Bylaws

Lakewood Village Improvement Association Bylaws as of June 4, 2007

ARTICLE I        Purpose

The Lakewood Village Improvement Association, hereinafter called the “Association”, is a nonprofit corporation that is incorporated under the provisions of Public Act 137, 1929, being MCLA 455.201, et seq.: MSA 21.751, et seq. The Association shall be the legal entity responsible for owning, managing, governing, administering and operating certain real estate which has been dedicated for common use in, at, or around the “Subdivision”, which term is precisely defined in Article II hereof.

The Association has adopted By-Laws, which may be amended from time to time by the “Members in Good Standing” which term is defined in Article II hereof.  The purpose of these By-Laws is to describe the powers and duties of the Association and how it is to implement and administer these powers and duties through its “Board of Directors” which term is defined in Article IV hereof.

Generally, the Association has been created to provide the residents of the Subdivision with a means to govern themselves with respect to real estate owned by the Association or real estate dedicated to the common use of the Members in Good Standing, to promote positive neighborhood relations, to maintain and improve the Subdivision, including but not limited to: observance of water pollution regulations, water safety laws, water quality preservation and to the creation and maintenance of an aesthetically pleasing environment in which to live.   The Association is further empowered to do any and all things prescribed and allowable under and incidental to the powers and duties set forth in MCLA Section 455.201 et seq.

ARTICLE II        Membership     

Section 1.    Eligible Members:   All owners of lots within the Subdivision (as defined herein) who have paid their dues and assessments pursuant to Article VIII of these ByLaws, shall be “Members in Good Standing” of the Association.  Owners of lots within the subdivision, who have not paid their dues or assessments or are in violation of any provision of these Bylaws or the applicable recorded Deed Restrictions shall be Members of the Association but not Members in Good Standing.   Members who are not Members in Good Standing may attend meetings but shall not be able to vote or otherwise participate in Association meetings or functions and shall not enjoy the benefits and privileges of the Association, including the use of the Association property until such time as all unpaid dues, assessments and penalties relating thereto have been fully paid and any and all violations fully cured.

A.    The owners of lots in the following described real estate shall be eligible to become Members of the Association:

            LakewoodVillageSubdivision        Lots     1-79,    1957 Rev.

            Lakewood Village No.  1                Lots    80-91,    1957 Rev.

            Lakewood Village No.  2                Lots    92-147,  1957 Rev.

            Lakewood Village No.  3                Lots  148-173,  1957 Rev.

            Lakewood Village No.  4                Lots  174-220,  1957 Rev.

            Lakewood Village No.  5                Lots  221-259,  1957 Rev.

            Lakewood Village No.  6                Lots  260-275,  1957

            Lakewood Village No.  7                Lots  276-299,  1957

            Lakewood Knolls                             Lots #K1-K42, 1961

            Lakewood Village No.  8                Lots  300-316,  1968

            Lakewood Village No.  9                Lots  317-376,  1978 Rev.

            Lakewood Village No.10                Lots  377-382,  1988

            Lakewood Village No.11                Lots  383-388,  1990

All of which real estate is more particularly described in Oakland County records at Liber 75, Pages 28 through 30 (Lakewood Village Subdivision); Liber 77, Page 12 (No. 1); Liber 77, Pages 28 through 30 (Lakewood Village Subdivision); Liber 77, Page 12 (No. 1); Liber 77,  Pages 27 and 28 (No. 2); Liber 79, Page 17 (No. 3); Liber 82, Pages 13 and 14 (No. 4); Liber 82, Pages 15 and 16 (No. 5); Liber 89, Page 27 (No. 6); Liber 89, Pages 36 and 37 (No. 7); Liber 103, Pages 27 and 28 (Lakewood Knolls); Liber 124, Pages 21 and 22 (No. 8); Liber 133, Pages 19 through 21 (No. 9); Liber 200, Pages 16 and 17 (No. 10) and Liber 211, Pages 24 and 25 (No. 11).

B.    The following lots have previously been incorporated into the subdivision by action of the Board of Directors or by the acceptance of dues payments:

            Out Lot 6   (L.V. #2)               Out Lot 7 (L.V. #7)                            Out Lot 10   (868 Arttdale)   

            Out Lot 8   (L.V. #2)               Out Lot 9 (L.V. #7)                            Out Lot 2  (820 Arttdale) 

            OutLot 14  (L.V. #2)               Parcel F   (Knolls)                             OutLot 11    (6984 Biscayne)

            Parcel D     (Knolls)               Parcel E   (Knolls)                             OutLot 12B   (874 Arttdale)

            Parcel J      (Knolls)               

Reference in these By-Laws to “Subdivision” shall constitute reference, individually and collectively to the lots described in Sections A and B of this Article II. 

