Date:    August 30, 2003

 

Position Report of the HOA Management Team-

In Response to Brent McQuarrie’s Letter

 

 

Since the arrival of Legacy in 2001, the Management Team has worked diligently to ensure that the Lakeside Village Homeowner’s Association (HOA) is well organized, adequately funded and operating within the Covenants, Controls and Restrictions (CC&R) of Lakeside Village and the Utah Condominium Homeownership Act.   We believe that it is in everyone’s best interest to work together with Legacy in an attempt to develop solutions that are a win-win for everyone involved.  

 

We would like to update the homeowners on three (3) main points outlined in the most recent communication from Mr. McQuarrie.

 

1)      HOA DUES:

 

The Management Team has a fiduciary duty to all Owners to assure that assessments are collected according to the CC&Rs and the Utah Condominium Homeownership Act.  The Utah Condominium Homeownership Act states that all Fee Simple Title Holders must pay their individual assessment. 

 

Legacy’s Interpretation of the CC&Rs suggests that a developer is not required to abide by the Utah Condominium Homeownership Act and is exempt from paying dues.  As a result of much negotiation between Legacy Properties and the HOA, the developer has proposed a payment arrangement which would require the payment of full dues on condos which are in the rental pool.  Condos which have been completed but are unoccupied and are not included in the current rental circulation, the developer has proposed payment on assessments for sewer and insurance.  This option would place the burden of all other expenses associated with these units (such as snow removal, common electricity, landscaping, reserve expenses, etc) on all other homeowners, thereby placing the HOA in a position of subsidizing costs normally carried by the developer.

 

The HOA attorney has strongly advised us against an arrangement that would violate the Utah Condominium Homeownership Act; therefore, the HOA believes that the developer’s current proposal is unqualified.

 

However, as was explained to Brent at our last meeting, if we as homeowners would like to subsidize Legacy’s development costs, we can put this to a vote at the annual HOA meeting (a vote would be required to make this kind of arrangement). The Management Team would suggest modifying the developer’s request to include common electric costs and snow removal expenses. There should also be a limit to the number of units allowed under this arrangement.  Legacy is currently assessed for three units. Legacy will not have any new units dedicated until December and the annual meeting would normally be held sometime in January.

 

2)      Use of the Clubhouse as a Real Estate Office and Property Management facility:

 

Legacy has suggested that they are not obligated to deed the Clubhouse to the HOA, however, at the April 22nd meeting of the Weber County Planning Commission, the County required Legacy to submit a plat, including the Clubhouse and recreation area as part of the phase five dedication to the homeowners, scheduled for December 2003.

 

Although not required by the CC&Rs, the Management Team has supported use of the clubhouse as a sales office until the end of the current Declarant period (2007 or sale of all units), under the following conditions:

·        Legacy pays a nominal rent for the sales office and rental area after the clubhouse has been dedicated.

·        Homeowners are allowed access to the owners’ portion of the clubhouse during reasonable hours (6:00 a.m. to 10:00 p.m.) 


Legacy has requested that we change our CC&Rs to allow for a 15-year occupancy of the Clubhouse for Property Management (as per the latest request, this has been reduced to 10 years.)  Since changing the CC&Rs requires a legal document and a vote, we sent this request to the HOA attorney who strongly advised against a special contract.  The Management Team feels certain that we can find a workable solution without changing the CC&Rs.  One such solution includes a Property Management lease between Legacy and the Lakeside Village HOA to be reviewed on an annual or bi-annual basis (annual meeting).

 

 

 

3)      HOA Board Control:

 

Because the HOA has taken a strong stand against subsidizing costs usually incurred by the developer, Legacy has been threatening the HOA with a lawsuit which attempts to take control of the Management Team.   In April of 2003, Legacy sent a certified letter to all homeowners stating that Legacy was attempting to take control of the HOA and install three (3) of their employees as the prevailing Management Team.  Believing that this move was not in the best interest of the homeowners, we were forced to obtain legal council to advise us of our rights as homeowners.  Our attorney advised that, based on the verbiage contained in the CC&Rs, Legacy effectively forfeited their opportunity to take control of the HOA. 

 

In Summary:

 

The Management Team is comprised of homeowners: new, old, absentee and resident homeowners. We are building a community.  Our community is important to all of us and we will work for fairness and compromise within the framework of our bylaws and fiduciary responsibility.  We ask that Legacy work with us within the same framework.

 

Legacy has the opportunity to enlist each of the homeowners, as partners in building a model community dedicated to creating a jewel on Pineview Lake.  We are open to finding new solutions to the issues outlined above that will work well for Legacy and the homeowners as we build this dream together. 

 

Sincerely,

 

 

Lakeside Village Homeowners Association

HOA Management Team:
Anita Oliveri - President

Don Haven - Treasurer         

Geoff Granum – Co Treasurer

Mark Rasmussen - Vice President

Mike Mitchell - Vice President 

Mary Finan - Secretary