Clearlake Oaks, CA

Hank is there an HOA (Home Owner's Association) in Spring Valley? I am often asked this question as I am a Long Time Spring Valley Resident and as a Real Estate Broker...people expect that I know the answer. Spring Valley is a rural sub-division in Lake County, California. We are situated between I-5 and Hwy 101 in the Coast Range set of mountains and home to the LARGEST natural lake in California...Clear Lake.

Okay, back to the question: Does Spring Valley have a HOA (Home Owner's Association)?

The answer: NO!!!!

There is no Home Owner's Association in Spring Valley Lake subdivision. There are CC&R's and there is an $18.00 per year fee to maintain the Campground and the 200 acre Greenbelt/Park. When our sub-division was created a Home Owner's Association was not created in the CC&R's...instead it was left to individual home owners to talk to neighbors about issues of concern and ultimately seek redress in the courts if necessary. In my almost 30 years as a property owner in Spring Valley, I have never heard of a property owner taking a fellow property owner to court for a violation of the CC&R's.

The residents in Spring Valley instead rely upon the Lake County Code Enforcement Division of Community Planning Department and the Lake County Planning Code as a way of resolving issues of junk cars, trash and debris. Lake County Animal Control handles issues involving barking dogs. And we rely upon personal choice rather than a group of homeowners to determine house color.

Our CC&R's do call for an Architectural Review Committee and a version of that committee does exist today. It wisely restricts itself to limiting its scope to the residential design (RD) standards contained in the Lake County Planning Code which covers the Spring Valley subdivision.

We do have a Property Owners Association which is a private non-profit corporation whose goal is the Improvement of Spring Valley. The hold fundraising events, they sponsor Sunday Breakfasts, Bar-B-Ques and they also maintain the Community Center. This organization is voluntary and has no authority under the terms of the CC&R's.

Spring Valley has a "live and let live" philosophy...a philosophy that I have enjoyed for almost thirty years. If I can provide you with any additional information please let me know...call me at 707-520-4265.

Clearlake Oaks is a hot bed for the FHA 203k Loan Program and yet still underutilized in that area. When I drive through the town we see lots of very small homes right on the main drag... I'm talking homes that can't be 400 SF which is TOO SMALL to get FHA financing UNLESS you increase the size. That means the home could be perfect in every other way and you merely add on to it to get it to the minimum 650 SF FHA needs to make the loan.

I live in Charlotte NC and we have lots of little bungalows that would otherwise be forgotten if we don't add on to them getting them up to the required minimum living area. I was in Kannapolis the other day and there were about twenty of them right on Dale Earnhardt Jr. Blvd. all in a row. Half of them had "for sale" signs up.

My CA clients reading this shouldn't panic as we also have a home in CA where we spend most of our time of late. We have lots of teammates and associates that cover us when we are out of town so please keep the orders coming. We'll get them done for you.

In any case we should know that this is possible, take it as your 203k basic training. You need to accumulate tools that you know inside and out as when the need arises they will come to the surface and be at your fingertips. This blog is intended to give you the benefits of our knowledge and expertise of 16 years and thousands of 203k projects. Feel free to ask questions as they come up even if they don't pertain to a specific blog post. If they don't we'll create a new blog post for you.

It is a 203k if any of the following exist... not all but ANY

1) Home needs TLC - might be a Streamlined k

2) Home needs major renovation - Full 203k

3) Renovations needed that exceed $35,000 - NO PROBLEM for the Full 203k

4) Non structural repairs needed under $34,200... ($35,000) is a Streamlined k... it has to include the contingency if required and any other costs and fees so think of it more like $30-32,000 NOT $35,000 if you want to be correct most of the time.

5) Swimming pool needs repairs in excess of $10,000 - this is a FannieMae HomeStyle loan as both 203k loans are limited to $1,500 in repairs for luxury items.

6) The home is perfect but too small for an FHA 203b loan - it is a FULL 203k as it will need an addition that is considered structural.

7) Septic tank has failed - it is a FULL 203k

8) Well and septic tank are too close together - FULL 203k

9) Kitchen remodel is desired - Either a Streamlined k or Full 203k

10) Bathroom need updating - Either a Streamlined k or Full 203k

11) I have a foundation but the house was 90% burned to the ground - it is a FULL 203k

12) I have a great little home but it is 100+ years old and the foundation is bad - it is a FULL 203k

13) I bought a home and I knew it needed work and I ran out of money to fix it up.. it can be either a streamlined k or a FULL 203k. If refinanced within 6 months of the original purchase the money you or your client put down originally can be used as money in this transaction... we may be able to get the money for them with no more money out of their pocket.

