FREQUENTLY ASKED QUESTIONS
ACTIVE ADULT COMMUNITIES
ARIZONA LIVING
NEW CONSTRUCTION
What is a planned community?
A Planned Unit Development, or PUD is a residential project that features dense clusters of houses surrounded by areas of open space, owned in common and maintained by a nonprofit association. The nonprofit is generally a Home Owner Association (HOA)
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What is a Master Planned Community?
A planned urban community designed for self-sufficiency and providing housing, educational, commercial, and recreational facilities for its residents. It is maintained by a nonprofit association, generally the HOA.
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What is an "Active Adult Community"?
It is a community in which only adults and their children over 18 can live full time. It may have extensive recreational amenities as well as fitness and special interest groups for many activities. It almost always consists of one story homes with no more than 3 bedrooms. Adults under 55 may own under the HUD guidelines:
To be registered with HUD (The Federal Department of Housing and Urban Development) as an adult community 80% of the owners must be over 55 but 20% can be as young as 45. It excludes the community from the Fair Housing Law dealing with discrimination of families with children less than 18 years. They can legally prevent purchases by families who have children under 18.
http://www.hud.gov/offices/fheo/seniors/index.cfm
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What is a HOA ?
A Home Owner Association is formed when the builder of a community turns the operation of the community over to the home owners.
Even in a community without amenities there are requirements upon the association to maintain common area landscaping along its' streets as well as flood control and drainage areas. The HOA also enforces the regulations written into the CC & R's of the community.
http://www.hud.gov/buying/index.cfm
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What are CC & Rs?
The Covenants Conditions and Restrictions are the governing documents that dictate how the homeowners association operates and what rules the owners -- and their tenants and guests -- must obey. These legal documents might also be called the bylaws, the master deed, the houses rules or another name. These documents and rules are legally enforceable by the homeowners association, unless a specific provision conflicts with federal, state or local laws. It is very important that you understand the regulations imposed by the CC&Rs.
They may restrict the color you can paint your home, the height of your fence, the parking of vehicles, the size and number and even the breed of your pets. Most of the restrictions are sane and logical and go a long way in preserving the value of your home investment by keeping the neighborhood's visible condition well maintained.
We joke and tell folks that the good CC&Rs mostly tell you what your mom might..…like "get that dead car out of my driveway" or "no, you are not going to paint my house that color" , "get that lawn mowed today" or " you cannot bring every rescue dog in town home" etc.
http://www.huduser.org/Periodicals/CITYSCPE/VOL1NUM3/fleener.pdf%20
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What kind of security can I expect in a planned community?
The security will range from a volunteer neighborhood patrol walking or in golf carts, to a paid patrol and from a freely accessed entry to one with a 24/7 guarded gate. Gates can be operated from the resident's telephone line, click openers, or pass codes. The highest security form is the manned guard-gated community.
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What about fire and police services?
Planned communities have exactly the same availability of the fire and police departments as any other community in their city or town. All gates have fire and police accessibility.
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If the community I like has a golf course which is open to the public will it always be that way?
Maybe not. Many communities will minimize the cost of maintaining a course by allowing the public to play. In some cases, when the course has enough paid memberships to support itself, it will close to the public.
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I don't play golf and most of the communities have golf courses, do I have to buy a golf club membership?
A few of the communities do require that you purchase a membership along with your home purchase. Most do not.
Each community is different and you must clarify exactly what is included in your HOA fee.
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Where Can I park my RV?
Probably not in your yard, unless it is low enough to be hidden from all sides by the fencing height approved in your community. You will be allowed to keep it in your drive for a time considered by the HOA to be appropriate for loading and unloading. You will not be able to use it as a guest-room. There are many RV storage areas in the valley. There is a caravan of RVs on the highways exiting AZ in June and returning in November and most all of them live in storage areas for the winter.
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ACTIVE ADULT COMMUNITIES
What is an "Active Adult Community"?
