Summit Village

Summit Village Sub-Association Administration Policy

I.          PURPOSE: To establish specific procedures and guidelines for administration, financial management, billing & reporting for any sub-association that have asked the Association to assume these responsibilities for them.

II.        AUTHORITY: Summit Village Declaration of Covenants, Conditions & Restrictions.

III.       SCOPE: This policy covers accounting, receiving & disbursing funds, financial reporting, responsibility and authority of Summit Village Board of Directors, and responsibility of the sub-association members.

IV.       BACKGROUND: While the Summit Village Homeowners Association has historically provided common area maintenance services to all Association Members, there have been groups of members that have formed "Sub-Associations" to provide and administer certain services. Examples include the "Hilltop" association formed primarily to maintain the sewer system (lift station) that serves only these twenty-two dwelling units. Other large multiple units have also formed "sub-associations" to provide trash removal, spa maintenance, hallway cleaning, etc. Several of these sub-associations have asked the Summit Village Board of Directors to assume this administrative responsibility. In the instances where the Summit Village board has agreed to do this, this policy applies.

V.       TRANSFER OF RESPONSIBILITY: The following actions are required in order to transfer administrative responsibility to Summit Village:

            1. The current sub-association must submit a formal written request to the Summit Village Board of Directors requesting that Summit Village assume the sub-association's responsibilities. This request must be accompanied by a current financial statement for the sub-association, the names and lot numbers of sub-association members, copies of all official documents that define the powers of the sub-association (such as articles of incorporation, CC&R's, By-Laws, etc.), a current budget, and a list of services that the sub-association performs for its members. This request must be signed by an authorized member of the sub-association.

            2. The Summit Village Attorney will draft a document to be executed between Summit Village and each of the current members of the sub-association. This agreement will define the services to be provided and the method of billing (which will be consistent with Summit Village policies). This agreement will be reviewed and modified as needed until is satisfactory to both the sub-association representative(s) and the Summit Village Board of Directors. When a satisfactory document has been produced, the sub-association shall obtain the notarized signatures of each and every recorded owner on the document and return the document to the Summit Village Board of Directors.

3. Summit Village will engage (a) qualified contractor(s) to review the condition of any structures and/or equipment to assess the condition and determine the costs (if any) to bring the condition up to standard. All structures/equipment must be brought up to existing standards/codes at the expense of the sub-association prior to Summit Village assuming responsibility therefore. 

4. Summit Village will record the document and assume the responsibilities contained therein. A checking account in the name of Summit Village/sub-association (i.e., Summit Village-Hilltop) will be established at the bank used by Summit Village. All funds from the sub-association account shall be transferred to this account. Summit Village will manage these funds in accordance with current Summit Village policies and procedures, but as a separate fund to be used for the sole benefit of the sub-association members who will now be identified as participants in and beneficiaries of this fund. From this point on, Summit Village will no longer recognize the existence of the sub-association.

5. All expenses for this transfer of responsibility shall be borne by the sub-association members.

VI.       MANAGEMENT: Summit Village will manage the fund created under item IV, 4 above as a separate entity in accordance with the CC&R's, By-Laws, Policies, and Procedures. Summit Village will:

            1. Produce an annual financial report (Income Statement, Balance Sheet, and Statement of Cash Flows) for this fund as of June 30 of each year. A copy of this report will be mailed to each affected member.

            2. Produce an estimated annual budget for this fund prior to July 1 of each year. Divide the budget equally among all of the participants in this fund.

            3. Assess each of the members one-half of his annual share on July 1 and January 1 of each year and add this amount to the Summit Village Statement.

            4. Administer all of the specified services.

            5. Pay all bills for these services, including the actual administrative expense.

VII.     ENFORCEMENT: Assessments made under this policy are in accordance with the Summit Village CC&R's and are subject to the Association Lien/Foreclosure powers as specified in the CC&R's. Billing/Lein/Foreclosure procedures are specified in the Summit Village Billing/Lien/Foreclosure Policy.

VIII.    OTHER POLICIES: Where not otherwise specified herein, Summit Village policies and procedures shall apply.

 

This policy was adopted by unanimous vote at the regularly scheduled Summit Village Board of Directors Meeting on October 21, 1991.