SUMMARY OF THE SALIENT FEATURES OF THE TOWNHOMES OF TIMBERLAND

Transcription

1 SUMMARY OF THE SALIENT FEATURES OF THE TOWNHOMES OF TIMBERLAND LIMITED USE OF THIS SUMMARY The purpose of this summary is to briefly describe the salient features of the Townhomes of Timberland for introductory purposes. Since summaries, by definition, are incomplete, reliance on same is not advised. For full, accurate and complete details, refer to the official documents as follows: 1. Declaration of Covenants, Easements, Charges and Liens for Townhomes of Timberland dated June 20, 1990, recorded among the Land Records of Howard County in Liber 2347, Folio 317, et seq. 2. Articles of Incorporation of Townhomes of Timberland Association, Inc. 3. Bylaws of Townhomes of Timberland. THE TOWNHOMES OF TIMBERLAND COMMUNITY Townhomes of Timberland is a community ( The community ) located in Howard County Maryland and being developed by Taylor Land Service Company, Inc. The subdivision consists of approximately 53.8 acres which is divided into 107 attached family lots, and 4 Open Space Lots. Each lot will be owned in fee simple by an individual homeowner ( the Owner ).

2 TOWNHOMES OF TIMBERLAND ASSOCIATION, INC. BUILDER/DEVELOPER RESPONSIBILITIES The Developer/Builder has the responsibility of establishing the association. They must appoint the first board of directors and govern the subdivision until the Development Period ends. They have a legal responsibility to inform the homeowners of the existence of an association, its purpose and scope, any and all rules and regulations, and, what the monthly assessments are. (This responsibility is ultimately met at settlement when the homeowner acknowledges receipt of this booklet which contains all of the governing documents). Ideally, the developer/builder should inform, train, and assist new owners in how to run their organization, explaining the governing documents that provide guidelines to association management and familiarizing them with the process of making decisions and doing the necessary work. Most homeowners know little about how to operate an association or manage property. These owners must prepare themselves for the eventual turnover of association control. They must learn the fundamentals of how to financially and physically maintain the subdivision and enforce the community s rules and regulations. For this reason, Taylor Land Service Company, Inc., actively encourages the residents of Townhomes of Timberland to play a participative role in the association s affairs. To assist them in the above responsibilities, the Developer controlled board of directors have done a number of things. For one, they have engaged the expertise of a management company to handle the day to day operations of the association. Management s responsibilities will be outlined later in this chapter. Secondly, they have structured a network that facilitates interdependence among the homeowner controlled interim committees. The Transition Committee, acting as a shadow board during the Development Period, offers the homeowners meaningful involvement in running the association. Thirdly, they have established a Liaison between (1) Management (2) Homeowners, and (3) the Developer Controlled Board. Taylor Land Service Company, Inc. believes the liaison will enhance the flow of communication between all interested parties. 2

3 OPERATING GUIDELINES AND ARCHITECTURAL STANDARDS I. Procedure for Application for Change or Improvement A. The homeowner will submit in writing on the proper form to the Architectural Review Committee (ARC) a detailed statement of the proposed changes to the lot or the exterior of the dwelling. All details and information set forth will then be reviewed by the ARC. B. No work shall commence until approval has been received in writing from the ARC. II. Procedure for Processing Applications A. All applications are to be mailed to: Architectural Review Committee Townhomes of Timberland P. O. Box 2378 Ellicott City, MD B. The application must be received by the 1 st of the month to be considered at that month s meeting. Otherwise, they will be put on the agenda for the next month. C. All requests will be marked with the date received. All applications shall be acted upon within 45 days by the ARC. D. All homeowners will be notified in writing as soon as possible after the action is taken by Notification shall state what the request was for, the reason for the findings of the ARC, and whether the application has been approved or disapproved. E. In the event that the ARC fails to act within 45 days after receipt of the application, an approval is automatically granted. F. Forms for the submission of proposed changes are available from the ARC and the Board. G. Appeal procedures are set out in the Covenants, Easements and Restrictions. 3

