Membership Meeting Minutes

1.  Call to Order
            a.  by Marguerite Elia, President
            b.  Introduction of those present

2.  Present
            a.  Marguerite Elia, President; Ron Colton, Vice-President; Eddie Tong, Member at Large
            b.  Community members:  refer to sign-in sheet (attached)
            c.  Reggie Schubert, Senior Attorney, Adams Sterling, Professional Law Corporation

3.  Agenda
            a.  Reggie Schubert to present the proposed CC&R Amendment to restrict PROE rentals to 20%

4.  Discussion
            a.  Reggie discussed why the proposed Amendment limiting rentals should be implemented
                        1.  Operational costs, maintenance, security and enforcement, increase as rentals increase
                        2.  Insurance rates will increase for both HOA and homeowner policies
                        3.  Mortgages will become more difficult and expensive if rental rates rise to 50%
                                    a. Some desirable loans may not be available, some lenders will simply decline to lend
            b.  Marguerite discussed the current rental status
                        1.  We are at approx. 32% not counting family rentals; approx. 36% if family rentals are included
                        2.  HOA insurer has not raised our rates due to our good claims history
                                    a. Last two claims were related to rental units and were determined to be fraudulent
                                    b. Most insurance companies raise rates at 30% rentals
                        3.  Mortgage providers are now requiring lot by lot breakdown of rental vs owner occupied status
            c.  Reggie went over the proposed Amendment paragraph by paragraph
                        1.  This was a quick review as the proposed Amendment is self-explanatory
                        2.  He emphasized several times that the proposed Amendment did not apply to current owners
                        3.  This Amendment will have virtually no immediate impact, this is for the long term benefit
                                    a.  It would however impact the ability to have an investor as a potential buyer

5.  Questions and Comments
            a.  Most questions were centered on clarifying that existing homeowners are exempt from the restriction
            b.  A concern was raised that questioned whether individual insurance rates would be impacted
                        1.  Reggie answered that rates are partially based on community risk
                        2.  Rate increases could vary by insurer and owners should check with their individual company
                                    a.  Noted again that the HOA has not yet received a rate increase
            c.  A question was raised about voting, homes able to vote, and the votes needed to approve
                        1.  Only the person(s) who is named on the deed may cast a ballot for a residence
                        2.  80 homes are potentially able to vote, the two Yeager homes are not a part of our HOA
                        3.  To be eligible to vote, a homeowner must be current with all assessments, late fees, etc.
                        4.  For an election to be valid, 66% of eligible voters must submit a ballot
                        5.  To pass, the Amendment must be approved by not less than 51% of the submitted ballots
                       
6.  Adjournment
            a.  Marguerite adjourned meeting at 7:35