October 2017
MINUTES OF A MEETING
OF THE
BOARD OF DIRECTORS BROOKRIDGE HOA, INC.
Call to order at 7:36 PM.
A meeting of the Board of Directors of Brookridge Homeowners Association, Inc. (“HOA”) was held on October 31, 2017 at the home of Monica Teuscher (Unit 43). Present at the meeting were: Carole Princer Levy, Paul Spindel, Monica Teuscher, Barbara Schiff and Jeff Adler - all of whom are Directors constituting a quorum.
Also present were members of the Committee to explore Condominium Conversion: Elliot Jacobs, Sandi Edlitz, John Denton & Leslie Mollinoff. Absent from this meeting of the Committee was Ann Gittleman.
Carole Princer Levy acted as Chair of the meeting. Jeff Adler acted as Secretary.
Condo Conversion:
Before the Board’s Regular business meeting began the HOA Committee began a discussion of the committee’s research with additional lawyers. The sense of the Committee members (4 present and Ann Gittleman’s proxy) is to continue with the conversion effort. The Committee, further, recommended (4 yeas to 1 nay vote) to have an Informal poll be preformed of the Brookridge Community and get a sense of support for the Condo Conversion. A 75% positive response was suggested for the conversion to proceed.
The Board thanked the Committee for their efforts.
The Board unanimously approved the Committee’s recommendation A poll will be sent to all Community members online and by l. If the 75% threshold is met the Board will then instruct Mr. Elefante Esq, begin the conversion from an HOA to Condominium Community.
Note: A summary of the October 4th "Condo Meeting" at Bonnie Briar is attached.
Regular Board Business:
Corrected Minutes of the October 4th Special community meeting have been approved and posted.
Paul Spindel, Treasurer, reported on the budget as of October 31, 2017.
The operating account balance was $ 26,700.00
The capital reserve account was $202,942.00
CD in the capital reserve account $250,000.00
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Total in Reserve: $452,942.00
Paul reported that the HOA is currently running a surplus over our 2017 budget projection.
Projected costs of the proposed Condominium conversion is $100,000.00 and will be paid from our reserve fund.
New Business:
(1). United New Rochelle Homeowner Association (UNRHOA) reported no progress in resolving our disput with Suez water over the high fire hydrant tax rates HOA's are charged. UNROA is continuing its legal efforts with the PSC to have these rates reduced
(2). The Board votes unanimously to re-install the speed bumps in the spring. The community is reminded that more children are present in our community. Please drive responsibly.
(3). The Board reminds the Community that homeowners are not allowed to install playground equipment on common property. Swings, jungle gyms etc. constitute an increased liability risk to the HOA. If this equipment is found on Common Property it will be removed.
The next meeting of the Board will be will be: Tuesday November 21, 2017 @ 7:00PM at Jeff Adler’s home (29).
There being no further business before the Board, upon motion made and duly seconded, the meeting was adjourned at 8:51 PM.
Respectfully submitted,
Jeff Adler, Secretary
SUMMARY OF A SPECIAL COMMUNITY MEETING
OF THE
BROOKRIDGE HOA, INC.
CONDO CONVERSION
A special Community meeting called by the Board of Directors of Brookridge Homeowners Association, Inc. (“HOA”) was held on October 4, 2017 at Bonnie Briar Country Club. Board of Directors present at the meeting were: Carole Princer Levy, Paul Spindel, Monica Teuscher, Barbara Schiff and Jeff Adler. Also present were owners of 32 out of 44 units (including members of the Board of Directors) & our New Rochelle Councilwoman Liz Fried, the featured speaker at this meeting Attorney Ralph J. Elefante (Elefante & Persanis, LLP).
Carole Princer Levy acted as Chair of the meeting. Jeff Adler acted as Secretary.
Carole thanked Councilwoman Fried for allowing us to use Bonnie Briar for the site of this special informational meeting on the issue of converting our HOA to a Condominium Community (CC), then introduced Mr. Elefante, an attorney who had recently complete a similar conversion for Fairway Green in Mamaroneck.
Mr. Elefante began by telling us that upon conversion the average unit owner at Fairway Green had their real estate taxes reduced by 35%, as of June 2017. The reduction in taxes results from the way New York State law requires a municipality to tax a condominium as opposed to a house. Although all of the 59 units at Fairway Green signed on to the conversion our by by-laws will only require 29 units to agree to a change.
Mr. Elefante stated that under our present set-up, the HOA owns the Community areas (roads, pool, tennis court and lawns with the exception of the area directly in front of each unit. Under a condominium structure present homeowners would still own their homes. In addition to the usual definition, "up to the drywall', he would include in a revised set of by-laws and offering document a responsibility of the home owner for the maintenance of all pipes and ducts in the walls, the exterior siding, roofs, sky lights and driveways; in effect the same responsibility that the homeowner now has. The Condominium association would own all other areas.
For tax purposes Brookridge would be considered a 44 unit apartment complex and each owner would own 1/44th of this Condominium. Because Condos are taxed on the rental value of a unit rather than its' sales price this change should reduce our real estate tax bill by between 25 to 40% per unit.
Mr. Elefante states that in all other ways the by-laws and declaration remain the same and all rules governing the HOA would be identical after the conversion. His review of Brookridge's By-laws and Declaration found nothing that would prevent the proposed conversion to Condominium and again forecasted a reduction of individual property taxes from New Rochelle in the range of 25%-40%.
The cost of conversion will be approximately $100,000. If all 44 units agree to convert the $2,400+/- per unit cost will be recouped in less than one tax year. (Paul Spindel proposed that if the community elects to go forward with conversion, the HOA will pay for these costs with funds currently in our Capital Fund.)
Mr. Elefante said we only need approval from the NY State Attorney General’s office (no approval needed from New Rochelle). This conversion is based on NY State law.
Questions and Answers with Mr. Elefante & Board Members (with unit owners):
(1). No permit needed from the city of New Rochelle
(2). No zoning board approval needed
(3). Sale of units after Condo conversion will not need to be sent to the Board for a right of first refusal) (This step, found in other condo rules, will be waived in the new Bylaws and the Offering Plan)
(4). Homeowners will not need to have their insurance plan changed
(5). Condo conversion should have a positive effect on re-sale value a Unit (especially with the reduction in Real Estate taxes)
(6). Liability insurance for individual unit owners may need to be addressed at a later date
(7). Condominium conversion should lower school and New Rochelle city taxes
(8). STAR exemption should still be at same percentage as it is now
(9). Brookridge will be a Condominium with all the characteristics of an HOA
Following the Q&A Leslie Molinoff, John Denton, Sandra Edlitz, Ann Gittleman & Elliot Jacobs volunteered to form a Homeowners committee to further study the feasibility of the proposed conversion. Their first order of business is to ask for a second legal opinion on the Condo conversion.
Meeting adjourned