Answers to submitted questions: Governance and Historical
Below are answers to questions that were submitted by residents at the Town Hall meeting.
1) Why isn't there a separate Covenant Hills Representative on the Board of Directors? Isn't this mandatory?
Board of Director elections are open to the general membership and there is no requirement to have Directors from special benefit areas of the community, such as Covenant Hills. Historically, Covenant Hills owners have run for a seat on the Board, many of whom have been elected by the membership and served their respective terms.
2) Why is it that Covenant Hills homeowners are required to fund the road repairs as opposed to all of Ladera?
All expenses within the special benefit area of Covenant Hills must be paid for by Covenant Hills homeowners. This question was covered in the Town Hall presentation. Please reference pages 25-28 of the town hall meeting pesentation for details.
3) Can the needed funds be acquired via home sales in Covenant Hills?
No. Please reference page 30 of the town hall presentation.
4) If the county wants nothing to do with us then can we have them have nothing to do with our taxes?
LARMAC has no jurisdiction or oversight on how the County of Orange spends tax dollars received from Ladera Ranch homeowners.
5) Were assessments initially low due to builder pressure to keep assessments low?
During the initial years of development, Covenant Hills assessments were regulated by the Department of Real Estate (DRE), formerly known as the Bureau of Real Estate (BRE). LARMAC does not have any knowledge as to how this factored into the assessments at that time. Reference: Historical assessment rates for Covenant Hills.
6) Will there be a follow up meeting to approve funding options and will homeowners have a vote?
As shared during the Town Hall Meeting, funding options will likely be determined as part of the budgeting process in Q1 of 2023. Please see page 39 of the town hall presentation.
7) Why does Ladera use a budget cycle that doesn't follow the calendar year?
The June 1 to May 31 fiscal year was established at inception based on the initial home sales/closings. It is not uncommon for HOA's or corporations to operate on a fiscal year that does not align with the calendar.
8) Do Ladera residents who do not live in Covenant Hills have access to Covenant Hills 24/7?
Yes, all Ladera Ranch residents who have an access card have access to Covenant Hills via the vehicle and/or pedestrian gates.
9) Do homeowners get a vote on how and when the HOA is spending our money?
Homeowners do not vote on expenditures. Board members are elected by the membership and carry the responsibility of approving the majority of expenses. There are some instances when homeowners vote on a specific expense, such as a special assessment or a budget increase that exceeds a 20% increase.
10) When the other Special Benefit Areas (SBA) need their roads paved will we in Covenant Hills be assessed?
No. As an example, there is an upcoming street maintenance project occurring in the Front Yard and Driveway SBA, and only the owners within that SBA are required to fund the reserves for that project even though all Ladera residents have access to these streets.
11) Are the bids OPEN for residents to review as well?
No, all third-party contract bids are reviewed in executive session meetings of the Board.
12) When are the next elections for the LARMAC Board of Directors?
November 2023.
13) Will the pavement replacement include all streets throughout Castellina as well?
No. Castellina is a sub-association that is responsible for the maintenance of its private streets.
14) Is there a maximum assessment increase that the Board must adhere to when raising assessments? If so, what is the max amount?
Yes, the maximum increase the Board can approve is 20%.
15) Since the larger Ladera HOA is not responsible for the cost of the CH roads, can the larger HOA help with some other costs, such as pool maintenance, common area plantings or something else which would free up money to help indirectly with these asphalt expenses?
All Covenant Hills homeowners pay assessments to the master association, as all Ladera Ranch homeowners do. The assessments for the master association (currently $219/mo.) fund common area amenities such as, but not limited to, pools, clubhouses, parks, sports fields and sports courts. The assessments for Covenant Hills (currently $397/mo.) do not fund any portion of these listed amenities. Please see page 31 of the town hall presentation for a breakdown of expenses that make up the Covenant Hills assessment.
16) What role and responsibility does the management company have?
The management company, FirstService Residential, is contracted with LARMAC to oversee the day-to-day operations of the community under the supervision of the Board.
