Legal Question in Real Estate Law in California
Hoa reserves
To continue
the golf course is owned by all eleven associations without the golf course we are just another retirement comm.We are afraid the water co willforce us to start conservingwater.We have been informedwe could save $15000 to $ 20000 a year in water costs because our system is so antiquated
the savings would rplenish the reserves
--
1 Answer from Attorneys
Re: Hoa reserves
Thank you for posting some additional information. In follow-up to my prior response, the answer changes dramatically given that the HOAs own the golf course. As such, each of the HOAs should already have either reserve allocations for the course, or alternatively, they fund a portion of the monthly assessments collected to the golf course for its maintenance and maintaining its own reserves.
In this case, a loan between the various entities might be appropriate. I would suggest as the prior attorney did that you consult with an attorney - technically to avoid conflicts, each association should have independent counsel to review the proposed transaction and advise. Given the dollars involved, it would be extremely wise to get an attorney's opinion as to the propriety of the transaction, and to structure it properly. Good luck.
*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.