4 III. Violation of Architectural Standards A. The ARC will act on its own, or upon notice from any member pointing out violations or possible violations of the Architectural Standards. A violation is any modification, alteration, or addition to the lot or to the exterior of the dwelling that is made without prior written approval, except where noted herein. A violation is also any approved change that does not conform exactly to the approved specifications. B. In the event that any homeowner is in violation of the Architectural Standards or Guidelines, she/he will be notified in writing by the ARC. Said notice of violation shall state the reasons for the violation arid shall, in addition, state that the homeowner has thirty (30) days in which to correct said violation. C. The homeowner shall have ten (10) days from the date of the above violation notice to request, in writing, a hearing before the Board of Directors regarding said violation. D. The Board of Directors shall, within forty-five (45) days of the request of the homeowner, schedule a meeting before that body for review of the violation. At this time, the homeowner may present evidence on his behalf. The Board shall, within ten (10) days of said meeting, notify the homeowner, in writing, of its decision. IV. Court Action as a Result of Violation A. After the appeal (ten days after denial of appeal has been issued), thirty (30) days after notice, the Board of Directors shall have the right to institute court proceedings against the homeowner to enforce the Architectural Standards and By-Laws. V. Architectural Standards A. The following are prohibited: 1. Signs other than a "For Sale" sign of six (6) square feet or less. 4

5 2. Vehicles: No junk vehicle boats, or recreational trailers will be kept on the property (except for bona fide emergencies) nor will the repair or extraordinary maintenance of automobiles or other vehicles be carried out on the property. 3. Please review the Covenants and Restrictions for additional prohibitions. B. The following must be submitted to the ARC for approval: 1. Chimneys of any kind. 2. Decks - overhead or lawn. To be approved, the style and construction must be the same as the builder installed decks. 3. External fans. 4. Fences of any type. 5. All lawn ornaments: bird baths, feeders, decorations. 6. Major plantings: trees, hedges, windbreakers. 7. All permanent exterior lighting. 8. Swing sets and other outdoor play equipment. 9. Any exterior painting that involves a color change. To be approved, color changes should harmonize with the existing color scheme of the houses. 10. Backyard patios. 11. Privacy fences. 12. Sheds. 13. Storm doors or screen doors. The above are by way of example and not limitation 5

6 C. The following DO NOT require ARC approval: 1. Roofing or replacement if it is of the same material and color as the original construction 2. Exterior repainting or touch-up that does not involve a color change. 3. Planting of flowers and small bushes adjacent to the house, provided they are in accordance with architectural grade foundation planting. 4. Seasonal decorations on the exterior of the house. D. The Architectural Standards are not necessarily limited to the above. If a proposed change does not fall under one of the listed items or categories, homeowners should contact a member of the ARC or the Board. E. All modifications must meet Howard County Building and Fire Codes, and some may require building permits. F. Homeowners are advised against purchasing materials prior to receiving written approval from the ARC, in case the proposal is disapproved. G. If there is any question or doubt on the part of the homeowner regarding proposed changes, please contact a member of the ARC or the Board. H. The ARC and the Board may establish preapproved plans for fences, sheds, decks and storm doors. I. Approval by the ARC or the Board does not mean the additions or changes are legal under any Howard County law or regulation nor does it mean the additions or changes are approved as to structural and/or engineering soundness. TOWNHOMES OF TIMBERLAND ASSOCIATION 6

7 OFFICERS RESPONSIBILITIES PRESIDENT The president is the chairman of the board of directors and chief administrator of the association. He/she is charged with presiding at all meetings of the membership and the board of directors. The president holds chief responsibility for the operation of the association. This entails seeing that all orders and resolutions of the board are carried out; signing on behalf of the association, following the will of the majority, and serving the best interests of the association. He/she must also be a member of the board of directors, and work with and through the various committees. VICE PRESIDENT The vice president presides at meetings from which the president is absent and takes the chair when the president wishes to participate in discussion or exercise his right to vote. The by-laws give the vice president the right to discharge any other duties prescribed by the board of directors. He/she must also be a member of the board of directors, and work with, and through the various committees. SECRETARY The secretary is responsible for keeping record of the votes and minutes of all board meetings and proceedings He/she has ultimate responsibility for serving notice of all board meetings and all membership meetings. The secretary should also keep appropriate, current records showing the names and Notice Addresses of the members Furthermore, he/she will keep all other official records of the association, such as contracts, membership rosters, correspondence, and proxy votes. The secretary will also work with and through the various committees. TREASURER The treasurer oversees all of the association s financial affairs. He/she holds ultimate responsibility for maintaining a list of homeowners whose assessments are delinquent, hiring an accountant to conduct an annual audit, reviewing the monthly operating statement, and comparing it with the budget, collecting, disbursing, and depositing / investigating all of the association s money. The treasurer will also work with and through the various committees. 7

