Monarch Pines Homeowners Association
INFORMATION FOR PROSPECTIVE BUYERS, SELLERS AND REALTORS
Welcome to Monarch Pines, a senior manufactured home park. We are located at Lovers Point in Pacific Grove, one of the most beautiful geographic areas in the world. The park is within short walking distance to the Monterey Bay Coastal Trail, Monterey Bay Aquarium, shopping, world class restaurants, museums, the Post Office, the library, and much more. We are also adjacent to the Pacific Grove Municipal Golf Course, Meals on Wheels and the Sally Griffin Senior Center.
Common Interest Development - Stock Cooperative: Monarch Pines Homeowners Association, Inc. is a Stock Cooperative governed by an elected Board of Directors, with each Resident/Member owning one share of voting stock. Under a Stock Cooperative, the Association owns all of the real property in the Park, and each Member owns his/her own coach.
To help promote the safety, security and financial interests of the Association and its Members, the Board requires credit, Department of Motor Vehicles, and background checks (including information on whether the applicant has been convicted of a crime) before being allowed to purchase a share. This approval must take place prior to close of escrow or the transfer of any ownership interest. This requirement has been imposed with the following objectives:
This policy is NOT intended to establish selection criteria concerning an applicant's general character. Rather, the intent of this policy is to prevent harm (physical or financial) to other Members. The Board reserves the right to exclude, under appropriate circumstances, an applicant who poses a threat to the safety, security and financial interests of the Association and its Members. The Board would like to emphasize that it is sensitive to privacy concerns of applicants. Information obtained from through the application process will be treated as strictly confidential.
History and description: Originally the location of a rail line to Pebble Beach, Monarch Pines was established in 1962, when the original owner rented spaces to residents. The residents purchased the property and formed the Homeowners Association. In 1989, the residents formed the Monarch Pines Homeowners Association, a California Non-profit, Mutual Benefit Corporation, which has governed the park since then. The property consists of 10.6 acres of land, with spaces for 103 manufactured homes and common areas. Homeowners have use of the clubhouse, which contains a meeting room, kitchen, game room, ocean view room, and a manager's office. For a fee, members may reserve the clubhouse for family gatherings and social events.
Home ownership and residency rules: One homeowner must be at least 55 years of age. If more than one person occupies the home, the other person must be at least 50 years of age. The Bylaws prohibit rentals. At least one person occupying the home must be the owner. Residents may be full or part-time. Pets are allowed. A live-in caregiver is allowed, including a family member, who may be under 50 years of age. Medical and care giving arrangements are the residents' responsibility. 911 should be called for emergencies.
The Homeowners Association Ownership shares: The Monarch Pines Homeowners Association owns the entire 10+ acre property. There are presently 102 resident shares. The purchase price of a home in the Park includes one market valued share certificate.
Structure of the Association: The Monarch Pines Homeowners' Association is governed by an elected board, which designates its own officers. The President is the spokesperson for the Association, and the Board is responsible for policies that govern the corporation business. Committees are formed to support certain objectives or functions. The Board meets monthly in sessions open to the Membership, addressing park business and finances. The Board also employs a part-time onsite Business Manager, who is the liaison with Shoreline Property Management, our management firm.
Association Finances: Association expenses are supported by homeowner fees billed monthly. These fees include a capital reserve assessment and an operating fee which includes such expenditures as park insurance, staff salaries, sewer and garbage fees, common area landscaping, management firm expenses and clubhouse expenses. The monthly statement also includes billing for gas and electricity as well as real property taxes which are billed in monthly installments equal to 1/12 of the estimated annual property taxes billed to Monarch Pines for your space (see Property Taxes below). Residents are billed directly for water by California American Water Company based on individual household usage. The Board reviews a financial summary at each monthly meeting. Specific information on your account is also available by contacting Shoreline Property Management.
