A few days ago I received a message from a local title company. The caller states that one of our neighbors had applied and was approved for a home equity loan. However, the loan could not be closed unless the HOA agreed to be subordinate to the second lien on the property. I must confess that I had no idea what the person was referring to. I did know that I was being informed about private financial information related to a neighbor; obviously, I contacted the neighbor so they knew exactly what was transpiring.
After discussing this issue with fellow board members, the title company, and our attorney, the Board agrees unanimously that we will approve/concur with all subordination agreement request. In plain language, if the homeowner defaults on the primary or secondary note and the house is foreclosed, we agree that those financial institutions holding the liens have first rights to the proceeds of foreclosure prior to the HOA collecting on any potential liens.
In short, for new mortgages, essentially all HOA's rules places the HOA subordinate to the first lien holder. Home equity loans were illegal in Texas when our HOA was formed and therefore not addressed. With the change in the Texas Constitution, banks and mortgage companies started issuing home equity loans. Soon thereafter, the lenders realized that equity loans were not directly addressed by most HOA rules and a potential conflict could arise. To minimize risk, more lender are now requiring explicit clarification that they will have first right to compensation relative to the HOA.
Why did we agree to support all subordination agreements? Several reasons. First, we must be consistent and fair. If we concur with one, we must concur with all. Second, if we do not agree, we are essentially prohibiting homeowners' access to their equity. Third, the lenders are now seeking relief in the courts with success. Ultimately, we would find ourselves in a subordinate position to the lenders, loss of legal fees, and some very displeased neighbors.
We will bring this issue to the fall 2003 meeting for potential resolution. If the members agree, we can change our rules to explicitly state that our HOA is subordinate to primary and secondary lien holders. Until such actions take place, I may be contacted by the title company to concur with subordination agreements as a condition to closing on home equity loans.
That means I will be told of who has applied for a home equity loan and the amount. The Board unanimously agrees that I should not share the names or any other information with other board members or anyone else. I pledge that if I am contacted by anyone for any reason with respect to your property that I will immediately contact you.
An issue arose a few weeks ago with respect to the minimum pitch of a patio cover/roof. After reviewing the CC&R, the roof covering a residence should have a minimum of 6 feet of rise for every 12 feet of run. Does this mean that any roof tied into the main roof must also meet this minimum requirement? The ACC recently approved such a structure. The Board concurs with the ACC. The key issue is “residence”. We were informed that, from a real estate standpoint, that residence means living space (air conditioned and/or protected from the external elements). Therefore, if someone was to increase the living space of a home by adding onto an existing home, the pitch criteria should be met. However, if the roof was meant to cover a patio/porch, the minimum pitch does not apply.
Over the last few years, several homeowners have questioned what certain rules meant and how are they being enforced. Above all else, this Board is dedicated to ensuring each rule is applies uniformly. We have struggled initially with this task but progress is being made. We have decided to engage the association's attorney. We have asked her to review our rules, especially articles 6 and 7 and concerns raised by the current ACC and individual board members.
Once the review is completed, we will post her legal opinion on our web page. The address is ( www.theestatesofshadyhollow.org ). We have asked the CC&R working group from last year to also formally review the report and provide us with their input. The Board will collect input and then develop and distribute a questionnaire. The questionnaire will be used to collect the opinions from all our neighbors. If the Board determines a majority of the homeowners wish to change a given rule, we will present the item for consideration during the fall HOA meeting.
The Board is acutely aware that our HOA does not have an effective means for members to redress issues. We also do not have an effective means to track members concerns. These concerns can range from rule enforcement, board conduct, disputes with ACC decisions, property manager, and etc. For the Board to be able to best assist you, we need to know the specifics of your concerns. We request you provide your concerns/comments in writing. This will allow us to study the topic, discuss it with the appropriate people, collect additional information if needed, track the problem, and measure our timeliness in responding. Additionally, when an issue arises, a historical file can be searched to determine if this had been a problem in the past and if so, what was the basis for resolution previously. Please send your concerns and comments to the property manager.
Carl Gamble
Goodwin Management, Inc
11149 Research Blvd.
Austin, Texas 78759-5227
Upon receiving your written comments, Carl will distribute your concerns to the Board and we will begin addressing the issue.
