Finance & Legal minutes: 2022-02-22

Minutes:

Minutes of 2-22-22 Finance & Legal Committee Meeting

Present: Becky G., Becky H., Jeff H., Glenn, Amy

1. Managing future year-end budget surpluses - next steps

Becky sent a question to GO’s attorney Rick yesterday about this. He hasn’t
responded yet.
The question is, can we legally put surplus funds (after we fill the
savings accounts) into the Reserve?
Even if it’s legal, there may be some community concerns about this
approach because contributions to the Reserve fund are paid proportionately
to the unit size and attributes, not in equal amounts like association
fees. So some households would disproportionately benefit from the surplus
funds added to the Reserve. But we want to find out if this is an option..


2. Bookkeeping updates

* Our version of Quickbooks for the Mac is going away. So Becky G. is
going to move to an online version of Quickbooks. Not happy about it, but
resigned to it.
* Arrears:
* A couple households’ arrears are creeping up. One household is two
months behind. In another month their arrears will likely exceed $1000, at
which point F&L will be obliged to place a lien on the unit per community
agreement. Becky H. has been putting reminders in their cubby.
* Another household that was falling significantly behind made a
payment subsequent to the meeting, so they are not immediately at risk of a
lien.


3. New business

Jobs for next work season (May-October)
Becky G - Bookkeeper
Kathy B - Check Depositor
Kathy B - Admin Asst
Amy - Convener
Amy - Steering Rep
Becky H., Jeff H., Glenn - Counted Members
Sharon is going off the committee
Debbi won’t be participating in the work system for the coming season
Many thanks to both Sharon and Debbi for their service!


4. Master Deed next steps

Next steps:
1. Changes need to be written out and sent to the lawyer.
2. Committees were assigned some tasks; integrate the results
3. Lawyer will make sure legalese is correct
4. GO consensus on the changes
5. Then we are required bylaw to have an official vote and also to get
votes from the first mortgage holders (so we need to update that
information for each unit)

Subsequent to the meeting, Debbi said she wants to work on the Master Deed
and would welcome Glenn’s involvement.


5. Planning info item for a community meeting about township zoning

Becky G. sent two questions about township zoning to GO’s attorney. Here
is the exchange.
Q: Did you have time to review the language of the Scio Township Zoning,
and do we need to make any changes to our standard lease form that you
helped us create for owners wanting to rent out part/all of their units?
COMMENT: The only thing that I would add is a reference to the Zoning
ordinances (directing the owners to read them) and mentioning the issue
addressed in the question below.

Q: We want to make sure we fully understand one point you made during our
phone call. Should we as a community officially say that we no longer
allow completely separate apartments with their own entrance? This would
be for the walkout basement apartments. We had said we were OK with them
about 3 years ago, but didn’t know about this zoning issue then. Or, do we
just say that the township doesn’t allow them and ignore it if someone is
renting it that way?
COMMENT: The Association can and should advise them that the Township
doesn’t allow them and that the Association will not officially approve
them. They run the risk of having the Township take action against them.

***

We spent quite a bit of time trying to find the details of the Zoning on
the Township website, but ultimately we decided that F&L’s appropriate role
is to inform GO owners of the information as recommended by the attorney,
but it’s not up to F&L to answer questions about the zoning or to police
the compliance or non-compliance. That is the unit owner’s responsibility.


This mostly comes up when people are pulling a permit. The township does
not appear to police this. They would probably just tell the owner to
stop.

The following are information pieces found on the Township website,
received from neighbors via email, etc.

GO is zoned MR2 - Multiple Family Residential - Two of our neighbors have
had problems getting permits, they've been told that only one family can
live in each unit. Both Elph and Andrew had issues. Recent permits were
denied.

Multiple-Family Residential District (MR-2).a.Intent. This district is
established to provide areas for townhouses and similar types of
single-family attached dwelling units and for low density multiple-family
dwelling units. This district is to be used only in those areas of the
township which are served by public water and sanitary sewer facilities,
and are accessible to public services needed to support the permitted
density.


Permitted uses.1.Single-family dwelling, subject to the provisions of the
R-3 district set forth in section 36-75.2.Single-family attached and
multiple-family dwellings, subject to the provisions of section
36-132.3.Family day care homes.4.Adult foster care homes, foster family
homes, and foster family group homes.5.Nature and wildlife preserves.


https://library.municode.com/mi/scio_township,_(washtenaw_co.)/codes/code_of_ordinances?nodeId=COOR_CH36ZO_ARTIIIDIRE_S36-70SCPR


https://docs.google.com/document/d/1fZps7GER0nVa2P8g2MK63B9A2rFlWnBdHZr83DAk5ao/edit


Debbi found the ordinance - specifically section 34 of the ordinance:
Not more than one single-family dwelling shall be permitted on a lot,
except in a planned unit development, a mobile home park, as a temporary
dwelling as provided in section 36-94, or unless otherwise permitted in
this chapter.


Google doc documenting BG’s call w Rick about Zoning:
https://docs.google.com/document/d/1fZps7GER0nVa2P8g2MK63B9A2rFlWnBdHZr83DAk5ao/edit


Andrew sent Becky the original copy of why his initial permit was denied -
if she can find it, it will have the specific language they used.


Elph sent us this info: Doug Lewan: "Please provide the purpose of your
proposed basement improvement at 500 Little Lake #18. If used for separate
living purposes the Township cannot approve this space as it would
constitute a second dwelling which is not permitted. I will hold your
application until I hear from you."


Assume it’s what we think it is. Lawyer is saying that we change the lease
to include note that the owner is responsible for being within Zoning
compliance, and let the community know that we don’t officially approve
them.
Becky H. will get a copy of the landlord lease template from Kathy Boblitt,
and will work on a presentation to the community. We can discuss at the
next meeting.


1. Identify changes to landlord lease template
2. Make a presentation at a community meeting to make the community aware
that owners are responsible for being in compliance with Township rules
3. Aim to present at April’s community meeting


6. Ongoing items

* Unit Modifications

* Buildings Com has signed off on the Unit Modification Agreements draft
* Debbi has formatted the changes we made last month and sent the doc to
Rick for review.
* MONKEY: Amy will ask Debbi for the formatted document.

* Here is information from Rick regarding recording the documents:

1. (Recording of the 2 unit modification agreements.) Willie & Katie’s
house and Emily & Terrance’s bluestone sidewalk
COMMENT from attorney: The County won’t accept the documents because they
are not in recordable form – we are re-submitting and will see if we can
work around this by using an Affidavit as the first page and the agreement
as an attachment. I will let you know whether that works.

>From August’s minutes:
* When the UMA is finalized, Kathy will approach owners to ask
them to complete UMAs for the unit changes they have made. Our attorney
says we can’t enforce this, but at least owners will hear that they are
responsible for repairs and replacements to the modifications they have
made. (There are some exceptions, such as when some major changes are
added to the Reserve Fund.)
* Side conversation about how to define a modification. Is a
new closet a modification?

* Reserve Fund Investment Policy

* MONKEY: BG will ask the Credit Union for advice on trying a “CD
ladder” for new Reserve funds.
* MONKEY: Awaiting Mary’s return to A2 to invite her to meet with us to
discuss


* Job Descriptions

* Counted Member, Admin Asst, & Check Depositor done
* Still need to do (Amy to remind relevant people): Internal Bookkeeper,
Convener, Steering Rep, Budget positions
* F&L Cooler Doc - finish reading through doc together, next step is to
prioritize


7. Next meeting:
* Apr 19
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