Court Homes Of Frankfort Square Condominium Association

BLOOMFIELD CLUB II HOMEOWNER'S ASSOCIATION MINUTES OF THE BOARD OF DIRECTORS’ MEETING September 23, 2009

The Board of Directors meeting of the Bloomfield Club II Townhome Association was held at 7:00 p.m. on

Wednesday, September 23, 2009 at the Bloomfield Club Recreation Facility.

Attendance: Present: P. Chandler Joyce Ruther Leslie Eskildsen Richard Warner S. Elmore – EPI Absent: Diane Keper Ms. Chandler announced that the Board had accepted the resignation of Michael Augusta and appointed Richard

Warner to fill the vacancy. Ms. Chandler stated that the position was up for re-election at the annual meeting in

November.

Guests -

There were no guests.

Minutes -

Motion – Motion to approve the minutes. Seconded. Motion was unanimously approved.

Treasurer's Report – J. Ruther reported the following as of August 31, 2009:

 Assets - $330,826.25  Liabilities - $ 32,857.77  Equity - $297,968.48  Total Liabilities and Equity - $330,826.25 Motion – Motion to accept Treasurer’s report. Seconded. Motion was unanimously approved.

1 Management Report –

Mr. Elmore stated that there would be a surplus in the budget for the replacement of garage doors and recommended that that amount be rolled over to the 2010 budget for garage door replacements to be completed.

Mr. Elmore also recommended that once the December 31st statement is generated any surplus be rolled over into a contingency reserve account for unforeseen projects that may come up.

 Proposed Budget -- Mr. Elmore requested official approval from the Board to send the budget out to all

homeowners. A Board member asked that the contingency reserve account line be added to the

proposed budget prior to mailing. Mr. Elmore stated that he would add the line and leave the amount

blank. Ms. Chandler stated that the Bloomfield Club Recreation Association raised their fee by $1.00

and Bloomfield Club II raised their fee by $5.00, raising the assessment to $236.00.

Motion – Motion to accept the proposed budget with the contingency reserve account line added.

Seconded. Motion was unanimously approved.

 Concrete Driveway Status – Mr. Elmore stated that the analysis of the concrete is at the lab and the

report would not be available for at least 2 to 4 weeks.

 Rules & Regulations – Mr. Elmore stated that the proposed no lease amendment was mailed to all

homeowners. Ms. Chandler asked if there were any questions regarding this amendment.

 Mike Alt – 206 Benton Lane – Unit owner stated that one of the main reasons he bought property

in Bloomfield Club II was the ability to rent the property, if it became necessary, because his job

requires relocation at any time.

 Another unit owner stated that she’s already lost $30,000 - $50,000 in the value of her home and

if homeowners who had been renting are forced to sell at this time, there will be a lot of short

sales and foreclosures property values will drop another $30,000.

 Another unit owner stated that there are approximately 20 homes for sale in the community, the

bulk of which are in Bloomfield Club II and the property values have plummeted in value and

that the houses that are for sale will go into short sale or foreclosure if they do not sell. The unit

2 owner stated that there should be exceptions made for those who had already been renting

especially during the present real estate conditions.

 Another unit owner stated they she had been in favor of this amendment until the property values

started to fall.

 The Board stated that this was not an overnight change and that homeowners had 24 months to

sell. Ms. Chandler stated that Bloomfield Club II was the only Association that had still been

allowing rentals and questioned whether because there are units for sale now, they should be able

to rent them because of the bad real estate market.

 One of the unit owners stated that the other Associations had grandfathered in the homes that

were rentals when they passed no lease amendments and Bloomfield Club II did not give that

option.

 The Board stated that it was not a decision of the Board to pass the amendment that over 70% of

the Association voted to pass this amendment. A unit owner asked if those had been original

votes or by proxy and another stated they had not voted. Mr. Elmore stated that everything had

been available throughout this process and that opposing counsel had reviewed all the

documents.