It is a community in which only adults and their children over 18 can live full time. It may have extensive recreational amenities as well as fitness and special interest groups for many activities. It almost always consists of one story homes with no more than 3 bedrooms. Adults under 55 may own under the HUD guidelines:
To be registered with HUD (The Federal Department of Housing and Urban Development) as an adult community 80% of the owners must be over 55 but 20% can be as young as 45. It excludes the community from the Fair Housing Law dealing with discrimination of families with children less than 18 years. They can legally prevent purchases by families who have children under 18.
http://www.hud.gov/offices/fheo/seniors/index.cfm
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If I get sick and have to move from my home do I forfeit the ownership of my home?
No, The Adult Communities are not the same as Assisted Living Facilities. In many
Assisted Living Facilities your purchase of a unit gives you ongoing medical care in another phase of that same facility. For this benefit you forfeit the ability to sell your unit and it's ownership goes back to the management for resale.
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How do I own my home?
There are several ways of taking title in Arizona, you can take title by any of the legal methods offered. Check the link from First American Title below for a list and explanation of the ways to take title .
http://www.firstam.com/title-az/maricopa/html/docs/5022.html
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Can my children inherit my home in an Active Adult Community?
If the way you have chosen to take title passes that ownership on to your children, yes.
The one consideration is that your children will have to abide by the HUD age restrictions in order to reside in the property if they inherit from you, they will not be permitted to live in the property if they have children under 18 living in the household. Inheritance is the purpose of the HUD 80/20 rule for 55+ Adult Communities wherein 20% of the residents may be 45+ years old.
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Can I rent my home?
Yes, in most instances. It will depend upon the CC & R's of the community. Very few prohibit renting. HOWEVER if you have purchased a new build from the builder you may have restrictions on its resale and or rental within a given period, usually one or two years.
This clause was in your contract with the builder and was designed to prevent investors from purchasing homes for resale or rental in the community. If you did not purchase your home directly from the builder you do not have to be concerned about that clause only the CC &Rs.
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I do not drive, can I live in one of these communities?
A few of the communities have golf cart paths that you can take to the corner grocery and drug store ("Power Center" in builder talk). City Bus Service is rare so you may have to use taxis. Some of the adult communities have their own private small bus service that makes scheduled runs to shopping centers. Some communities allow golf carts which are street licensed, but you have to have an AZ driver's license to use them on the streets. http://www.valleymetro.org/transit/
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ARIZONA LIVING
Are there really Coyotes and Pigs running around?
Yes, they are shameless and wander all over the valley, even in the most populated areas. The coyotes can jump a 6 foot fence at will. They will hang around if someone is feeding them. Feeding them may include garbage or dog food left outdoors. For the most part they are nocturnal. We also have Javelinas which are hooved but not related to pigs, have pig like snouts and are the similar in appearance to wild boars. They have unpleasant dispositions, are predominantly vegetarians and also snuff around for garbage and will go for the dog food left outdoors. We also have Mountain Lions and Bobcats which are rarely seen off the mountains. We have Jackrabbits and Mule Eared Deer, funny little Gambrel Quail, of course the Roadrunner and many very brazen Hummingbirds. Desert critters abound…we are a desert remember. A very good description of our Flora and Fauna can be found in Todd's Desert Hiking Guide, http://www.toddshikingguide.com/index.htm
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Are there rattlesnakes and scorpions here?
Yes, we are living in a desert and they were here first.
When the ground is disturbed over large areas as in new developments, scorpions will be found. A good pest control firm can treat your home and grounds to deter them. Diamondback Rattlesnakes prefer to be left alone and hide under warm rocks instead of invading your yard. In addition to several varieties of the snakes we have of course our own Diamondback ball team, which we much prefer.
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NEW CONSTRUCTION
What is a Base Price?
The Base Price is the lowest price for which the builder will construct a specific set of home plans.
It will be ready to live in when complete. Each builder builds several price level homes. Each of these price categories will have a different level of amenities. The homes will all have the same type and quality of construction. The amenities will differ for example:
The least expensive group of homes will use vinyl flooring in the "wet areas" of the entry, kitchen, laundry and bathrooms and will use a mica product for countertops. The next group up will use ceramic tile of a certain grade in those areas and may offer a man made composite surface on countertops, while the top of their product line will use a porcelain tile or stone in more than those simple areas and may offer granite countertops all included in their "Base Price". Keep in mind the old adage that there is no free lunch and the product levels are priced to include those "upgrades" or "options".
