A mailing went out in late May 2021 regarding a proposed amendment to our Village of Jefferson (VoJ) Residents Association indentures and continuance of incorporation. It is imperative that we receive the signed petitions at the management office so we can move forward with this necessary ratification if the required majority are in favor.
The VoJ Board has received some feedback regarding the recent amendment and ballot sent out. Legal language often can be confusing to many, so hopefully the explanation below is in language that everyone should understand.
Background:
The original Indenture for the Village of Jefferson was written to be in effect for 50 years, but scheduled to expire after 20 years. Through a series of amendments passed by the developer, the expiration date moved forward, and it is currently scheduled to expire in November of 2022, which matches the original 50 year incorporation expiration date.
No one knows for sure why the developer constructed the charter in this manner. Perhaps there was a belief that the area would become an incorporated city within 50 years. An attorney that is handling this amendment for the Association has stated that most subdivisions in unincorporated areas today have auto-renew clauses to their charters.
In order to keep the Indenture intact and in full effect, the Board is proposing an amendment which will allow for the Indenture to renew for 20 years from the date of approval of this amendment and automatically renew every 15 years thereafter with no vote or amendment necessary for each successive renewal. This proposed amendment, if passed, will restore certainty and continuity into the future for our subdivision.
Key points:
As a result of these potential consequences, the VoJ Board of Directors strongly recommend that you promptly vote in favor of the proposed amendment to the current Village of Jefferson Residents Association Indenture. Thank you for your time in reading this and submitting your ballot.
Click here for a copy of the ballot
Click here for a copy of the Amendment text and here for the Amendment cover letter
Click here to read the original 1972 Indenture and associated previous amendments
The VoJ Board has received some feedback regarding the recent amendment and ballot sent out. Legal language often can be confusing to many, so hopefully the explanation below is in language that everyone should understand.
Background:
The original Indenture for the Village of Jefferson was written to be in effect for 50 years, but scheduled to expire after 20 years. Through a series of amendments passed by the developer, the expiration date moved forward, and it is currently scheduled to expire in November of 2022, which matches the original 50 year incorporation expiration date.
No one knows for sure why the developer constructed the charter in this manner. Perhaps there was a belief that the area would become an incorporated city within 50 years. An attorney that is handling this amendment for the Association has stated that most subdivisions in unincorporated areas today have auto-renew clauses to their charters.
In order to keep the Indenture intact and in full effect, the Board is proposing an amendment which will allow for the Indenture to renew for 20 years from the date of approval of this amendment and automatically renew every 15 years thereafter with no vote or amendment necessary for each successive renewal. This proposed amendment, if passed, will restore certainty and continuity into the future for our subdivision.
Key points:
- None of the current indentures, covenants, or restrictions change. The only change to the current document is to Article X, Section 3, which extends the life of the association from the current November 2022 expiration date.
- Current owner voting rights do not change. This proposed amendment is not a power grab. Neither the VoJ Board of Directors, nor the Property Management can make changes to the Indenture without the ballot consent of the VoJ owners.
- Confusing legal language in the amendment actually preserves the voting rights of Association owners to change or terminate the VoJ Residents Association in the future.
- If this amendment does not pass, we have been told by an attorney (also stated in the original 1972 Indenture), that owners will become 1/582nd direct owners of the Common Ground (Tenants-In-Common), which potentially means each of us will be responsible for paying taxes, insurance and other legal issues that arise regarding these areas, most notably how property titles are documented or conveyed in the future.
- There will no longer be an incorporation to blanket owners from any legal claims made against the Village of Jefferson. All of us would be directly subject to any potential lawsuit . Currently, the VoJ Residents Association purchases liability insurance on behalf of all collective owners for the Common Ground. It is likely that each of your individual insurance costs will go up to cover this new Tenants-In-Common ownership.
- It is likely that your individual property taxes will increase. Currently, the incorporation does not pay taxes on VoJ Common Ground. There may also be future legal questions about what happens to the Common Ground property when some of the Tenants-In-Common don't pay their share of the real estate taxes. Would that possibly mean foreclosure against all?
As a result of these potential consequences, the VoJ Board of Directors strongly recommend that you promptly vote in favor of the proposed amendment to the current Village of Jefferson Residents Association Indenture. Thank you for your time in reading this and submitting your ballot.
Click here for a copy of the ballot
Click here for a copy of the Amendment text and here for the Amendment cover letter
Click here to read the original 1972 Indenture and associated previous amendments
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