Presentation on theme: "River Pines of Farmington Condominium Association Spring Informational Meeting May 26, 2010."— Presentation transcript:
River Pines of Farmington Condominium Association Spring Informational Meeting May 26, 2010
2 Meeting Agenda Introduction -- Board of Directors Operating Budget Status Reserve Plan Financial Status FHA Certification Project Updating the Association Bylaws. Development of a Consolidated Master Deed
3 Meeting Agenda (Contd) Status of Association projects Roof replacements Concrete Asphalt Siding replacement Painting Window repair and replacement Deck repair and replacement Deck Staining Others
4 Meeting Agenda (Contd) Minimum Maintenance of Areas B and C Neighborhood Watch Closing Remarks Questions and Answers
5 Board of Directors President Ed LeFevrel Vice PresidentDonna Jones TreasurerThomas Cornell SecretaryGene Kerwin DirectorJoyce McFadden DirectorShirley Niesyto DirectorBob Eix
6 Financial Information Operating Budget – (as of 4/30/10) 2010 Budget $1,128,593 Spent to Date – 350,169 Commitments - 619,403 Balance of funds - $ 159,021 – 14%
7 Financial Information (Contd) Reserve Plan – (as of 4/30/10) Projected Expense$ 604,301 Spent to Date – 132,435 Commitments - 234,599 Funds to be spent - $ 243,912 – 40%
9 FHA Certification Project In 2009, the FHA issued new rules and regulations for FHA Condominium mortgages These new rules became effective February 1 st, 2010. FHA will now insure condominium mortgages up to $297,000
10 FHA Certification Project (Contd) New FHA rules for the following: Delinquencies 50% Owner-Occupancy requirement Number of FHA mortgages allowed Review of the association budget Professional reserve studies every 2 years Insurance requirements Investor ownership
11 FHA Certification Project (Contd) Why did the FHA issue these new rules for Condominiums? The FHA identified several condominium issues that needed to be addressed to support the co- owners
12 FHA Certification Project (Contd) Why did the FHA issue these new rules for Condominiums? Many condominiums around the country have problems with insufficient funds for maintenance Insufficient Reserve Funds Developers not completing construction as planned
13 FHA Certification Project (Contd) Why do we want FHA Certification? FHA rules establish minimum requirements There is concern that banks and mortgage lenders may not approve new mortgages without the condominium site having FHA Certification
14 FHA Certification Project (Contd) With the decline of property values in Michigan, all River Pines Condos fall within the FHA maximum mortgage limit. FHA will grant insured mortgages for up to 50% of the units within the complex The 50% rule applies thru December 31, 2010 Concentration may be reduced to 30% after 12/31/10
15 FHA Certification Project (Contd) What do we have to do? An updated professional reserve study was completed in March 2010 Revise our Bylaws to conform to the FHA requirements Provide financial documentation regarding our operating budget and reserve plan funding
16 FHA Certification Project (Contd) What do we have to do? The Bylaws must be approved by 67% of the co-owners The Bylaws must then be approved by 51% of the mortgage lenders
17 FHA Certification Project (Contd) What do we have to do? This approval process may take until September 2010 to complete During this time mortgage availability may be seriously limited
18 FHA Certification Project (Contd) What do we have to do? So, under these circumstances the Board feels FHA Certification is desirable
19 FHA Certification Project (Contd) Bylaw Revisions – Within the past 2 weeks you received a Ballot from our association attorney, Alexander, Zelmanski, Danner, Fioritto, PLLC If you did not receive a ballot we will provide one at the end of this meeting. As mentioned, these revisions are necessary to meet the FHA Certification requirements
20 FHA Certification Project (Contd) Bylaw Revisions (Contd) – There are 6 sections of the Bylaws that need to be revised. Article V, Section 1)b)….. change from 75% approval to 67.5 % approval. Another change involves the unit lease term of 6 months
21 FHA Certification Project (Contd) Bylaw Revisions (Contd) – Under Article VII Mortgages,, co-owner and association responsibilities are defined when a co-owner mortgage is initiated Under Article XIV Amendments, wording changes have been incorporated to meet FHA Certification requirements.
22 FHA Certification Project (Contd) Bylaw Revisions (Contd) – In reviewing the Bylaws for this project we observed some clarification and general housekeeping items that should be corrected
23 FHA Certification Project (Contd) Bylaw Revisions (Contd) – There are 6 additional changes to the Bylaws that are considered housekeeping items We have added some clarification to Article V, Section 4 Co-owner responsibilities
24 FHA Certification Project (Contd) Bylaw Revisions (Contd) – Paragraph (a) - The unit furnace is a co- owner responsibility and the furnace stack is now specified as part of the furnace system Paragraph (b) - The door wall lock system is part of the unit security and is now specified as co-owner responsibility
25 FHA Certification Project (Contd) Bylaw Revisions (Contd) – Paragraph (c) – Clarified that the electrical circuit breakers and electrical panel are co-owner responsibility Paragraph (d) – Added owner installed outside faucets are co-owner responsibility Paragraph (h) (i) – Skylights installed on the roof are co-owner responsibility
26 FHA Certification Project (Contd) Bylaw Revisions (Contd) – Section 6, Aesthetics – The restrictions for car washing and the shaking of rugs has been removed We encourage and ask you for a Yes vote on this proposal for the benefit of all Co-owners
27 FHA Certification Project (Contd) Bylaw Revisions (Contd) – We have our association attorney Greg Fioritto, McShane & Associates Vice President Lloyd Silberman and Board Members available tonight to provide clarification on the Bylaw changes. Questions regarding the Bylaw changes will be answered at this time.