Any person who is not a “Member in Good Standing” of the Association may not use any of the Association’s property or property which the Association has a right to use, unless such person is accompanied at all times by a card carrying Member.

Owners of lots not described above are not and cannot become members of the Association unless at least two-thirds (2/3rds) of the Members in Good Standing vote in favor of the admission thereof.    Should the Members vote to permit a new member as provided for herein, then, as a condition precedent to membership, such new member shall sign appropriate documents encumbering their lot(s) with the restrictive covenants that are applicable to the section of the Subdivision in which such lot(s) is located.

Section 2.    Funds of Association.  The share of an owner in the funds and assets of the Association cannot be assigned, pledged or transferred in any manner except as an appurtenance to a Lot in the Subdivisions.

ARTICLE III        Meetings of the Membership and Voting

Section 1.    Annual Meeting:    A meeting of the Members shall be held annually in the County of Oakland, State of Michigan, between June first and August thirty-first of each year at such time and place as may be fixed by the Board of Directors.   Notice of the date and location of the Annual meeting shall be published in the Association newsletter not less than thirty (30) days in advance.    The purpose of the Annual Membership Meeting will be to elect Directors for the coming year and for the transaction of such other business as may be brought before the meeting.    The Association may hold such other meetings of the Members each year as deemed appropriate and necessary by the Board of Directors.

Section 2.    Special Meetings:    Special Meetings of the Members may be called by the President, a majority vote of the Board of Directors present and voting at a meeting, or at the written request, signed and addressed by at least five percent (5%) of Members who are in good standing with the Association.    Such notice and the meeting agenda will address the issues as requested by the Members.    Special Meetings requested by the Members shall be scheduled as quickly as possible but no later than sixty (60) days after official receipt of the request by the Board Secretary.    No business, other than that contained in the notice of the Special Meeting will be transacted thereat.

Section 3.      Notice of Special Meetings:    A written notice of any Special Meeting of the Members along with an Absentee Ballot where appropriate shall be distributed to each Member of the Association at his or her known address, the same as appears on the records of the Association at least fourteen (14) days prior to any such meeting.  Whenever possible, as much advance notice as possible up to thirty (30) days shall be given.    All notices must contain a clear description, including the purpose and an estimate of expected costs involved of the business to come before the meeting.    A single notice may be given to husbands and wives or other entities owning property within the subdivision at the address on file with the Association.  Notices may be provided electronically or by mail when prepaid postage is provided if a Member so notifies the Secretary of the Board in writing.  The personal delivery, mailing postage prepaid, or delivery by written communication or by any other means authorized by the Board of Directors in advance of a meeting, of a notice to the Owner at the address of the Lot owned by the Owner shall be deemed notice served.     Any Member may, by written waiver of notice signed by such member, waive such notice, and such waiver when filed in the records of the Association shall be deemed due notice.  Attendance at any meeting shall be deemed a waiver of notice.

Section 4.    Voting.  Each Owner shall be entitled to one vote for each Lot owned, provided that said Owner is a Member in Good Standing.  Husbands and wives, owning properties by entireties, shall each be entitled to one vote per dues assessed property.  Qualification of “Membership in Good Standing” shall be determined according to the records of the Treasurer of the Association.  It is the responsibility of each Member of the Association to ensure that Official Association Records are accurate and up-to-date by providing written documentation of changes in ownership, address or residency to the Treasurer of the Association.  When property within the Subdivision is owned by a business entity or Trust it is the responsibility of that entity to designate a voting representative in writing to the Treasurer of the Association.  The Association shall publish a Membership “update” form in the Association newsletter once each year prior to the Annual Meeting to facilitate this process.

Section 5.     Written Votes and Absentee Ballots:   Voting shall be in person or by Absentee Ballots cast at an Annual Meeting or Special Meeting called for a specific purpose.  Absentee Ballots may be cast by any Member in Good Standing when voting upon any issue where the question or candidates, and all relevant information are known in advance.  Ballot language may not be changed after the ballots have been distributed.  Absentee Ballots must be in a form prescribed by the Association Board and shall afford an opportunity to specify a choice between approval and disapproval of each matter.  Such Ballot must also provide that, where the Member specifies a choice, the vote shall be cast in accordance therewith.   Absentee Ballots must be filed with the Secretary of the Association at or before the appointed time of the relevant Meeting of the Members of the Association by mail, fax, personal delivery, or any other method approved by the Association Board in advance of the vote.  

Section 6.     Majority:  Unless otherwise provided, any action which could be authorized at a meeting of the Members shall be authorized by an affirmative vote of more than fifty (50%) percent in number of the Members eligible to vote, and casting votes in person or by Absentee Ballot.

