Association Bylaws and CCRs

SUMMARY OF GNHCA BYLAWS

The Gardens of Notting Hill Condominium Association, which is set up as a non-profit corporation, is an organization established to manage our private, planned community. Like other corporations, the Association is governed by a board of directors, who are elected by the members and a set of rules called bylaws.

The bylaws govern how the Gardens of Notting Hill Association (GONHA) operates and maintains the information needed to run the organization as a business. For example, the bylaws cover matters such as:

• How often the HOA holds meetings.
• How the meetings are conducted.
• The duties of the various officers of the board of directors.
• How many people are on the board.
• Membership voting rights.

MEMBERS

• Each owner of record of any unit shall be a member of the Association.

GOVERNING DOCUMENTS OF THE ASSOCIATION

• The Kentucky Condominium Act. KRS 381.9101 through KRS 381.9207
• Declaration of Covenants or Master Deed
• Conditions and Restrictions
• Bylaws
• Rules and Regulations
• Plats of Survey and Easement Agreements (may be separate, often included in the declaration)

DESIGNATED VOTER

• The owner of each of the units shall designate one individual, who need not be a unit owner, who alone shall be entitled to vote on behalf of the unit owner on all matters put to a vote at all meetings.
• The Secretary of the Association shall be notified in writing of the identity of the designated voter.
• All unit owners may be present at any meeting, but only the designated voters may vote at such meetings.
• Votes may be cast in person or by proxy. A proxy delegation must be filed with the Secretary before the appointed time of the meeting.

ASSOCIATION BOARD OF DIRECTORS

The affairs of the Association shall be conducted by the Board of Directors and such officers as the Board of Directors may elect or appoint in accordance with the Articles or the Bylaws.  The Board of Directors may also appoint committees and managers and agents who shall, subject to the general direction of the Board of Directors, be responsible for the day-to-day operation of the Association.

President

• Chief executive officer and leader of the association
• Presides at all meetings of the board and membership
• Executes legal documents on behalf of the association
• Sets meeting agendas and controls all meetings
• Represents the board before the residents
• May have nominating, if not appointment, responsibility for all committees

Vice President

• Performs all of the duties of the president in his/her absence
• Typically shares some of the burden of the president regarding appearances, liaison, public hearings, etc.
• Usually assigned liaison responsibility to specific staff or contractors, and to specific committees

Secretary

• Prepares and distributes board and membership meeting agendas, minutes, and materials referred to in minutes
• Maintains minutes and book on all meetings
• Maintains book of resolutions
• Maintains all official records, including official correspondence, contracts, membership roster, etc.
• Receives, verifies, and maintains all proxies
• Attests, by signature, to the legitimacy of certain documents

Treasurer

• Works with appropriate staff, contractors, and committees to develop and submit annual operating budget for approval
• Maintains adequate records of all association financial transactions
• Maintains roster of disbursement of funds, as authorized
• Prepares period financial reports
• Arranges, subject to board approval, an independent audit of financial affairs

PERSPECTIVES OF BOARD AND HOMEOWNER

Board of Directors Perspective

• Maintaining the value of the property and a good quality of life for the residential community
• Governing smoothly
• Enforces rules
• Establishing and keeping budget

Homeowners Perspective

• Most care a great deal about residences
• Will want service from manager and decisions from Board that will provide a good quality of life
• Problems may arise when expectations are too high or not realistic; this can occur when interests are too specialized or unique

SUMMARY OF DECLARATION OF COVENANTS AND MASTER DEED

Definition of Common Elements:  

• The common elements shall consist of the land designated common area; the foundation; exterior brick walls; roof trusses; roofs of buildings; structural parts of the buildings; outside street lighting; outside retaining walls; pipes, ducts, conduits, and electrical wiring constituting part of the overall systems designed for the general service of an entire building; parking areas; sidewalks; landscaping (in the front yard); garbage; and public utility lines.

• All areas designated as common elements, as described, are to be maintained by the Association.

Definition of Common Expenses:

• Common expenses include, but are not necessarily limited to, those expenses for maintenance of the buildings, including the roofs and attics and all portions of a unit which constitute a part of the exterior of the building, as well as the repair of utility services, water service for the irrigation system, insurance premiums, garbage removal, painting of the common elements, including the exterior of all surfaces, windows, and doors, care and replacement of exterior lighting fixtures, asphalt and concrete repair and replacement, cost of condominium project materials, supplies, equipment and tools, management, legal, accounting and engineering service fees, repairs and replacements of common element utility lines and equipment, and repayment of any loans obtained to pay for common expenses and to establish reserves to be maintained to cover future replacement costs and contingencies.

