By-law Changes,
proposed at the September 12, 2015, 900 Marshy Cove, Board of Directors Meeting.
The following describes a proposal that is intended to manage the character of our building. This is a PRELIMINARY DRAFT for owners to consider. The proposed measures require a Unit Membership vote of 67% (33 unit owners of 48) to be adopted. Our informal poll of owners, including landlord owners appear to support these proposed amendments. All of these proposed by-law changes have legal precedence in the State of Maryland.
Please understand that passing these amendments will require much work and cooperation. Each step will require the approval of the 900 Marshy Cove Board of Directors. At this time the BOD fully supports this initiative.
The process:
- Establish a special committee of owners to refine the proposal and set objectives. Other by-law changes may be included.
- The Committee will engage legal counsel to develop the proper language to conform with Maryland Condominium Law.
- The Committee will set a date for a Special Meeting of Members for the explicit propose of voting on the issues. Ballots and will be sent out with notices of the Special Meeting of Members.
- The amendments, whole or in part, will voted into effect at the Special Meeting,
Status as of September 12, 2015,
The committee has not been officially formed at this time.
(Counts are approximate)
17 units are rentals.
15 units are full time owners
16 units are second homes.
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Proposed Amendments to the Bylaws (DRAFT)
Why Rental Limitations?
An
increasing number of units are now occupied by tenants as opposed to owners. As this transition occurs, the character of
the building also changes; therefore, it is in the best interest of resident
owners, non-resident owners, and landlord owners that we maintain a balance
between these three categories. Resale
value of our units is affected by the residency of non-owners because of the
perception held by prospective buyers.
The
percentage of rental units also affects financing options. Federally
underwritten financing such as FNMA, FDMA, and FHA require more restrictive
terms on multi-unit condominium buildings where rental units exceeds 50%.
Why Limits on Unit Ownership?
Another
issue is the possible influence of bulk buyers. Although this is not an
immediate threat, restricting the number of units which one entity can hold
should be limited. There are multiple
examples of predator real estate speculators that purchase units to control the
Board of Directors with the end objective of terminating the condo association.
After which they can force unit owners to sell.
The unit reserve funds can be seized and the units are converted to
apartments.
Note: Our current bylaws prohibit an entity to hold more than one Board of
Directors position. However, multiple
unit owners do have one vote per unit owned.
Member votes are required for election of officers, by-law changes, as
well as amendments proposed below.
Please
note that these restrictions have been instituted into by-laws of other condominium associations in the State of Maryland. These restrictions are
permitted by Maryland Condominium Law.
To
that effect, the following propositions are submitted to association member for
their consideration and approval.
Proposed Amendments: (Each voted and approved separately)
- New unit owners
shall be required to use their units for non-rental purposes for the two(2) years of ownership.
- Rental units
shall be limited to twenty (20) in total at 900 Marshy Cove. A unit owner must register their unit with
management as a rental before the rental unit goes on the market or the owner
entertains renting to a prospective tenant or tenants. Such registration shall be reviewed and
approved by the 900 Marshy Cove Board of Directors. Approvals will be granted
on a first come, first serve basis.
- An entity can own
no more than two (2) units. An entity is defined as an individual, family, trust,
LLC, or business. An entity extends to immediate family members, relatives,
business partners and associates. Entities
also include any other business unit to which the individual, family member of
business associates hold an interest.
- With the
exception of owner occupied units, residency shall be limited to four (4) individuals per unit providing that this conforms to Cambridge City ordinances and regulations. Other qualifications for tenants will be
considered by the special committee.
Penalties
for non-conformance:
Owners found to violate of these restrictions shall be
assessed an additional $TBD per month until management and the Board of
Directors are satisfied with their compliance to these restrictions.
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Comments? Inquiries? Suggestions?
Your emails will be forwarded to the 900 Marshy Cove Board of Directors.
You may also mail your questions of comments to:
Marshy Cove BOD
C/O Sentry Management
601 Locust St,
Cambridge MD 21613
