Hello Dennis – Are water credits (LTSCs) for the commons area of an HOA a State requirement? Or, do you know of any legislation that references this subject concerning water credits?

I assumed the Water Credits were a builder/developer mechanism to provide justification for a 30 year water plan for a new development- all parcels (commons area) of the development that would be deeded over the HOA while under declarant control. My HOA has transitioned to resident control a few years ago but have continue the practice of purchasing water credits to offset the property taxes, which the ratio is 2.5:1 water credits to Property tax that was exposed this last year because of a paper work SNAFU – they paid both.

All homes built after 1995 have a CAGWR assessment fee base on the previous year water consumption, in their total property tax bill.