Loeffler

FACTS

I. Background Facts

Association’s CC&Rs were recorded in 1987 by the original developer of 21 lots and provided for annexable territory in the future. A few years later, in a second phase of development, additional territory was annexed. Because the second phase of development caused increased common area expenses for the new annexation, the method of calculating assessments for the annexed properties could result in a different amount of assessment as compared to the first phase. Additional annexations occurred over several years until about 1995. At that point, Association included 811 properties divided into five different territories, referred to as “product lines.” The product lines were known as Homestead/Crossing, Ridge, Springs, Promontory, and Newcrest Estates. Each product line contained a different amount of Association-maintained landscaped slopes, fire abatement zones, and common area amenities like walls, fences, drainage structures, irrigation lines, etc. Because of the varying amenities, the supplemental CC&Rs that accompanied each annexation phase included provisions recognizing that assessments for each product line would be based, in part, on the…