8 PURPOSES OF THE ASSOCIATION 1. To provide for the use, improvement, maintenance, operation and repair of the Open Spaces of Townhomes of Timberland. 2. To distribute among the lot owner of Townhomes of Timberland the cost of the use of community facilities and any appurtenance thereto, improvement, maintenance and repair of the Open Space Areas and the Storm Water Management Facility (not otherwise borne by Howard County). 3. To establish rules and regulations for the use of the Open Areas and facilities. 4. To promote the health, safety, pleasure, recreation and welfare of the residents of Townhomes of Timberland. 5. To impose and enforce reasonable architectural controls for any addition, reconstruction and/or replacement of a dwelling constructed on any lot or any lot improvement should the members decide to do so. 6. To provide snow removal from the sidewalks and lead walks both as to the open space and owner lots. 7. To provide grass cutting and maintenance on the front, rear and side yards of the owner s lots The association is responsible for maintaining the commons. The association will be responsible for maintaining any community facilities and any appurtenance thereto. The association also will provide the services listed above. The association may provide other services to the community if its Board of Directors or membership elects for it to do so. The association may perform certain other important duties such as engaging a management agent for the operation of the community (if the association deems it necessary), determining the degree and type of maintenance and service, promulgating rules and regulations for the use of the commons, if it applies, and adopting an operating budget which will reflect assessments adequate to operate and maintain. Each owner s possession of a voting right means that he participates (through the directors which he and the 8

9 other members elect) in managing the community s affairs. Since any management agent will take its assignments from the Association s President and Directors, one of the most important functions which the owners will be called upon from time to time to perform is that of selecting qualified persons to be directors. It is possible that the Association may provide, in addition to the normal neighborhood association services, other facilities which will serve the residents of Townhomes of Timberland. The Association may charge for the use of the community facilities. The Association, as part of its services, will provide not only clearing of the snow on the sidewalks of the property up to the doorway, but also during the summer period, cutting of the lawn, both front, back and sides of each residential home. As a result, the Association will require that plants, ornaments and like matter be kept, free and clear from the area as much as possible. The intent of the Association is to provide a maintenance-free lawn for its residents, so that they will have that free spare time to enjoy other activities. ORGANIZATIONAL STRUCTURE OF ASSOCIATION The community s affairs will be conducted on a day-to-day basis by the Association, acting through a Board of Directors elected by the association s members, and through officers elected by the Board of Directors. The association has five (5) directors, as well as a President, a Vice President, a Secretary and a Treasurer. A member may be an officer or a director. At the first annual meeting of the association s membership, all five of the directorships will be filled, two for terms of three (3) years each, two for terms of two (2) years each, and one for a term of one (1) year. At each subsequent annual meeting of the membership, a successor will be elected to fill-the place of each director whose term expires as of such meeting, for a term of three (3) years (with the result that, eventually each director will be elected for a three-year term, with only some of the directors terms expiring as of any given annual meeting). Until the first annual meeting of the membership, the directors are designated by the Developer. MEMBERSHIP / VOTING RIGHTS The Association s membership is comprised of and limited to all of the Owners (including the Developer, so long as it is an Owner). During the period in which the Developer is developing and marketing the Lots ( the Development Period ), :the membership will be divided into two classes, the Class A Membership 9

