Thursday, April 18, 2019

CHERRYWOOD HOMEOWNERS: PLEASE VOTE "NO" ON THE PROPOSED BY-LAWS CHANGES AND "YES" ON THE PARCEL E POND TRANSFER




CHERRYWOOD HOMEOWNERS: 
* PLEASE VOTE NO OR ABSTAIN ON THE BY-LAW DECLARATION VOTE
  TO PROTECT YOUR RIGHTS AS HOMEOWNERS
* PLEASE VOTE YES ON THE PARCEL E POND TRANSFER

(Note: The author of this piece has been a member of the Cherrywood Homeowners Association Board of Directors since October of last year, but the opinions expressed are entirely his own.)

INTRODUCTION

In the recently-sent Cherrywood Homeowners Association (HOA) newsletter, an article at p. 3 urges members of the HOA to vote, yea or nay, on a package of changes to the HOA by-laws (also known as Declarations).  The article recognizes that we currently have “a very limited declaration of covenants, conditions, and restrictions that have served us very well over the years.”  The proposed changes would, for the first time, add a number of additional restrictions. The article states that “[m]any of these changes have been discussed at the Association’s annual meetings,” but it fails to note that these meetings are typically attended by fewer than 10% of HOA homeowners. Nor, as far as I can recall or determine, were there ever any votes at those meetings asking the HOA Board of Directors (the Board) to seek new restrictions.  Nevertheless, last year the Board decided to ask its law firm to draft such restrictions to be added to the By-Laws.

My wife and I have lived in Cherrywood since we bought our home here in 1986. A big part of our decision to buy here was that there were virtually no restrictions on homeowners’ decisions as to what to do with their homes. In 2013, I retired as a career attorney with the U.S. Department of Justice.  At the October 2018 HOA Annual Meeting, I was elected to the Board.

Below, I briefly explain some of the reasons why I believe the proposed Declarations (By-Laws) changes should be rejected.


WHAT THE PROPOSED BY-LAWS CHANGES WOULD DO

The proposed changes include significant restrictions on the freedom of homeowners to lease any part of their homes, including requirements that homeowners identify to the Board the identities of “tenants” in their homes. According to the proposed Section 4(a) of Article IV, “A ‘tenant’ shall include any person occupying the Lot other than the Owner or a member of the Owner’s household, even if the tenant has not paid any consideration.”  “Household” is not defined.  So, for example, the identity of an uncle or cousin living in your house would have to be provided to the Board.

The law firm fashioned a package of changes, which also included probably-unenforceable restrictions of telecommunications towers and prohibition of accessory apartments.  The package also included a variety of provisions that would make it easier to bring lawsuits against homeowners, and provide leverage that, in my view, could make it, as a practical matter, impossible for homeowners to challenge efforts by the Board to enforce the new restrictions, regardless of the restrictions’ validity under County law. As fashioned by the law firm, all the changes must be voted on as a package; voters are not permitted to vote for some, but not all.  


STATE OF THE VOTING AND REASONS TO VOTE NO ON THE BY-LAWS CHANGES

These proposals, which were sent to HOA homeowners on September 19, 2018, may be found at https://tinyurl.com/cherrywoodhoa.  To take effect, they must be approved by 60% of the HOA’s 608 households.

At the October 24, 2018 annual Cherrywood HOA meeting (attended by about 7% of the household members) there was an extensive discussion of these proposals.  The proposed changes were to be voted on as a single package, even though they dealt with several distinct issues and would, for the first time since the creation of the HOA more than 30 years ago, include significant restrictions on our freedom to use our homes as we please. This concern was voiced by many in attendance.

I shared these concerns at the Annual Meeting, and for that reason I stood for election to the Board, and was elected. I have been impressed with the dedication of the Board members, who carry on the necessary, but largely unnoticed and likely under-appreciated work for the community.

But on this matter, I think that the Board’s attorneys have fashioned a package (including nearly-impenetrable legalese) that would ill-serve our community, and it is not at all clear to me that the attorneys fully explained all the implications to the Board. Indeed, at the February 2019 Board meeting, some members said that they thought that the identification-of-tenants provision of proposed Section 4(a) was already required by the County, and one member provided me with a provision of the County Code (Section 29-51(h) that he thought confirmed that impression. I read the provision, and discovered that nothing in County law requires that the names of tenants be submitted to the County.  I confirmed that understanding with the appropriate official of the County Department of Housing and Community Affairs. 

In the nearly six months since the last Annual Meeting, nowhere near 60% of households have submitted ballots to approve the By-Laws changes.  The January HOA Newsletter urged approval, but as of mid-January only 29% of households had approved.  As of March 14, only 34% had approved.

It takes 60% to approve a change in the By-Laws, and for good reason.  People moved here, in part, because the HOA does not impose restrictions on individual freedom. As noted above, the proposed By-Laws change package includes such restrictions. People have not moved to Cherrywood to join what effectively could become a form of sub-government in Montgomery County.  So our foundational documents provide that any move to change that dynamic must be overwhelmingly supported. The role of the HOA and its Board is presently limited to housekeeping matters.  These matters are important, and have been well-carried out by Board members for more than 30 years.  The proposed package of new By-Law provisions does not address an actual problem in our community.


PLEASE VOTE TO APPROVE THE PARCEL E STORM WATER MANAGEMENT POND TRANSFER PROPOSAL

I do want to note one other matter, still pending from last October’s Annual Meeting.  That is the vote on the Parcel E Storm Water Management Pond Transferwhich is discussed at p. 2 of the Spring 2019 HOA newsletter.  There is a large pond near the Cherrywood Playground and Soccer field that is owned by the HOA, but as to which we have both liability and expenses, even though the ownership in no way benefits the HOA.  The County has agreed to take ownership of and responsibility for this Parcel E, but, under our By-Laws, we need a 2/3 positive vote to complete the deal.  As of March 14, 43% of households (261) had voted in favor, and only 6 households had voted against it.  Everyone on the HOA Board agrees that it would be useful to complete the transfer, so it would be good if those who have not yet voted on the Parcel E Pond Transfer now do so to complete the deal.


If anyone has any questions, please contact me at FishbackHOA@gmail.com

David Fishback

April 18, 2019



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