Until next time... M

Well we have done some interesting properties this year already. 3 modular homes which are a little unique in that we had to use the existing foundation and remove the original modular home that was on those foundations on two of them but the third was an older, small stick built home on a permanent foundation where it was coming off and a larger modular home, was being put in it's place. The wonderful thing about modular homes these days is that the costs are so well controlled since they are built in a factory that the home owner reaps the benefit of a better built home at a much reduced cost over a stick built home.

Saw a 203k in Clearlake Oaks, CA yesterday. As we were driving in and out we noticed quite a few very small homes along the way. They appeared to be 400-500 SF. Everyone knows these are too small to get an FHA loan on but what many don't know is that we can "add on" to an existing home to make it larger so it does qualify for the FHA 203k loan even in Clearlake Oaks... lol. We stopped into a RE office and talked about this program with Don and Tom and saw they had lots of listings on their listing board... mostly lots and land but quite a few very small properties we we discussed how, even if the home was pristine but small we could use the 203k loan program to create the additional SF to get it up to a more appropriate size. This is a wonderful place to live but many homes are just too small for the needs of a modern family. We introduced them to our "Perfect for a 203k" concept as well.

I was up there with Martin Greenwood of Greenwood Home Inspections. Marty and I are your 203k team in Napa and Lake Counties. If you need free informational seminars or full blown business plan on how to build your business sales up using the 203k loan program please give us a shout.

Next week we have a 203k loan in Sebastopol. I was in Rohnert Park a few months ago giving a talk on the 203k loan program to the Association of Realtors there and it was so interesting to hear them talking about all the properties they had on the market that weren't ready to be shown if they were doing "business as usual" I was able to explain that the "fixer" actually may be a better deal for their buyer. The buyer gets to make all the repairs, update the kitchens and bathroom, choose all their own colors where in a home that was already fixed up they would not likely be able to do that. In any case I'm glad someone was listening and called us for Sebastopol. We'll stop by and see our friends Michael Regan and Patricia Regan at Mason McDuffie Mortgage in Santa Rosa who are not only top producing loan consultants but just fantastic people as well. Shirley and I think the world of you. She wants to make the trip up there next week with me but has a hard time getting up that early... lol. See you soon.

Clearlake Oaks Market Report...Home Prices

The chart below shows the Median Home Prices and the Median For Sale Prices in the Greater Clearlake Oaks area. Listing Prices continue their downward trend as many people come to grips with the reality of home values. You will also note that the Median Sold Prices continue to be quite volatile...many "fixer properties" have sold recently and they are reflected in the Median Sold Prices.

The date reflected in the chart shows the overall market. However, every sale is unique...if you would like to know what your specific home is worth, give me a call at 707.520.4265

Clearlake Oaks...Spring Valley...28 Years and Counting...by Hank Montgomery Realtor/General Contractor

28 years ago today my wife Jocelyn and I became Spring Valley Residents! We had come to Spring Valley to begin our first ‘Owner-Builder' project and we began our project like most Owner-Builders...under capitalized and way under experienced! Fortunately for us Spring Valley, was and is a great place for an Owner-Builder to build a home.

People adopted us...gave us encouragement when we needed it...gave us advice-which we always needed...gave us what we needed-when we needed it. The stories are many and heart warming and over these past 28 years there have been many that have followed in our footsteps. There is nothing so ageless or as satisfying as providing shelter for yourself and your family. And that is what we did...with the help of family, friends and neighbors. Many hands...many BBQ's...and many a cold beverage was shared as we built a house in Spring Valley!

But a funny thing happened to this young and naïve couple from the city who came to Spring Valley to build a house...instead we built a home! We built a home where we raised two wonderful kids (now grown)! We've become involved with our community...we've fallen more in love with each other and with this wonderful little piece of Northern California than we could have ever thought possible...28 years ago!

Clearlake Oaks...Spring Valley is a small community and a part of the larger community of Clearlake Oaks. Spring Valley is a rural sub-division with lots averaging over ½ acres. Spring Valley is known in Lake County for having some of the most affordable developed acreage in the county. This rural sub-division features paved roads, water system, power, phone lines and unlimited recreational opportunities.

If you need help finding a home or a piece of ground give me a call at 707.293.6776 or send me an email at HankMontgomery@Century21.com