Quote from Laurie Matthews on May 14, 2025, 2:15 pm

Dear Bayside Community Homeowners,

As we move through the first full year following the official December 2024 HOA turnover, we want to update you on the ongoing discussions between the HOA Board of Directors, the Shared Area Working Group (SAWG), and Carl M. Freeman Communities (Founder).

Continuing Our Collaborative Efforts Post-Transition

As you know, the transition of community governance from the Founder-appointed Board to the homeowner-elected Board was completed in accordance with the community’s governing documents and established protocols in December 2024. Since that time, the Founder has remained engaged with the Board and SAWG tKeo resolve outstanding matters and address new issues and concerns. These include operational, financial, and maintenance-related topics that are typical in phased, master-planned communities like Bayside, though the community and its governance are now homeowner-led.

Key Areas of Focus:

HOA Reserves Funding

The Founder has responded previously in meetings with the Owner Directors and the Finance Committee and in prior Founder updates about concerns regarding the Common Reserves funding levels. Last year, despite four years of negotiations on this issue, the Owner Directors and the Finance Committee increased their funding request by over 300% to a level that had not been previously contemplated. The Founder remains confident in its interpretation of the law and the requirements outlined in the Charter with regard to reserve funding and has consistently met those obligations throughout the community's development—including providing nearly $700,000 in subsidies to the Association over the years. The Founder believes the Association is financially sound, with well-funded reserve accounts and sufficient operating reserves (or “Fund Balances”) that exceed best practice recommendations from industry experts including the Community Associations Institute, with financial oversight provided by owner-led committees for the past 5+ years. Nevertheless, the Founder agreed to review the 2024 reserve study provided by the Association and will provide a response to the Association’s latest request for a contribution to the Commons Reserves in the coming weeks.

Street Drainage Concerns

Many of the areas of concern have been under HOA management for ten years or longer, but in some cases the Founder has overseen modifications and repairs, including work that was accepted by Sussex County as recently as 2022. Note that except for Coastal Crossing Phase 2 which will complete final paving this summer and the upcoming work on Sound Church Road, all roads have been accepted by Sussex County and any associated bonds have been released. Still the Founder engaged engineering consultants (GMB) to further understand these concerns, and conclusions were presented to the Owner Directors, Legum & Norman, homeowners and members of the GOC last year. Engineers from GMB then provided additional detail and engineering plans to the Association. The Founder is ready to discuss new information as the Association further investigates this matter and work collaboratively toward an appropriate solution.

Community Parking Counts

The HOA requested additional information regarding parking counts and County requirements for the Bayside Community as a follow-up to the Founder’s initial response to this question. The Founder is compiling additional information and will provide more details as they become available.

Working Capital Contribution

The HOA Board recently requested that the Founder amend the Charter to increase the Working Capital Contribution. Consistent with past practice, the Founder declined to unilaterally amend that document, instead recommending that any such change be initiated through the proper homeowner voting process, as outlined in the governing documents.  Although the Board believes this adjustment would not directly impact current residents, the Founder believes it could. Home sales involve negotiations between buyers and sellers and an increase in closing costs may prompt prospective buyers to request concessions or reductions in sales price, which would affect current owners in the community.

The Founder believes that every resident should have the opportunity to voice their opinion on matters that affect them. The Founder would support the proposed amendment—provided it is approved through a community-wide vote that demonstrates that the residents also agree with the recommendation and change in governing documents.

Continued Engagement with SAWG

SAWG has been a valuable liaison since discussions to restructure and simplify management of the shared areas began last May. While the Founder understands the SAWG is an advisory group, its collaboration with both the Board of Directors, HOA Committees and the Founder will shape any agreement to modify and simplify the shared area structure for homeowners. The Founder remains engaged in discussions with SAWG and expects those discussions to progress in the coming weeks.

Fassett House Inn & Spa             

The Beacon Hospitality team continues their work on pre-construction tasks for the Fassett House Inn & Spa. While there have been some unanticipated delays, you can stay up to date on construction progress by contacting Beacon Hospitality here.

The Founder is actively working to enhance the appearance of the future hotel site and values the community’s ongoing feedback. New ground cover that can prosper in an area without irrigation will be installed, and the fence will be reset to maintain the site’s security, with the enhancements expected to be finalized by Memorial Day weekend.

More broadly, the Founder continues to support Bayside’s long-term success. While it is natural to encounter different viewpoints during a community transition and post-turnover, all parties have expressed a shared goal of finalizing outstanding matters constructively and in a way that upholds the founding vision for Bayside.

We will continue to keep you informed as we work through these final outstanding matters.

We wish you a happy and safe spring season!

Live Bayside,

Carl M. Freeman Companies