• The Association is responsible for the payment of Common Expenses from the funds collected through the annual assessment process.

Definition of Limited Common Elements

• Limited common elements mean those elements that are specifically reserved for the use of a certain unit or a specifically designated number of units to the exclusion of the unit owners of other units. The limited common elements of the condominium shall include, but not be limited to, entrances and exits ot the unit, attics, crawl spaces, basements, slabs, porches, decks, utility service units for the unit or multiple units, doors, doorframes, windows, window frames, windowpanes, and driveways. It also means and includes such limited common elements that are agreed upon by the Board of Directors of the Association to be reserved for the use of a particular unit, as well as any other limited common elements elsewhere designated in the Declaration and Master Deed.

• All expenses of maintaining and repairing limited common elements shall be paid by the unit owners.

UNIT OWNERS' RESPONSIBILITY AND COST
It is the responsibility of each unit owner:

• To maintain, repair, and replace, at the expense of the unit owner, al portions of the unit except the portions to be maintained, repaired, and replaced by the Association, including al decorating and redecorating, painting, tiling, carpeting, papering, plastering, or and condition of the unit.

• Where the limited common elements appurtenant to a particular unit include a porch or patio. Such maintenance, repair, and replacement shall be done without disturbing the rights of other unit owners, and such maintenance, repair, and replacement shall not change the appearance of any portion of the exterior of a building or unit without prior approval of the Board of Directors of the Association.

• To maintain, repair, and replace the appliances and fixtures located in the unit, or located in the limited common elements of the unit, including, any plumbing fixtures, water heaters, furnaces, air conditioning equipment, interior lighting fixtures, appliances, sinks, doors, windows, drop ceilings, telephones, or any electrical, gas, or water pipes or lines or wires or conduits or ducts serving any such appliances.

• To report promptly to the association any defect or need for repairs for which the association is responsible.

• To maintain, repair, or replace at the expense of such unit owner all portions of the unit which may cause injury or damage ot the other units or ot the common elements, hereinafter defined.
  
  

RESTRICTIONS FOR UNIT OWNERS

• No alteration or improvement that alters or affects the common elements, such as landscaping or planting of trees, shall be made by a unit owner without the prior written consent of the Board of Directors of the Association.

• Each unit owner shall be obligated ot maintain and keep their own unit, windows and doors ni good clean order and repair.

• Nothing shall be done or kept in any unit or in the common elements which will increase the rate of insurance on the building or contents thereof. No unit owner shall permit anything to be done or kept in their unit or in common elements or limited common elements which will result in the cancellation of insurance on the building.

• Unit owners shall not cause or permit anything to be hung or displayed on the outside or inside of the windows or placed on the outside walls of the building, and no sign or signs, lettering, awning, canopy, shutter, radio, or television antenna shall be affixed to or placed upon the exterior walls, doors, windows, or roof without the prior written consent of the Board of Directors of the Association.

• No noxious or offensive activity shall be carried on or in any unit or on the property, nor shall anything be done, either willfully or negligently, which may be or become an annoyance or nuisance to the other unit owners or occupants or constitute waste of common law.

• Nothing shall be done in any unit, or on, or to the common elements which will impair or change the structural integrity of the building.

• No personal property or other articles shall be left out or exposed on any part of the common elements. The common elements and the limited common elements shall be kept free and clear of rubbish, debris, and other unsightly materials.

• Nothing shall be altered on, constructed in, or removed from the common elements or limited common elements except upon the written consent of the Board of Directors of the Association.

• No fence, patio, wall, pool, antenna, or receiver transmitter such as satellite dishes, outbuilding or shed, or any other structure shall be erected or located anywhere in the common elements or limited common elements. However, satellite dishes maybe installed only if the location of placement is approved in advance of the installation by the Board of Directors of the Association.
• No unit shall be rented to the tenant/occupant for less than six (6) months.

• Accrual Method of Accounting-keeps track of all financial activities, including revenue as it is earned (as opposed to when it is received) and expenses as the obligation is incurred (as opposed to when it is paid). This makes possible a more accurate determination of the financial condition of the association at any point in time. Also, this is a better method for multi-year tracking of capital reserves credits and deficiencies. The primary disadvantage is the greater complexity and technical knowledge that is needed to maintain the records, understand the reports, etc.

• Capital Reserves-the Board has the obligation to repair and replace major capital facilities, buildings, and equipment of the association. The ideal method of providing for these future expenses is the establishment of a capital reserves system and budget to assure that such funds are available when needed. With knowledge that the future holds predictable major expenditures for repair and replacement of facilities and equipment, the association could begin the gradual accumulation of funds through a reserve account to meet all or a portion of that expense when it comes due.