Proposed Amendments to HOA Rules 2010

I have put forward two proposed amendments to the HOA's Governing Documents that would provide the option for homeowners to pay their annual dues on a quarterly basis. Following is what was submitted to the Board of Directors. (Deletions are struckthrough, and additions are underlined.)

With today's economic issues, many homeowners may struggle with the requirement to pay for their HOA Assessments at the end of the year. The purpose of these amendments are to provide the option to homeowners to pay their assessments (dues) on a quarterly basis. Currently the Board of Directors has the authority to determine if payments can be made on a quarterly basis, however this decision has not been made. These amendments would make it a right for all homeowners to elect to pay their dues on an annual basis or a quarterly basis.

Amendment to Covenants, Conditions and Restrictions
Article II, Section 3 (a)

In accordance with Article X, Section 2 of the Plantation Springs Homeowners Association Covenants, Conditions and Restrictions the following amendment is proposed.

Current Rule

(a) Units Owned by Class A Members. Subject to the terms of this Article, each Affected Lot is hereby subject to an initial maximum assessment of $75.00 per quarter or $300.00 per annum [until such assessment shall be adjusted in accordance with the By-Laws of the Association (provided that the maximum annual assessment may be increased each year not more than ten percent (10%) above the maximum assessment for the previous year without a vote of the membership of the Association, as provided in the By-Laws of the Association)], for the purpose of creating a fund to be designated and known as the “assessment fund”, which assessment will be paid by the Owner or Owners of each Affected Lot in advance in quarterly or annual installments. The assessments shall commence as to each Affected Lot upon its conveyance by Declarant to an Owner that is not an affiliate of Declarant. The rate at which each Affected Lot will be assessed, and whether such assessment shall be payable quarterly or annually, will be determined by the Board of Directors of the Association at least thirty (30) days in advance of each affected assessment period. Said rate may be adjusted from time to time by the Board of Directors as the needs of the Association may, in the judgment of the Directors require. The assessment for each Affected Lot shall be uniform. The Association shall, upon written demand and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether or not the assessment has been paid for the assessment period.

Proposed Rule

(a) Units Owned by Class A Members. Subject to the terms of this Article, each Affected Lot is hereby subject to an initial maximum assessment of $75.00 per quarter or $300.00 per annum [until such assessment shall be adjusted in accordance with the By-Laws of the Association (provided that the maximum annual assessment may be increased each year not more than ten percent (10%) above the maximum assessment for the previous year without a vote of the membership of the Association, as provided in the By-Laws of the Association)], for the purpose of creating a fund to be designated and known as the "assessment fund", which assessment will be paid by the Owner or Owners of each Affected Lot in advance in quarterly or annual installments. The assessments shall commence as to each Affected Lot upon its conveyance by Declarant to an Owner that is not an affiliate of Declarant. The rate at which each Affected Lot will be assessed, and whether such assessment shall be payable quarterly or annually, will be determined by the Board of Directors of the Association at least thirty (30) days in advance of each affected assessment period. Said rate may be adjusted from time to time by the Board of Directors as the needs of the Association may, in the judgment of the Directors require. The assessment for each Affected Lot shall be uniform. The Association shall, upon written demand and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether or not the assessment has been paid for the assessment period.

Explanation

This amendment modifies the CC&R's to provide the option for homeowners to pay their Association Assessments (Dues) either annually or quarterly. The Association Bylaws are also being amended (Article IX, Section 8.2) to provide for the dates that payments would fall due both for annual or the quarterly payment options. This amendment removes the option for the Board of Directors to make this decision, and codifies this as part of the Association's Bylaws.

Amendment to the Bylaws
Article VII, Section 8.2

In accordance with Article IX of the Plantation Springs Homeowners Association Bylaws the following amendment is proposed.

Current Bylaw

8.2 ASSOCIATION DUES. Association dues shall be payable and due January 1st of each year. The payment will be considered late after thirty (30) days and the owner will be assessed a late fee of twenty five dollars ($25.00) every thirty (30) days thereafter.

Proposed Bylaw

8.2 ASSOCIATION DUES. Association dues shall be payable and due January 1st of each year. An owner may elect to pay Association dues annually or quarterly (calculated by dividing the annual assessment into four (4) equal amounts). For annual payments the due date is January 1st, and for quarterly payments the due dates are January 1st, April 1st, July 1st and September 1st each year. A payment will be considered late after thirty (30) days from the due date and the owner will be assessed a late fee of twenty five dollars ($25.00) every thirty (30) days thereafter.

Explanation

This amendment will provide that homeowners have the choice to pay their HOA dues (assessments) either annually or quarterly. The amendment also defines when the due date falls for each payment option, and maintains the existing late fee that is assessed for payments not made within thirty (30) days of the due date (this remains unchanged).

The effect of this amendment will not impact the budgeting or expenditures of the community as a whole, given the accounting standards that apply to the Association. A slight decrease in interest may occur as a result of this change.