As a Master Homeowners Association, SAMLARC is classified as a not for profit corporation, governed by Governing Documents (Articles of Incorporation, CC&Rs, bylaws, and rules adopted by the Board of Directors) which create legal duties and obligations for the Corporation to preserve its value, attractiveness, and viability. To meet these duties and obligations, the Board adopts an annual budget with expenses that are determined in large measure as non-discretionary costs. The budget also takes into consideration the measures of Civil Code Section 5600 (a), which states that the Board must levy regular and special assessments sufficient to perform its obligations under the governing documents. The Board reviewed and approved the 2022 Budget at the October 12, 2021 Budget Workshop.
In order to maintain existing service levels, accommodate the rise in non-discretionary costs, and protect the Corporation’s financial health, the Board approved a monthly assessment rate of $74.00 per unit per month beginning January 1, 2022. Key drivers of this increase include service contract increases, anticipated utility rate increases from Santa Margarita Water District, continued Defensible Space work as directed by the Orange County Fire Authority, and necessary landscape maintenance as California re-enters a drought environment.
Service Contract Increases
SAMLARC’s service providers execute the operations of the Corporation, including insurance coverage, professional management, maintenance, repair and replacement of assets and amenities. These providers have increased contract rates in 2022 due to the effects of labor shortages, supply chain disruption, and Califo