Quote from [email protected] on July 22, 2024, 4:37 pm

Dear Bayside Community Homeowners, We are writing to provide an overview of the first of two training sessions that will be held at Bayside. Best Practices - HOA Transition Training Session The HOA Transition Training Session took place last on June 27th, from 10 AM – 12 PM. Led by Margey Meyers, President of CADRExperts (Community Association Dispute Resolution Experts), the session delved into the complexities of HOA transition. Margey explained what the transition process entails for homeowners and how they can actively participate as their community shifts to owner control. This gradual process, spanning several years, is crucial for transferring control from the developer to the homeowner members.   Ms. Meyers also highlighted the CAI Best Practices on Transition and how CAI is a great resource for all HOA’s for training and educational resources. She recommended that HOA Board Members become a part of CAI. You can learn more about CAI here.   The training session was attended by about 35 people in person at Signature's and was viewed online via Zoom. If you missed the training, you can watch the entire training session here.   HOA Transition Training Session Survey  For those who were able to attend, we welcome your feedback as we prepare for the next HOA training session. Please share your feedback via the Online Survey.   We extend our gratitude to all the homeowners who participated and look forward to our next training session on September 19th from 10 AM – 12 PM, which will cover HOA Board Members’ Roles & Responsibilities. Questions from the HOA Transition Training Session    During the HOA Transition Training Session, several key questions were raised. Below are some highlights: Advisory Transition Committee – Margey recommended forming an Advisory Transition Committee during the final phase of transition. The Founder Appointed Board Members support this idea, as it would comprise Bayside homeowners working closely with the Founders and the Board. However, the Owner Elected Board Members prefer an Independent Transition Committee, which delegates the Board authority to the Owner Elected Board Members.  The Founder Appointed Board Members do not support delegating authority to only two Directors, nor is it common practice to do so.   HOA Board Members - Margey emphasized that Board Members must prioritize the community’s best interests. Both the Founder Appointed and Owner Elected Board Members are committed to serving all Bayside members and stakeholders.   Two-way Communications & Progress - While the Owner Elected Board Members have made it clear that they are not happy with the progress being made in transition, we believe that we have made significant strides in addressing many of the nearly 20 open issues from the initial tracking list following our February meeting with the Owner Elected Board Members.   Based on our June 19th response to the Owner Elected Board Members, we reiterated that while some of their questions have already been addressed, others are still under review and research to ensure we provide accurate responses. Updates on these open issues follow: Road/Water Issues: most of the areas in question have been under HOA management for ten years or longer. In some cases, the Founder has overseen modifications and repairs, including changes at Hydrangea Park (which we walked in May) that was accepted by Sussex County in 2022. Note that except for Coastal Crossing Phase 2 which is currently under construction, all roads have been accepted by Sussex County and any associated bonds have been released. As such, if the Association is not satisfied with the current condition, it is their responsibility to identify a solution and resolve the issue. Nevertheless, we have met with the engineering consultants (GMB) to further understand these issues, and they are continuing their research. Consistent with our prior discussions during the property walk and our meeting on May 16th, we plan to meet with the HOA volunteers and GMB to discuss potential solutions as this process moves forward. Shared Areas: we are working hard on putting together a coherent response to the shared area discussion we had with the Owner Working Group in May, which will include the TIS report. We would like this process to be moving faster, but it is complex, and we are taking the time to ensure thoroughness and clarity in our communication to the Owner Shared Area Working Group. Reserves: we are also working on the reserve issue in parallel with the shared area overview. Townhome Roofs: the July 11th email from the Townhome Maintenance Committee claims that “(t)here is simply no evidence of any meaningful research or justification that was done to support this vote.” As previously stated, the recommendation to terminate this program was driven by Owner Directors and homeowner-led committees. Upon those recommendations, the Board consulted with its attorney, who advised the Board that it had the authority to terminate the program. Now that there is no program, it can only be established by a 67% vote or by the Founder. There were many hours of work put into researching the townhome roof (and paint) programs and multiple presentations made to the Board and townhome owners on these issues, culminating with a $200k contribution by the Founder to the townhome paint fund, a return of townhome roof funds to owners, and a subsequent townhome owner vote that failed to reach the required threshold to reinstate the program. Given this history, we stand by our previous response on this issue: it is our opinion that this is a decision for the Board, to make in concert with the owners, especially considering that townhome owners did not vote in favor of reestablishing the program. However, if the Board and owners agree that the program should be reinstated, the Founder would not object. Proposed Changes to the Charter: the existence of the Community’s governing documents provide a clear roadmap for every resident in the community when they make their home buying decision. As we discussed in our meeting with the Owner Elected Board Members on May 16th, maintaining consistency in governance of the community to meet the expectations set when owners join the community is critical to maintaining stability which preserves the community’s legacy, reputation, desirability, and value. As such, changes to the Charter and By-Laws should be approached cautiously. While the Owner Elected Board Members have requested changes to the Charter because they view some provisions as “homeowner unfriendly,” unless there is a specific and compelling reason, the Founder does not intend to modify the community’s Charter or By-Laws at this time. The open issues are complex and often require extensive effort to resolve. Specifically, cost-sharing and reserve funding questions that require input and responses from third parties whose schedules are not in our control. In the meantime, we have provided construction plans, storm water management plans, road plans, utility agreements, past financial reports, and held meetings with the Owner Elected Board Members and Owner Working Groups. We have also dedicated significant time and resources answering several other complicated questions that have been raised, including the community systems inquiry, the CAI checklist responses to Legum & Norman, the irrigation and landscaping repairs at Heron’s Ridge, etc. With those issues addressed we can now put additional focus on the most complex issues which naturally take more time to resolve.   Bayside Sales We are pleased to announce that only one villa remains for sale in Coastal Crossing. For all sales inquiries, please contact Rosemary Wehberg at [email protected] Following a pause in construction due to seasonal restrictions aimed at minimizing disturbance to the eagle nest and its occupants, we are excited to share that construction has resumed as of July 1st. We look forward to welcoming our final residents by the year's end. For continued updates and information regarding training sessions, we encourage everyone to stay informed by following the Founder’s Updates and checking the Calendar online.   We will continue to keep you updated as we work through the process.

Live Bayside, Carl M. Freeman Companies