Wesley S. Davis District 1. Gary C. Wheeler Chairman District 3. Joseph E. Flescher District 2. Sandra L. Bowden Vice Chairman District 5

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1 Gary C. Wheeler Chairman District 3 Sandra L. Bowden Vice Chairman District 5 Wesley S. Davis District 1 Joseph E. Flescher District 2 Peter D. O Bryan District 4 August 20, 2007 Dear Citrus Springs Residents: I have received numerous letters, s and phone calls from the residents of your subdivision. The majority of the concerns of the residents centered on three main issues: the stormwater retention areas, drainage issues and the turnover from the Master Homeowners Association. Please allow me to address the concerns raised in your calls and letters. On June 7, 2007 Indian River County staff members from Code Enforcement, Engineering, and Community Development divisions, together with staff from the St. Johns River Water Management District met with a group of individuals representing the Citrus Springs Homeowners Association and visited the areas around the development s lakes that were suspected to be out of compliance as the slope of the grade was too steep. After checking many areas of concern to the residents, especially the grade of the soil on the land surrounding the lakes, all slopes were found to be in compliance with the County Code and there were no other issues that were found to be out of compliance with our Code. Staff concluded that most of the erosion associated with the ponds occurred below the normal water line. Recent drought conditions dropped the water below the grass line and well below normal levels. This drop in water levels resulted in the natural erosion of the soil below the grass line which gave the appearance of improper slopes around the lakes. In July, the County Engineering Division re-inspected every completed pond in the Citrus Springs development and verified that the interior banks of the ponds are sloped at 4:1 or better in compliance with County code. A report of the inspection was made and is available by contacting the Engineering Division at At the same June 7th, representatives from St. Johns addressed the drainage issues in Village C. St. Johns representative indicated that they have not released a final permit to Suntree Partners for the storm water/drainage requirements, and they re-iterated that they would not release the permit until all deficiencies are corrected. Unfortunately, St. Johns admitted that they do not hold any bonds or letters of credit for this type of permit and have relatively little enforcement teeth th Street Vero Beach, FL Telephone: FAX: tlister@ircgov.com

2 Citrus Springs Page 2 The County Engineer has recently reviewed the drainage modification plans for this area and had no objection to the remedial work proposed. Also Code Enforcement staff has investigated the complaint about the dead and missing shrubs and trees in the various phases. A code violation notice was issued in the name of the new HOA as the notice was issued after turnover occurred. A hearing on the matter has been scheduled for August 27, For more information on this matter, please contact Code Enforcement Officer Rose Teague at Code Enforcement is still monitoring complaints concerning sidewalks and piles of debris in the development. Hopefully those matters will be addressed so further enforcement action will not be necessary. The County s Office of Budget and Management informs me that they are still holding security from three of the developers that built infrastructure in the various phases of Citrus Springs. Below please find a chart showing the name of the developer, the purpose of the security and the amount security held by the County. Suntree Partners and HMM, Inc. DEVELOPMENT PHASE TYPE/PURPOSE OF SECURITY AMOUNT EXPIRATION DATE Village D, Phase II Letter of Credit for completion of sidewalks $36, Sidewalks to be completed by Feb. 21, LOC to expire May 31, 2008 Village D, Phase II Letter of Credit - guaranty road $40, Letter of Credit expires Oct. 13, 2009 and drainage improvements for 3- years Village D & F, Phase I PD Letter of Credit - warranty road $143, Letter of Credit expires Dec. 29, 2008 and drainage improvements for 3- years Village D & F, Phase I PD Cash deposit for guaranty completion of remaining sidewalk improvements. $7, CASH Improvements to be completed by June 8, 2008 Village E Village E Village F - Phase 2 Letter of Credit guarantees construction of required sidewalk improvements Letter of Credit guarantee road, drainage and sidewalk improvements for 3-year period Letter of Credit guarantees construction of required sidewalk improvements within Citrus Springs Village "F", Phase 2 $70, Improvements to be completed by Feb. 21, LOC expires May 31, 2008 $71, LOC expires Oct. 14, with auto renewals - final expiration of Oct. 13, 2009 $26, Sidewalks to be completed by Feb. 21, LOC expires June 2, 2007 with 1- year auto renewal - expires May 31, 2008 Village F - Phase 2 Letter of Credit warranty and guaranty agreement and bill of sale for roads and drainage for 3- years $79, Letter of Credit expires March 26, 2010

