Draft 1, 6/12/10, Susie Pettersen

Admiral’s Cove Home Owners Association

Authority to Collect Dues

Compliance Issues

White Paper

The following is an attempt to identify the governing documents that gives the Admiral’s Cove Home Owners Association (ACHOA) Board of Directors the obligation to collect dues and ensure compliance to:

1) provide and operate recreational facilities for the benefit of the members

2) procure and protect the concerns relative to the members of the community of Admirals Cove

When you wrote your offer to buy your property, your selling agent was obligated by State law, to provide you with a Sellers Disclosure Statement, currently known as Form 17. That document should have checked items pertaining to Homeowners Association/Common Interest as well as regular assessments with the current dues. You were supposed to acknowledge receipt or reading that document. This was step one in informing you of your obligation to pay dues and that there were restrictive covenants governing your purchase.

During the closing process, your documentation provided a listing of all of the documents pertaining to the property you were purchasing, including all of the governing documents of Admiral’s Cove. Some companies provide a printed copy of those documents as part of their closing package, while others require that you request a copy of the governing documents. Regardless, you had the right to review these documents before you purchased your property. This was a second step in informing you of your obligation to pay dues and that there were restrictive covenants governing your purchase

Depending on when you bought your property and if you obtained a mortgage, there is another document that was included in your materials, or the language in your papers would have incorporated the intent of the document, called “Planned Unit Development Rider.” This was the third step in informing you of your obligation to pay dues and that there were restrictive covenants governing your purchase On that document it stated

“The property is a part of a planned unit development knows as Admiral’s Cove (a Planned Unit Development – PUD). The Property also includes Borrower’s interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PUB and the uses, benefits and proceeds of Borrower’s interest.

PUD COVENANTS – In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenants and agrees as follows:

A. PUD Obligations. Borrower shall perform all of Borrower’s obligations under the PUD’s Constituent Documents. The “Constituent Documents” are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents.

Those governing documents should have included:

  • Restrictive Covenantsdated 4/17/1967, Island Co. recording #195460 or the one for your division, and Amendment Island Co. recording #387438, dated 9/3/1981; and Amendment Island Co. recording #425805, dated 6/15/1984
  • Bylaws Island Co. recording #86006872, dated 6/13/1986; Amendment Island Co. recording #95019024, dated 11/28/95, and Amendment Island Co. recording #95019023.

It is the Amendment dated 11/28/95 that corrected an error that had been made early in the history of Admiral’s Cove. That Article of Amendment, which was signed 3/21/87, by then President, Joel N. Brown, and approved at the October 25, 1986, Annual Meeting that provides for the Assessment of dues and collection of dues. It reads as follows:

“Article V, Section ;8 of the existing Articles of Incorporation shall be amended to read as follows:

To levy assessments and to enforce collection of the same, against owners of property in the Admiral’s Cove development and/or members of this club on a pro rata basis for the maintenance and upkeep of this corporation’s property; provided, however, that owners of no-perc lots which are duly registered with the Island County Assessor and thereby granted a fifty (50%) percent tax exemption shall be subject to a fifty (50%) percent reduction on current dues and assessments.”

The Governing documents also provide for enforcement of the Restrictive Covenants and the ByLaws. To correct an earlier error, the following amendment was added.

Amendment to the ByLaws, Island Co. recording #95019024, dated 11/28/95. It provides for the Board of Directors Standing Committee to oversee covenant Enforcement, as follows:

“Sec. 6- ARCHITECTURAL CONTROL COMMITTEE – The Architectural Control Committee is assigned the duty of enforcing the Covenants of Divisions 1-7 of Admirals Cove. Their duties shall include review and approval of new building plans and building modification plans to insure (ensure) covenants are being complied with. The Committee shall also provide investigation and resolution of covenant complaints brought to their attention by Cove members.

Committee Membership – The Architectural Control Committee shall consist of five members. The Board of Directors, by majority vote, shall select four property-owning members and one Director to serve as Chairperson. The membership of the committee shall be on a four year rotation with a new member to be selected each year by the Board. The Board shall endeavor to select this member from a division of the Cove not represented on the committee, but this selection shall not result in more than two of the four members belonging from the same division. No additional Board Directors shall serve as committee members.

Board of Director’s Responsibilities – The Board is responsible for the oversight of the ACC and shall provide guidelines sufficient to enable the committee to perform its duties. Board shall provide a budget to support the committee’s work. The Board retains the authority to remove any committee member, by majority vote, when it believes the best interests of the Cove membership will be served.

Member Appeal Review – Cove members who believe that their interests have not been properly addressed by the committee may, by written request to the Board, obtain Board review. The Board’s response shall require a majority vote and their decision shall be transmitted to the Cove member in writing.

Covenant Enforcement – Every reasonable effort shall be made by the committee and Board to resolve covenant disputes, however, the Board by majority vote, may authorize the ACC to proceed in enforcing the covenants by obtaining a judgment against the violator.”

There are other documents that should have been included in your closing packets, depending on your division, as well as all of the documents pertaining to the Water District. For purposes of this document, they are not all listed. It would be in your best interest to review your purchasing agreement paperwork for a list of all documents filed with IslandCounty, and obtain a copy of them from IslandCounty.

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