Please Approve Amendments 2 & 3 on the Annual Meeting Package
On March 24th, the Board of Directors is asking you to approve a change to two Amendments that assist us in the daily operation of the POA. Many of you have heard about these two Amendments from representatives who have attended many of the annual village meetings. For those who have not had a chance to review the topics, we have outlined the importance of each in “non-legal language". This will give you an opportunity to have some of the background on their importance.
Amendment #2 - Ability for POA to Collect Cable Fee in the POA Assessment Amount: As of today, the POA operates 3 separate companies. The POA operates as a not-for-profit company and two other entities, JL Cable and JL Realty, operate as for-profit companies that are then consolidated into the POA financials. As a separate company, each of these must purchase insurance, be audited, have financials prepared each month and pay taxes (if they operate for profit) as well as other operating expenses. Per part of the current documents for the POA, we do not have the ability to bill some owners for their cable service and not bill others who have decided to subscribe to a cable/internet provider other than Hotwire. Without this change to our documents, JL Cable needs to continue to exist even though it simply collects fees and then pays them to Hotwire for cable and internet service.
The Board would like to create a method to allow the POA to collect fees for cable directly from the JL homeowners who subscribe to Hotwire, thus eliminating the costly middleman step (JL Cable). To do this will require a 2/3 vote of the membership.
This Amendment applies only to cable expenses and the collection of the cable subscription fees.
Amendment #3 - Capital Contribution - A Capital Contribution is made when a new owner closes on a home within the Community. This fee is paid as part of the buyer's closing expenses on the home. In this case, the fee included in the amendment would be one payment of the current quarterly assessment amount ($759). If the Amendment is approved, it is agreed the new fee would be used to fund the JL POA Reserves Account. The idea behind the fee is to ensure newer owners contribute proportionately to that of an owner who has been paying Reserve Assessments over a period of years.
The Amendment would allow two exclusions to paying the new fee if approved by the membership:
1. If an owner was changing the title to their property for estate planning purposes: This might include
a title change
on the property to place the home in a trust-type agreement.
If this is the case,
the fee would be waived.
2. If an owner was to sell their current home, and then repurchase in Jonathan's in a period up to 24 months of the sale date, the fee would be waived for that buyer.
Reserve funds are the lifeblood of the property, and it is felt that everyone has an equal stake in the funding of this important pool of money used to replace outdated and
end-of-life
common elements of the Community. Without these funds, owners currently holding real estate will need to contribute more heavily to cover these costs.