3 Citrus Springs Page 3 Tousa Homes, Inc. and Passage Island Homes, Inc. DEVELOPMENT PHASE TYPE/PURPOSE OF SECURITY AMOUNT EXPIRATION DATE Village G PD Village G PD Agreement for transfer of responsibility for required improvements dated June 2, Developer transferred responsibility to County to construct sidewalks along the project's Oslo Road frontage Bond for paving, drainage and sidewalks- warranty for 3-years Passage Island Homes, Inc $57, CASH $92, May 26, 2009 County to construct sidewalks by June 2, or developer may request refund DEVELOPMENT PHASE Village G PD TYPE/PURPOSE OF SECURITY Letter of Credit guarantee construction of required sidewalk improvements AMOUNT EXPIRATION DATE $68, Letter of Credit expires March 4, sidewalks to be completed by June 6, 2008 At the time the Citrus Springs development commenced, County ordinances only required Contracts for Maintenance of Required Improvements to be held for a period of one year. The contracts were released if the improvements had been completed according to County code requirements at that point in time. If repairs were required going forward, it was the responsibility of the Homeowners association to make the necessary repairs. The County will continue to monitor the existing security it is holding for the various phases. When the expiration date approaches, County Engineering staff will inspect the area covered by the security to insure the sidewalks, roads and drainage have been properly installed and maintained. If problems are found, the County will not release the funds until the problem has been fixed. If the Developer fails to fix the problem, the County will call the letter of credit and use those funds to fix the problem. Please understand that the residents of Citrus Springs do not have to wait until the security is ready to expire in order to have the developer fix a problem with road maintenance, drainage or sidewalk installation and maintenance in the phases covered by the security. So long as the security is in place, the developer has a contractual obligation with the County to maintain these required improvements. Problems with roads, drainage or sidewalks should be addressed to the County Engineer s office at The County Attorney s office has reviewed your concerns associated with turnover. I understand your frustrations with poor documentation and missing information. A developer is required to keep the following information and documents pursuant to (4): (4) OFFICIAL RECORDS.--The association shall maintain each of the following items, when applicable, which constitute the official records of the association:

4 Citrus Springs Page 4 a) Copies of any plans, specifications, permits, and warranties related to improvements constructed on the common areas or other property that the association is obligated to maintain, repair, or replace. (b) A copy of the bylaws of the association and of each amendment to the bylaws. (c) A copy of the articles of incorporation of the association and of each amendment thereto. (d) A copy of the declaration of covenants and a copy of each amendment thereto. (e) A copy of the current rules of the homeowners' association. (f) The minutes of all meetings of the board of directors and of the members, which minutes must be retained for at least 7 years. (g) A current roster of all members and their mailing addresses and parcel identifications. The association shall also maintain the electronic mailing addresses and the numbers designated by members for receiving notice sent by electronic transmission of those members consenting to receive notice by electronic transmission. The electronic mailing addresses and numbers provided by unit owners to receive notice by electronic transmission shall be removed from association records when consent to receive notice by electronic transmission is revoked. However, the association is not liable for an erroneous disclosure of the electronic mail address or the number for receiving electronic transmission of notices. (h) All of the association's insurance policies or a copy thereof, which policies must be retained for at least 7 years. (i) A current copy of all contracts to which the association is a party, including, without limitation, any management agreement, lease, or other contract under which the association has any obligation or responsibility. Bids received by the association for work to be performed must also be considered official records and must be kept for a period of 1 year. (j) The financial and accounting records of the association, kept according to good accounting practices. All financial and accounting records must be maintained for a period of at least 7 years. The financial and accounting records must include: 1. Accurate, itemized, and detailed records of all receipts and expenditures. 2. A current account and a periodic statement of the account for each member, designating the name and current address of each member who is obligated to pay assessments, the due date and amount of each assessment or other charge against the member, the date and amount of each payment on the account, and the balance due. 3. All tax returns, financial statements, and financial reports of the association. 4. Any other records that identify, measure, record, or communicate financial information. (k) A copy of the disclosure summary described in s (1).

