Tuesday, March 2, 2010

Welcome to the Garden Grove Manor Watchdog!

Have you ever wondered who you would be if you had different parents? No matter how frustrating they may be, you wouldn’t exist without either one of them. In a way, Garden Grove Manor was “born” with two bossy, controlling “parents” and owes its existence to both of them. One “parent” is HUD, the Department of Housing and Urban Development, and the other “parent” is the State of California.

In 1971, Garden Grove Manor (or GGM, as we like to call it) began the process to become a non-profit stock share cooperative under the HUD Section 236 Program and a corporation under the State of California. The building of GGM was completed with a subsidized loan from the federal government. In return GGM agreed to offer affordable housing to applicants who qualify under HUD’s income guidelines. In 1994, GGM signed a contract with HUD to offer Section 8 housing assistance payments to shareholders who qualify. HUD rules govern our waiting lists, income certifications, financial statements, and carrying charges (i.e., the monthly assessment shareholders pay for their housing unit plus their portion of the corporation's expenses). Shareholders purchase a stock share in the corporation that earns limited equity, which accrues monthly.

Garden Grove Manor is also a common interest development subject to civil and corporation codes including the Davis-Stirling Act. Each year the State of California passes laws that affect Garden Grove Manor. These laws govern the rights of GGM shareholders and the responsibilities of the Board of Directors. The Board has a fiduciary duty to act in the best interests of the GGM shareholders in accordance with the governing documents of Garden Grove Manor and the laws of California.

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