Oaks of Avent Ferry Condominium Homeowners Association Meeting October 9, 2003 at 7:00 p.m.
Board Members Present: Frank Johnson, Barbara Dodson, Bill Loftin, Bonnie Latham, and Brian Browning.
Absent: John Hertrick
The meeting was called to order at 7:05.
Homeowners present and proxy votes were tallied. As neither equaled a quorum, Frank Johnson announced the meeting was adjourned until the Annual Homeowners Meeting in February 2004.
With respect to those present, Frank Johnson, introduced topic of discussion, amendment of by-laws to (1) allow assessment of legal fees accrued due to collection of past due accounts to be charged back to delinquent homeowner, and (2) raise the deductible of the Homeowner Association’s insurance from $1,000 to $5,000.
To discuss the first proposed amendment was Ms. Tina Fraizer, lawyer for The Oaks Association. She stated that in 1999, NC legislature revised the Condominium Act to provide for the collection of legal fees against the delinquent unit owner unless covenants provide differently. The Oaks covenants are no longer consistent with NC law. Our bylaws must be amended by a 75% vote to allow collection of legal fees against the delinquent unit owner without ambiguity. There was general discussion, and questions from Homeowners were addressed either by Board members or Ms. Frazier.
To discuss the second proposed amendment was Mr. Carter Glass, The Oaks’ Insurance Agent with Nationwide Insurance Co. He stated that The Oaks covenants, enacted in the 1980s, allow for a maximum $1,000 deductible. Our bylaws must be amended by a 75% vote to raise the Homeowners’ annual premium to $5,000. During the past five years, The Oaks has submitted multiple insurance claims totaling more than $114,000, or about $22,600/year. In the same time, Homeowners’ annual premium has risen from about $8,000 to $16,000 per year. The Oaks is at risk of losing insurance due to becoming a “high insurance risk.” Were The Oaks to lose insurance, it may have difficulty finding another insurer based on its history of losses. Raising the annual deductible is the only way The Oaks has to reduce both number of claims and payout by Nationwide insurance. The current deductible is too low to cover current cost of repairs considering the age of the units. Benefits of raising the deductible: (1) reduce The Oaks’ premium from $16,600 to $12,900, a savings of $3,700 per year, and (2) prevent possibility of a “high risk” status leading to loss of insurance due to expensive payouts and high number of claims.
It is important to note that, with The Oaks’ deductible raised to $5,000, Homeowners would need to raise the ‘Coverage A’ section of their Personal Property insurance to match the deductible. This will mean an additional cost of approximately $12-$15 per year in each homeowner’s personal policy. Each homeowner needs to consult their insurance agent to ensure their coverage is adequate. There was general discussion, and questions from Homeowners were addressed either by Board members or Mr. Glass.
The meeting was adjourned at 8:05 to be continued at the Annual Homeowners Meeting in February 2004.
Submitted: Bonnie Latham
