River Place South Housing Corporation (RPSHC)
DRAFT Minutes From the Board of Directors Meeting
Tuesday, November 19, 2019
In Attendance – Board of Directors
In Attendance – Property Management
In Attendance – Shareholders
Elin Schilling of Unit 636 requested the use of the multipurpose room in the gym during the repairs so that yoga and martial arts classes can continue during gym repairs. Board of Directors will discuss potential rooms that may be used for these classes.
Marissa Fond of Unit 639 requested an update on the land lease. Ms. Mays stated that as of now no decisions have been made but that all things are possible and open.
(1) Bonnie Kline of unit 928 requested an update from Board of Directors regarding the tax attorney’s opinion and list of expenses association with turning the rental portfolio over to shareholders. Requested an email be sent prior to Thanksgiving.
(2) Bonnie Kline questioned spending limit for cosmetic reasons which she believed to be $40,000.00. Ms. Mays stated this was discussed at a prior meeting and she would email this information to Ms. Kline.
See section 7.9. Additions, alterations or Improvements by Board of Directors for Bylaws.
“Whenever in the judgement of the Board of Directors it is desirable to make additional. Alteration or improvements of the Common Elements costing in the aggregate more than Forty Thousand Dollars ($40,000.00) during any period of twelve consecutive months, the making of such additions, alterations or improvements shall be approved by the Majority Vote at a meeting of the Shareholder. The dollar limitation fixed by this section shall increase annually by the percentage equal to the percentage increase in the annual budget of the Association”
Legal Opinion/ Explanation from Kevin A. Kernan, Whiteford Taylor Preston
“Article VII, Section 7.9 of the Bylaws states that the Board must obtain membership approval for expenditures in excess of $40,000 in any given year for “alterations, additions, or improvements” to the common elements. The $40,000 threshold does not apply to expenditures to maintain, repair, or replace the common elements. Typically, remodeling of a lobby is considered repair and maintenance of the building and does not require a membership vote. The Association is typically viewed as replacing the lobby furnishings with like for like materials.
Expenditures for “alterations, additions or improvements” are those for items that did not previously exist or that alter the dimensions or use of the common elements. For instance, if the Association added a staircase or a fireplace to the lobby that did not previously exist, then the Board would need approval of the additions if they cost more than $40,000. Also, if the Board altered the common elements to include a gym or workout facility that exceeded a cost of $40,000, then membership approval would be necessary.”