Amendments and Budget 2020

The purpose of this blog is to allow all members of our PP3 community provide feedback as the board of directors propose initiatives that will help the community grow. But the idea is that the majority of our community is part of the decision making. There will be initiatives that some will or will not agree upon, but if we keep a positive way of communication, we will be able to come to a middle ground and grow our community together. With that said, here is what came out of our last Board of directors meeting:

Amendments:

1. adding all provisions per Florida statute:

It is the intent of this DECLARATION to incorporate all of the provisions of Florida Statute 720, the Florida “Homeowners’ Association Act” as it exists on the date this amendment is recorded and as Florida Statute 720 is amended from time to time by The Florida Legislature in the future.

As we brainstormed this amendment with home owners, we came to a conclusion that it will be a good idea to implement the Florida Statute 720 but not renew the new laws as in the future we ignore what they will be. Some community members will want to keep control as what gets updated into our documents. Some others believe its a good idea that the Statute 720 gets updated automatically and not have to worry about our docs ever being out of date.

2. Approval of purchasers:

All transfers of homes within the community shall only occur of the Board of Directors has consented in writing to such transfer. Should an owner wish to sell or transfer ownership of their home, the owner shall provide the association with a complete copy of the purchase and sales agreement executed by the sellers and buyers.

We want to clean up the wording on transfers. We want to keep inheritance completely separate as if a home is inherited without any outstanding mortgage balance the financial part of the transaction does not apply. A proper occupancy application will have to be submitted in order to reside in our community. Any transfer that sustains a mortgage balance will have to go thru the proper approval procedure.

A) The Buyer’s mortgage debt to income ratio is too high, meaning that the buyer’s expected home payments for principle, interest, taxes, insurance and HOA dues exceeds 30% of the purchaser’s income.

B) The buyer’s credit score is less than 680.

C) The Buyer will be unable to comply with the association’s governing documents.

D) The Buyer made false and/or misleading answers in the application.

As for adding a mortgage debt to income ratio, the idea is to keep a balance between credit score and finances. We discussed that adding this to our community purchasing requirements will help our approval process tons, we are starting to see a change in the mortgage industry. Mortgage brokers and other financial institutions are starting to approve individuals with a very high debt to income ratio. In many cases we are seeing 350K mortgages being approved with an income as low as 40K per year, with only 3.5% down payment. This is a scary situation and we want to be proactive and secure our investment. As we discussed during the meeting. Some community members will like that we increase the percentage to a 35%. its a lot better that what we have currently.

3. FINES:

The association may levy reasonable fines. A fine may not exceed $100 per violation against any member or any member’s tenant, guest, or invitee for the failure of the owner of the parcel or its occupant, licensee, or invitee to comply with any provision of the declaration, the association bylaws, or reasonable rules of the association unless otherwise provided in the governing documents. A fine may be levied by the board for each day of a continuing violation, with a single notice and opportunity for hearing, except that the fine may not exceed $1,000 in the aggregate unless otherwise provided in the governing documents. A fine of less than $1,000 may not become a lien against a parcel. In any action to recover a fine, the prevailing party is entitled to reasonable attorney fees and costs from the nonprevailing party as determined by the court. (continues - refer to PROPOSED AMENDMENTS https://www.pierpointe3.com/news )

As fines pertain, we want to add and match the wording per statute 720. We have to add this to our rules as this protects home owners from the HOA on overcharging for fines and any opportunity for it to become a lien against a parcel. By adapting Statute 720 (1st amendment above) will automatically adapt the FINES amendment.

Budget:

The board of directors proposed 4 Budgets:

1. No changes, HOA fees stay at $145

2. 5 Year increase at $175

3. 7 Year increase at $166

4. 10 Year increase at $160

There are a few reasons why we need to increase our HOA fees. Our available cash on reserves for projects are approximately $30K (normally kept for emergencies only). The remaining balance lives on a CD. We have identified two big projects that PP3 is in urgent need for. Below are listed in priority level:

1. Pool area - Diamond brite: The bottom of the pool has cracks and sinks. some of the tiling is falling apart. The cost of the project is approximately $32K

2. Mill and Pave roads: As we drive around the community, we are sure everyone has acknowledged that the conditions of the roads are not optimum. Sealing and coating will not help the root cause of the issue (pun intended). The scope of the project includes: Cut and remove roots, add root barrier, Mill (1" deep), Pave, Seal and redo all curving. The cost of the project will range between 150K - 170K.

Following our communities input we are proposing the following:

1. take a loan for $200K - With this amount will achieve both Pool and Road projects. (The loan will be covered in 5 years at HOA fees of $175)

2. Wait for our reserves to get healthy and fix the pool only (We need to wait approximately until October 2020 to raise the funds needed for this specific project)

3. Stay with the HOA fees at $175 for the remaining years and execute the roads project 5 years from now.

The increase to our HOA fees has been decided and they will be $175 starting Jan,2020. How we execute the projects and timelines are still to be decided. We want to make sure we follow procedure. We will be getting quotes for each one of the projects and proposing ways of execution. Every quote will be posted on our website for all home owners to review. Also, we will be setting up a meeting to discuss the way to execute the project(s).

Thanks everyone and hope for great feedback!!

Sincerely,

PP3 Board of Directors