JOINT BOARD AND MANAGEMENT MEETING

MARCH 13, 2007

On March 13, at 12:00 PM, the FRCA and Villas’ Boards along with Armstrong Management and Jeffrey Charles and Associates met in an open session to discuss seventy-two violations that were issued by the Villas Board and their management company to Villas residents.

Present:  Villas’ Board members: Hugh Muir, Joan Bitely, and Nancy Garner along with Jeff Turner of Jeffrey Charles and Associates. Representing the FRCA Board: Chuck Heath, Art Gabler, Toni Brown, and Bill Nosal, along with Jim Armstrong and Sylva Southwell of Armstrong Management.

 Bill Nosal opened the meeting stating that the main purpose of the meeting was to define the role of the Modification Committee for all of Falls Run.  He then turned the meeting over to Chuck Heath, former chair and current liaison of the Modification Committee.  Chuck made his opening remarks based upon the suggested agenda that was distributed to all in attendance at the meeting:

Role of FRCA Modifications Committee  (The real question that needs to be addressed and agreed to is what the role of the FRCA Modifications Committee will play, if any, in the management process carried out by the Villas BOD?  Put in another way, should the Villas BOD form its own Modifications Committee to review Villas’ resident applications for change, and if so, do the FRCA CC&Rs allow for such an action?)

·        Review of FRCA CC&Rs Articles XIII and VIII (Available on the Web Site or Blue Book)

·        Review of Villas Building and Covenants Committee Charters (available on the Web Site) and January Update Article on “Villas Covenants Committee Enforcement”

·        Open discussion between Boards and Management Companies

·        Recommendations

·        Future Actions

·        Adjournment

Chuck raised the issue of violations sent out by Villas:

          Were they legal?

          Were they a duplication of responsibility?

          They were done without the advice of FRCA or Modification Committee?

          What was the basis for violations and enforcement?

Chuck then made reference to Article VIII and Article XIII of the Covenants, Conditions and Restrictions with the comment that he was not aware of any document from FRCA giving Villas authority to issue violations, fines, etc. He stated that he is definitely not in favor of duplicating work.  In his opinion, division of responsibilities is fine, two Modification Committees would be fine, but they would have to be established legally, in accordance with the CC&R directives.

Overall, he would like to gain a better understanding of what the Villas Board is doing.

Art Gabler asked:  Did all Villas residents receive the big Blue Book?  The answer was yes.  He then pointed out that the Design Guide Lines apply to all of Falls Run, although the Villas have additional use restrictions.

Jeff Turner stated that the Villas Board has the power to enforce rules and use restrictions on units and the common elements of the Villas.

Toni Brown asked Joan Bitely under what authority the Villas Covenants Committee was established.  Joan responded the Committee was approved by the Villas’ Board. Toni inquired further whether any committees were specifically mandated by the Villas documents.  According to the FRCA By-laws the FRCA Board is mandated to establish a Modification Committee which shall approve all Regulated Work (see Blue Book for definition of Regulated Work) for all of Falls Run.  The FRCA Board also is given the authority to establish a Covenants Committee with their authority spelled out in the By-laws, Article V.

Nancy Garner asserted the Villas committee did not feel they were overstepping their bounds as they only looked at and issued violations that had to do with the common areas in the Villas.

The question was asked why the Little Blue Book was necessary.  Joan Bitely explained that the Big Blue Book was confusing and the Villas Owners Handbook (The Little Blue Book) was written in an attempt to guide new Villa owners through the unique rules and regulations of living in a condominium association. Many of the residents of the Villas have never lived in a controlled community and are not used to the restrictions.

A lengthy general discussion continued, questions were raised from those in attendance, comments were made. A Villas resident remarked there was a great deal of confusion associated with the enforcement of the Villas’ rules.  Residents want the rules to make sense.  Another resident added that maybe things would work better if the Villas Board would exercise more common sense.

Chuck Heath, after the general discussion, summed up his opinion of the responsibilities of the two Boards.  Below is his summation and report of the meeting:

FRCS-Villas Joint Board of Directors Meeting

March 13, 2007

A special, public meeting was held on March 13, 2007 between the Falls Run Community Association (FRCA) Board of Directors, the Villas Board of directors and our respective management companies: Armstrong and Jeffrey Charles.  Between 40 and 50 homeowners attended the meeting in addition to those afore mentioned. 

The purpose of the meeting was to review the legal documents that form the basis for the conduct of inspections and the issuance of violation notices to homeowners who are in violation of the Covenants, By-Laws, Design Guidelines, and Public Offering Statements for the single family homes and the Villas.

Lengthy discussions were held by the Board members, the representatives of the management companies, and the homeowners about the process for conducting inspections, the issuance of violation notices, responsible parties, the single family home and Villas legal documents, and other related matters.

Following is the summary of responsibilities for the FRCA and Villa Boards of Directors and their respective management companies:

·        The FRCA through its Modifications Committee is responsible for approving any and all changes to the exterior of all single family homes and Villa units.  This is clearly stated in the CC&Rs that apply to all single family homes and Villa units.  This authority is defined in the Design Guidelines as “regulated work.”  The Modification Committee and its management company will conduct periodic inspections of all single family homes and Villa units and issue notices when corrective action is required to bring a home/unit into compliance with the Design Guidelines.

·        The Villas Board of Directors has the responsibility to ensure that the Villas “Common Areas” meet all the use restrictions that are set forth in the “PUBLIC OFFERING STATEMENT FOR THE VILLAS AT FALLS RUN CONDOMINIUMS” that each unit owner signed for when they purchased their condominium.  The Villas Board of Directors has the responsibility to conduct periodic inspections of the Villas Common Areas and issue notices when corrective action is required to bring a unit into compliance with the Common Area Use Restrictions.

Both Boards of Directors thank the community for their excellent participation to add clarity to this important matter.

Submitted by,

Toni Brown, Sec. FRCA