HOAs, CIDs & CC&Rs in California—Palm Springs Law Firm Schlecht, Shevlin & Shoenberger Answers Your Questions
California law brings order to the world of community associations in Palm Springs
What is a CID?
A common interest development (CID) is any development where there are individual ownerships of housing units or properties with a shared right to use common areas and facilities. In California, about two-thirds of CIDs are condominiums and one-third are planned unit developments (some combination of housing, condominiums, and businesses).
How are CIDs formed?
Developers create community associations when the homes or businesses in the community are under construction. The developer controls the community association until the developer has sold enough homes to reduce the developer’s interest to less than 25%. At this point, control of the CID passes to the homeowner’s association (HOA) that is governed by an elected board of directors.
What are CC&Rs?
The developer of the CID also creates the covenants, conditions and restrictions (CC&Rs)—the documents that govern the CID along with the CIDs by-laws. The CC&Rs spell out the duties of the HOA and establish the rules of the CID.
Why form a CID?
Developers like to form CIDs because it allows them to cluster housing and construct more units on an expensive piece of land. Local governments approve denser housing projects if a CID is in place. Residents often like buying in a CID because the CC&Rs provide uniformity in the quality of housing and living style of the neighborhood.
What laws control CIDs, HOA’s & CC&Rs in California?
In 1985, the legislature adopted a comprehensive set of laws known as the Davis-Stirling Common Interest Development Act (the Davis-Stirling Act). The legislature determined the Davis-Stirling Act should apply to all CID’s, even those already in existence at the time of passage. Since 1985, the legislature has continued to refine and improve the Davis-Stirling laws. In 2012 the Act was again modified. These modifications took effect on January 1, 2014 as Civil Code §§4000-6150.
There are other laws that govern CIDs in California: local and state subdivision laws, the California Non-Profit Corporation Law, and the California Corporations Code.
What role do attorneys play in CIDs, HOAs and CC&Rs in California?
The attorneys in the law firm of Schlecht, Shevlin & Shoenberger, a law corporation in Riverside County, CA, play many roles in the formation and operation of CIDs, HOAs and CC&Rs. Essentially, forming a CID is a large real estate transaction. The real estate transaction attorneys at Schlecht, Shevlin & Shoenberger draft the formation documents, the by-laws and the CC&Rs of the CID. They represent the developers who create the CIDs and the HOAs themselves. They engage in real estate litigation to enforce the CC&Rs. Finally, they ensure that the CIDs, HOAs and CC&Rs comply with the governing California laws.
For assistance with your CID, HOA and CC&R questions, contact Schlecht, Shevlin & Shoenberger, a Riverside County law firm with the answers to your CID questions.