Residency Rules and Regulations: If you are under contract to buy a home in Monarch Pines, you will receive copies of all required documentation from Shoreline Property Management as part of the escrow (see Making a Purchase below), including Rules and Regulations, a copy of the approved budget and monthly fees, a copy of the occupancy/lease agreement, as well as copies of the Reserve Study, Financial Review and Bylaws. If you are considering a purchase in the Park but are not under contract for a specific home, the seller can provide you with certain information on the Park. Replacement of a manufactured home is subject to Rules and Regulations established by the Association, conforming to California State laws. The onsite office manager administers the application and approval process, assisted by the Property Architectural Committee as established by the Board of Directors.
Making a Purchase: Purchase of a new or existing manufactured home is complex. By law, when selling all relevant information about the house and property must be disclosed, including any known violations of Park Rules and Regulations. As soon as the escrow is opened and seller disclosure forms are completed, Shoreline Property Management will work with the Seller and Buyer, Realtors, Appraisers, Lender and the Title Company to provide the required documents and assist the Board of Directors in the approval of the Buyer for membership and occupancy The cost for this service is $300 plus a fee of $75.00 per application for each occupant for the background check which will include a credit check, DMV report, and criminal background report. These fees are paid directly to Shoreline. If a loan is required, there may be additional fees for completion of appraisal and lender forms. When Shoreline has completed the application process, they will advise the Board, who will meet with the Buyer and provide final Park approval to Title. The Buyer will sign the occupancy agreement prior to close of escrow. Please refer to the attached step by step outline of the escrow process.
Property Taxes: The taxes on the residence are considered personal property and are the owner's responsibility, payable directly to the Monterey County Assessor’s Office. The entire land (real property) is owned by the Association and is billed to the Association by the Monterey County Tax Assessor. The individual owners are billed by the Association monthly according to the assessed valuation provided by Monterey County. Upon change of ownership the individual land value will be re-assessed by Monterey County and taxed accordingly. Your monthly tax charge will be an estimated amount based on the purchase price until the County has provided a notice of reassessment and the new value is known. As part of the escrow process, Shoreline Property Management will Provide specific information regarding this expense.
OUTLINE OF ESCROW PROCESS
1. Seller(s) accepts buyer(s) offer. Agents open the escrow at Title Company of their choice. All required paperwork is provided to the Title Company by the agents. The Title Company prepares the demand and sends it to Shoreline along with the purchase agreement and the buyer(s) & their agents contact information.
2. Upon receipt of the demand from the Title Company, Shoreline emails the Seller(s) disclosure forms to Title for signature. Upon receipt of the signed forms, Shoreline will contact the Buyer(s) and the Buyers' agent to make an appointment to meet at Shoreline to review the Buyer(s) package (this package includes the Monarch Pines application, disclosures, rules & reg's, budget and other important information). The appointment usually lasts 30-45 minutes.
3. The Buyer(s) completes the applications and reviews all documents then contacts Mary Johnson at Shoreline Property Management to schedule a follow up appointment so that she can verify that ever)'thing is complete & collect the processing fees & answer any additional questions. A Copy of your drivers' license and social security card is also required. Please bring the cards with you to this appointment.
4. When Shoreline has the completed package, the credit check. DMV report and criminal background report are ordered and the personal reference letters are mailed. Title Company or Seller(s) agent is contacted, depending on who the Seller(s) authorized to pick up the HOA Documents, to let them know that they are ready for pick up.
5. As soon as the personal reference letters are received, a recommendation letter is sent to the Board of Directors advising them that we have verified income, checked credit, D M V report and criminal background report and received the recommendation letters which are forwarded to the Board for review. The buyer(s) is now ready for their interview.
6. Upon approval of the Buyer(s) by the Board of Directors, Shoreline is notified and prepares the statement of account, which is sent along with the Buyer(s) approval letter to Title. This usually takes a day or two to prepare.
7. The Buyer(s) and Seller(s) sign at the Title Company. The Title Company sends the closing checks to Shoreline.
Please note that Shoreline is closed on weekends or Holidays so all references to the timing is business days only.
These instructions are subject to change.