Riverside Estates

“State of the Community”

2015 Summary

October 20, 2015

Agenda- Opening Remarks- Introductions- Overview of the community- What are your HOA Fees used for?- Breakdown of major costs- How much is owed to the HOA?- Why is there a Board of Directors?- What are the responsibilities of the Board of Directors?- Accomplishments to date- Open question: How can we make our community even better?- Closing remarks and social media links

Opening Remarks

• Welcome• Why are we here?• What is the end-state of this meeting?• Basic communication rules to observe during

the meeting• What this meeting is NOT…

Introductions

• Board of Director’s Introductions

• Homeowners Association Introductions

Please tell the group…

- Your name, and how many family members reside with you - Your Address- How long you’ve lived in the community- Why you chose to live in Riverside Estates

Overview of the Community- There are 5 completed Phases, and a total of 174 permanent homes- Most of our residents are Active Military, Retired Military- but not all- The RSE Covenants, and By-Laws were approved, and filed with the State of Alabama on 24 July, 2009- A Board of Directors (BoD) was elected by HOA members on 16 May, 2015; term of office is one year (12 months)- The Community Association Management, LLC from Atlanta, GA, manages/represent our HOA IAW BoD guidance - Monthly expenditure list is available to all who request it through Mr. Steve Olive (Community Association Management)- Expecting that all HOA fees were paid on time, our annual operating budget would be $69,600.00 ($400.00 X 174)- Based on a review of past years, our annual operating budget has averaged approximately $50,000.00- Currently, we have approximately $27,393.00 reserve funds in our account; we are currently owed approximately

$24,000.00- Primary functions which cost the most are: administrative support, utilities (street lights, electric, water, trash) common

area grounds maintenance, landscaping, general repairs, and operating/maintaining the pool- Our primary means of communicating with HOA members and Renters is thru our social media outlets (website, and

Facebook page)- Although there have been a number of criminal activities over the past year, we are considered one of the safest

neighborhoods in Fort Mitchell…please report any suspicious activity to the Russell County Sheriff immediately. Let it be known that we care

- The number of renters in the community is increasing- We WILL schedule some “fun” activities for the community in the near future…cookout with playhouse and other things- Look for an invite to the Annual Meeting, scheduled for sometime shortly after the New Year

What are your HOA Fees used for?

• In general, to pay the bills for street lights, common area grounds maintenance, landscaping, water (pool and sprinkler systems), general repairs, and operating/maintaining the pool

• HOA Management (CAM); record keeping, assessment letters, litigation (collections)

• Insurance (for structures such as the Pool/Pool house)

• For bulk refuse removal when residents vacate their homes and leave stuff out in the street

• For individual, uninhabited home maintenance; mostly when no Property Management Company is hired (we have to hire someone to cut the grass)

• To build capital for unforeseen/foreseen expenses (roof replacement, pool filter replacement, etc.)

• We are trying to assess whether it is feasible to reduce 2016 HOA fees…it all depends on how much money we receive from currently delinquent homeowners. Our goal is to have at least 1 year of fees in reserve before attempting to do so.

Breakdown of Major Costs 30 SEP 2015 31 DEC 2014 31 DEC 2013

General Administration $9,630.00 $15,211.00 $12,960.00

Pool Maintenance $7,725.00 $9,972.00 $7,647.00

Utilities (water/electric/trash) $9,504.00 $14,896.00 $17,204.00

Grounds Maintenance & $7,924.00 $14,710.00 $10,803.00Landscaping

Total $34,783.00 $54,789.00 $48,614.00

Average cost per month to run the community is approximately $4,300.00

How much are we owed? # Residents/ SEP 2015 31 DEC 14 31 DEC 13

HOA Fees Owed 42/$23,882 34/$15,485 10/$4,150________________________________________________________________________Owe Less than 1 Year 10/$1,812 N/A N/A

1 year behind 14/$6,275 N/A N/A

Owe 2 years or more 18/$23,601 N/A N/A

The HOA will, through a court of law, recoup this money by assessing a lien for money owed, to include late fees, interest, and legal fees, against the homeowner’s deed, filed with the Russell County Magistrate…we get paid before the homeowner is allowed to sell the home.

Why is there a Board of Directors?

The Bylaws provide for the self-government of Riverside Estates Homeowners Association, Inc., in accordance with the Articles of Incorporation filed with the Secretary of State and the Declaration of Covenants, Conditions, Restrictions and Easements for Riverside Estates Homeowners Association, recorded in the Russell County, Alabama land records ("Declaration").

Governing Body; Composition. The affairs of the Association shall be governed by a Board of Directors. The directors shall be members of the Association (i.e., owners of property in the Association); provided, however, no co-owners may serve on the Board at the same time. All directors must reside in Riverside Estates Homeowners. No persons shall be eligible to be elected to or continue to serve on the Board of Directors if they are shown on the book and records of the Association to be more than thirty (30) days delinquent in the payment of any assessment or charge by the Association. Each Board of Director shall serve for a term of one (1) year.

What are the responsibilities of the Board of Directors?

Powers and Duties. The Board of Directors shall manage the affairs of the Association and shall have all the powers and duties necessary for the administration of the Community and may do all such acts and things as are not by the Declaration, the Articles of Incorporation, or these Bylaws directed to be done and exercised exclusively by the members. In addition to the duties imposed by these Bylaws or by any resolution of the Association that may hereafter be adopted, the Board of Directors shall have the power to and shall be responsible for the following, in way of explanation, but not limitation:

• Preparing and adopting of an annual budget, in which there shall be established the contribution of each Owner to the Common Expenses (determines how much annual assessment [HOA] fees are)

• Making assessments to defray the Common Expenses, establishing the means and methods of collecting such assessments, and establishing the period of the installment payments of the annual assessment

• Providing for the operation, care, upkeep, and maintenance of all of the areas which are the maintenance responsibility of the Association

• Designating, hiring, and dismissing the personnel necessary for the operation of the Association and the maintenance, repair, and replacement of the Common Property, Association property and, where appropriate, providing for the compensation of such personnel and for the purchase of equipment, supplies, and material to be used by such personnel in the performance of their duties

• Collecting the assessments, depositing the proceeds thereof in a financial depository or institution which it shall approve, or otherwise investing the proceeds in accordance with any limitations set forth in the Alabama Code, and using the proceeds to administer the Association

What are the responsibilities of the Board of Directors?

