On Monday, August 26, the HOA Board of Directors hosted a town hall meeting at the White River Branch of the Johnson County Library to address lot owners’ questions about the proposed governing documents and rental restrictions. The meeting, though informative, saw a modest turnout.
After brief introductions by the Board members, Mr. Tom Murray, the HOA’s legal counsel, provided an overview of the proposed By-Laws and Covenants. He emphasized that approval from 227 owners is required for the adoption of these documents—a process that could take several months due to voter apathy.
Mr. Murray clarified the distinct roles of By-Laws and Covenants: By-Laws outline the operational framework of the HOA, such as the election of Board members and the scheduling of meetings, while Covenants define the rights and responsibilities of lot owners.
The proposed By-Laws have been updated to comply with state laws. Notable changes include a list of documents that owners are entitled to review upon request. Additionally, sections of the original Covenants that were more operational in nature have been relocated to the By-Laws.
One amendment to the By-Laws is the adjustment of the Board’s spending authority. Previously, the Board could sign contracts up to $10,000 without seeking HOA members’ approval. The new proposal sets this limit at 10% of the HOA’s budget.
Mr. Murray also discussed updates to the Covenants, which involve the removal of outdated or non-compliant sections and the relocation of certain clauses to the By-Laws.
During the Q&A session, a homeowner expressed concern about the perceived restrictiveness of the new rules on solar installations. Mr. Murray assured that while solar installations are allowed under the new Covenants, they require prior Board approval, similar to other property improvements.
Another question was raised concerning the rental restrictions, suggesting that the high rents in neighborhoods like Kensington Grove might make these restrictions impractical. Mr. Murray compared this situation to multi-million-dollar communities in Carmel that also seek to impose rental restrictions. He noted that a hardship exception is included in the proposal to accommodate certain situations where renting might be a necessary choice.
If the rental restriction is passed, pre-existing rentals will be grandfathered in and excluded from the restriction until the property is sold.
A question was posed about the implications if the Covenants were approved but the rental restriction was not. Mr. Murray explained that, in such a scenario, there would be no changes to the current lack of rental restrictions in Kensington Grove.
The final question concerned the quorum requirement. Mr. Murray clarified that for By-Law amendments, a quorum of 10% of the 302 owners—31 owners—could approve changes if two-thirds voted in favor. However, for changes to the Covenants, a higher threshold of 60%, or 180 owners, is required.
To conclude the meeting, Board President Ms. Terry Cleveland urged all attendees to cast their votes by the target date of September 15. She also called for volunteers to assist in canvassing those who have not yet voted.