2013 Devonshire HOA Mid-Year Update

On behalf of your hardworking Board of Directors, I trust this message finds you well.

The first six months of 2013 have provided some interesting learning on matters important to all of us here in Devonshire, and also some very welcome activity on lot sales and new home building.

First the Board learning’s since our December 9, 2012 Annual meeting:

1. After a formal survey of the Chadwell Street cul-de-sac, we found that the original survey done in 2003 was done incorrectly resulting in the street being laid about 10’ to the north of where it should have been laid. This resulted in compounding effects of the drainage ditches and piping around the north and west sides being graded and installed inconsistent with the NCDOT requirements for takeover and maintenance as they are not located on the right-of-way as is required.

2. This will require the HOA to seek Easement redress from the affected homeowners and approval from Wake County Planning, or if the Easement cannot be secured and approved, at some future date to reconfigure the Chadwell Street cul-de-sac, driveway pipes and culverts to bring them into compliance with NCDOT standards. We also learned we have no legal recourse against the original surveyor as the statute of limitations has expired.

3. The CC&R amendment vote taken in December 2012 included members who, according to our legal Articles of Incorporation, were not technically eligible to vote, thus rendering the vote invalid. Specifically, any lot owner who does not have a house built on their lot is currently not eligible to vote.

4. Upon legal review, there are a number of inconsistencies between our HOA Articles of Incorporation, our By-laws, and our CC&Rs that need to be addressed so everyone is treated fairly and has the appropriate voice of representation on HOA matters.

Action the Board has taken to date:

1. We have retained the services of an HOA attorney to review actions we have taken, actions we would like to take, and recommended changes and amendments to our HOA governing documents to ensure we are in compliance with all HOA legalities within the state of North Carolina.

2. In consultation with our attorney, we are reconsidering how and when to size the Special Assessment needed for our roads to minimize the financial impact to all homeowners.

3. We have asked our attorney to draft the needed changes to our governing documents so they can be voted upon by currently eligible members of our HOA.

Next steps:

1. The Board will be calling a special HOA meeting to have currently eligible members formally vote on the redrafted amendments in the near future.

2. At this meeting the Board will also discuss the current state of our new understanding of how and when to establish the special assessment for our roads and capital fund, and discuss the new information regarding the Chadwell Street cul-de-sac and the future timing of any needed work.

3. It will be critical to have strong attendance from our HOA members at this meeting or to have voting proxies from homeowners who cannot attend in person, as we have been advised by our attorney that we cannot collect voting ballots for CC&R changes outside of the meeting.

If I am a homeowner reading this update, I might be thinking some thoughts of despair. Please don’t. As an HOA Board, we have been told repeatedly by members of Wake County Planning and our attorney that we have done many things right; that we have accomplished more than any other development that has been faced with the challenges that we had dropped on us in December 2011 with the Developer going out of business; and that we are on the correct path to resolution. While this no doubt has been challenging, we have a clear picture of what we need to do and how to get it done.

To offer some positives:

1. We have new real estate representation with the Jim Allen Group and the Board has personally met with Jim to discuss our current state and our desired state of lot sales, as well as the Boards’ willingness to meet with current and new builders wanting to build in our development.

2. Three homes have recently sold.

3. We are seeing the building of our first new home, a pre-sale, in over almost four years.

4. The building of a Spec home is scheduled to begin later in July.

5. There is increased interest in available lots that should result in more new homes being built this year.

I would like to pass along the thanks of the HOA Board for your patience and understanding as we continue to live, work, and learn about the responsibilities of running our HOA. We are very mindful that we must take into account every aspect possible to ensure we act legally, timely, and in the best interest of the entire membership. We are open to any questions or comments regarding our HOA management and welcome the engagement of all members of our development in making Devonshire a place of enjoyment for all.

One point I would like to remind everyone about and that has to do with a required Architectural Review for any exterior work you are planning to have done at or on your home. At minimum for the records of the HOA, but to ensure no one constructs anything that would not meet with the aesthetics of our community, an Architectural Review is required to be submitted AND approved PRIOR to ANY work being done at or on the exterior of any home in our subdivision, with the exception of house painting that remains the same color. This includes any work done in the back yard, even if it is not visible from the road. It has been noted that a few homeowners have begun and apparently completed work around their home without submitting their plans for review by the HOA Architectural Committee of the Board. I ask those homeowners submit an Architectural Review form, which can be found on our website (and attached to this email), so we have a record of work done for future reference and concurrence with our HOA CC&R requirements. Please contact me or any Board member if you have questions or concerns about this expectation.

As a marathon runner, I am reminded that the work of the HOA is not a sprint, but more like a long run that has its up hills and down hills, and long straightaways where you just keeping going even if it hurts. The goal is to run a smart race so we can enjoy the walk after all the hard work. We have a beautiful neighborhood and I look forward to enjoying my walks here in Devonshire. I hope you do as well.

On behalf of your board, I am sincerely,