10 consisting of all of the Owners othe than the Developer and its assigns, and the Class B Membership consisting of the Developer and its assigns. Each person or group of persons which constitutes an Owner and which is a Class A member has one (1) vote in the association s affairs for each. Lot which it owns, while each Class B member has three (3) votes for each Lot which it owns. The earlier of the expiration of the Development Period or when the total number of votes held by Class A exceeds Class B the membership will no longer be divided into two classes, and each Owner will thereafter have one vote in the Association s affairs for each Lot which it owns. The expiration date of Class B is 1/1/96. MEETINGS The directors shall meet at least annually and shall keep a record of its acts and affairs and present same to the members at the annual meeting of members. Directors are authorized to issue certificates indicating that assessments have been paid. The officers shall consist of a President, Vice President, Secretary and Treasurer. The officers shall execute the affairs of the association. They are elected annually at the first meeting of the Board of Directors following the annual meeting of members. MERGER OR DISSOLUTION OF THE ASSOCIATION The Association may be voluntarily dissolved only by the affirmative votes of two thirds (2/3) of all of the votes held in which event (unless such dissolution is incidental to a consolidation or merger with another entity) its assets must be granted to an appropriate public agency which would operate such assets in the same way as that prescribed for the Association itself. During the Development Period, the Association may not be dissolved, or merged or consolidated with another entity, without the approval of the Veterans Administration and/or the Federal Housing Administration, if either is then insuring a mortgage covering a Lot. ASSESSMENTS Each Owner is liable for an assessment levied annually against his Lot by the Association (an Annual Assessment and payable in monthly installments (subject to any other payment method adopted by the Association). Each Owner is also liable for any special assessment levied by the Association from time to time 10

11 to defray any special cost incurred by it The Declaration limits the amount of the Annual Assessment for a Lot during the Association s initial fiscal year to Seven Hundred Sixty-Eight Dollars ($768.00), or Sixty-Four Dollars ($64.00) per month, and provides that those maximum amounts may not be increased thereafter by more than ten percent (10%) annually without the approval of two-thirds (2/3) of all the votes of all of the members. While these are maximum amounts, the actual Annual Assessment for a Lot could in fact be in a lower amount. Each Owner is automatically liable for each Assessment levied against his Lot, and may not waive or avoid such obligation. Each Assessment is enforceable by a lien against the Lot against which it is levied, which in turn may be enforced in the same manner as that provided by the law of Maryland for the foreclosure of mortgages, and/or through a personal action brought by the Association against the Owner of such lot. ARCHITECTURAL CONTROL Under the provisions of the Declaration, the Association may establish an architectural review committee ( the ARC ) which is empowered to review architectural plans and specifications for any building or other improvements constructed within the Community (none of which may be constructed or modified without the Architectural Committee s approval of such plans and specifications). In addition, the Declaration contains provisions restricting, generally, to residential purposes the use of the dwellings and land at Townhomes of Timberland. No fees are charged for the use of the Commons by the Owners and their family members and guests (although the Declaration empowers the Association to do so if a sufficient number of its members desire to do so). Notwithstanding, fees shall be charged for use of open space by any owners who run a day care center in.their home. Fees may be charged for the use of the other facilities. Certain areas shall have specific parking spaces which shall be designated for a specific unit EXTERIOR MAINTENANCE OF DWELLINGS The dwellings are owned in fee simple by the individual Owners of the Lots, each of whom is individually responsible for maintaining his own dwelling The Declaration does empower the Association, however, to enter upon any Lot to enforce certain maintenance obligations imposed by the individual Owners there under, and to charge the Owner in question for the expense of such action. Such right enables the Association to ensure that the exterior of the homes in the 11