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What is an Upgrade and an Option?
As soon as you request a different grade of material than is offered by the builder and included in the base price of the home you are requesting an "upgrade". The builder expects you to do this and makes certain "options" available to the buyer by pre-pricing the expected upgrades.
For example: the builder has already priced groups of tile in amounts necessary for each of the areas in the specific plan you are purchasing, they know what it will cost to convert that open loft to another bedroom etc.
These upgrades and options include everything from door knobs, lighting, windows, flooring and cabinets to raising a ceiling, rounding corners, adding a bathroom or converting a garage. The average buyer will spend from 15% up to 30% of the base price in upgrades. More if they add a casita or pool. Although the builders do not as a rule build pools, they work closely with selected pool contractors and the cost of a pool can usually be added into your mortgage.
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What is a Lot or Floor Premium?
The builder offers their plans built with a base price on a standard sized lot. They frequently have the lot price included in the base price. If the builder has several lots available on which to build a plan, some may be more desirable than others by virtue of exposure, size or location. Those more desirable lots will have a "premium" to purchase them. That can be from a few hundred dollars to over several hundred thousand dollars for a lot on a prime golf course or lake. The same applies to selection of a floor in a condominium; the higher the floor or the better the view or exposure, the higher the premium. The penthouse unit may be identical to one on the first floor, but will be much more expensive.
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Will I get a better deal at the builder's site without a REALTOR?
No, the builders do not negotiate their prices. The Realtor's commission is built into the price and is chalked up as profit if a buyer comes in alone. There are many instances in the building process when it is advantageous to have a Realtor working for you. We are not home inspectors, but we can put you in touch with ones who are experienced in inspections of homes under construction. If you are unavailable, we will meet the inspector and go over his report at the site so we can be clear in our communication with you. If you are present we will accompany you on the walk thrus. If you do not have a Realtor you will sign a form as part of your contract stating that the agent in the office works exclusively for the interests of the builder and you are not represented by them. So bring us along, it is really to your benefit.
The builders are firm in their rule that your Realtor must accompany you on your first visit to their project. So please wait for us to do that.
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What is a "builder's incentive"?
When a builder is looking for business, rather than lower the base price, he will offer an "incentive" to the buyers to purchase his product. It will range from giving you refrigerator at closing to several thousand dollars to be used for your closing costs or the purchase of his options. It is always tied to your using the builder's financing. Many of the builder's parent corporations own financing and title companies. This is to their benefit because they can control the time lines of the lenders and have a direct line of communication with them. We always encourage our buyers to compare the "Good Faith Estimate" that the builder's lender gives you with one from an independent lender. The rates may be similar, the expenses may not. However, sometimes even if your brother is a lender he cannot beat the builder's incentives. You must compare to be certain.
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What is a "Spec" Home?
When a builder has crews available, or he is trying to sell lots in a certain section, or for any number of reasons, he will begin to build a home on the "speculation" that someone will want to buy it. There may or may not be Specs available at any given time. All of the choices that go onto the city permit to build are already made: elevation, left or right garage, patio extensions, garage conversions etc. Depending on the building stage the buyer may have choice in selection of paint, cabinets or flooring and countertops, or the home may be completed and ready for occupancy. It is an opportunity to own a brand new home without the long wait to have it built.
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Why don't more homes in AZ have basements?
In cold climates the sewer and water lines have to be buried deeply. As the builder brings heavy equipment in to dig holes to lay those lines it is a small matter expense wise to continue digging a hole large enough for a basement! In our Valley of the Sun we do not have deep freezes. Our water and sewer lines are about 18 inches below the ground. Our footers are not much deeper. Our homes are mostly built on cement slabs. There is no need to bring in heavy equipment to dig deep holes. If they do dig that hole and create a basement home, they will have to include a "pump room" with a pump to get the water and waste from basement bathrooms and sinks up to the level of the sewer lines. We do have electric outages here as in other cities. If you purchase a basement home you accept the possibilities that come with power failures.
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