Master-planned communities
Sometimes it seems like new home shopping involves an alphabet soup of acronyms. There is the PUD, the TND and the AAC. Some developments require getting involved with HOAs and becoming familiar with CC&Rs. It’s enough to dizzy even the most steadfast house hunter. Of the many terms to know, it’s MPC — masterplanned community — you might encounter most. A clear understanding of the MPC concept can help you better evaluate your home buying options.
A master-planned community is typically a sizable development that includes housing, as well as recreational areas and facilities. In the Bay Area, most MPCs offer more than one floor plan, and some include townhouses, as well as standalone homes. These developments generally feature in-demand amenities like indoor or outdoor swimming pools, tennis courts, clubhouses and recreation centers. In addition, manmade lakes, walking trails, barbecue pits and wooded areas might be on hand.
Moreover, MPCs may include shopping areas and dining/ entertainment venues. Fee-based social clubs that offer sporting and cultural activities are sometimes part of the picture as well.
The upshot is that MPC dwellers and their family can do nearly everything they need to do — outside of school or onsite work — without venturing outside of the development. The master-planned community takes the idea of
the self-contained neighborhood to a new level.
Some greater Bay Area master-planned communities consist of just a few thousand acres while others might encompass 25,000 or more. Some are gated; some are not. Some may be targeted to specific age or interest groups, while others support a more general resort or vacation-style destination identity.
Each MPC is developed around a central concept. To ensure the look, feel and style of the development — as well as to maintain property values — each MPC developer puts together a set of rules called covenants, conditions and restrictions.
A single MPC may encompass more than one subdivision or neighborhood. Often, each subdivision is developed by a different builder. In such cases, in addition to the CC&Rs that apply to the MPC as a whole, there may be a separate set of CC&Rs for each subdivision, according to Richard Monson, CEO of the California Association of Homeowner’s Associations. As you close in on a buying decision, becoming familiar with the CC&Rs — which may govern everything from parking your car to the conduct of your pet — is wise practice. Knowing the rules are intended to buttress resale value should make perusing the documents more pleasurable.
In the Bay Area, buying into an MPC almost always means joining a homeowner’s association. Dues you pay to the HOA maintain the common grounds and facilities. Where common areas are extensive, if not lavish, these dues may be significant. The upkeep costs of vineyards, golf courses and equestrian facilities, for example, are not small. Needless to say, it’s only reasonable to buy into a community if you are enthusiastic about the activities your dues will support.
Master-planned communities have been part of the real estate landscape for more than half a century, but the last few decades have seen a marked uptick in the menu of available recreational activities and lifestyle themes. As these developments aim to ensure a sense of privacy, security and convenience, if not outright luxury, it’s no wonder they are attracting interest from buyers.