2792.27. Reasonable Arrangements – Annexation of Property to the Subdivision.
(a) Provisions in the CC&Rs to effect the annexation of real property to the existing subdivision shall require the vote
or written assent of not less than 66 2/3% of the total votes residing in Association members other than the subdivider
unless the proposed annexation is in substantial conformance with a detailed plan of phased development submitted to
the commissioner with the application for a public report for the first phase of the subdivision.
(b) The plan for phased development through annexation referred to in subdivision (a) must include, but need not be
limited to, the following:
(1) Proof satisfactory to the Commissioner that no proposed annexation will result in an overburdening of common
facilities.
(2) Proof satisfactory to the Commissioner that no proposed annexation will cause a substantial increase in
assessments against existing owners which was not disclosed in subdivision public reports under which pre-existing
owners purchased their interests.
(3) Identification of the land proposed to be annexed and the total number of residential units then contemplated by
the subdivider for the overall subdivision development.
(4) A written commitment by the subdivider to pay to the association, concurrently with the closing of the escrow
for the first sale of a subdivision interest in an annexed phase, appropriate amounts for reserves for replacement or
deferred maintenance of common area improvements in the annexed phase necessitated by or arising out of the use
and occupancy of residential units under a rental program conducted by the subdivider which has been in effect for
a period of at least one year as of the date of closing of the escrow for the first sale of a residential unit in the
annexed phase.