Some of you may remember the discussion last year that proposed expanding Frate Barker from a two-lane to a four-lane road (much like William Cannon). This would include extending Frate Barker to the soon to be built SH45. The issue became a much debated topic before the County Commissioners prior to last year's bond election. However, County Commissioner Judge Sam Biscoe eventually removed Frate Barker from the bond package. Following the bond election, it appeared that the Frate Barker extension issue was finally over. However, the project soon became part of the Capital Area Metropolitan Planning Organization (CAMPO) 2025 long-range road plan.
CAMPO is a group of local representatives from the city, county and state level. It is their job to approve road plans and designs with monies from the federal and state levels. Currently, they are in the process of approving those plans. The Frate Barker expansion is proposed as a state funded road.
CAMPO is a group of local representatives from the city, county and state level. It is their job to approve road plans and designs with monies from the federal and state levels. Currently, they are in the process of approving those plans. The Frate Barker expansion is proposed as a state funded road.
Some history on the Frate Barker issue. Shady Hollow is a strong supporter of the road expansion. Their position appears to be that Frate Barker would alleviate much of the traffic traveling through their neighborhood to access Mopac via Slaughter Lane. We can all agree traffic is a problem, but Frate Barker is an illogical solution. FM 1626, less than one mile from Frate Barker will provide the necessary access to SH 45 for both those traveling from Hays county and the southern part of Brodie (that means us). With budgets so tight and out taxes already so high, there is no reason to spend 13 million dollars on an unnecessary road. Also, the idea of more traffic being brought towards an area where elementary school children already have to cross Brodie Lane with neither a crossing guard, cross walk, nor a reduced speed school zone is irresponsible.
There are additional reasons. While many people want to turn a deaf ear when environmental issues, we need to keep in mind that this is an environmental sensitive area. Frate Barker would cross over Bear Creek. Bear Creek is a water feature that is within the Edward's Aquifer Recharge zone. More and more, development is putting at risk one of our basic and most precious resources-water. The less built over our waterways the better for all of us. Then again, here is an easy way to save the 13 million dollars.
The good news is after testimony from some of your neighbors and community groups; it appears that CAMPO may now eliminate the Frate Barker expansion from its road plan. Hopefully we can count on support of our county commissioner Gerald Daugherty. While Mr. Daugherty is a “road building” supporter, he was willing to listen and seemed genuinely interested to those of us who spoke about Frate Barker before CAMPO representatives. Please feel free to let Mr. Daugherty know your feelings about Frate Barker. He can be contacted at 854-9333.
A couple of side notes. During the last board election, a few neighbors voiced their concerns about the possibility of Green Emerald being extended into SH 45. This has never been an option because some land which Green Emerald would be extended across is owned by the city and can not be developed.
SH 45 seems to be the issue that will most likely effect our neighborhood. Due to city of Austin owned and preserved land, SH 45 will most likely be built close to the area behind our neighborhood. No one is sure how this project will develop, but we will keep you informed of any new developments regarding these issues.
Approximately one year ago, Travis County in order to address flooding, conducted a drainage evaluation of our neighborhood. The overall findings are to increase the line grade as it was originally designed when the area was developed. This will allow excess water to drain across Brodie Lane instead of building up in the sinkholes. The sinkholes (or karst features) in this are, are important and naturally occurring. While slow to drain, they deliver water directly to the Aquifer. Travis county will begin work on the project this summer.
Believe it or not, a new 12.6 acre subdivision directly behind the volunteer fire station is in the preliminary stages. According to Clark Patterson at the city of Austin planning office the new development of eleven one-acre lots will be named Southwind at Shady Hollow. It is unknown at this time if the volunteer fire station will remain. A matter of concern is that one of the acres is zoned for commercial/retail use. Mr. Patterson stated because the neighborhood will be on septic systems, he doubts the acre will be used for that purpose. If you have any questions regarding this development, please call Mr. Patterson at 974-2464 and refer to File Number C8J-03-0009. As always, please feel free to notify the board if you become aware of any new developments on these or any other issues relating to our community. Updates will be posted on the website.
Wal-Mart has received the necessary permits it needs to build one of its “super stores” on the corner of Slaughter and Mopac. It is not known at this time when the project is to begin. However, it is believed that the Save our Springs organization is planning to sue, since the massive project is in a sensitive water area.
Interim Chairman
Rich Anderson 280-2212
Allen Gunter 292-0435
Asanga Weerakoon 282-9514
Ysabel Pena 282-0351
Bernard Cordoba 282-8082
David Carpenter 280-9025
Bradley McMahon 292-0566
Richard Reyna 292-1312
George Robbins 292-0610
Deborah Treece 291-4892
Carl Gamble 502-7517