Thank you to all who attended our Valley Ranch HOA Town Hall meeting on November 6, 2021. At that meeting the VR Board presented information relative to the status of our Association and whether Valley Ranch is considered a Standard Subdivision or a Common Interest Development (CID). We shared information about our correspondence with the CA Secretary of State and its request that we provide a letter from our attorney providing a legal opinion relative to this question.

The Board also shared that we had contacted attorney John Hansen from the firm of Baydaline & Jacobsen. Mr. Hansen concluded that Valley Ranch would be a Standard Subdivision except for the existence of the river easement, which in his opinion, qualified VR as a CID. We also discussed the difficulty and complexity of relinquishing the easement.

During the meeting it became clear that most of our members have enjoyed the less formalized and regulated status of a Standard Subdivision. Before accepting the opinion of Mr. Hansen as final, several members expressed concern and strongly suggested the Board seek a second legal opinion. On November 13, 2021, the VR Board sent a message to all members informing them the Board was in the process of securing a second opinion and asking for patience while working on this.

The VR Board has since engaged attorney Bruce Inman of the Inman Law Group in Sacramento. Mr. Inman was recommended to one of our VR members and by the California Department of Real Estate as a well-known expert in the areas of real estate and subdivision law, and matters concerning CIDs and the Davis-Sterling Common Interest Development Act.

Mr. Inman has reviewed the same information provided to Mr. Hansen. While he understands and appreciates Mr. Hansen’s opinion, he strongly disagrees. The VR Board has interviewed Mr. Inman and has been very impressed with his experience and knowledge in these matters. Mr. Inman has had similar experience with other HOAs and has (notwithstanding the easement issue) cited various California codes and statutes supporting his position. Mr. Inman has concluded that the Valley Ranch HOA is not a CID but, rather, a Standard Subdivision. He has prepared and the VR Board has sent a letter supporting this position to the CA Secretary of State. He has prepared similar letters in the past and is quite confident that it will be accepted. Mr. Inman has also assured the VR Board that he is well-prepared to defend Valley Ranch should we be challenged in this regard.

The Valley Ranch Board is, therefore, pleased to announce that we will continue with the management of the VRHOA as a Standard Subdivision until we hear back from the Secretary of State. We will keep the members updated once we get further news. As a result, it will be unnecessary to move forward with the notice of election and vote proposed at the November 6th meeting.

The Board appreciates that this has been a bit unnerving for all of us. The VR Board strongly believes that we have taken the “high road” relative to this very important issue. Rather than ignoring it, Valley Ranch can now, once we receive formal approval, move forward having fully disclosed this matter to the Secretary of State, having provided the legal opinion requested, and having officially been identified as a Standard Subdivision. Future Valley Ranch Boards can manage VR accordingly with the confidence that this matter has been fully investigated and resolved.

The VR Board wishes to thank all of the HOA members for your patience and understanding as we navigated our way through this complex issue over the recent months.