Homeowners' associations are required by the
Town in any new residential development where common area is to be
dedicated and/or maintained by an association. The Town's interests
in the association involve assurance that the common areas are properly
transferred to the association by the developer, that the homeowners
are involved in the operation of the association at an early phase
of development, that the common areas are constructed according to
the approved plans, and that all common areas will be properly maintained
in perpetuity.
A.
Common areas to be indicated on preliminary plan:
All common areas to be dedicated to a homeowners' association shall
be clearly indicated on the preliminary plan.
B.
Homeowners' association documents. Homeowners' association
documents, including the articles of incorporation, bylaws, and declaration
of covenants, conditions and restrictions, and a metes and bounds
description of the common area to be conveyed, must be submitted for
review and approval with the initial submittal of the final plat to
the Town. The documents will be reviewed by the Town Attorney and
Town Planner, and given final approval in writing by the Town Attorney.
The HOA documents must provide for the following:
(1)
Declaration of covenants, conditions and restrictions:
Include the following:
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"Section (X), Rights of the Town of Mount Airy:
The Declarant hereby grants to the Town of Mount Airy, a municipal
corporation, the right at its discretion to audit the financial records
of the Association not more often than annually, the cost of the audit
to be an expense of the Association, and upon recommendation to the
Town of Mount Airy of any certified public accountant engaged by it
for such purpose, to levy special assessments sufficient for the purpose
of insuring the maintenance of common areas."
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(2)
Articles of incorporation and bylaws: Provide that
homeowners will be given representation on the Board of Directors
as follows:
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"At the next annual meeting after 25% of the
units have been sold by the developer, the Class A membership shall
be entitled to elect such number of directors as will equal not less
than 20% of the entire Board as then provided for; at the next annual
meeting after 50% of the units have been sold by the developer, the
Class A members shall be entitled to elect such number of members
as will equal not less than 40% of the membership of the Board as
then constituted, and at the next annual meeting, to occur after 75%
of the units have been sold by the developer or within 7 1/2
years of the incorporation of the Association, the Class A members
shall be entitled to elect all members of the directors of the Board
as then constituted."
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C.
Submittal of final plats. The final plats shall clearly
indicate what property will be owned and/or maintained by the association.
The homeowners' association documents and the deed transferring the
common area to the association shall be recorded prior to or simultaneously
with the final plats. Include in the general notes on the final plats:
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(a)
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"The area shown as Parcel(s) _____, containing
_____ acres is to be conveyed to the (name of Homeowners' Association)
by deed intended to be recorded simultaneously herewith." and
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(b)
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"The 'Articles of Incorporation,' 'Bylaws' and
'Declaration of Covenants, Conditions and Restrictions' of the (name
of Homeowners' Association) are intended to be recorded simultaneously
herewith." or
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(c)
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"The 'Articles of Incorporation,' 'Bylaws' and
'Declaration of Covenants, Conditions and Restrictions' of the (name
of Homeowners' Association) were recorded on (date.)"
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D.
Recordation of documents and final plats. If the HOA
documents are recorded prior to submittal of the final plats to the
Town for signatures and recordation, copies of the recorded documents
and the recordation receipts shall be provided to the Town with the
submittal of the final plats for signatures.
