Quote from Laurie Matthews on October 17, 2025, 6:47 pm

Dear Bayside Homeowners,  Continuing Our Collaborative Efforts Post-Transition Over the past 18+ months—both prior to and following the transition of the Developer Control Period—the Founder has remained actively engaged in open and ongoing communication with the Board of Directors (the “Board”). In addition to direct engagement with the Board, the Founder has participated in discussions with various committees, including the Shared Area Working Group (“SAWG”), Finance Committee (“FC”), and Grounds and Operations Committee (“GOC”), amongst others. These collaborative efforts have resulted in dozens of meetings and calls, along with extensive email dialogue, with Association representatives to address a wide range of matters—both longstanding and newly emerging—related to the management and operation of the HOA. Topics have included operational, financial, and maintenance-related concerns typical of large, complex, phased, master-planned communities like Bayside, the residential component of which is now fully governed by its homeowners. As part of this process, the Founder has responded to and addressed over twenty transition-related issues, including coordination with the Association’s managing agent, Legum & Norman, to provide access to hundreds of historical documents. These include utility agreements, construction and stormwater management plans, deeds, easement agreements, financial records, and more—all intended to support Bayside in building a comprehensive and accessible archive for current use and future planning. In accordance with the Delaware Uniform Common Interest Ownership Act (“DUCIOA”), the Founder also commissioned and fully funded a comprehensive transition audit. This audit covers the entire Developer Control Period (2005–2025) and was formally shared with the Board to promote transparency and accountability. Additionally, as part of our commitment to ensuring a smooth transition, the Founder organized voluntary educational workshops for both the Board and homeowners focused on the Developer Control transition process. These sessions were led by experts in HOA transition management, and all presentation materials were made available on the Founder’s website, a central resource for regular transition-related updates. We extend our appreciation to all homeowners who attended the workshops and to the broader community for staying engaged and using the website to remain informed throughout the pre- and post-transition phases.

Ongoing Contributions and Support Beyond documentation and compliance, the Founder has made meaningful financial contributions to support the residential component of the community—either in response to homeowner concerns or at the request of the Association. Over the years, this support has totaled more than $700,000 in voluntary financial subsidies, and includes a $200,000 contribution to the townhouse paint program. In recent years, the Founder has funded the following maintenance enhancements, among others: Drainage improvements in Coastal Crossing Phases 1 & 2 Enhanced landscaping and irrigation at entrances and multiple other points along Americana Parkway and Signature Boulevard Realignment of crosswalks and striping at the North Haven Drive roundabout for improved pedestrian and vehicular safety Installation of an additional crosswalk on Americana Parkway and additional striping on Americana Parkway, Signature Boulevard, and North Haven Drive Landscape and irrigation upgrades at North Haven, Heron’s Ridge, and Harbor’s Edge The Founder has also voluntarily participated in numerous property walks related to the transfer and maintenance of Association property and has paid for many upgrades and modifications that go beyond what is required by approved plans—all without obligation. These efforts reflect the Founder’s continued commitment to listen to and engage with the Board, its committees, and residents to address concerns and deliver a community that meets and exceeds expectations, both operationally and aesthetically, a goal that Bayside’s numerous awards and accolades suggest has been accomplished.

Cost Sharing and the CTSC Amendment One of the most significant outcomes of collaboration between the Board, SAWG, and the Founder has been the forthcoming amendment to the Declaration of Easements and Covenants to Share Costs (“CTSC”). This revised document, expected to be finalized in the coming weeks, is designed to clarify and ensure equitable allocation of costs related to General Shared Areas (“GSA”) and Interior Shared Areas (“ISA”). These updates are the result of discussions that continued in earnest beginning nearly 18 months ago and included the Board, SAWG, the Founder and other stakeholders in the community. Notable progress has been made in clearly defining the ownership and maintenance responsibilities of key assets and determining who is responsible for funding and maintaining them, notably to include the transfer of the ongoing maintenance burden of the town center parking lots to the Founder. In addition to reducing the overall costs of maintaining the shared areas, the contribution percentage of the homeowners to the shared area operating budgets will be reduced, further limiting the financial obligation of homeowners to maintenance of the shared areas. During these discussions, the 2005 Amendment to the CTSC was also reviewed. This amendment stipulates that the Association and the Non-Residential Owner of the golf course share the cost of repairing any pond located within the golf course in the event of a force majeure event (e.g., hurricane, flooding). While the Board has expressed disagreement with this provision, believing the Association should bear no responsibility for assets it does not own, it is important to note that Bayside’s stormwater system benefits the community as a whole. These systems may capture runoff not only from homes, but also from roads and shared areas, and they certainly provide both environmental and aesthetic value to all of Bayside and its members. Maintaining the amendment as-is ensures that any such repairs are addressed responsibly and in the best interests of the entire community should such an event ever occur.

Addressing Remaining Items: Localized Ponding Concerns As the transition process for the residential component nears completion, the Founder remains engaged in resolving a small number of outstanding items, including concerns about a few intersections in the community where localized, standing water has been observed. While some of the effected roadways were installed nearly two decades ago and efforts have been made previously to resolve those concerns, the Founder is working with the Board and the GOC to explore practical and cost-effective solutions to further mitigate this issue. Initially, the Association proposed installing concrete valley gutters at eight intersections, based on plans prepared by their engineering firm, at an estimated cost of $428,000. Although this method has been employed selectively by the Founder, the Founder’s engineers have advised against its use broadly. Based on their experience over the years, valley gutters can lead to pavement failures at the joints with the concrete, and there is often differential settlement between the asphalt (flexible pavement) and the concrete valley gutter (rigid pavement). Instead, they advised addressing these concerns by reestablishing the flow lines through milling and repaving those intersections when full roadway resurfacing is due, which is outlined in the Association’s Reserve Study. To date, the Association has refined its request to focus on four primary locations. Should the HOA determine that immediate work is necessary, the Founder is willing to contribute a portion of the cost. Based on quotes the Founder obtained, the estimated cost for improvements at the four intersections ranges from approximately $70,000 to $110,000 depending on the scope of work — or less than half of the estimate the Association received for those four locations. The GOC is currently reviewing this latest bid and is expected to recommend a path forward soon.

Commitment to Transparency and Community Partnership The Founder remains fully committed to transparency and continued collaboration as the turnover process for the residential component of the community comes to a close. We hope this summary provides valuable context and insight into the complex nature of many of the requests and discussions throughout the transition. While there may have been times when responses took longer than desired, this was largely due to the need for in-depth research, coordination with subject matter experts, and careful consideration of funding implications. We appreciate the continued engagement and look forward to supporting the Association in completing this final phase of turnover and beyond.

Live Bayside, Carl M. Freeman Companies