Master Planned Communities - Master Associations
"Master Planned Communities" are large real estate developments that generally include homes, commercial, retail and recreational facilities. The California Department of Real Estate (DRE) defines them as developments consisting of 500 or more separate residential interests managed by a community association.
Generally within master associations, are smaller sub-associations with their own governing documents and architectural styles. Members pay assessments to the master association and to their sub-association. Sub associations can be established as stand alone associations with their own CC&Rs or as areas within a master association that receives and pays for special benefits.
Master associations generally maintain roads, parks, and recreational amenities that are common to all members. Sub-associations generally maintain the buildings and amenities within their own area. Large master associations often provide for "delegates". Delegates are neighborhood representatives who vote on behalf of the members they represent.
Planned Developments
A planned development (PD) is a type of common-interest development defined by the Davis-Stirling Act. Some governing documents use the term "planned unit development" (PUD) which is the term used by the California Department of Real Estate. They both mean the same thing. The Davis-Stirling Act defines "Planned development" as a real property development, having either or both of the following features: (1) Common area that is owned either by an association or in common by the owners of the separate interests who possess appurtenant rights to the beneficial use and enjoyment of the common area, and (2) Common area and an association that maintains the common area with the power to levy assessments that may become a lien upon the separate interests. Unless the CC&Rs otherwise provide, the common area is owned by the owners as tenants in common, in equal shares. In a planned development, members own a lot (described on act map) and some or all of the improvements on the lot. Common areas will often include private streets, greenbelts, gates, and perimeter fencing.
De Miniums PD or PUD
A de minimums PD or PUD is a planned development where the common areas, including private streets, green belts, parks, clubhouses, and recreational facilities have such a small impact on the property's value that they are considered negligible, generally influencing the overall value by less than 2%. De minimums is a Latin phrase meaning "of minimal importance".
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