Note to Potential Buyers
COMMON INTEREST COMMUNITY GENERAL INFORMATION
The Stream House Community is composed of 166 units and is one of four sub communities that make up the 675 unit Villeurbanne Master Community. Stream House and Villeurbanne are known as common-interest communities. These communities include common areas and facilities which are controlled and managed by owners’ associations. Purchase of a unit automatically entitles and obligates you as a member of Stream House and Villeurbanne associations and, in most cases, includes a beneficial interest in the areas and facilities. Since membership in the associations is mandatory, you should be aware of the following information before you purchase:
Your ownership in this development and your rights and remedies as a member of its associations will be controlled by governing instruments which include an Articles of Incorporation, Bylaws, Covenants, Conditions, and Restrictions (CC&R’s), and Rules and Regulations (R&R’s). The provisions of these documents are intended to be, and in most cases are enforceable in a court of law. Study these documents carefully before entering into a contract to purchase a community interest. Please note that the Villeurbanne and Stream House Communities have different sets of governing instruments meant to work in concurrence.
In order to provide funds for operation and maintenance of the common facilities, the association will levy assessments against your unit. If you are delinquent in the payment of assessments, the association may enforce payment through court proceedings or your unit may be liened and sold through the exercise of a power of sale. The anticipated income and expense of the association, including the amount that you may expect to pay through assessments, are outlined in the annual budget of each association. Ask to see a copy of the budget if the real estate agent has not already made it available for your examination. For your convenience, the Stream House Community Association budget and audited financial statements are available www.streamhouseassociation.org.
A homeowner association provides a vehicle for the ownership and use of recreational and other common facilities which were designed to attract you to buy in this community. The association also provides a means to accomplish architectural control and to provide a base for homeowner interaction on a variety of issues. The purchaser of an interest in a common-interest community should contemplate active participation in the affairs of the association. He or she should be willing to serve on the board of directors or on committees created by the board. In short, “they” in a common-interest community is “you”. Unless you serve as a member of the governing board or on a committee appointed by the board, your control of the operation of the common areas and facilities is limited to your vote as a member of the association. There are actions that can be taken by the governing body without a vote of the members of the association which can have a significant impact upon the quality of life for association members.
When contemplating the purchase of a dwelling in a common-interest community, you should consider factors beyond the attractiveness of the dwelling units themselves. Study the governing instruments and give careful thought to whether you will be able to exist happily in an atmosphere of cooperative living where the interests of the group must be taken into account as well as the interests of the individual. Remember that managing a common-interest community is very much like governing a small city…the management can serve you well, but you will have to work for its success.