied at owner's expense

  The Architectural Committee has "sole discretion" to determine whether proposed changes are consistent with project standards (Section 6.4.3). If a nonconforming improvement is built, the Association may remove or correct it and charge all costs back to the owner (Section 6.7). Nearly all exterior changes require prior written approval: buildings, fences, walls, landscaping, irrigation, patio covers, and antennas.

  Draft CC&Rs, Sections 6.3, 6.4.3, 6.7, pp. 22-23.

• High

  Mandatory criminal-conduct tenant rule - any misdemeanor or felony triggers removal obligation

  Section 11.10 prohibits any person from residing in a unit (defined as 5+ consecutive days or 10+ aggregate days per year) if they engage in "criminal activities," defined to include any misdemeanor or felony under the California Penal Code. Owners renting the property are expected to police this and face liability if they do not act. The scope is unusually broad - a single misdemeanor conviction could trigger an obligation to evict - and could create fair-housing complications.

  Draft CC&Rs, Section 11.10, p. 38.

• Medium

  HOA can bring an unlawful detainer action in the owner's name and bill it back

  If a tenant violates the governing documents and the owner does not commence eviction proceedings within 60 days of the Association’s demand, the Association may bring the unlawful detainer action itself in the owner's name and levy all costs as a Reimbursement Assessment against the owner. Investor-buyers carry significant cost exposure.

  Draft CC&Rs, Section 11.8, p. 37.

• "This community has a six-month minimum lease rule and prohibits short-term rentals, hotel-style use, and transient rentals - so if you were thinking about Airbnb income, this property will not support that."
• "The CC&R document I reviewed appears to be an unsigned, undated draft restatement. Before you commit, your attorney should pull the actually recorded CC&Rs from the Orange County Recorder so we know exactly which version is enforceable against you."
• "Almost any exterior change - including landscaping, fences, patio covers, and antenna installations - requires written approval from the Architectural Committee before you start. The committee has broad discretion and can require removal at your expense if work is done without approval."
• "There is a master association plus, depending on which tract you buy in, possibly a separate condominium sub-association with its own dues and rules. We need both sets of governing documents and both budgets before you remove your HOA contingency."

Full brief includes 5 verbatim talking points with page citations.

The reviewed packet contained only the draft 2019 CC&R restatement. Request the following before removing contingencies:

• Confirmation that the 2019 restatement was approved and recorded - with the Orange County Recorder instrument number and recording date; or a copy of the currently operative recorded CC&Rs
• Bylaws and Articles of Incorporation (referenced throughout but not provided)
• Architectural Guidelines and Committee Rules (referenced in Section 6.2 but not provided)
• Operating Rules and Regulations (fine schedule, parking specifics, common-area use rules)
• Current annual operating budget and pro forma summary (§5300)
• Reserve study and reserve funding disclosure (§5570)
• Insurance summary / master policy declarations (§5300(b)(9))
• Pending or anticipated litigation disclosure (§5300(b)(8))
• Most recent 12 months of Board meeting minutes (§4950)
• Sub-association governing documents, budget, and rules if the property is in Via Conejo or Villa Serena
• Apartment Area Rules (Section 12.1.6) if purchasing adjacent to the apartment area
• Current regular assessment dollar amount and any pending special assessments