Important Announcement Regarding Amendments to the CCRs
[HIGHLIGHTS OF THIS REPORT FROM THE BOARD]
- A member vote of any amendments to the CCRs has been tabled to a future date.
- The KACPOA membership will vote on any proposed amendments to the CCRs.
- Members will be notified well in advance of any future vote.
- Member comments are being collected now by sending an email to firstname.lastname@example.org.
- There is no 5% tax being levied on our owners.
- Any dues or assessments are capped to 5% increases per year per our Bylaws. There will be no 5% increase in 2019 dues. The budget was balanced without the need for an increase.
- The board is not proposing any changes to the Bylaws whatsoever.
- Nominated members running for the board will be voted on at the Annual Meeting on February 23, 2019, or by proxy or absentee ballot. Annual Meeting packets forthcoming.
To address concerns some of you have expressed regarding previously proposed amendments to our governing documents, please read the following updated report.
Also, from conversations members of the Board have had with you, we have been made aware that there is misinformation being bandied about which has caused some members to be understandably upset. We will address these issues as well.
In an effort to keep the membership informed, the Board recently emailed information and posted on this website copies of the draft Amended and Restated Master Covenant (“CC&Rs”) and the Community Manual. Although the Board planned to move forward with putting these changes to a member vote in the next month, in light of many questions from homeowners, these matters have been tabled and will be voted on by the membership at a later date. We expect to pick them back up within the next few months, as the issues we are seeking to address in updating these documents remain pressing.
In the meantime, please feel free to read the proposed changes in anticipation of moving forward on a vote on each issue except state statute in a few months. All comments and questions are welcome by sending your comments and concerns to email@example.com. All comments are being shared with the board and will be compiled and provided to the membership. Members will be notified of a future scheduled meeting to provide homeowners with an opportunity to ask questions regarding their concerns.
In general, this Board’s overall mission is to provide a progressive approach to governing the Association to ensure market competitiveness for our investments and to make our houses our homes. Key Allegro is a unique community, which we love, but it also creates some unique challenges as well. As an example, our original Deeds and Restrictions gave the power to amend to the Architectural Control Committee (“ACC”). Unusual, to say the least, considering the governing documents cover many issues outside the scope of the ACC.
To correct this, in 2016, the Board amended our Bylaws in order for the ACC to delegate its amendment power to the Board of Directors. As elected representatives of Key Allegro’s property owners’ membership, the Board is better equipped to make decisions, not only on ACC issues but all issues regarding property owners. Key Allegro’s significant damage of more than 100 homes totally destroyed (20%) and most others receiving major to moderate damage, demands that our Bylaws not only reflect City and County, but, also, FEMA rebuilding codes and requirements.
We, the Board, are of the mind that we must be proactive, act and not reactive, and make difficult decisions necessary to meet the challenges we face. The Board speaks for each of us when actions are taken to ensure everyone’s investments remain secure, appreciate in value, and hope to see a future Key Allegro in which we may be proud.
As previously mentioned, in addition to the update and information provided above, the Board wishes to address concerns some homeowners have which have been brought about by misinformation related to the draft amendments that we circulated. Social media is by definition, “social!” Much of what we are hearing derives from that source. Below, we have outlined some of the more talked about concerns, in which we have attempted to separate fact from fiction.
Misinformation: “The Board is voting on the new legal documents without input or vote.”
Fact: KACPOA website and email communications have, for months, stated, “Please review these documents carefully, as the Board will be submitting these to the membership for a vote at the February Annual Meeting.” To allow more time to work through member concerns, we have tabled a voting date at this time.
Misinformation: “The Board has passed a 5% tax on all homeowners.”
Fact: In the current draft of the CC&Rs, a one-half of one percent (0.5%) “Working Capital Assessment” is included. The fee is paid one time by the buyer (the “transferee”) at closing and would be an alternative funding source for future capital improvements, additional reserves, and financial sustainability on the Island. This is still being contemplated and will be discussed prior to a member vote.
Misinformation: “In the new legal documents, the Board is passing assessments, at will, allowing the power of the Board to set assessments at whatever they want.”
Fact: Article 6.1 of the Bylaws states “[t]he Board of Directors may assess the members of the Association, from time to time in such a manner as they shall determine, annual dues and special assessments as may be necessary.” We are not amending the Bylaws, so the Board’s authority will not be changed.
Misinformation: “In the new legal documents, the Board will be able to increase assessments by more than five percent from one year to the next.”
Fact: A clause in the Bylaws states annual dues and a special assessment may not be raised more than 5% without a supermajority vote of the membership (67%). Again, the Board is not proposing any amendment to the Bylaws. Therefore, the assessment categories and assessment increase caps in the Bylaws will not change.
Misinformation: “The special assessment passed by the Board in October 2017 was invalid, as they can only raise the special assessment by 5%.”
Fact: Historical KACPOA Minutes have shown, throughout the life of Key Allegro, a special assessment has never been levied on KACPOA’s membership. Thus, there is no “starting point” to calculate a raise of 5%. The Board hopes that further special assessments will not be necessary, but we are sure you understand the extraordinary circumstances related to the hurricane that necessitated the special assessment.
Misinformation: “The Board is voting in their own members at will.”
Fact: Bylaws require proper notice of all nominations, proper notice of candidates and proper notice of a member vote at a special called meeting to ensure fair leadership. The election is pending now and will take place at the Annual Meeting February 23rd. The Board is also required by the Bylaws to fill a vacant position due to a resignation of a board member within one board meeting which it has done this year.
Depending on the feedback the Board receives from homeowners, the Board will evaluate and decide on next the steps over the coming months in this amendment process with the best interests of the community, as a whole, in mind. As always, we welcome new candidates for the Board and homeowner input at meetings.