Section 7.    Minutes.  The Secretary shall record minutes of all business that comes before the meeting and such shall be maintained in the permanent records of the Association, which when signed by the President or Secretary, shall be presumed truthfully to evidence the matters set forth therein.    In the absence of the Secretary, the President may appoint any Director to act in the Secretary’s absence.   A recitation in the minutes of any such meeting that Notice of the meeting was properly given shall be prima facie evidence that such notice was given.

Section 8.     Conduct of Meetings:  The President shall preside over all meetings of the Members.    The rules contained in the current edition of Robert’s Rules of Order Newly Revised shall be used as a general guideline by the Association in any cases in which they are applicable and in which they are not inconsistent with these Bylaws and any special rules of order the Association may adopt.   Failure to conform to the letter of Robert’s Rules of Order Newly Revised shall not affect action taken at a meeting as long as the fundamental concepts of fairness and due process are observed

ARTICLE IV        Board of Directors, Powers and Meetings 

Section 1.    Management:   The business and property of the Association shall be managed by a Board of Directors which, except as otherwise provided herein, shall have all of the powers granted thereto by applicable law and these By-Laws.

Section 2.   Board of Directors.  The Board of Directors shall consist of fifteen (15) persons, each of whom shall be a Member in Good Standing of the Association.  At any meeting of the Board of Directors, two-thirds (2/3rds) of the Members of the Board shall constitute a quorum for the transacting of business and a majority vote of the Directors constituting a quorum shall be sufficient to pass any measure before such meeting.   A Director will be considered present and may vote on matters before the Board by telephone, teleconference, web conference or by any other method approved by the Board allowing discourse and the exchange of views between the members of the Board and meeting attendees.    If, at any meeting of the Board of Directors, there be less than a quorum present, the majority of those present may temporarily adjourn the meeting for up to thirty-six (36) hours after which a new meeting may be called with appropriate notices.    At any such adjourned meeting, any business that might have been transacted at the meeting as originally called may be transacted without further notice.   The participation of a director in the action of a meeting by concurring in the minutes thereof shall constitute the presence of such director for purposes of determining a quorum.  No proxies are allowed.

Section 3.    Board Meetings:   The Board of Directors shall meet not less than six times per year at a place and date to be designated thereby.  Notice of the place and date of the next meeting shall be published in the newsletter of the Association and, to the extent possible, delivered to each Member not less than seven (7) days prior to the meeting.  Notices may be provided electronically if a Member so notifies the Secretary of the Board in writing.  In the event of an emergency, and upon due notification of the Directors, a Special Meeting of the Board of Directors may be called by the President, or by a majority of the Board of Directors at any time.  A notice of such meetings shall be posted at the entrances to the Subdivision.

Section 4.     Order of Business at Meetings:    The order of business at any Regular or Special meeting of the Board of Directors or the Members shall be subject to the President’s discretion.

Section 5.    Election of Board Members:  Directors shall be elected by ballot at the Annual Membership Meeting.  Each Director so elected shall normally serve for a term of three (3) years. 

A. Nominating Procedures:  The Secretary of the Association shall publish a Notice soliciting candidates for election to the Board of Directors in three successive Association newsletters, prior to the Regular Board Meeting immediately preceding each Annual Meeting.  If necessary, a nominating committee will be appointed by the President to ensure that there are sufficient candidates for election to the Board to fill vacant positions, which shall also submit its nominees by the Regular Board Meeting immediately preceding each Annual Meeting.  No candidate shall be placed in nomination unless a statement accompanies such nomination that the Member in Good Standing so nominated will accept the nomination.  The slate of candidates will be established as of the Regular Board Meeting immediately preceding each Annual Meeting, and no further nominations will be allowed or accepted.  The full slate of candidates for the Board of Directors and their personal information, statements and qualifications shall be published, in the monthly newsletter of the Association, and distributed to the Members at least seven (7) days prior to the Annual Meeting.

B. Election Committee:   Prior to the Annual Membership Meeting, the President shall appoint an Election Committee composed of the 1st Vice President and two non-Board Members in Good Standing whose purpose shall be to ensure the proper conduct of the Election including the counting of votes and ballots.  To the extent possible, the Election Committee shall treat all votes in a confidential manner and the results shall be tabulated and announced at the same Annual Meeting.

C.  Election:    The candidates receiving the highest number of votes at the Annual meeting shall fill the full terms.  The remaining candidates shall fill any existing vacancies of whatever term length, with the remaining candidate receiving the highest number of votes elected to fill the longest term, and the next remaining candidate receiving the next highest number of votes elected to fill the next highest term, and so on.    In case of a tie, the elections chairman, or designated member of the elections committee, will toss a coin to determine the order.  

