At a recent meeting of the Mountain Resort Communities Association of Realtors, I was asked point blank why, as the local real estate columnist, I wasn’t reporting on the ongoing fracas between the Arrowhead Woods Architectural Committee (AWAC) and a vocal group of Arrowhead Woods homeowners. The answer? My column is not a reporting column per se – the intent is to inform readers about real estate trends, industry changes and offer well-intentioned guidance regarding buying or selling a home in our mountain communities. There is already plenty of coverage of that particular topic in the press and on social media.
However, with the caveat that I am not an attorney and I do not practice law, this is a great time for me to explain CC&Rs and how they do – and don’t – work, to my understanding.
CC&Rs (Covenants, Conditions and Restrictions) are legally binding documents that outline how property in a given tract may be used. They establish expectations for homeowners and, if applicable, a homeowners association (HOA). In California, the Davis-Stirling Common Interest Development Act governs CC&Rs. Older tracts often had expiration dates built in and, under Civil Code Section 4265, an extension of CC&Rs can’t exceed their original term or 20 years, whichever is less. That said, multiple extensions are allowed and, in more recent developments – particularly post-1995 – many CC&Rs are structured to remain in effect indefinitely unless successfully revoked by a majority vote of affected homeowners.
But what about areas without a formal HOA? This is where things can get murky. The Davis-Stirling Act can still apply even if there’s no elected HOA, so long as the area qualifies as a Common Interest Development (CID). A CID is defined by individually owned properties paired with shared ownership of common areas, or shared membership in an entity that manages those common spaces. So even if there’s no board, management company or formal HOA meetings, the law may still treat that tract as a CID, which activates Davis-Stirling protections and responsibilities.
Enforcement of CC&Rs in these scenarios can still happen – typically by individual homeowners bringing action to uphold them. The lack of a governing body may make enforcement slower or more complicated, but it doesn’t mean the CC&Rs are null and void.
As for whether CC&Rs affect property values, the answer depends. In theory, neighborhoods governed by CC&Rs should present a more uniform, well-kept appearance. That curb appeal could nudge values upward. But not all CC&Rs are created equal. An HOA with high fees, vague enforcement or a reputation for unnecessary conflict might just as easily drive values down – or at least scare off some potential buyers.
In the end, it’s not the existence of CC&Rs alone that affects value – it’s how they’re managed and perceived by the community. Curious about CC&Rs and the Davis-Stirling Act? Visit davis-stirling.com.
Theresa Grant is a real estate broker and columnist covering Lake Arrowhead, Crestline, Running Springs and the surrounding mountain communities. Reach her at (909) 442-1345, visit www.HomesInLakeArrowhead.com and follow her on social media, @theresagrantrealtor. Theresa is a Broker Associate with REAL Broker Technologies. DRE#01202881.
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