12 Community and their surrounding yards will be properly maintained in good order and repair for the good of the entire Community. ENTERING YARDS Because the association will be maintaining and cutting your grass as well as cleaning snow from your sidewalks, steps and front stoop, the association, through its employees will have a right to enter your lot for those purposes. TOWNHOMES OF TIMBERLAND ASSOCIATION COMMITTEE RESPONSIBILITIES COMMUNICATIONS Purpose: To develop a communications system within the community to assist in getting information to unit owners and also to transmit questions and concerns from the unit owners to the Board of Directors: To develop information on owner skills-that may be helpful to the association. To provide input for and/or sponsor newsletters, flyers, telephone networks, general association meetings, as well as planning and implementing social and recreational activities that encourage others to join in community efforts. MAINTENANCE Purpose: To familiarize itself with the common elements both by reviewing the association s documents to determine exactly what the common elements are and what the association s maintenance responsibilities are and making a physical inspection of the property to determine repairs needed, construction defects, if any. To keep an up-to-date inventory of everything to be maintained by the-association (with As Built drawings) To keep an up-to-date tract map of the project, a set of landscape drawings with all plants, shrubs, and trees (planned and existing) To keep an up-to-date schedule of useful expected life of materials and copies of bonds or warranties where applicable 12

13 To make sure that street, traffic safety & regulation signs are installed in conformance with applicable state and local ordinances. To make sure street lights and sewer systems are being maintained. To make sure (from appropriate local authorities) the fire hydrants have been placed under the local government maintenance plan. To make sure (from appropriate local authorities) city/county emergency communication centers will dispatch emergency vehicles to the project. To make sure that appropriate public agencies have released completion bonds on the subdivision. To delineate those items which are the association s maintenance responsibility and those that are the individual unit owner s responsibility, and to instruct. To develop procedure for letting maintenance contracts. To recommend action where applicable. To supply information and advice to the other committees. FINANCE Purpose: To review and monitor assessment collection and enforcement. To review and assist in developing new and revised To review financial records and establish regular financial procedures. To recommend action on any deficiencies found or brought to the committee s attention. To assist-in an Audit before turnover, for the benefit and protection of both the developer and the unit owners, which will provide an undisputed basis on which association operations can proceed. 13

14 To work with and through other committees to make recommendations where applicable. INSURANCE Purpose: To review the documents to determine what coverage is required and then review the existing coverage to determine if it meets those requirements. To investigate any other coverage which may be advisable and draft a set of specifications for use in securing competitive bids. To keep abreast of ways to minimize insurance premiums whether by increasing deductibles, installing a fire hydrant or adjusting coverage for association employees. To delineate coverage the association will carry and what coverage the unit owners should carry, and to instruct. To work with and through other committees to make recommendations where applicable. TRANSITION (SHADOW BOARD) Structure: A joint committee composed of the one unit owner and two Board members, all the committee chairmen, with the developer sitting in as an advisor. Purpose: To act as a shadow board during the transition period To coordinate transition activities to be sure that all committees have completed their review activities and developed any recommendations needed, and to help resolve any remaining disputes or discrepancies To see to it that all records, books and files are current and complete and that the association is in good standing with all appropriate governmental bodies In short, this committee is the coordinating and facilitating body for transference of control. 14

15 ARCHITECTURAL REVIEW COMMITTEE I. Jurisdiction The Architectural Review Committee (ARC) is established pursuant to Article V of the Declaration of Covenants, Easements, and Restrictions which authorizes the Board of Directors of the Townhomes of Timberland Association to designate a committee which shall have the powers and duties conferred upon it pursuant to the provisions of Article III, Section 7. II. Function ARC is defined in Article V of the Declaration of Covenants, Easements and Restrictions. The function of the ARC is to: 1. Study in advance and approve or disapprove proposals by homeowners involving physical additions, subtractions, or changes to exterior areas of their private property. The committee will review all proposals in light of how they might affect the community as a whole. ARC will notify the homeowner of its decision. 2. Oversee quality control in physical changes which have been approved. If the changes do not conform to the original, design, pose a safety hazard, or appear unattractive during construction or after completion, the ARC will notify the homeowner and request that corrective action be taken. 3. Act as a watchdog for possible violations of the Architectural Review Committee rules. 4. To oversee the use, repair and maintenance of the community facilities 5. To oversee the maintenance and cutting of the grass-on the lots and common lots. 6. To oversee the removal of snow from the sidewalks on the owner lots and the common lots The ARC shall keep minutes of all meetings and forward them to the Board of Directors prior to the Board s next meeting. The minutes will be the official record of all actions and decisions of the ARC. 15

