What exactly is a Homeowners Association and what are CC&Rs?
A Homeowners Association is a non-profit corporation registered with the State of Arizona. To become a corporation, Articles of Incorporation are filed with the State of Arizona. The Articles of Incorporation outline the initial Board of Directors, the Statutory Agent and requirements for amendments and dissolution.
One the Corporation is created, the Board of Directors adopts the Bylaws for the community. The Bylaws further detail the duties and terms of the officers, requirements for amendments, the fiscal tear and meeting and voting requirements.
The main governing document for your community and Association is the Covenants, Conditions and Restrictions (commonly referred to as the CC&Rs). This document expands on the information in the Articles of Incorporation and the Bylaws and outlines minimum standards for the maintenance of the units in the Association. The CC&Rs are recorded with the County and are formally linked to the deed for your units. All owners in the community are legally bound to abide by this document. The CC&Rs are extremely important for you to read and understand.
Why do builders create Homeowners Associations?
Builders create Associations for two reasons; To fund the maintenance of the community's common areas and to enforce the CC&Rs.
The common areas can be anything from landscaped right of ways, to parks with many amenities. When you purchase your home, you automatically become a member of the Association and therefore have a proportional interest in all Association common ares. Most of the assessments you pay will go toward the maintenance of these areas. These costs can include water, landscape maintenance, electrical, taxes and insurance.
If you want to maintain or increase your property value, as well as the aesthetic appeal of the community, you must comply with the CC&Rs. In order to comply with the CC&Rs, you need to understand them. Your Board of Directors strongly recommends you read the entire document.
Download Rio Bonito Ranch CC&Rs Amendments