2024 BVL Annual Mtg | buenavistalakes

BUENA VISTA LAKES MAINTENANCE ASSOCIATION

8855 Thunderbird Drive East | Hernando, MS 38632 | BuenaVistaLakesHernandoMS@gmail.com

NOTIFICATION OF VOTES TO BE TAKEN AT THE ANNUAL MEETING OF HOMEOWNERS AND PROPERTY OWNERS OF BUENA VISTA LAKES MAINTENANCE ASSOCIATION TO BE HELD ON MONDAY OCTOBER 14, 2024 AT THE SUBDIVISION CLUBHOUSE.

Revision of portions of the Buena Vista Lakes subdivision bylaws, also known as The Orange Book, in BOLD as follows:

A. Revision of Article VI Section 1: Article VI Section 1 is amended to allow for the affairs of this Association to be managed by a Board of Directors comprised of nine (9) members, who must be members in good standing, rather than thirteen (13). The bylaws are further amended to comport with such change.

B. Revision of Article XII, Section 1: Article XII, Section 1 is replaced with the following new Article XII Section 1 to clarify the voting process as stated by the court ruling of Mississippi Court of Appeals Case # 2022-CA-01153-COA, Trial Court Case # 17CH1:21-cv-01998 and add financial responsibility clause.

“Dues shall be payable by the lot owner in such amounts as the eligible (see “Paid-up Member” as defined Article III, Section 7) lot owners, by a two-thirds (2/3) vote cast, either in person or by appropriate proxy at the Annual Meeting of the Association may determine.” Each lot shall be charged an equal amount of dues. Dues shall be used for operating expenses of the Association. A lot owner delinquent in dues must pay all back dues and current dues in order to enjoy the privileges of the Common Properties of the Association and regain status as a lot owner in good standing. Dues are a legal debt incurred by the lot owner and may be enforced in a Court of Law by the Board of Directors. If it becomes necessary for the Board of Directors to seek a legal judgement to enforce such a debt, the lot owner shall be responsible for all court costs, legal fees, and all other expenses necessary to obtain and/or enforce said judgement.” (*** This revision is simply a clarification statement explicitly stating the appellate court ruling ***)

C. Revision of Article XII, Section 2: Article XII, Section 2 is replaced with the following new Article XII, Section 2 to include Warranty Deed footnote and add a financial responsibility clause. There have been no changes to the Assessment voting process.

“The Association may levy upon each lot an equal annual assessment, starting from the year 1969, to defray the costs incurred by the Association in providing maintenance of the lakes, dams, dam sites, drives and other common areas for the general benefit of the Subdivision and the lots therein. Such annual assessments should not be deemed dues of the Association. Such annual assessments shall be levied in such amounts as the lot owners from time to time shall determine by a majority of those eligible (see “Paid-up Member” as defined Article III, Section 7) to vote at any duly convened meeting of the Association. (See Warranty Deed which states that such assessments on an annual basis are assessed annually until changed by a majority of the total votes eligible to be cast by the members of the Association, such amounts to be used only for the maintenance of the lake, dam, dam site, drives and other common areas.) Such annual assessments shall constitute a lien upon the property so assessed and the Association shall have the power and authority to collect same by proper action at law, or proceeding in Chancery, for the enforcement of such lien. If it becomes necessary for the Board of Directors to seek a legal judgement to enforce such a lien, the lot owner shall be responsible for all court costs, legal fees, and all other expenses necessary to obtain and/or enforce said judgement.”

C1. Addition of Article XII, Section 2a: Article XII, Section 2a is added to specify the definition of a special assessment and voting process, which differs from an annual assessment. Also included is a financial responsibility clause.

“Special assessments are defined by being limited to specific purposes, specific dollar amounts, and set time frames. Such a special assessment has its own financial due date and delinquency date. Special assessments differ from annual assessments and are established at a special or an annual membership meeting by a majority vote cast either in person or by appropriate proxy at said special, or annual meeting. Such special assessments shall constitute a lien upon the property so assessed and the Association shall have the power and authority to collect same by proper action at law, or proceeding in Chancery, for the enforcement of such lien. If it becomes necessary for the Board of Directors to seek a legal judgement to enforce such a lien, the lot owner shall be responsible for all court costs, legal fees, and all other expenses necessary to obtain and/or enforce said judgement.”

D. ARTICLE XX: PROPERTY VALUE PROTECTION

Here are the key differences between the 2021 and 2024 documents.

General Leasing Prohibition:

2021: The document specifies that all lots must be owner-occupied, with a general prohibition against leasing or renting for any tenancy period, after the current lease expires.
2024: The prohibition is expanded to include a specific date (October 14, 2024) after which no lot may be sold as a rental property, but leases on current rental properties may continue in perpetuity until sold. The prohibition was also edited to explicitly mention that entities such as Airbnb, VRBO, and similar services are forbidden.

