The Villas at Falls Run Condominium

Unit Owners Association

Minutes of a Special Meeting of the Board of Directors

July 28, 2009

The Villas at Falls Run Condominium Board of Directors met on July 28, 2009, at the Center.  The meeting was called to order at 9:01 a.m. by Sherri Burke, President, who determined there was a quorum.  Members present: Carlos Sutton, Vice-President; Nancy Garner, Treasurer; Emery Dilda, Secretary; and Jim Pierce, Member at Large. 

This special meeting was called for the purpose of considering the settlement and release agreement from Pulte. 

Prior to that discussion, a suggestion from our auditor was considered in regards to income tax treatment of our organization due to the write-off of an uncollectible balance from our former management company. 

Nancy Garner made a motion that we file as a corporation to take advantage of the $67,667 loss that had been written off; seconded by Jim Pierce.  Approved unanimously. 

The meeting then returned to the Pulte settlement issue.  Pulte proposed that they agree to pay the Association $40,000 and that they in turn be released from any remaining warranties except the ten-year structural warranty. 

Jim Pierce made a motion that we accept the settlement offer from Pulte; seconded by Carlos Sutton.  A lengthy discussion followed which included consideration that: (1) five-year warranties will soon be expiring; (2) individual units would still be covered for justified repairs but the responsibility would revert to the Association; (3) the legal code required only two-year warranties for condominiums; and (4) the settlement agreement has been in negotiations for over a year.  The motion was approved unanimously. 

Nancy Garner made a motion to adopt the resolution attached as Exhibit 1 to the settlement proposal authorizing the President of the Condominium to sign the agreement; seconded by Carlos Sutton.  Approved unanimously.

The meeting was adjourned at 10:00 a.m.

Emery Dilda, Secretary