 One of the Board members stated that the loss of property value had nothing to do with

Bloomfield Club II’s no lease amendment, that the bottom had dropped out of the real estate

market all over the country. There was further discussion with the unit owners pleading for

extension of the leasing period so that property values will not be forced lower.

 Ms. Chandler stated that there was no change being made at this time. The Rules and

Regulations were just being brought into compliance with the Declaration which was amended in

January 2008. Ms. Chandler also stated that there is a hardship clause included and after

February 6, 2010, a letter may be submitted to the Board and they would decide at that time if a

hardship exists and all cases would be reviewed individually.

3  Mr. Palz stated that he had already submitted a hardship request and he asked why he had to wait

to submit the request until after February 6, 2010. The Board stated that they could not consider

the hardship until the no lease amendment becomes effective. Mr. Palz argued that the hardship

already existed because he cannot rent the unit because he cannot have a lease term less than one

year. The Board stated that they could now lease without a one-year lease and they might be

able to sell the unit in that time period and a hardship would not be necessary. Mr. Warner stated

that counsel had advised against considering hardship requests until after February 6, 2010.

 Another unit owner asked what would be required to be submitted for a hardship and asked who

would make the final decision. Ms. Chandler stated that the hardship decision is the made by the

Board and that the unit owner must provide all documentation they have to support a hardship

claim and then the Board will determine whether a hardship exists and if there is more

information required, the Board will request more information.

 Mr. Guillen asked if a unit goes into foreclosure if the bank would be allowed to rent the unit.

The Board stated that that would not be allowed. Mr. Guillen then asked if the Board was

allowed to rent and Mr. Elmore stated that under the Forcible Entry and Detainer Act the Board

is allowed to rent units they take possession of for default in assessments so that the money owed

the Association can be recouped.

 Ms. Collins stated that under the Declaration unit owners can still rent the units to immediate

family. A unit owner asked what happens in the family members has someone move in with

them and the Board stated that family members renting the units would be able to have

roommates, as long as the family member occupies the unit and the lease is in their name.

Motion – Motion to accept the changes to the Rules and Regulations in its entirety as mailed to all homeowners. Seconded. Motion was unanimously approved.

4 Unfinished Business –

 Garage Door Replacement – A unit owner asked if there would be notification when their

garage door would be replaced and was informed that a letter would be sent and Mr. Elmore

explained that there were 3 or 4 doors being replaced this year and all the remaining doors would

be replaced in 2010, weather permitting no later than April 2010.

 Driveway Concrete – The unit owner also questioned why the driveways were being tested and

Mr. Elmore stated that the Board wanted to know why some of the surfaces are spaulding and the

concrete contractor stated that there was no problem with the concrete and the Board decided that

a core sample of one of the affected driveways should be taken and tested at an independent lab

to make sure the concrete was a proper mix and that this was a normal occurrence or if it was

abnormal. If the lab determines it is abnormal, they will go back to the contractor and have him

re-pour the driveways.

Recreation Association Report –

 Mr. Anthony reported that the annual meeting had been held the previous week and as previously

reported, the monthly assessment had been increased by $1.00. The new budget was approved.

Shawn Rodgers who had previously been the appointed Bloomfield Club III representative was

elected to fill the position previously held by Joe Sykora. Mr. Elmore stated that the Board had

to officially appoint a representative to the Recreation Association Board.

Motion – Ms. Chandler motioned that Bob Anthony continue to represent Bloomfield Club II on the

Recreation Association Board. Seconded. Motion was unanimously approved.

Landscape Committee Report –

 Ms. Collins reported that she had had Milieu repair the circle on Benton Lane.

5  Ms. Collins asked about the tree that was damaging the roof at 141 Benton and Mr. Elmore

reported that US Tree was issued a work order.

 Ms. Collins reported that the drainage issue behind 146 Benton had been repaired.

 Ms. Chandler stated that tree trimming is included in the 2010 budget and bids would be

obtained.

Motion – Motion to adjourn. Seconded. Motion was unanimously approved.

Meeting adjourned at 7:40 PM.

Respectfully Submitted – EPI Management Co. LLC