Necessity Waiver for Lot Owners:

2021: The document allows for a 12-month Necessity Waiver in specific cases like job loss, job transfer, bankruptcy, death in the family, or other extenuating circumstances, with the possibility of reapplying after 12 months.
2024: Similar provisions are in place, but with additional circumstances considered by the Board of Directors, such as military deployment. The text also clarifies that the waiver can be applied for multiple consecutive times.

Grandfather Clause:

2021: Applies to all lot owners who acquire property on or after the adoption date, October 2021. The clause requires owners to provide copies of all leases in effect as of the adoption date and states that the leasing prohibition applies upon expiration of those leases.
2024: The clause is modified to set October 14, 2024, as the critical date. It specifies that owners with active leases on this date who register as "Grandfathered Landlords" are allowed to continue leasing until they sell the property. The sale must then be to a private owner for occupancy, not for rental investment purposes, except if the property is inherited.

Registration of Rental Property:

2021: No specific section exists regarding the registration of rental properties.
2024: A new section is added, requiring "Grandfathered Landlords" to submit lease copies and tenant information within 30 days of October 14, 2024. This registration is necessary to receive identification allowing access to common properties within the HOA.

“SECTION 1: LEASING PROHIBITION: As of October 14, 2024, no lot, home, property, or other legal interest (collectively, “lot”) may be utilized as a rental property whether short term or otherwise, or to generate rental income, except as other purpose provided for in this Article XX. Entities such as AirBnB, VRBO and the like are explicitly forbidden in BVL under any circumstances.

SECTION 2: NECESSITY WAIVER FOR LOT OWNERS: Any owner of a lot may apply for a twelve (12) month “Necessity Waiver” to the prohibition against leasing as described in this Article XX by petitioning the Board of Directors. Such a lot owner may apply for a Necessity Waiver in writing and in accordance with the policies and procedures then utilized by the Board of Directors. A Necessity Waiver may be granted by the Board of Directors on a case by case basis in its sole discretion; circumstances that may be considered by the Board of Directors include, without limitation: a loss of job, job transfer, military deployment, personal bankruptcy, death in immediate family (defined as spouse, parents/step-parents, children/step children, grandchildren/step grandchildren or siblings/step-siblings) occupancy, or other extenuating circumstances.

The lot owner should demonstrate to the Board of Directors a need to temporarily lease the property for reasons other than the purpose of earning a return on an investment through rental income. After the lot owner has submitted their timely and proper application for a Necessity Waiver, the Board of Directors shall vote on Necessity Waiver applications at its next meeting and may grant the Necessity Waiver by a majority vote of the Board of Directors, a quorum being present. Necessity Waivers shall expire twelve (12) months following the date of approval by the Board of Directors. The lot owner may apply for multiple consecutive Necessity Waivers.

SECTION 3. GRANDFATHER CLAUSE: The prohibition against leasing in this Article shall not apply to the owner of a lot (i) who can prove to the satisfaction of the Board of Directors that it purchased, inherited, or came into possession of the lot on or before October 14, 2024 (ii) who has an active written lease for the current and specifically identified occupying individual tenants of said lot as of October 14, 2024 and (iii) who has registered the lot as a “Rental Property” in accordance with the policies and procedures then utilized by the Board of Directors. Such an owner of a lot shall be a “Grandfathered Landlord” and that specific property will be considered as “grandfathered” into the lease plan in perpetuity until sold. At that time of sale, the property cannot be sold for rental investment purposes and must be sold to a private property owner for the sole purpose of private occupancy. A “Grandfathered Landlord” may not extend, or transfer said property to any other individual tenant or landlord other than in cases of legal inheritance per legal will documentation.

SECTION 4: REGISTRATION OF RENTAL PROPERTY: Each owner who desires to be a “Grandfathered Landlord” must, within thirty (30) days of October 14, 2024, submit copies of all leases then in effect, all tenant information (including without limitation, full legal names and date of occupancy) to the Board of Directors. Such designated lot owner shall also register with the current BVL Management Company as a Landlord, and upon proper completion of the Certification of Rental Agreement, tenants will be allowed to receive proper current BVL HOA identification to access BVL common properties. (Note: A bylaw change will require a 2/3 vote of the votes cast at the Annual Meeting.”

Election of new directors to the Board of Directors. There will be five positions to be elected at this meeting, Monday October 14, 2024, assuming the bylaw revision passes. (The top votes received will indicate new board members)

Vote on the 2024-2025 Annual Budget. Said budget includes a permanent $50 dues increase from $175 per lot to $225 per lot, to cover basic operating expenses. (Note: since a dues increase is included in the budget, it will require a 2/3 vote of the votes cast at the Annual Meeting). If the budget vote fails, the budget reverts to the previous budget and could result in cuts to expenses.