28 Consolidated Master Deed Why do we need a Consolidated Master Deed? The final amendment to the Master Deed has never been recorded with the Oakland County Register of Deeds
29 Consolidated Master Deed The final amendment to the Master Deed must include the final or as built drawings for the complex and includes: Unit location and square footage Locations of street and roads Utility easements Final property survey
30 Consolidated Master Deed The existing Black Book that all co- owners have consists of a 22 page Master Deed and 23 amendments with many supporting drawings. The entire document consists of nearly 500 pages
31 Consolidated Master Deed The drawings are currently shown as Proposed drawings. All of the drawings have to be finalized and our engineering firm, Zeimet Wozniak, is required to certify them as As Built drawings.
32 Consolidated Master Deed By developing a Consolidated Master Deed we will end up with a document that consists of approximately 13 pages with 70 drawings. The CMD will be a significantly smaller document for co-owner records and the black book can be discarded.
33 Consolidated Master Deed In developing the CMD there is some housekeeping that needs to be done. There are typos that should be corrected
34 Consolidated Master Deed There are some references to high rise condominiums and these sections do not apply to River Pines There are some terms and definitions that need to be clarified
35 Consolidated Master Deed Therefore, the CMD will include the applicable sections of the original Master Deed and the finalized drawings Once the document is recorded with the Oakland County Register of Deeds a copy will be mailed to all co-owners
36 Consolidated Master Deed So this is another project we have been spending a significant amount of time and effort to finalize Also, the FHA Certification regulations requires us to have all our legal documents in order
37 Status of Association Projects Each year we have reviewed the major projects that are planned for River Pines In light of the discussion and time spent on the FHA Certification Project I have decided to dispense with the detail review of these projects
38 Status of Association Projects With the cooperation from the weatherman this year we have gotten off to an early start on most of our projects particularly the addition of the trim boards, unit painting and window repairs The project costs are tracking very close to our cost projections
39 Status of Association Projects Minimum Maintenance Areas – defined as: Area B - the wooded area bordered by Lancrest, Blue Spruce and Lone Pine Lane Area C – the wooded area by the Pump House
40 Status of Association Projects Minimum Maintenance Areas (Contd) Many of you walk through these area and Im sure you have noticed the improved look this year. The Trees are flourishing and we have planted grass that has really made the area look great.
41 Status of Association Projects As you walk these areas Im sure you have noticed we have a growing crop of Garlic Mustard Minimum Maintenance Areas (Contd)
42 Status of Association Projects Here are some Photos of the Garlic Mustard -
43 Status of Association Projects These plants are easily pulled and we are asking you walkers to help us keep this crop to a minimum When walking through these areas please help us by pulling any of these plants you see and put them in a pile or the trash cans we plan to provide
44 Status of Association Projects We will have Greg, our maintenance man, pick them up and dispose them
45 Garage Sale Our Annual Garage Sale is scheduled for June 11 th and 12 th. We need a volunteer to coordinate this event Joyce McFadden will provide the information needed to do this coordination
46 Neighborhood Watch Unit Break-ins continue to be a reality There are many reasons for break-ins: Economy Opportunity Leaving garage doors open Pay attention to the activity around your unit
47 Neighborhood Watch Unusual activity should be investigated Dont be afraid to call the Police…..particularly after hours Call our Site Manager - Bob Goodman or our Maintenance Man - Greg Confronting a potential burglar sends a message to other criminals
48 Neighborhood Watch Be alert…… and pay attention to what is going on in your area
49 Neighborhood Watch We have Bill Dwyer here tonight and he is well know for his Police activity within our community Comments --
50 Social Committee Bev Cornell has a couple of announcements -- Social Committee items Volunteers for Flower Planting
51 River Pines Information Meeting We have copies of the River Pines 2009 Financial Audit available on the table as you exit Pick up a copy if you are interested
52 River Pines Information Meeting We have covered many items here tonight and I trust the evening has been informative for you It is amazing how many issues we have to deal with in managing this Association The Board takes all these issues seriously and tries their best to resolve them satisfactorily
53 River Pines Information Meeting Sometimes we succeed easily and other times we struggle………but we are trying!!!
54 River Pines Information Meeting I hope you have had a good evening and well answer a few more questions and then adjourn the meeting
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