Dear Custom Home, Lot, PUD (Montecito), and Condominium Owners,

The Board of Directors would like to share an important update regarding the allocation of expenses for operation and maintenance of the 54 pools and spas within the PGA WEST Residential I community.

After a thorough review of the governing documents, specifically CC&R Article VI, Sections 2(A), 2(B), and 3(A)(i) and (ii), and after consultation with legal counsel, the Board has concluded that past budget structures have not accurately reflected cost-sharing responsibilities as outlined therein. Historically, expenses related to these amenities should have been allocated across all ownership types. Specifically, custom homes and lots have not been allocated a share of these costs. This practice has resulted in a disproportionate allocation of financial obligations. Pools and spas are located throughout the community and are available for the enjoyment of all 1,422 Association members, including condominiums, PUDs, custom homes, and lots. Given their shared accessibility and benefit, the associated costs, including operations, maintenance, repairs, and reserve funding, is (and should have been in the past) to be equitably shared by all owners.

To ensure fairness and compliance, beginning with the 2026 budget cycle, these expenses will be incorporated into assessments for all members. While this adjustment will result in an increase above historical levels for some owners, it reflects an accurate and equitable distribution of costs which is consistent with the Association’s CC&R’s. The Board considered retroactively seeking reimbursement for prior years; but costs and complications involved with such a process were determined to outweigh any benefit. The Board wants to assure Homeowners that this decision was made with careful consideration and in alignment with California Civil Code and the Association’s governing documents. The Board’s goal is to maintain transparency and uphold integrity of the Association’s budgeting practices in compliance with its CC&R’s.

The 2026 PGA WEST Residential Association Budget increases for the 1,354 Condominiums and PUDs range from 1.07% to 3.79%, which equates to an increase of between $9 and $27 per unit per month. The increases for the Custom Homes and Lots vary from 19.61% to 19.84% which equates to an increase of between $27 and $100 per unit per month, reflecting equal participation in the cost of operating and maintaining the 54 pools and 54 spas.   

Pools and spas are a unique feature of PGA WEST Residential Association for the benefit of all who own property or visit here.

The budget will be approved at the Board Meeting on November 6, 2025 at 1:00 PM.

Warm regards,

PGA WEST Management, for the Board of Directors