Peerless Properties Inc

Review: Peerless Properties is the property management company for Sun Mountain Springs Homeowners Association (HOA). The company misinforms the HOA with information such as:- The HOA is required to have a reserve fund.- A reserve study is required.- Any communications changes such as allowing for home owners to opt for electronic communications to save money requires a formal modification to the CC&R.In addition, Peerless Properties and board members have ties and conflict of interest with the vendors used at the Sun Mountain Springs property. The services provided by vendors, such as landscaping and property maintenance, are sub-standard and the employees are unprofessional. The vendor that the management company imposes has no professional licenses in plumbing, construction, or electrical. However, this vendor makes decisions that could jeopardize the lives of residents.The company continues to push for increased HOA fees and provides vague information about expenditures. It is a total scam.Desired Settlement: Peerless Properties needs to remove itself from Sun Mountain Springs as property manager, or replace '[redacted]' with another representative and refer more reputable vendors.

Business

Response:

This letter will address the concerns of Complaint ID No.

[redacted] filed by [redacted] regarding Peerless Properties and Sun

Mountain Springs HOA. Peerless

Properties was hired in March of 1998 by Sun Mountain Springs HOA (hereinafter

referred to as the “HOA”) and at all times since then provided property service

management to the HOA. The complaint

states that Peerless Properties “misinforms the HOA” by stating that the HOA is

required to have a reserve fund and conduct a reserve study. California Civil Code § 1365.5(e) states:

“at least once every three years, the [redacted] shall cause to be

conducted a reasonably competent and diligent visual inspection of the

accessible areas of the major components that the association is obligated to

repair, replace, restore, or maintain as part of a study of the reserve account

requirements of the common interest development...” The reserve study requirement is also set

forth in the Sun Mountain Springs CC&R’s § 9.10.3. In addition to the reserve study, the HOA

must disclose whether the reserve funds are sufficient to meet the HOA’s

obligations over the next thirty years.

A reserve study was conducted for Sun Mountain Springs on 1/ 15/ 13

which met the requirements of the California Civil Code and the CC&Rs.

The HOA’s records and books are open to inspection upon

reasonable request by a homeowner. As a

courtesy, the annual documents which are required to be sent annually to the

homeowners are also posted on Peerless’ website. Any homeowner who desires to review

additional documentation, including, but not limited to, financial records,

insurance policies, vendor records, HOA documents and/or the membership

listing, is directed to contact the Peerless’ office to set up a time for a

records inspection as set forth in the CC&Rs.

Peerless Properties and the HOA deny having any conflict of

interest with any of the vendors. No

vendor is related by blood or marriage to anyone at Peerless Properties or the

HOA. Additionally, no vendor is a homeowner or tenant at the property. Vendors are reviewed on a regular basis. Several bids and quotes are obtained and

presented to the HOA [redacted] before hiring any particular vendor to

ensure professionalism and cost savings to the HOA. It is in the sole discretion of the Board of

Directors to select the vendors that work at the property. Peerless Properties contracts with each

vendor upon the direction of the [redacted] and has no independent

authority to hire contractors.

As required under California

law, anyone who contracts to perform work that is valued at $500 or more for

materials and labor must hold a current, valid license from the Contractors

State License Board in the specialty for which he or she is contracting. In addition, the Peerless Properties and the

HOA must be diligent to ensure that a potential vendor is properly licensed,

bonded and insured. Peerless Properties

requires all vendors to provide copies of their current license(s) and proof of

insurance to be kept on file before work is performed at Sun Mountain

Springs. Peerless Properties works to

ensure that the safety of the residents come first by contracting with only

licensed, bonded contractors at Sun Mountain Springs.

Peerless Properties does not possess any decision making or

vote over the monthly HOA fees at Sun Mountain Springs. Peerless Properties collects the monthly dues

as set forth by the [redacted] of Sun Mountain Springs. Again, Peerless Properties emphasizes that

information about any expenditure by the HOA is available for inspection and

review at the office.

Peerless Properties does not

make decisions for Sun Mountain Springs HOA. Sun Mountain Springs HOA directs

Peerless Properties regarding all HOA issues. Peerless Properties acts as our

agent in these issues.

Sincerely,

Sun Mountain Springs HOA