Covenants and Restrictions

Member Presentation

August 27, 2015

DRAFT 2

Where to Get Information

August, 2014

Click HereLook for C&R Amendmentsheadline

DRAFT 3

Ad Hoc Governing Documents Committee

• Russ Dickinson(Chairperson)

• Jim Biers (BOD Rep)

• Jerry Wishall (Secretary)

• Kirk Smith (COO)

• Charlie Creran (Ex Officio)

• Ron Hinkel • Fred Muller• Bill Riha• Mike Slapak

August, 2014

Recommend Changes to Out-Dated Documents to Meet Changing Needs of SLV, Ensure Financial Security &

Provide for Membership Changing Needs

DRAFT 4

Agenda

1. Why We’re Here

2. Proposed Revisions

– Controlling Our Own Destiny

– Updating Language

3. Listening to Your Input and Feedback

4. Next StepsAugust, 2014

DRAFT 5

Why We’re Here

• Inform Community

• Listen to Member input and feedback

• Answer Questions

• Solicit Your Help – We Need You to Vote

August, 2014

DRAFT 6

What Are The SLV Covenants

• Define membership, property rights, rules and types of assessment amounts and fees.

• Define property use restrictions.

• All members are required to follow as property owners.

• Amended November 30, 2011*

* Amend any time with 50% approval of eligible voters.

August, 2014

A Contract Between You and the Association

DRAFT 7

Why Change

• Started by a developer for THEIR benefit.

• 26 years old.

• Do not reflect today’s operating environment or our needs.

• Contain many obsolete provisions.

• Are complex, difficult to understand.

• Missing provisions found in most modern covenants.

• Update makes them more relevant and clear.August, 2014

SLV No Longer A Real Estate Development Project We Are a Community Operated For Benefit Of All Members

DRAFT 8

What This Means To Me

• Provides for better control of our own destiny.• Clear covenants that reflect how SLV actually operates.• Better membership understanding of important

governance issues.• Improves transparency and clarity.• Supports future community improvements.• Improved governance favorably impresses prospective

new members.

August, 2014

Financial Stability Supporting Community Growth

DRAFT 9

PROPOSED REVISIONS

Investing in Our Community

August, 2014

DRAFT 10

Topics

1. Assessments and Fees

2. Membership and Voting Rights

3. Regulations and Procedures

4. Property Rights

5. Other

August, 2014

DRAFT 11

Assessments and Fees

• Annual Assessment Amount rate increase remains capped at greater of 5% or CPI.

• Property Transfer Fee is greater of $250 or 0.5% of sales contract price; not applicable to transfer between spouses or heirs.

• Cost to maintain exterior of unkempt Lots and Living Units is named “Specific Property Assessment”.

August, 2014

No New AssessmentsProperty Transfer Fee Increase

DRAFT 12

Membership and Voting Rights

• No changes to General Member definition.  • Obsolete Membership types removed (CooperShare and

Developer).  • Current eight (8) Associate Members retain voting rights.

New Associate Members will have no voting rights.    • No voting rights for any new future class of membership.• Guest Cards may be issued for use of amenities and to

assist in sale of Lots, Living Units and Associate Memberships. 

August, 2014

No Change to General Member Voting Rights

DRAFT 13

Regulations and Procedures

• Ability to vote by electronic record added.

• "Creation of Lien" language updated to include Specific Property Assessment.

• Clarified remedies and charges for delinquent accounts, and effect on Member's rights.

• Defined "Reserve Fund" as fund for:– future capital improvements– additions and periodic maintenance of facilities and assets – construction of any capital improvement on Common Properties.

August, 2014

DRAFT 14

Regulations and Procedures

• Added requirement that surplus funds must first be used to pay current Common Expenses, then credit either next year's assessment and/or the Reserve Fund.

• Updated existing article on “Maintenance" allowing Association to do maintenance, repair or replacement obligation on properties the Owner cannot or will not do.

• Revised Use Restriction language of Home Businesses to be non-disturbing to neighborhood and in compliance with Property-Wide Standards.

• Revised Use Restriction language for Livestock, Poultry and Pets.

August, 2014

DRAFT 15

Property Rights

• SLVPOA and Eight Acre, LLC are the only Developers.

• Only a Developer can subject additional lands to SLV Declaration of Covenants and Restrictions.

• Defines how, and conditions for bringing additional properties into SLV.

• Defines process for amending the use of Existing Properties and the appeal process for Members.

August, 2014

No Changes to Member Rights

DRAFT 16

Other

• "Club" replaced with "Association" throughout.• Articles and Sections deleted as obsolete, not required:

– Articles on "Reserved Properties”, "Plans for Construction and Maintenance ...“.– Covenant for Maintenance Assessments removes obsolete language on Developer rights. – Deletes section regarding Delegation of Collection Assessments as not required.

• Language added and updated:– "Whereas" clauses updated (document’s history).– Future designation of Common Property by the Association to be binding upon each Owner.– Right to obtain a Statement of Account from the Association.– Ability to recover costs incurred by the Association from Violators.– Failure to enforce any provision of the Association Legal Documents shall not be deemed a waiver of rights.– Updates process for terminating this Declaration.– Adds Developer right to assign, transfer or convey any reservations, rights or obligations and be immediately released

and discharged of all liability.– Legal representatives, heirs, successors and assigns of all parties mentioned are bound to the provisions of this

document.

• Sections moved or consolidated:– Plats subject to SLV Covenants and Restrictions moved to Exhibit 1.– Re-writes and consolidates articles regarding Owner and Association responsibilities for maintaining properties.

August, 2014

DRAFT 17

Frequently Asked Questions

• Why didn’t we revise covenants before now?

• I heard other types of assessments were considered. What happened to them?

• Why was the Property Transfer Fee increased?

• Who approves the amendments to Covenants?

• What is the biggest challenge to adopting these proposed revisions?

August, 2014

DRAFT 18

What Happens If Not Approved

• Existing covenants remains in place.

• Obsolete provisions remain in place.

• Property Transfer Fee remains as a Personal Charge at $250.

• Weaker control of Developer subjecting additional lands to SLV C&R’s.

• ACC Property-Wide Standards constrained by Covenants.

August, 2014

DRAFT 19

Next Steps

1. Incorporate appropriate member feedback.

2. Voting October 12th thru 30th 2015.

– A Single Package - Board Elections, Annual Meeting Proxy Authorization and C&Rs

3. A "YES" vote – 50% of eligible voters as of August 28th needed to approve.

August, 2014

DRAFT 20

PLEASE VOTE

August, 2014

Not Voting is a "NO" Vote - Please Vote