1965-045RESOLUTION NO. 65R -45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM ESTABLISHING CERTAIN STANDARDS TO
BE CONSIDERED IN THE APPROVAL OF COVENANTS,
CONDITIONS AND RESTRICTIONS WHICH MAY BE
REQUIRED TO BE FILED BY SECTION 17.08.300 OF
THE ANAHEIM MUNICIPAL CODE.
WHEREAS, Section 17.08.300 of the Anaheim Municipal
Code permits the division of real property developed for, or
proposed to be developed for, residential use; and
WHEREAS, said Section provides that any proposed
division of a parcel of real property, including an air space
division, which division results in the creation of an un-
divided interest in common in a portion of said parcel of real
property, together with a separate interest in a portion of
said real property, may require the filing of covenants, condi-
tions and restrictions for the benefit of the entire parcel;
and
WHEREAS, the City Council desires to establish stand-
ards for the guidance of persons or entities seeking approval
of such covenants, conditions and restrictions.
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Anaheim that the standards set forth in
Exhibit "A' attached hereto and made a part hereof, be, and
the same are hereby adopted, which standards may be used for
the guidance of persons or entities seeking to divide land
as permitted in Section 17.08.300 of the Anaheim Municipal
Code.
BE IT FURTHER RESOLVED that the City Council does
further adopt that certain document entitled "CHECK LIST OF
PROVISIONS TO BE INCLUDED IN COVENANTS, CONDITIONS, AND
RESTRICTIONS TO BE SUBMITTED TO THE CITY OF ANAHEIM FOR
APPROVAL," a copy of which is attached hereto, made a part
hereof, and marked "Exhibit B," in order that more specific
guidance may be given to developers and subdividers in imple-
menting said standards.
BE IT FURTHER RESOLVED that in establishing the afore-
mentioned standards and check list of provisions the City
Council finds and determines that persons or entities are not
precluded from proposing alternative methods of realizing the
aforementioned standards, if such alternative methods are
sufficient to accomplish said standards.
THE FOREGOING RESOLUTION is approved and signed by
1965. r
me this 19th day of January
ATTEST:
CI CLERK OF TliE CITY OF ANAHEIM
(SEAL)
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF ANAHEIM
I, DENE M. WILLIAMS, City Clerk of the City of Anaheim,
do hereby certify that the foregoing Resolution No. 65R -45 was
introduced and adopted at a regular meeting provided by law,
of the City Council of the City of Anaheim, held on the 19th
day of January, 1965, by the following vote of the members
thereof:
AYES: COUNCILMEN: Pebley, Dutton, Krein and Chandler
NOES: COUNCILMEN: None
ABSENT: COUNCILMEN: Schutte
AND I FURTHER CERTIFY that the Mayor of the City of
Anaheim approved and signed said Resolution No. 65R -45 on
the 19th day of January, 1965.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the official seal of the City of Anaheim this 19th
day of January, 1965.
CIT CLERK OF THE CITY OF ANAHEIM
EXHIBIT "A"
STANDARDS
FOR COVENANTS CONDITIONS
AND RESTRICTIONS
(Sec. 17.08.300)
PERSONS OR ENTITIES SEEKING TO DIVIDE LAND OR AIR SPACE SHALL:
1. Make provision for an irrevocable fund for the
perpetual maintenance of the aforementioned areas
owned or maintained in common and shall make specific
provision for the amount of the initial deposit of
money into said fund at the time of the sale of
each parcel of land or air space real property
divided pursuant to Section 17.08.300 and shall
specify the total amount of such money to be
deposited initially in said fund.
2. Specify in covenants, conditions and restrictions
or other legally binding instrument or document the
amount, if any, to be periodically contributed to
the aforementioned irrevocable fund by each owner
of a parcel of real estate or air space.
3. The Commission and Council shall review the afore-
mentioned amounts of money to determine whether
such sums are sufficient in terms of the estimated
cost of maintenance of the aforementioned and
described areas and improvements owned or maintained
in common which estimated cost figures are to be
supplied by the persons or entities subdividing
land or air space.
Specify in said covenants, conditions and restric-
tions the method by which it is proposed to insure,
insofar as possible, the privacy of each owner of
such a parcel of land or unit of air space by
protecting each of said owners from trespass to
said parcel or unit by any other such owner within
said subdivision.
EXHIBIT "B"
CHECK LIST OF PROVISIONS TO BE
INCLUDED IN COVENANTS, CONDITIONS,
AND RESTRICTIONS TO BE SUBMITTED
TO THE CITY OF ANAHEIM FOR APPROVAL.
QUESTIONS TO THE SUBDIVIDER AND DEVELOPER:
1. Have you clearly stated in the CC R's that the
purpose of said CC R's is to benefit the entire land contained
in Tract #0000 and each lot 1 through therein? (E.G.
"Whereas, it is the desire and intention o the owner of Tract
#0000 to sell and convey the above described property and to
impose on said property mutual, beneficial restrictions under
a general plan or scheme of improvement for the benefit of all
the land in said tract and the future owners of said land. Now,
therefore, the owner declares all the aforementioned and des-
cribed land in Tract #0000 shall be sold (or leased) subject
to limitations, restrictions and covenants all in furtherance
of a plan for the subdivision, improvement, sale (or lease),
and that said limitations, restrictions and covenants shall
run with, and bind, all parties having an interest in the
aforementioned and described property in Tract #0000 or all
persons who in the future acquire such an interest in said
property.
2. Have you clearly described the entire land to be
benefited by the CC R's? (E.G. 0 all that land described
in Final Tract Map #0000 recorded in the office of the County
Recorder of Orange County at Book Page etc.
3. Have you clearly described the land on which the
restrictions and burdens of the CC R's are to Fe imposed?
(E.G. "All lots 1 tz� rough of Tract #0000, recorded at
Book Page etc,
4. Have,you clearly specified the individuals or
entities (preferably a corporation) to maintain the common
areas and improvements and have you given a clear and complete
description of the powers of such individuals or entities to
enforce maintenance provisions (E.G. "Failure to pay the
assessment provided in the CC R's should result in the
creation of a lien on the defaulting unit owner's unit. Such
lien should be enforceable by the entity or individual charged
with the maintenance of the Common Areas.
5. Have you clearly specified the amount of the
initial contribution of capital into an irrevocable contingency
fund which fund shall not be impaired prior to 30 years without
the vote and consent of 100 per cent of the parcel or unit
owners? Have you further clearly provided that should the
CC R's ever be cancelled for any reason that such fund shall
be either transferred to (1) The City of Anaheim, (2) A main-
tenance district created for the express purpose of maintaining
the common areas and improvements in the subdivision, or (3)
Any other person or public or private entity approved by the
City of Anaheim to maintain such common areas? Whether such
fund shall be transferred to (11 (2) or (3) above shall be
determined solely by the City.
(E.G. "The Association is hereby required to establish
and maintain a Reserve for Contingencies Fund. Concurrently with
the initial sale by Declarant of each lot in Parcel No 1, a sum
of money equal to $200000 per lot shall be irrevocably allocated
to said Reserve for Contingencies Fund. Said amounts shall
constitute the paid -in capital of the Association. In addition
to the regular monthly assessment for estimated maintenance
costs, the Association shall make a monthly assessment at a
rate of 15% per cent above the actual maintenance costs as
determined by the Association. Such percentage amount in excess
of the actual maintenance costs shall be irrevocably allocated
to the Reserve for Contingencies Fund hereinabove referred to in
this paragraph and said Fund, including the initial allocation
of $200000 per lot or unit, shall not be impaired without the
vote or written consent of 1007 of the lot owners of Parcel No0
1 who are members in good standing in said Association, pro-
vided, however, that the Association shall be authorized to
expend, after a period of thirty (30) years from the date of
the first s le of any interest in the property embraced within
Tract No, 0000, the amount of any accrued interest on said
Contingency Fund in the event of any unusual or unforeseen
financial requirements that may arise (alternativ- -may sub-
stitute after the words 'Contingency Fund' the words, 'as
the Association sees fit') subject to the vote or written
consent of 100® of the lot owners of Parcel No. 1 who are
members in good standing of the Association. (Th foregoing
clause beginning with the words 'subject to' may be omitted
if desired.) Further, should this Declaration be canceled,
said Fund shall be conveyed to the City of Anaheim, or to
a special maintenance district created by the City for the
purpose of maintaining the Common Areas (Parcel No. 2) of
Tract No. 0000, or to any other entity or person approved
by the City of Anaheim as adequate or sufficient to maintain
said Common Areas. Whether said Fund shall be transferred to
th City, to a speci_ 1 maintenance district created by the
City for the purpose of maintaining all commonly owned or
maintained areas or improvements of Tract Noe 0000, or to
any other entity or person approved by the City, shall be
determined by the City. No amendment to Section nor
any amendment or provision which shall have the e fect of
changing any of the provisions relating to the irrevocable
Contingency Fund, shall be effective unless approval is
given to said amendment by the City of Anaheim. Should the
structures and Common Area or improvements of the subdivision
to which these CC R's apply ever be destroyed or removed
and not rebuilt for any cause whatsoever, or should said sub-
division be approved by the City of Anaheim for re- subdivision,
which re-subdivision .eliminates th- Common Areas or improve-
ments, or should this subdivision rev:rt to acreage pursuant
to law, all monies c.nd properties contained in the irrevocable
Contingency Fund may be distributed as the Association sees
fit.