Section 6.    Vacancies:     Vacancies occurring on the Board of Directors shall be promptly filled by a majority vote of the remaining Directors, and any Director thus appointed shall serve until the next Annual Membership Meeting, at which time a Member in Good Standing shall be elected to the unexpired term.

Section 7.   Disqualification of Directors for Absence:   Any Director who misses any two (2) consecutive Regular meetings of the Board of Directors may be removed by a two-thirds vote from the Board which shall replace such a Director by appointment as provided for herein.

Section 8.   Removal:   Any Director may be removed from office by a two-thirds vote of the Members in Good Standing voting in person or by Absentee Ballot at the Annual Membership Meeting or a Special Meeting called for that purpose.

Section 9.    Compensation of Directors:    No Director shall receive any salary or compensation for services as a Director in excess of the value of the annual dues, or as provided herein, unless the Members in Good Standing approve thereof at the annual meeting. 

Section 10.   Fidelity Bonds:    The Board of Directors shall require that all officers and employees of the Association handling or responsible for Association funds shall furnish adequate fidelity bonds.   The premiums for such bonds shall be an administrative expense of the Association.

Section 11. Closing of Board of Directors' Meetings to Members; Privileged Minutes.    The Board of Directors, at its discretion and in accordance with the Michigan Open Meetings Act, may close a portion or all of any meeting of the Board of Directors to the members of the Association or may permit members of the Association to attend a portion or all of any closed meeting of the Board of Directors.   Any Member of the Association shall have the right to inspect, and make copies of, the minutes of the meetings of the Board of Directors; provided, however, that no member of the Association shall be entitled to review or copy any minutes of meetings of the Board of Directors to the extent that said minutes reference privileged communications between the Board of Directors and counsel for the Association, or any other matter to which a privilege against disclosure pertains under Michigan Statute, common law, the Michigan Rules of Evidence, or the Michigan Court Rules.

Section 12.   Open Meetings:   Except for executive sessions which shall be limited by law to discussion and action on confidential,sensitive or privileged matters, Board meetings shall be open to all persons wishing to attend.   Members in Good Standing wishing to speak shall each be allowed an opportunity of up to three minutes per issue to speak to any relevant report or motion prior to the vote on the motion at a meeting of the Board.

 

ARTICLE V         Officers and their Duties 

Section 1.  Appointment of Officers.  Once in each year, at its first meeting following the Annual Meeting, the Board of Directors shall elect a President, two Vice Presidents, a Secretary and a Treasurer.  The Board of Directors may appoint such other officers, as it may deem necessary for the transaction of the business of the Association.    All officers must be Directors, and each shall hold office until his or her successor shall be elected and qualified.  All officers shall assume such authority and perform such duties in the management of the property and affairs of the Association as may be designated by the Board of Directors.

Section 2.    President:    The President shall be the chief executive officer of the Association and shall preside over all meetings of the Board of Directors, and all Meetings of the Members.     He or she shall manage the business of the Association and will see that all orders and resolutions are put into effect and shall have the general powers and duties of supervision usually vested in a President.  The President shall have the power to delegate any specific power except such as may be by statute exclusively conferred upon the President, to any other officer or officers of the Association. 

Section 3.    First Vice President:   The First Vice President, Internal Affairs, shall perform all of the duties assigned by the President and in the President’s absence, for any reason, the First Vice-President, shall assume the full duties of the President up to the balance of his or her term.     He or she will also be an ex officio, voting member of the Ordinance Enforcement Committee.

Section 4.    Second Vice President:  The Second Vice President, External Affairs, or his designee shall be the representative of the Association to certain outside meetings of the State, County and Township activities of interest to the Association. 

Section 5.    Treasurer:   The Treasurer shall have custody of the Association funds and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Association and shall promptly deposit all monies and other valuable effects to the credit of the Association in such depositories as are designated by the Board of Directors.  He or she shall disburse the funds of the Association, making proper vouchers for such disbursements, and shall render to the President and Directors, at the regular meetings of the Board, or whenever they may require it, an account of all his transactions as Treasurer and of the financial condition of the Association.

Section 6.    Secretary:     The Secretary of the Association shall receive and keep in an orderly and organized manner all official documents and records of the Association including e-mails sent between a quorum of Directors regarding discussion of items which are open and pending before the Board and which ultimately result in Board action.    This shall include keeping the minutes of all the meetings of the Members and Board of Directors in files provided for that purpose.    The Secretary shall attend to the giving and receiving of all Notices of the Association, sign, with the President or Vice-President, in the name of the Association, all contracts authorized by the Board of Directors, and perform such other duties as may be delegated to him or her by the Board of Directors.  It shall be the Secretary’s responsibility to provide a copy of the minutes of the previous monthly meeting upon the request of any Member in Good Standing.  A Recording Secretary may be selected by the Board of Directors to facilitate secretarial duties, should this become necessary.

