Board Policies – 1A

SECTION 1: BOARD POLICIES

The affairs of the cooperative are governed by the Board of Directors and the administration is provided by a professional managing agent. The Board of Directors is elected by the members living in the cooperative. There are five Directors, who serve without compensation. The Directors elect the corporate officers and may set up cooperative committees. These committees are responsible directly to the Board and are advised by the Board on policy issues. (For detailed information and scopes of authority, see Section 11, Committees).

SECTION 1A: OPERATIONAL POLICIES

Any informal discussion between a Board member and office personnel or someone from management, must be recorded in the form of a memorandum written by the Board member involved and copies circulated to other board members.

Any informal meeting with office staff, management, etc. to discuss specific cooperative business requiring immediate attention, must be held with at least three Board members present; this meeting in no way constitutes a formal meeting of the Board of Directors.

The recording secretary is hired to record Board minutes. One copy of the minutes is distributed to each board member in their board packet and is approved at Board meetings; once approved, one copy is given to the property manager, and one copy is filed in the site manager’s office.

Board members requiring information from the property manager or the site manager’s office must make the request through the Board President.

Correspondence:

Written correspondence requires Board approval unless a letter needs to written between Board meetings. In this case it is permissible for the site manager and/or the property manager to write the correspondence, once approved by the Board President. Written correspondence is not to be made public.

References on former employees or members will only be verified by written request. The request must be signed by the person involved, and must be written on company letterhead.

The maintenance superintendent, Board member, site manager and/or the property manager must physically inspect damage claims made by members, before consideration is given. The member is responsible for proving that the damage was not caused by their negligence.

Deceased Member or Household Member:

Flowers will be sent on behalf of the cooperative in the event of death of a member of family member listed on the family composition form.

Equipment:

Cooperative vehicles are not to be used for personal business, under any circumstances. Vehicles are to be serviced on a regular schedule, and operated properly and in a safe manner.

Tools are available for members to borrow. They are lawn mowers, weed eaters, rake, shovel, hedge trimmers, and a hoe. These tools can be checked out at the maintenance garage. Tools must be returned within two (2) hours, if not returned within the time specified, maintenance will pick up the tools and a $25.00 charge will be assessed the member. Children are not allowed to check out tools.

Insurance:

The cooperative provides a wide range of insurance protection. However, certain coverage is the responsibility of the member. The cooperative fire and hazard insurance does not protect personal belongings of members, such as furniture. The liability coverage provided by the cooperative does not cover claims arising from accidents inside a member’s townhouse or negligence on the part of the member or the member’s family or guests. Members are encouraged to purchase a tenant’s homeowners’ policy.

Membership Certificate:

New members are provided with a Membership Certificate, which is evidence that the holder is a member of Independence Square Townhouses, Inc. The certificate must be returned to the cooperative if a member wishes to withdraw their membership.

Permanent Record:

Cooperative records are to be retained for a period of seven (7) years.

Permits:

The following permits are required by the cooperative: Pet Permit; Planting Permit; Fence Permit; Deck and Patio Permit; Installation/Alteration Permit; Waterbed Permit; Air Condition and Bracket Permit; Vehicle Registration Permit.

Minutes Posted:

Minutes of the Annual meeting and open session minutes of the monthly Board meeting are posted in the site manager’s office.

Storage:

Absolutely no gasoline powered vehicles; tools or equipment may be stored inside the townhouse. Motorcycles shall be parked parallel at the front of the member’s numbered parking spot. Electric mowers and weed eaters may be stored in the basement.

Tax Benefits:

You may deduct for Federal Income Tax purposes that portion of your annual carrying charge payments that went for real estate taxes and mortgage interest. The amount you save in taxes will depend on your income, your other deductions, your family status and the amount of carrying charges paid during the year. The cooperative accountant will provide a statement annually.

Transfer on Death:

The non-probate transfers law provides that the owner may designate a person to whom the ownership shall pass on their death. The beneficiary does not have any present ownership interest in the property, thereby avoiding any problems with making them a current owner. The non-probate transfers law is not intended to take the place of a will. However, when members desire to place the name of someone on the membership certificate for the purposes of that person receiving the property on the member’s death, then the below procedure shall be followed.

To designate a transfer on death, the abbreviation “TOD” can be used. For example, if John and Mary Jones (members) wish to use a transfer on death designation, the membership certificate will read “John and Mary Jones, TENANT, TOD John Jones Jr.”. The aforementioned would indicate that John and Mary Jones, Tenants by the entirety, transfer on death to John Jones Jr. The transfer to John Jones, Jr. would not take place until after both his mother and father had predeceased him. If two beneficiaries are named, the designation would be as follows: “John Jones and Mary Jones, TENANT, TOD John Jones, Jr. and Barbara Jones”. If a single member wishes a beneficiary designation, it would be as follows: “John Jones, TOD John Jones, Jr.”

When a beneficiary receives the ownership of the membership pursuant to a transfer on death designation, the beneficiary must then be certified and sign an occupancy agreement if the beneficiary expects to live in the unit. The transfer on death designation merely replaces what would happen if the owner died with a will and left the property to the beneficiary.

Visitors:

There is a thirty (30) day limit for visitors. Beyond that, the visitor becomes a resident and the member/subscriber of the townhouse is required to notify the site manager’s office. A new family composition must be completed (if it does not exceed occupancy limit), and the new resident must be in compliance with HUD and cooperative guidelines to qualify for permanent occupancy. Orientation is also required of new residents. Failure to comply will place the member in default. A criminal report for all new residents is required; there is an extra charge for this report.

Work Orders:

It is the member’s responsibility to call in a work order for repair of items in or around their townhouse. Glass and screen repair are the responsibility of the member (chargeable work order). Any damage caused by a member’s failure to call in a repair on a timely basis will be charged to the member (Occupancy Agreement, Article 13).

Charge Limit/Payment Method:

Charges up to $20.00 must be paid in full with the next months carrying charge payment.

No charges larger than $300.00 will be allowed. Charges in excess of $20.00 must be paid in full within a six (6) month period, or the account will be sent to the cooperative attorney for collection. Members that currently have a balance larger than $300.00 may not add additional charges to their account and a minimum payment of$50.00 is required until the account is paid in full. Members will have to sign a financial agreement plan stating that they will follow these guidelines.

Improvements:

Any permanently affixed addition or enhancement made to a unit which was not originally provided with the unit. This would include such items as: Central air conditioning, paneling, finished basements, wall to wall carpet, wallpaper, fenced yards, bathroom vanities, etc.

Please remember that when a member installs improvements, they are responsible for any structural damage caused by installation or malfunction of said improvements.

Extermination:

Because of potential liability problems for the cooperative, extermination is contracted to an outside company. The service, which involves treatment for roaches, silverfish, spiders, etc., is performed twice a year. Extermination is MANDATORY, it is accomplished through baiting process, and therefore, there
are no chemicals that will cause harm to members or their pets.