16 The ARC shall maintain a record of the physical appearance of each home in the community. All changes will be recorded. The committee twill also conduct regular inspections. III. Composition Members are appointed by the Board of Directors. After all Class A Stock has been converted, a director and two homeowners will be selected as minimal membership. Committee members should elect a Chairman, Co-chairman, and a Secretary each year, and when vacancies occur. Membership is open to all community residents. The committee should remain continuously in effect IV. Meetings Regular meetings will be held during the last week of each month. Interim meetings will be called as necessary. Written minutes of the meeting should be furnished along with any approved or denied application to the Board Liaison prior to the ensuing Directors meeting. Correspondence to the ARC will be sent to: Architectural Review Committee Townhomes of Timberland P.O. Box 2378 Ellicott City, MD A quorum of three (3) members must be present to hold a vote. No proxy votes will be allowed. However, absentee votes win be accepted. The affirmative vote of a majority of the membership shall be required for it to: a) approve or deny any homeowner s proposal to make changes to his/her property. b) take any action in response to violations of the Architectural Standards and Guidelines. c) make any changes to the ARC Charter, Operating Guidelines, or Architectural Standards. d) contract for services to accomplish the duties of the ARC. 16

17 TOWNHOMES OF TIMBERLAND ASSOCIATION MANAGEMENT RESPONSIBILITIES The Developer controlled board of directors has chosen First American Management, Inc., to manage the Townhomes of Timberland Association. First American Management, Inc., will at all times, the management handle this account for the Townhomes of Timberland Association. At all times, the management company is responsible to, and accepts direction from, one body: the board of directors. Most management agreements specify one board member as the liaison for dealing with a manager. This board member is usually, but not always, the President. The reason behind this should be obvious. A manager can not take orders from every board member, much less every resident, and expect to accomplish anything in an orderly, well planned, accountable way The management company is responsible for carrying out the day to-day operations of the association. Specifically: --- Establishing and maintaining a checking account in the name of Townhomes of Timberland and to disburse therefrom payments for approved expenses. --- Establishing and maintaining a savings account in the name of Townhomes of Timberland for the replacement of or improvements in the commons. --- Furnishing monthly accounting of all funds collected and disbursed. --- Maintain all books, records, accounts, and correspondence for the Association. --- Maintain a record of all paid and delinquent assessments and assessments to be collected. --- Maintain and administer the policies of insurance --- Prepare and distribute notices to the homeowners. 17

18 --- Assist homeowners with the proper understanding and interpretation of the governing documents, as well as with rules and regulations or policies adopted by the board and assisting in the application of the requirements for both owner and association. --- Assist Association in obtaining contractors for such work as the Association may desire. The management company is not responsible for: --- Solving grievances between homeowners that do not involve the Association (such as barking dogs). 18

19 TOWNHOMES OF TIMBERLAND ASSOCIATION, INC. PROJECTED ANNUAL OPERATING BUDGET (BASED UPON COMPLETION OF 107 UNITS) INCOME HOA FEES $ 82,180 MISCELLANEOUS 0 TOTAL INCOME 82,180 ADMINISTRATIVE EXPENSE LEGAL 500 AUDIT & TAXES 800 MANAGEMENT 10,368 INSURANCE 1,250 MISC. ADMIN. EXPENSE 1,000 MEMBERSHIP/SUBSCRIPTION 200 NEWSLETTER 400 TOTAL 14,518 OPERATING EXPENSE GROUNDS AND-TREE MAINTENANCE 53,800 LANDSCAPING 1,400 REPAIRS 500 SNOW REMOVAL 10,400 CONTINGENCY 220 TOTAL OPERATING EXPENSE - 66,320 RESERVES REPLACEMENT RESERVES 1,342 TOTAL OPERATING BUDGET 82,180 Monthly HOA Dues: $64 00 DISCLAIMER: This estimated operating budget is-not intended and should not be understood as a representation by anyone that annual operating expenses for the first or any subsequent year of operation of the Association will be precisely as set forth. In our opinion, however, the estimates set forth herein are reasonable under circumstances which existed at the time of the preparation of these estimates: i.e. September,