Powers and Duties continued. • Collecting the assessments, depositing the proceeds thereof in a financial depository or institution which it shall

approve, or otherwise investing the proceeds in accordance with any limitations set forth in the Alabama Code, and using the proceeds to administer the Association

• Making and amending rules and regulations and imposing sanctions for violation thereof including, without limitation, reasonable monetary fines

• Opening of bank or other financial accounts on behalf of the Association and designating the signatories required• Making or contracting for the making of repairs, additions, and improvements to, or alterations of the Common

Property in accordance with the other provisions of the Declaration and these Bylaws, after damage or destruction by fire or other casualty

• Making or contracting for the making of repairs, additions, and improvements to, or alterations of the Common Property in accordance with the other provisions of the Declaration and these Bylaws, after damage or destruction by fire or other casualty

• Enforcing by legal means the provisions of the Declaration, these Bylaws, and the rules and regulations adopted by it, and bringing any proceedings which may be instituted on behalf of or against the Owners concerning the Association

• Obtaining and carrying insurance against casualties and liabilities, as provided in the Declaration, and paying the premium cost thereof

• Paying the costs of all services rendered to the Association or its members and not directly chargeable to specific Owners (trash left behind, un-mowed grass, automobile towing, etc.)

• Keeping books with detailed accounts of the receipts and expenditures affecting the Association and its administration, specifying the maintenance and repair expenses and any other expenses incurred

Accomplishments to date• Established a community website to keep you informed (http://www.riversideestatesfortmitchell.com) • Established a “Yard of the Quarter” incentive program• Placed informational signage around common areas (safety/rules/policies)• Replaced broken swings and crows nest canvas top at the playground• Repaired drinking fountains (parts only, labor donated by homeowner)• Installed motion lights at the pool house (parts only, labor donated by homeowner)• Removed slabs of residual concrete from common-greenspace area (labor donated)• Filled in several holes where erosion was occurring in the common area (labor donated)• Established means for submitting replacement requests for streetlights with TREC• Established a means for removing large debris left behind, with Russell Co. Utilities• Established an Architectural Control Committee; revised Modification Request Forms• Began implementing a process to assess homeowners for Covenants violations• Established a Facebook Page (site management donated by community member) (

https://facebook.com/groups/riversideestates36856 )• Encouraged the builder to complete Phases 4 & 5 street paving well ahead of schedule• Working to establish a means of collecting Property Management Company information from homeowners who rent• Conducted monthly meetings to identify and prioritize tasks needing immediate attention• Approved numerous Modification Requests and relaxed several things (i.e. fence types and stain color)• Currently soliciting vendors to perform ground, and pool maintenance at a cheaper cost

How can we make our community better?

• Install speedbumps on Riverside Landing?• Invest in a cover for the pool so we can shut it down completely for the fall/winter• Establish a neighborhood watch program?• Limit the number (percent) of homes that can be rented at one time?• Make a rule to outlaw discharging of firearms within the community boundaries?• Call the police, make a report; only means to bring litigation upon someone• Be vigilant; if you see something that looks suspicious, take action• Know the Covenants and posted rules, and hold people accountable for adhering to them…most are

designed to uphold home values, keep residents safe, and make our neighborhood a desired place to live

• Don’t challenge or be confrontational; be dignified and respectful to everyone• Hold an annual “End of Summer/Back to School” celebration?• Stay connected and informed by routinely checking our community Social Media sites

Closing Remarks• Thank you, and be thankful…we live in a safe community, among neighbors who take pride in their homes;

please share what you’ve learned at tonight’s meeting with other residents

• Find the Covenants, Bylaws, Modification Request forms, and other useful information on our website…we need help managing the website, any volunteers?

• Remember, BoD members donate their time to help make OUR community a great place to live…so, please work with them to resolve problems, differences, and grievances. We’ve had to make sacrifices/adjustments in order to meet some of the same rules/policies which we hold everyone else too.

• Look for the Annual, Special Meeting announcement in the mail shortly after the New Year

• These slides will be available, along with the meeting minutes, on our website within the next 2 weeks.

• Communicate to the BoD thru CAM (Mr. Steve Olive) or our website gmail account

Contacts and Information

Community Association Management: Steve Olive, solive@CAMGA.com (obtain financial statements, ask general questions, and submit your Modification Requests here)

Website: http://riversideestatesfortmitchell.com (Obtain copies of Covenants, by-laws, Modification Request forms, and other information here)

Gmail Account: riversideestatesfortmitchell@gmail.com (Ask your questions here)

Facebook URL: https://facebook.com/groups/riversideestates36856 (see what other HOA members are saying about our community; alert the community about any suspicious/criminal activity here)

Recent case of vandalism within Riverside Estates, 27 September 2015

Between 12:30 AM, and 3:00 AM on 27 September an individual unlawfully entered the pool area, and caused major damage to several lounge chairs, and tables. Several vinyl pieces were cut, and all furniture tossed in the pool. The signs were also ripped

from the fencing, and thrown in the pool as well. Cost to replaced damaged equipment exceeds $387.00.