6. Have you clearly specified the amount to be
assessed (preferably a percentage figure) against each unit
owner in excess of said unit owner's current maintenance
obligation which excess amount is to be periodically deposited
in the irrevocable contingency fund (E.G. "In addition to the
regular monthly assessment required for all maintenance costs,
including taxes and insurance, the association is hereby re-
quired to establish and maintain a reserve for contingencies
which shall be assessed monthly at a rate of per cent
above the actual maintenance costs. Should the CC R's ever
be cancelled for any reason whatsoever, such funds periodically
so deposited into the irrevocable contingency fund shall either
be transferred to (1) The City of Anaheim, (2) A maintenance
district created for the express purpose of maintaining the
common areas and improvements in the subdivision, or (3) Any
other person or public or private entity approved by the City
of Anaheim to maintain such common areas. Whether such fund
shall be transferred to (1),(2) or (3) above shall be determined
solely by the City.
7. In conjunction with your proposed CC R's have
you submitted an estimated cost of maintaining all commonly
owned and commonly mainnt fined areas and improvements? Is said
estimat: d cost based on bids from maintenance companies or others?
8. As a final check on the sufficiency of the con-
tributions into the irrevocable contingency fund the income
only from which fund may be used at the end of the pri m T mar
loa,. riod (usually 25 to 30 years) in order to defray the
cost of maintenance of the commonly owned ,:nd commonly main-
tained areas and improvements, do your figures reveal that at
the end of the primary loan period (25 to 30 Years) there is
an amount in the irrevocable contingency or maintenance fund
which will yield (at an ass°um-d rate of 4% per year) income
sufficient in amount to provide an annual sum representing
approximately two thirds (2/3) of the presently estimated
yearly cost of maintaining all such commonly owned and commonly
maintained areas and improvements? Such two thirds figure, it
is felt, will guarantee a reasonable level of minimum maintenance
of the common areas and improvements. The thirty -year figure
'is used since this is a frequent period for the primary loan
to exist on the various units. As long as the lender has a
security interest in the project, there is some incentive on
the part of the lender to see that the common areas and im-
provements are properly maintained.
9. Have you considered the creation of a non profit
corporation as an appropriate entity to maintain the common
areas? (A corporate form results in the creation of a
separate legal entity and makes the acquisition of insurance
against personal injuries in th common recreational areas
easier to acquire, etc.)
10. Have you made provision in your CC R's to
insure, insofar as possible, the pri- cy of each unit owner
through protection of each such owner from trespass to his
real property or airspace (ec.647 (g) ,Se .602 Penal Code) by
any other unit owner within said subdivision (E.G. 647(g) of
the Penal Code reads as follows: "Every person who commits
any of the following acts shall be guilty of disorderly
conduct, a misdemeanor: (g) Who loiters, prowls or wanders
upon the private property of another, in the nighttime, with-
out visible or lawful business with the owner or occupant
thereof; or who, while loitering, prowling or wandering
upon the private property of another, in 'the nighttime,
peeks in the door or window of any inhabited building or
structure located thereon, without visible or lawful business
with the owner or occupant thereof.
110 If you have inserted provisions for the possi-
bility of reverter and right of re -entry in your proposed
CC R's, have you considered conveying title to the common
areas to the non- profit maintenance corporation or other entity
so that such entity will actually own an interest in land in
the subdivision and hence create a greater likelihood of
enforcement of the reverter or re -entry by the maintenance
entity against lot owners who failed to pay maintenance
assessment or otherwise violated the CC R's?
12. Have you submitted in conjunction with your
CC R's sample standard deed form with wording in each deed
to each lot owner either setting forth in full the CC R's
or incorporating by reference the CC R's recorded in the
Office of the County Recorder (E.G. "This conveyance subject
to CC R's contained in Declarations of CC R's of grantor
recorded at Page Book etc... The aforementioned
CC R's are made a part of this conveyance.
13. (To be answered after recording of Final Tract
Map.) Have you furnished evidence by means of a letter to the
City Attorney indicating the book and page number at which
the final map and the CC R's are recorded?
14. (To be answered after initial sale of all the
parcels or units.) Have you furnished evidence by means of a
letter to the City Attorney indicating the amount and the
financial institution into which the initial contributions in
5 above have been deposited and in which the funds in 6 will
be deposited?
COPIES FORWARDED TO:
E Fire Depr rtment
Ptir acs Recreation
[J Personnel
Planning
Works Di. ec'or
Engineering
VtiitilES it "f.;::JC
E Building
1} Attorney
City Clerk
E City Council
City t an:aoer
E Finance Director
LI Accounting
E Treasurer
E] Purchasing