5 Citrus Springs Page 5 (l) All other written records of the association not specifically included in the foregoing which are related to the operation of the association. In addition, at turnover, FS (3) states as follows: At the time the members are entitled to elect at least a majority of the board of directors of the homeowners' association, the developer shall, at the developer's expense, within no more than 90 days deliver the following documents to the board: (a) All deeds to common property owned by the association. (b) The original of the association's declarations of covenants and restrictions. (c) A certified copy of the articles of incorporation of the association. (d) A copy of the bylaws. (e) The minute books, including all minutes. (f) The books and records of the association. (g) Policies, rules, and regulations, if any, which have been adopted. (h) Resignations of directors who are required to resign because the developer is required to relinquish control of the association. (i) The financial records of the association from the date of incorporation through the date of turnover. (j) All association funds and control thereof. (k) All tangible property of the association. (l) A copy of all contracts which may be in force with the association as one of the parties. (m) A list of the names and addresses and telephone numbers of all contractors, subcontractors, or others in the current employ of the association. (n) Any and all insurance policies in effect. (o) Any permits issued to the association by governmental entities. (p) Any and all warranties in effect. (q) A roster of current homeowners and their addresses and telephone numbers and section and lot numbers. (r) Employment and service contracts in effect. (s) All other contracts in effect to which the association is a party. (t) The financial records, including financial statements of the association, and source documents from the incorporation of the association through the date of turnover. The records shall be audited by an independent certified public accountant for the period from the incorporation of the association or from the period covered by the last audit, if an audit has been performed for each fiscal year since incorporation. All financial statements shall be prepared in accordance with generally accepted accounting principles and shall be audited in accordance with generally accepted auditing standards, as prescribed by the Board of Accountancy, pursuant to chapter 473. The certified public accountant performing the audit shall examine to the extent necessary supporting documents and records, including the cash disbursements and related paid invoices to determine if expenditures were for association purposes and the billings, cash receipts, and related records of the association to determine that the developer was charged and paid the proper amounts of assessments. This paragraph applies to associations with a date of incorporation after December 31, 2007.

6 Citrus Springs Page 6 Effective July 1, 2007, if a developer fails provide documents to you at turnover, the Legislature has created an alternative dispute resolution process that must be followed before filing a lawsuit. I have enclosed a copy of the new law and the form entitled, STATUTORY OFFER TO PARTICIPATE IN PRESUIT MEDIATION for your review. For further information concerning this process, you may contact: Arbitration/Mediation Section (Condominiums, Cooperatives, and Homeowners' Associations) 1940 N. Monroe Street Northwood Centre, Suite 16 Tallahassee, FL Phone: Fax: I call to your attention paragraph (t) in italics above. Effective for homeowner associations incorporated after December 31, 2007, an audit of the HOA s finances must be provided to the new board at turnover. Unfortunately, this new law does not apply to your current situation but it is a sign that residents such as yourselves that address situations with their elected officials in Tallahassee have the concerns addressed. The Attorneys also inform me that it would be difficult for the County to enact ordinance regulating homeowners associations. State law provides that the Florida Department of Business and Professional Regulation (DBPR) regulates and drafts rules concerning homeowners associations. Normally, when a state agency such as DBPR has regulatory authority over an activity, local jurisdictions are discouraged from enacting ordinance concerning that activity. Even if the County would enact ordinances to try to regulate record keeping issues during turnover, it would not apply retroactively to your situation. Unfortunately, this matter boils down to a civil matter between two private parties. As much as I would like to help out my constituents, I am sorry to say that I cannot lend the power of County ordinances to aid you in your plight with Suntree Partners. You may wish to speak with a private attorney experienced in homeowners association issues to provide you with additional legal advice. It may be worth a small investment now in order to avoid a bigger headache in the future. My sincere best wishes for you all. Sincerely, Peter D. O Bryan Indian River County Board of County Commissioners District 4 Enclosure (1)

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