Palos Verdes Homes Association

History

Prior to sale of lots to the public, the trustee, pursuant to the provisions of the Trust Indenture just referred to, filed a subdivision map, and drew and filed in the office of the County Recorder the use and building restrictions, and organized the Palos Verdes Homes Association.
Palos Verdes Homes Association is a California nonprofit corporation.

The owner of each building site is entitled to one vote at the annual meeting of the Homes Association. At the annual meetings, a board of directors is elected. This Board governs the activities of the Homes Association.
Early in the history of Palos Verdes Estates, the trustee deeded to the Homes Association 800 acres of the 3200 acres. By the terms of the deeds transferring these properties to Palos Verdes Homes Association, the property must be perpetually devoted to public uses; otherwise, title reverts to the trustee. From these 800 acres a golf course was laid out, a swimming pool erected, and the remaining portion planted with trees, shrubs, and flowers, which comprise our parks and other planted areas. Included in the 800 acres are four miles of shore line.
The subdivision was laid out by Olmsted Brothers, a nationally known firm of landscape architects and Harry Cheney, a nationally known city planner. Inasmuch as Palos Verdes Estates was an unincorporated area until 1940, the Homes Association was given the power, with the assistance of various county departments, to maintain streets and roads, to maintain parks, to maintain and operate the golf and swimming clubs, and to provide fire and police protection.
.

During the period of prosperity, the trustee and the selling agency donated money, over and above that which was received from Homes Association assessments, to make up the deficits which accrued from time to time in the maintenance and operation of parks, swimming club and golf club, and for taxes on the 800 acres.
Notwithstanding that these properties were actually devoted to public uses, the land was taxable as private property because it was owned by a California non-profit corporation. Shortly after 1929 the demand for lots greatly diminished, and the trustees and the selling agency were soon without funds. In 1932 the trustee turned over to the residents the responsibility of the Homes Association.
The maximum revenue which the Homes Association could raise from the annual assessments was approximately $18,000.00 per year. Out of this fund, it was necessary to pay taxes amounting to $5,000.00 per year, salaries of a manager, park superintendant, gardeners, and two police officers, and to make up the deficity in the operation of the golf Club which was between $5,000.00 and $6,000.00 a year, all of which more than exhausted the revenue obtained from assessments. To make bad matters worse, approximately one-third of the owners of building sites failed to pay their annual assessments.

By 1938 the Homes Association owed the State of California for taxes on the parkways, shore line, Golf Club and Swimming Clubs approximately $50,000.00. Needless to say, the Board of Directors of the Homes Association and the residents became concerned for fear the State of California might sell these properties at tax sale, and the community would lose one of its most valuable assets.
Two plans were devised to prevent this disaster. One was to organize a city of the sixth class, and upon its organization transfer the park properties, shore line, and the golf and swimming clubs to the city, in which event the back taxes would be forgiven by the state, and the properties would not be taxable. The other plan is now academic, because an election was held in December, 1939, at which the voters decided to form a city of the sixth class.
Immediately upon the organization of the City in July, 1940, all of the park lands, the swimming club and the golf club were transferred to the City, and the back taxes were forgiven by the State.*
*This does not include Miraleste, which is a division of Palos Verdes Estates under the jurisdiction of the Homes Association but is not a part of the City of Palos Verdes Estates.

Upon the organization of the City, it necessarily took over many of the functions of the Homes Association. For example, the maintenance of the roads and streets, the maintenance of the parkways and planted areas, the maintenance. and operation of the golf club and the swimming club, and police and fire protection.

Many of you doubtless wonder what, if any, functions and duties remain for the Homes Association to perform. This is a natural question that might occur to anyone who is not wholly familiar with the nature and enforcement of the use and building restrictions, and the functions and duties of the Art Jury. The Homes Association has independent functions to perform, which no city can legally perform. These functions must be performed by the Homes Association to protect one of the most valuable assets that the community has. Palos Verdes Estates is one of the few communities in Southern California, and indeed in the State of California, which has a comprehensive plan of both use and building restrictions. With the growth of the population and industry in Southern California, it is becoming increasingly important that use and building restrictions be perpetuated. The Homes Association under the Restrictions themselves, under the Trust Indenture, and under its Articles of Incorporation and By-laws, is given the power and the right to enforce these restrictions.

The Homes Association has the power to levy assessments to carry out its functions. Since the organization of the City, only one assessment has been levied because the Homes Association has derived funds from assessing individual fees similar to a building permit when the owner wishes to make improvements to his property. This gives the Homes Association the financial means to pay the expenses and fees incident to the enforcement of The Restrictions so this burden will not fall upon individual owners in the event of concerted action to upset or defy the restrictions. The Homes Association is thus in a position to take immediate action in the event of violations.

The Restrictions provide for types of architecture, types of roofs, and minimum building costs. The city has neither the right nor the power to regulate or control types of architecture, types of roofing, or minimum building costs. And, more important, the Restrictions are in effect until January 1, 1960, and they continue automatically for successive twenty year periods thereafter, unless a written recorded agreement is signed by record owners of more than one-half in area of the whole property, exclusive of streets and parks. Such a provision extending the restrictions is valid under the law. The City has passed a zoning ordinance which provides a simple and economical means of enforcing many of these essential zoning restrictions.

The deeds from the trustee to each original purchaser refer specifically to the restrictions, the organization of the Homes Association and the Art Jury bind the purchaser to comply with the restrictions. The restrictions and the original deeds are recorded, and being matters of record, each subsequent purchaser is also bound by the restrictions.

The Art Jury is appointed by the Board of Directors of the Homes Association and consists of both technical and lay members. The functions of the Art Jury are to pass upon building plans, to determine if they comply with the minimum cost restriction, the setback restriction, and if they conform to the type of architecture provided for in the area in which the building is to be erected. The expenses of the Art Jury are defrayed by the Homes Association. While it is true that mistakes have been made, on the whole, it is evident that the Art Jury has added to the beauty and architectural design integrity of the Homes built in Palos Verdes Estates, and that, basically, the homes conform to a uniform plan.

The members of the Board of Directors of the Homes Association and the members of the City Council serve without compensation. They devote their time and effort to the affairs of the community because they are interested in the welfare of the community.

Return to Main Menu...