Finance & Legal minutes: 2012-04-09

Minutes:

Minutes of 4.9.12 Finance & Legal Committee Meeting



Present: Becky, Mary, Aaron, Kathy, Elisha, Amy, Adi



AGENDA

1. Getting FHA status for loan for Elisha

2. Finops items

3. CH Loan

4. $11,000+ balance – proposal

5. Master Deed – feedback from Keast

6. Minutes



MONKEY: Becky will consult with Paul Conahan at Sunward to see if he
thinks we could get FHA approval and push it through quickly.

MONKEY: Kathy will put out a message to remind people of our late fee
policy.

MONKEY: Becky will read out our late fee policy at the the 4/16 comty mtg

if someone prints it out for her.

MONKEY: Becky will remind TS via Julie Krick, the TS liaison to the GO CH
Committee, to communicate with TS residents about our late fee policy,
which does apply to CH guest room fees.

MONKEY: Becky and Mary will ask CRC and the household in arrears to meet
and plan a community meeting discussion in May.

MONKEY - Becky will send the rollover account document to the Finance e-
mail group list for feedback, to make sure we’re not missing anything.

MONKEY: Kathy will touch base with truck coordinator Erik Kauppi about
truck mileage billing.

MONKEY: All members need to read Becky’s draft proposal for the $11,000+
balance and give her feedback.







MINUTES



1. Getting FHA status for loan for Elisha



Elisha hopes to buy the Akiva’s unit. She is preapproved for a FHA loan,
which allows people to have a smaller down payment on a first home. GO is
not FHA certified. Elisha is requesting that we get GO certified and
explained how this could help others in the future. Lenders can see FHA
approval as an endorsement of a condominium as a safe investment – that
we’re in good standing. So it’s a good idea overall.



There is a time crunch for Elisha. So this has to move quickly to help her.



Becky scanned the paperwork and one of the stipulations is that the Board
needs to approve the application. Normally that would require a 2-meeting
process at GO. It can also take 6-8 weeks for the FHA to process the
paperwork. So the timing could be an issue.



The application requires that we gather paperwork (Master Deed, Bylaws,
etc.). Either the association does the work itself (costs about $200 to
get all the documentation), or the association does it itself with the help
of an attorney (it cost Sunward $2200 to do it this way), or pay a
certified mortgage company to do this (cost unknown).



MONKEY: Becky will consult with Paul Conahan at Sunward to see if he
thinks we could get FHA approval and push it through quickly.



Becky asked Gail for 15 minutes on the 4/16 GO meeting so she can float
this idea before the community. It’s possible that Elisha will be able to
get a loan another way; she’ll know by tomorrow afternoon. Even if it
turns out that Elisha doesn’t need the FHA approval, it seems like a good
idea to investigate and have the community discuss whether to do this. We
have had economic diversity as a value since the beginning of GO.



2. Finops items



a) Accounts receivable



i) Late fee discussion

We have a couple of people who have paid off what they owed this month but
did not pay their late fee, so they still owe $25. They probably forgot to
pay this. Accountant called Kathy to ask whether to give them another late
fee? Kathy will call the households and say: to avoid a late fee on the
late fee, pay up. We assume that it’s an oversight.



MONKEY: Kathy will put out a message to remind people of our late fee
policy.

MONKEY: Becky will remind TS via Julie Krick, the TS liaison to the GO CH
Committee, to communicate with TS residents about our late fee policy,
which does apply to CH guest room fees.



ii) Households in arrears



A household that has passed 90 days in arrears was contacted during the
meeting and they agreed to make a payment to avoid having a lien placed on
their unit. [The check was received subsequent to the meeting.]



Mary talked with the household that is over $6000 in arrears. They have
made a few payments recently but late fees continue to accrue and they are
not paying these down, nor any past debt.



After a long discussion we decided that it’s time to bring this to the
community, to present the options, and get some direction. We’d like to
bring this forward in May.



MONKEY: Becky and Mary will ask CRC and the household in arrears to meet
and plan a community meeting discussion in May.



b) GOCA tax return for 2011

The CPA filed for an extension for our 2011 taxes and will complete the
return after April 15. We hope that next year after they’ve done our
accounts for all of 2012 they’ll get our taxes done in a more timely
fashion.



c) Rollover accounts

Becky has drafted a document to put in writing our existing practices on
which GOCA accounts are rolled over and which are rebated.



MONKEY - Becky will send the rollover account document to the Finance e-
mail group list for feedback, to make sure we’re not missing anything.



Kathy has completed the simplification of the rollover accounts by
combining those with very small balances with related, larger rollover
accounts.



Elph will go to United Bank and Trust to set up the separate bank accounts
for these rollover funds. Kathy needs to go with him as he is not a
signatory.



How to send out monthly financial reports ?

Only the YTD budget/actuals, A/R, and balance sheet will go to Talk each
month. Committee reports will go to the relevant committee mailing list
only.



Procedure for when GOCA’s account balances get low (cash flow procedure)

Tabled until next meeting; not urgent.



CD that matures in April

Elph is working on this. Matures on 4/23/12. The funds will be put in the
U-M Reserve Fund.



Truck mileage billing

Truck coordinator is supposed to do this. We don’t think it has been done
in a long time.

MONKEY: Kathy will touch base with truck coordinator Erik Kauppi about
truck mileage billing.



3. CH Loan



a) Adi & Heather agreed to extend their loan for the CH for one month,
to May 31. So their household and one other, and the Reserve Fund, need to
be paid off on May 31.

b) By June 1 we need a new plan in place. We need to give households
who owe an opportunity to pay their loans off. The principal owed by each
household with a loan is about $3350. We know of one household that wants
to to pay theirs off.

c) We had a long discussion about the loans. The upshot is that Adi
will make a presentation at the 4/16/12 community meeting to review the
history and inform the community of where we are now with these loans and
request feedback on the direction we should take. Elph agreed to find out
what a commercial loan would cost to cover the balance so we have current
data on the market rate/perception of risk for such a loan.

d) We are asking the two households that are lending money for these
loans to extend their loans another month to give us time for a decision
and implementation of new loans.



4. $11,000+ balance



Becky distributed a draft proposal for these funds.



MONKEY: All members need to read Becky’s draft proposal for the $11,000+
balance and give her feedback.



5. Master Deed



Aaron send our letter to our attorney, David Keast, asking the questions
that the community approved at a recent community meeting. Aaron has
received Keast’s replies to our questions and is digesting these. Aaron
has agreed to keep working on the Master Deed even after he goes off F&L
after this month. Thank you, Aaron!



We plan to celebrate Aaron’s F&L service at the next F&L meeting!
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