January 6, 2016 Minutes
- Called To Order
President R. Miller called the meeting to order at 6:03 p.m. - Roll Call
All Board Members Present: Connie Koontz, Arianne Miller, Russ Miller, Sid Norton and Beth Ann Stoll
CAMS, Inc. Manager: Sharon Johnson and Asst. Cheryl Dennison
Guest Speaker: Nick Burton & Joel Burton of NAB Developments
Note: at Raley’s Conference Center on San Juan Blvd, Fair Oaks, CA.
**Homeowners Present: There were 20 Homeowners present representing 18 Units.** - Bldg., Repairs & Special Assessment and Rental Restriction Policy
- Dry-Rot Repair Report Presentation – Nick Burton of NAB Developments provided the membership with a background of his business as a Construction Consultant and to work closely with a number of vendors to do appropriate repairs as reported on the major exterior components exclusively for Fairway Two HOA to maintain the association. A slide presentation was displayed during the presentation on the various components requiring repairs now and forecasted for the next couple of years. Just recently the HOA Board of Directors approved making repairs to what was classified as “urgent” to replace specific dry-rot components, involving stairwell/roof supports, main beams for second floors, eave trim, fascia repairs all of which was paid for appropriately from the Reserve Account and have been completed. There are still other major components such as the 2nd floor walkway/supports, fascia, trim and siding in addition to the flooring surface whether it is an exterior overlay flooring material, vs. carpeting or mats. The other components are more cosmetic, but will have an impact to the structural integrity if not repaired in the future. Additionally, it is recommended to retain 10%, which is approximately $6,000 on contingency for unforeseen issues during the process of repairs to the specified components. The Total Estimated Cost of Repairs are $67,892 and $10,810 was just completed leaving $57,082 for Dryrot/Exterior Repairs only.
- Currently there isn’t enough money in the Reserves, nor within the next few years on annual increases of Assessments, and if these repairs are not completed, the condition on all of the components will only deteriorate further making necessary repairs having even a greater impact to the structural integrity and in costs. This is the reason the Board of Directors “who are just as impacted as the remainder of the membership” are requesting every owner to participate in the Special Assessment to complete these recommended repairs over the next few years.
- Homeowner of Unit #24 – Expanded on the discussion to the membership, based on his background in construction, the 2nd story floor is of concern, to make the repairs sooner than later as this can have impact to the support beams/joists for the entire 2nd floor units should deterioration continue by not correcting & replacing the materials including installing a waterproofing barrier on the flooring to help preserve the structure in years to come.
- The Board also informed the membership that the Special Assessment is to help fund the Reserves on other necessary projects such as Roofing “both bldgs. & carports, Paving and Tree Maintenance as recommended by Browning Reserve Group from their report to have proper reserve funds available to maintain the community on the time lines forecasted and to not require a Special Assessment in another several years.
- Several Members weighed in on recent plumbing breaks/leaks due to age the past few years, monies for necessary repairs should be reserve for as well by adding in those projected costs to the Special Assessment to be funded properly.
Payments – The Special Assessment of $4,000 per unit would have a payment schedule as follows: The initial $2,000 must be paid in full by 5/1/16 and the remaining $2,000 may be paid in one lump sum or payments by no later than 5/1/17.
- Rental Restriction Policy to Amend the CC&Rs – Manager, S. Johnson spoke to the Membership on the reasons for implementing a Rental Restriction Policy into the Governing Documents are based on FHA requirements to extend financial services to those wanting to purchase in the community, which the HOA cannot have any rentals greater than 50% at this time. This has an impact as well to the existing ownership wanting to refinance and cannot due to the number of rentals in the HOA. The regulation would be kept at FHA standards only, therefore should they change the percentages then the HOA will stay within those guidelines. All existing units that are currently rentals would be grandfathered in until such date the Non-owner/Investor sells the home and if the HOA is over the required percentage then the Unit must be sold to Owner Occupant only, those would be the conditions on approving the Amendment.
- Ballots – The Balloting period has been extended until January 20, 2016 for the owners who have not submitted a ballot to date and CAMS has new ballots to pass out to those needing a new one after tonight’s discussion
- Dry-Rot Repair Report Presentation – Nick Burton of NAB Developments provided the membership with a background of his business as a Construction Consultant and to work closely with a number of vendors to do appropriate repairs as reported on the major exterior components exclusively for Fairway Two HOA to maintain the association. A slide presentation was displayed during the presentation on the various components requiring repairs now and forecasted for the next couple of years. Just recently the HOA Board of Directors approved making repairs to what was classified as “urgent” to replace specific dry-rot components, involving stairwell/roof supports, main beams for second floors, eave trim, fascia repairs all of which was paid for appropriately from the Reserve Account and have been completed. There are still other major components such as the 2nd floor walkway/supports, fascia, trim and siding in addition to the flooring surface whether it is an exterior overlay flooring material, vs. carpeting or mats. The other components are more cosmetic, but will have an impact to the structural integrity if not repaired in the future. Additionally, it is recommended to retain 10%, which is approximately $6,000 on contingency for unforeseen issues during the process of repairs to the specified components. The Total Estimated Cost of Repairs are $67,892 and $10,810 was just completed leaving $57,082 for Dryrot/Exterior Repairs only.
- Adjournment – The meeting adjourned 7:01 p.m.
- On January 6, 2016