Section 7.    Turnover of Records:    Immediately upon leaving office, either by limitation of his or her term of office or otherwise, all Board Members shall deliver to his or her successor all monies, records, files, papers and any other property belonging to the Association, which may then be in his or her possession or under his or her custody or control; and in the absence of or for want of such successor he or she shall deliver the same to the President of the Association.

 

ARTICLE VI        Standing Committees 

Section 1.    Standing Committees:   The President shall appoint the following standing committee chairpersons from the Directors not holding office: Ordinance Enforcement, Social, Water Resources, Parks/Rec./Beaches, Publicity, and Membership Services.   The First Vice-President, Second Vice-President, Treasurer and Secretary shall chair the following standing committees respectively: Internal Affairs, External Affairs, Finance and Publicity. Each committee shall consist of two (2) or more Members in Good Standing, appointed by the committee chairperson, subject to the approval of the Board of Directors.    To the extent that they are willing and available to serve, at least one member of each standing committee will be a non-Board member.    A request for volunteers will be placed in two consecutive issues of the Association newsletter following the organizational meeting each year.

Section 2.    Other Committees:   The President shall appoint such other special committees as may be established by the Board of Directors.

Section 3.    Terms of Committee Members:   All standing committee members shall serve until their successors are appointed and qualified and no committee member appointed subject to the approval of the Board of Directors shall be removed without the approval thereof. All special committees shall serve until discharged from their responsibilities by the President.

Section 4.    Officers of Committees:     The chairperson of each standing committee, which requires a secretary and/or a treasurer, shall appoint one from the membership of said committee.    In the event the committee shall conduct any activity for the purpose of raising funds for the Association, the secretary and/or treasurer thereof shall file with the Treasurer of the Association, a detailed account of the funds received, the expenses incurred and the net proceeds of the activity within a period of fifteen (15) days following the activity.

Section 5.    Approval of Committee Actions:    Prior to the occurrence thereof, the Board of Directors must approve any committee function, the purpose of which is to raise funds for the Association, or participate in any external activity as a representative of the Association, or make public statements on behalf of the Association.

Section 6.    Responsibilities of Standing Committees:  The standing committees are charged with the following general responsibilities:

A.  Internal Affairs.  Develops and maintains all documentation related to the Association restrictions, ordinances, rules, regulations and by-laws as may be deemed necessary subject to approval of the Board of Directors and the Members in Good Standing.

B.    External Affairs.  Represents the Association in governmental activities that affect the interests of the Association as deemed necessary by the Board of Directors.

C.    Publicity.  Edits, has published, and delivers to the Members of the Association an official monthly newsletter, containing the Minutes of the meetings of the Board of Directors, articles of general interest to the Members and publicizes Association functions.

D.    Finance.  Meets on a regularly scheduled basis to review and approve all Financial Records of the Association including bank statements, receipts and disbursements and to recommend for Board approval a Certified Public Accountant to conduct the Audit of Association financial records.

E.    Ordinance Enforcement.  Reviews and approves/disapproves by signature of a majority of the Committee, one of which must be the chairperson, all plans for new buildings, external revisions, modifications, appurtenances, and site plans, for conformance with Deed Restrictions and Ordinances of the Association.  Enforces all non-Architectural Deed Restrictions and Ordinances.   Maintains a liaison with the White Lake Township Building Department, Zoning Department, the Oakland County Road Commission, and other governmental agencies whose conduct affects the property restrictions of Lakewood Village.

F.    Social.  Plans and organizes social events and functions of the Association.

G.     Water Resources.  Procures weed control chemicals and conducts the dispersion program.    Plans fish stocking programs and supervises the safe and efficient conduct of activities of Association Members upon the waters of Lakes Brendel and Neva.

H.     Parks/Rec./Beaches.  Develops plans, subject to approval of the Board of Directors, for the properties owned or used by the Association, conducts village beautification programs and provides for the repair and maintenance of properties owned or used by the Association.

I.    Membership Services.  Provides various services to the Members in Good Standing such as: welcoming new residents, distributing directories and new resident information packets; providing boat launch keys and conducting the new residents welcome program.    Coordinates activities of the Association’s Block Captains.

 

ARTICLE VII        Amendments to ByLaws 

The Board of Directors shall have the power to recommend to the Members in Good Standing any amendments permitted by law to these By Laws and Ordinances.   Any amendments to these ByLaws or Ordinances shall be first approved by a majority of the Board of Directors present and voting at a meeting and then presented to either the Annual Membership Meeting or a Special Meeting called for that purpose, as provided for herein.  A vote of a majority of the Members in Good Standing voting in person or by absentee ballot at such a meeting shall be required to adopt any such recommended amendment. Notwithstanding the above, Article II, Sections A, B and C, of these By-Laws shall not be amended unless two-thirds (2/3rds) of the Members in Good Standing vote in favor thereof at a meeting called for that purpose as required here under.

ARTICLE VIII        Dues and Special Assessments

Section 1.    Dues (Annual Assessments):   Dues for any given year are due and payable from January first (1st) to April first (1st) of that year.  Subject to the provisions of Section 4. hereof, any Member whose dues or assessments have not been paid on or before April first (1st), shall be charged a ten percent (10%) late charge as of April second (2nd) and an additional ten percent (10%) late charge shall be added for each subsequent six (6) month period, or portion thereof, during which said dues or assessments shall remain unpaid to compensate the Association for administrative costs incurred as a result of the delinquency. Any unpaid dues and assessments shall become a lien upon theLot or property against which they are assessed.

Section 2.    Increase of Dues (Annual Assessments):    All Lots or parcels of land subject to the jurisdiction of this Association shall pay annual dues of $335 per year.  These annual dues shall be subject to increase upon approval of an annual budget requiring and establishing a higher annual payment from each subject Lot or property provided that the dollar amount of the increase is clearly noted on the Ballot.  Such budgets and resulting increases in the annual dues must be approved by a majority of Members eligible to vote, and casting votes in person or by Absentee Ballot at any Association Meeting duly called and held for that purpose.   Such dues increases will be effective the following January 1st with the implementation of the approved Budget.

Section 3.    Special Assessments:  Special Assessments, in addition to the annual dues may be made by the Board of Directors for any purpose and in any amount, provided that such Special Assessment is approved by a majority of Members eligible to vote, and casting votes in person or by Absentee Ballot, at a meeting of the Association duly called and held for the purpose of authorizing such an assessment.  Such a Special Assessment, when authorized as required, shall be due and payable within ninety (90) days from the time of notification thereof to each Member in writing, and shall bear the same late payment penalty as provided for Annual Dues in Section 1 of this Article VIII.  The provisions of said Section 1 of this Article regarding liens, enforcement proceedings and expenses thereof, shall be applicable to unpaid Special Assessments or portions thereof.

Section 4.    Support for Special Assessments and Accounting: Upon identification of a desired project, the Board shall, to the best of its ability, obtain written quotes for the project, which shall include all appropriate contingencies, to determine the amount of Special Assessment, to be levied.  All monies collected from a Special Assessment shall be accounted for separately and, in the event that any monies remain, they shall be distributed as determined by the Members in Good Standing.

Section 5.    Payment Plans.  Any Member who, due to circumstances beyond his or her control, is unable to timely pay dues or assessments, may petition the Board of Directors for the purpose of determining some alternative payment arrangement so long as such arrangement does not involve a reduction of the actual assessments due. To be considered by the Board of Directors, such petition must be filed within ninety (90) days after the statement date of the invoice for any assessment. 

Section 6.   Legal Remedies for Delinquencies.

A.     Association Rights.  The Association reserves to itself the right to take all legal enforcement actions to recover delinquent assessments and their associated costs and penalties.

B.     Statutory Lien.  Dues and Special Assessments that are unpaid, together with interest, collection and late charges, constitute a lien upon the Lot or Lots in the Subdivisions owned by the Lot Owner at the time of the assessment.  Upon due notice such lien may be foreclosed by judicial action for money judgment or by foreclosure by advertisement in the name of the Association.

C.     Fines and Penalties. The Association may also assess fines for late payment or non-payment of assessments in accordance with the provisions of this Article VIII, Section 1 of these Bylaws.    All remedies shall be cumulative and not alternative.

D.  Foreclosure of Lien. Each Lot Owner, and every other person who from time to time has any interest in the Subdivisions, shall be deemed to have granted to the Association the unqualified right to elect to foreclose on the lien securing payment of assessments, costs and expenses, either by judicial action or by advertisement.  

E.  Expenses of Collection. All expenses incurred in collecting unpaid assessments, including interests, fines, costs, actual attorneys' fees (not limited to statutory fees) shall be chargeable to the Lot Owner in default and shall be secured by the lien on his Lot.

F.  Assessments Due Upon Sale.  Upon the sale of a Lot, any unpaid assessments, interest, late fees, fines, costs and attorney’s fees against the Lot shall be paid out of the net proceeds of the sale price.   Any purchaser who fails to request a written statement from the Association as provided herein at least five (5) days before the conveyance shall be liable for any unpaid assessments against the Lot together with interest, late fees, fines, costs and attorneys' fees incurred in connection with the collection of such assessments.

G.  Failure to Enforce Rights.   The failure of the Association or of any Lot Owner to enforce any right, provision, covenant or condition which may be granted by the Association Documents shall not constitute a waiver of the right of the Association or of any such Lot Owner to enforce such right, provisions, covenant or condition in the future.

ARTICLE IX        Business and Accounting 

Section 1.    Budget.  The President shall designate certain Directors annually to prepare an operating budget for the coming fiscal year.  Such budget shall be in summary form by general categories of expenditures and will be accompanied by supporting documents based on quotations or reasonable expectations sufficient to allow the Board to make an informed decision.  To the extent possible the proposed budget will not include general, non-specific, categories except that the Board may establish a reserve account as noted in Section 3 below.  The President will present said budget to the Directors for consideration and once approved thereby; it will be presented to the Members at the Annual Meeting.  If approved thereat, the Board of Directors shall implement the budget.  All budget items so approved will not require subsequent review or approval by the Board of Directors.   Except as hereinafter provided, no expenditure other than those contained in said budget may be made unless approved by a majority vote of the Directors.

Section 2.    Expenditures Not In Budget.  All proposed expenditures not otherwise reviewed and approved pursuant to the budgetary process described in Section 1, above, must be approved by the Board of Directors before such may be incurred.

Section 3.    Reserve Account.  The Board may establish a reserve account for contingencies, operating expenses, repairs, minor improvements, or deferred maintenance.  The purpose of the reserve account is to provide financial stability and to avoid the need for special assessments on a frequent basis.    The amounts proposed to be so reserved shall be shown in the annual budget.  These funds may be spent for any reasonable purpose approved by the Board.

Section 4.    Fidelity Bonds.  The Treasurer, and all other Officers who are authorized to sign checks or handle funds of the Association shall be bonded in such amounts as may be required by the Board of Directors.    The Association shall pay the premiums on such bonds.

Section 5.    President's Authority.  The President shall have the power to authorize expenditures on behalf of the Association, in an amount not to exceed One Hundred Dollars ($100.00) per month without prior Board approval.  Such expenditure must then be reported to the Board at the next Regular Meeting and duly recorded in the Minutes.

Section 6.    Fiscal Year.  The fiscal year of the Association shall begin on January first (1st) and end on the thirty-first (31st) of December of each year.

Section 7.    Banking.  The Board of Directors shall annually designate a depository for the funds of the Association.  Funds of the Association shall only be held in accounts that are fully insured and/or backed by the full faith and credit of the United States Government.  Only depositories or instruments where there is no risk of principal loss may be utilized by the Association for investment of its monies.  Withdrawal of monies from such accounts shall only be by such persons as are authorized by the Board as provided in Section 11, below. 

Section 8.    Auditing.  The Board shall prepare a detailed budget-to-actual income and expense report for the year just completed to be presented to the Members at the Annual Meeting.  In addition, a formal certified audit of the accounts of the Association shall be conducted by a Certified Public Accountant at least bi-annually or upon the change of Treasurers.  A report of the audit shall be presented to the assembled Members at the Annual Meeting.  A complete copy of the report shall be published in the Association newsletter and on the Association website for the information of those Members who were unable to attend the meeting.

Section 9.    Use of Membership List.  The Membership list shall be used only for conducting business of the Association.

Section 10.           Limitation on Association Actions.   No real estate shall be purchased or sold, or easements sold or otherwise released by the Association unless approved by a majority of Members eligible to vote, and casting votes in person or by Absentee Ballot at a meeting of the Association duly called and held for that purpose.

Section 11.           Authorized Signatories.  All checks, drafts, and orders for payment of money shall be signed in the name of the Association by the Treasurer and co-signed by the President or First-Vice President.  Except as otherwise provided by the Board of Directors, all formal contracts and conveyances made by the Association shall be executed in its name and on its behalf by the President or, in his unavoidable absence, the First Vice President, and attested to by the Secretary or Treasurer of the Association.

Section 12.           Indemnification.  The Association will defend, hold harmless, indemnify, and pay on behalf of the members of the Board of Directors, including attorney fees, for all liability arising out of their discretionary or non-discretionary acts or omissions while acting within the scope of their duties, except where such acts or omissions are due to gross negligence, or any criminal activity. 

