Clarification of Palos Verdes Homes Association and City Of Palos Verdes Estates Roles and Governance
In Palos Verdes Estates, we are somewhat different than most cities since there are two governing bodies – and a fair amount of confusion about the roles and functions of each. This gives you a brief summary of the two entities and how they each work.
Origins: In the 1920s, the Palos Verdes Project was established and the Palos Verdes Homes Association (PVHA) was set up as a private corporation to govern it. Geographically it covered all of what is now Palos Verdes Estates as well as Miraleste. Initially, the overall project was under the oversight of the Commonwealth Trust Company as trustee and this was shifted to Bank of America. By the 1930s, the trustee role was formally transitioned to the PVHA. The original By-Laws and CC&Rs (Conditions, Covenants and Restrictions) are specified in this “Green book” that is 76 pages long. It has not been amended since then because it requires a 2/3 vote by members to change the By-Laws and CC&Rs.
Included in the original development were approximately 800 acres of open space, which eventually became schools and concessions (Golf, Tennis and Beach Clubs) and about 600 acres of parkland. Because PVHA was a private corporation, it had to pay Los Angeles County property taxes on these parklands and concessions. By 1939, due to the Great Depression, only a portion of the home lots had been sold. Available funds were insufficient to pay these taxes and the entire project faced the prospect of the County foreclosing and seizing the parkland. A creative solution was proposed as a solution to this inability to pay the taxes. If residents voted to establish a new City of Palos Verdes Estates as an unincorporated city, unpaid taxes would be forgiven, and the parklands would be transferred to the City of PVE. The City of PVE would take over most governing functions other than architectural approvals, and no taxes would be owed on parkland moving forward. The measure narrowly passed. The Miraleste portion of the Project was eventually absorbed into Rancho Palos Verdes but is still under the jurisdiction of the PVHA.
So that’s how we ended up with two governing organizations. Here is a summary of our understanding of the differing roles and responsibilities of the two entities:
