Adopted Policies Log 2008-2009

Adopted Policies Log 2008-2009

of the

Derwood Station Homeowners Association No 2, Inc.

Board of Directors (updated Nov. 20, 2008)

Late Fee Waiver Procedure
Dealing with Concerns of Neighborhood “Ambiance”
Use of Individual Homeowner Identification in Association Public Postings
Management Notification of BOD of Important Correspondence
Vehicles Parked on Public Streets in/near to the Neighborhood
Moveable Recreational Equipment on the Common Area
Maintenance of a BOD Policy Log
Budget Process
Fund Transfer Authority
Board Book Preparation for Meetings
TMGA Response to formal BOD queries made at monthly meetings
Initiation of Contact with Outside Counsel
Language for Responses to Association Members Concerning Parked Vehicles and Architectural/Use restrictions
Outside Counsel Review of Letters to Association Members

18 June 2008 Meeting (APPROVED for logging 16 July 2008))

Late Fee Waiver Procedure: A motion was moved, seconded, and approved delegating to TMGA the authority to waive late fees for 2009 Annual Dues for homeowners who respond promptly to overdue notices and have no prior episodes of late payment. This motion continues a policy approved by earlier BOD actions.

Dealing with Concerns of Neighborhood “Ambiance:” The BOD adopted the following set of general principles:

TMGA will continue to report to the designated BOD representative observations made during its regular inspections of the Common Area and community.
TMGA may inform a homeowner when a concern can be addressed by homeowner action with a county/state agency and explain “how to do that;” if the homeowner does not wish to do so themselves, TMGA will inform them that TMGA will bring their concern to the attention of the BOD for their review, consideration, and action;
TMGA may inform a homeowner that a concern requires review, consideration, and action of the BOD; the homeowner may bring that concern to the BOD, or the homeowner may ask TMGA to do so;
TMGA will be careful to “report observations rather than conclusions” by avoiding such language in their communications with the BOD and individual homeowners as “violation,” “approved,” “not allowed,” etc.
Until further action, the BOD will consider each concern individually and individually determine a course of action.

16 July Meeting (APPROVED for logging 20 August 2008)

Use of Individual Homeowner Identification in Association Public Postings: A motion was made by Mr. Palmer, seconded, and unanimously approved that copies of minutes, draft minutes, and other documents of the Association placed in such “public space” as the Association’s Internet site and the Association’s Bulleting Boards have the names/street numbers of involved members removed/blanked out. The motion was clear that the official copies of these minutes, draft minutes, and other documents maintained as part of the official record of the Association and BOD retain such Individual Homeowner Identification.

Management Notification of BOD of Important Correspondence: The BOD unanimously agreed that it is their expectation that TMGA will expeditiously furnish copies of future correspondence of any type with a similar level of importance to BOD members by e-mail rather than simply supplying paper copies at the next BOD meeting.

Vehicles Parked on Public Streets in/near to the Neighborhood: After discussion, the BOD unanimously re-iterated its position of June 2008 that, since the Association had no authority to regulate vehicle parking on public streets, such complaints should be made by members directly to the appropriate police agency; this agency is usually the Montgomery County Police.

Moveable Recreational Equipment on the Common Area: After discussion, the BOD unanimously re-iterated its previous policy that the locations on the Common Areas of the Association of the soccer goals and the badminton net would be reviewed twice annually; the next review is scheduled for the Nov 2008 meeting.

20 August 2008 Meeting (APPROVED for logging 17 September 2008)

Maintenance of a BOD Policy Log: The Board agreed unanimously that as prior policies are brought forward by events, that the BOD will discuss them and decide if they are to be retained as operating procedures for this BOD. Those so retained will be detailed in the BOD Policy Log.

Budget Process: The BOD unanimously reiterated earlier process policy regarding formulation of the Association Budget as follows: The Treasurer and the TMGA Representative will present to the BOD at its September monthly meeting a First Draft Budget for the upcoming Fiscal Year; this draft shall show figures recommended were the assessment to remain unchanged and were it to be increased by the maximum of 5% that the BOD can approve without special authorization by the membership. The BOD will review, amend, and approve a Final Draft Budget at its September meeting, and send a copy to each Association Member inviting their comment and/or attendance at the November BOD monthly meeting. At the November monthly meeting, the BOD will approve a final budget for the upcoming fiscal year that will be mailed to each Association Member in December with the assessment bill due in January.

17 September 2008 Meeting (APPROVED for logging 15 October 2008)

Fund Transfer Authority: After discussion, the Board unanimously established as policy the following: With the written/e-mail approval of the Association Treasurer for each occurrence, TMGA may transfer funds between the Association’s Operating Account and its Operational Money Market Account.

Board Book Preparation for Meetings: Without disagreement, the Board notified the TMGA representative that the Board Book is to be in the hands of the Board members no later than the Saturday mail delivery immediately prior to the Board meeting;

This book is to contain a copy of all e-mail correspondence to, from, or cc’d to TMGA by any member of the Board, homeowner, or vendor, or by TMGA on DSHOA-2 business since the prior meeting’s book was prepared,
This book is to be printed “double-sided” so as to minimize the amount of paper required;
This book is to contain all Architectural applications and all actions of the ACC since the prior book was prepared,

TMGA Response to formal BOD queries made at monthly meetings: TMGA is to provide feedback/answers to the Board’s requests as soon as they are available and not wait until the next Board meeting.

15 October 2008 Meeting (APPROVED for logging 19 November 2008)

Initiation of Contact with Outside Counsel: To control the generation of costs to the Association and to avoid confusion, only the Association President may initiate discussions with outside counsel that would result in billings beyond the annual retainer paid to them. To allow for ease of action, the President may authorize in writing/e-mail a specific Board member or a TMGA representative to do act on behalf of the President on a case-by-case basis. To avoid confusion, the Association Secretary will notify outside counsel of this policy in writing.

19 November 2008 Meeting (to be approved at 28 Jan 2008 Meeting)

Language for Responses to Association Members Concerning Parked Vehicles and Architectural/Use restrictions: The Board unanimously approved language reviewed and approved by outside counsel to be used by the Association Board and by TMGA when responding to homeowner requests for Association/Board involvement in concerns arising either from vehicles on the public streets of the area or from possible architectural/use restriction violations on individual property:

LANGUAGE FOR COMPLAINTS ABOUT ARCHITECTURAL OR USE ISSUES ON INDIVIDUAL PROPERTY

Dear …………………………….,

Thank you for bringing to our attention your concerns regarding (XYZ).

The use and architectural restrictions applicable to each lot in our neighborhood originate in a Declaration of Covenants (the “Architectural Covenants”) binding on the land that was filed by the initial developer in March 1982. In addition to listing the use and architectural restrictions, the Architectural Covenants also allow each property owner the right to act to enforce any act they believe to violate one or more of those restrictions. The Architectural Covenants do not mention the Homeowners Association.

In July 1982, the same developer filed a second, and totally separate, Declaration of Covenants and Restrictions (the “HOA Declaration”) authorizing the creation of a Homeowners Association empowered to collect assessments and to manage property for the common use and enjoyment by each property owner. The HOA Declaration does not mention use or architectural restrictions, does not mention the earlier Architectural Covenants, and does not empower the Association to act to enforce the earlier Architectural Covenants.

It is the recently stated opinion of outside counsel to the Association that this “disconnect” between the two separate covenants precludes Association involvement in actions to enforce the use and architectural restrictions of the Architectural Covenants. That this conflicts with processes long in place in our community involving Architectural Guidelines, Architectural Control Committee, and the Board of Directors of the Association is clear. So to is clear the fact that this is likely to generate confusion and concern within the Community.

The Board is in the process of working with outside counsel to clearly define for the members of the Association the choices they (both as Association members and as property owners) must soon make. Until that process is completed, the Board has determined, and outside counsel concurs, that it will undertake no actions intended to enforce the use or architectural restrictions of the Architectural Covenants.

The Board wishes to make very clear to you that, as an individual property owner, you retain the right to engage in legal actions to enforce what you believe to be the restrictions of the Architectural Covenants (and to join with other individual property owners who are of a like mind).

LANGUAGE FOR COMPLAINTS ABOUT VEHICLES IN THE PUBLIC STREETS

Dear …………………….,

Thank you for bringing to our attention your concerns regarding (XYZ).

The roads and streets within our neighborhood are not private; rather, they are public property. As such, they are maintained by Montgomery County and their use is governed by laws, statutes, and ordinances established by Montgomery County and the State of Maryland. Our Association has neither the authority to investigate allegations of improper use of these roads and streets or to enforce any use restrictions.

Thus, we are not able to satisfy your request, but do wish to make clear to you your options to bring this to the attention of the appropriate State or County agency. An effective starting point is often the Montgomery County Police who may be reached at 301- (xxx)- (xxxx).

Outside Counsel Review of Letters to Association Members: The Board President, at their discretion, may seek review by outside counsel of letters to be sent on behalf of the Board to individual Association members. The President will inform the Board of each such action at the next regular Board Meeting. This is intended to speed the process of responding to members while minimizing concerns by the Board President for the appropriateness of correspondence sent over his name for the Board.