Condominiums & Planned Communities

Condo or PUD?

Condo or PUD?

Why does it matter?

• Financing
• Disclosures
• Assessments
• Lending
• Statutory Authority

Condominiums

Evolution of Condominiums

Statutory Framework

Ownership Interests

Units

Condominium Plat

Common Elements

Untitled Slide

Location of GCE

Formation of Condominiums

Governing Documents

• Disclosure Statement
• Declaration / CC&Rs
• Bylaws
• Articles of Incorporation
• Rules & Regulations

Declaration

• Description of Property
• Unit Boundaries
• Voting Allocations
• Easements
• Assessment Authority & Allocations

Legal Description

Ownership Allocations

Bylaws

• Operating Guidelines
• Number of Directors
• Member & Board Meeting Requirements
• Quorum Minimum
• Use Restrictions

Government Approvals

Planned Communities

Statutory Framework

• ORS Chapter 94
• Any subdivision with collective responsibilities

Untitled Slide

PUD Plat

Governing Documents

• Declaration / CC&Rs
• Bylaws
• Articles of Incorporation
• Rules & Regulations

Common Restrictions

• Nuisance
• Residential Use
• Rental / Leasing
• Parking
• Architectural

Lien Priority

• First Mortgage
• Second Mortgage
• Line of Credit
• Construction Lien
• HOA / Condo Lien

Reserve Requirements

Determining the Health of the Community

• Rental Rate
• Delinquency Rate
• Use Restrictions
• Litigation
• Underfunded Reserves

Origin of Community Associations

Characteristics of Associations

• Restrictive covenants
• Mandatory membership
• Board elected by owners
• Requirement to pay dues
• Association has maintenance obligations

Types of Community Associations

• Planned Unit Developments
• Condominiums
• Mixed-Use Projects
• Cooperatives
• Master / Subassociation

Association Records

Review these records:

• Governing Documents
• Budget and Finances (3yrs)
• Meeting Minutes (3 yrs)
• Reserve Study and Analysis
• Insurance Coverage

Working Capital Contributions

Rental Restrictions

Architectural Changes

Meeting Minutes

Special Assessment Authority

Funding of Reserves