 

ARTICLE X        Ordinances

Regulations Applicable.  Every lot or other property within the jurisdiction of the Association shall comply with the following regulations: 

Section 1.  All building, sanitation, and boating specifications and/or regulations or land use restrictions of the State, County, or Township or contained within the Subdivision regulations shall apply to all property within the Subdivisions.

Section 2.    Building and Use Restrictions Applicable. All buildings and appurtenances thereto shall conform to the restrictions set forth in the subdivision restrictions of Lakewood Village Subdivisions No. 1 through 11, Lakewood Knolls and Lakewood Village Subdivision and other Lots as may be described in Article II.  All property owners and/or residents shall comply with all covenants and restrictions as indicated in the building and use restrictions as recorded against the Lots shown on the Plats of such Subdivisions.

Section 3.    Association Right to Seek Municipal Enforcement.  The Board of Directors shall have the authority to seek the enforcement of all State, County, Township and Subdivision laws, regulations, ordinances and restrictions.

Section 4.    Nuisances Prohibited.  No noxious or offensive odors or excessive, offensive, or objectionable noise, whether arising on account of maintenance of permitted pets, or otherwise, will be permitted on any Lot or building plot.  No Lot or building plot shall be used as a dumping ground for rubbish nor for the storage of materials except for such materials as are necessary for and used in the course of construction.  No outdoor dumpsters, collection containers, or fuel tanks shall be permitted on any Lot after completion of the main residence structure unless enclosed and hidden from view.

Section 5.   Maintenance Standards and Prohibited Storage of Personal Property.  Each Lot Owner shall maintain his lot in a safe, clean, well kept, aesthetically pleasing and sanitary condition, and shall maintain no condition thereon which may constitute an eyesore within the Community.  Lots shall not be used for storage of inoperable equipment including but not limited to, vehicles, watercraft or trailers, or for the accumulation of clutter or other personal property and effects whose appearance detracts from the appearance of the Community.   In general, no activity shall be carried on nor condition maintained by an Owner on or within his/her Lot, which detracts from or spoils the appearance of the Community as a whole.

ARTICLE XI        Enforcement

Section 1.  Purpose:

The By-laws and Deed Restrictions provide guidelines of behavior by which we are all legally bound.   They shall be enforced in a fair and consistent manner so as to maintain a wholesome environment and promote positive neighborhood relations.    This Article XI provides a process by which the Board of Directors can be called upon, as a last resort, to provide support for the Ordinance Enforcement Committee and compliance action as necessary.

Section 2.  Procedures:  

A.        Notice.     Upon observing, or being notified by a resident, of a perceived violation, the Chairperson of the Ordinance Enforcement Committee or his designee will:

   1.   Determine if indeed a violation exists and attempt to obtain a correction in an informal amicable fashion.

   2.   Send the offending party a written “Corrective Notice” with a copy to the Board of Directors if an amicable agreement cannot be reached.  Such Notice to be sent via registered or certified mail with a signature upon delivery required or personally delivered to a representative of the offending lot owner at the address as shown in the official records of the Association.   The Notice shall include a date by which the violation must be corrected as well as a description of the factual nature of the alleged offense with such reasonable specificity as will formally place the lot owner on notice as to the violation

    3.  Request that a hearing before the Board of Directors be scheduled if the lot owner fails to comply with the Corrective Notice. 

B.        Hearing.      Upon request, The Board shall schedule a Hearing to be held at its next regular meeting or at the Board's earliest convenience, but in no event shall the Lot Owner be required to appear less than 10 days from the date of the Notice.     Notice of the scheduled Hearing before the Board of Directors shall be sent via registered or certified mail with a signature upon delivery required or personally delivered to a representative of the offending lot owner at the address as shown in the official records of the Association.   The Notice shall include a copy of the original Corrective Notice, the date of the Hearing and potential fines for non-compliance.    At the Hearing the offending lot owner shall have an opportunity to offer evidence in defense of the alleged violation. 

C.       Default.  Failure to appear at the hearing or respond to the notice of violation by the date set for the hearing constitutes default.

D.       Hearing and Decision.   Upon appearance by the Lot Owner before the Board and presentation of evidence of defense, or, in the event of the Lot Owner's default, the Board shall, by majority vote of a quorum of the Board, decide whether a violation has occurred.  The decision of the Board is final. 

E.       Fines.  Upon violation of any of the provisions of the Association Documents, and after default of the offending Lot Owner, or upon the decision of the Board as recited above, the following fines may be assessed:

            1.  1st VIOLATION                                                     $50.00 Fine

            2.  2nd VIOLATION                                                    $100.00 Fine

            3.  3rd VIOLATION                                                     $200.00 Fine

            4.  4th AND ALL SUBSEQUENT VIOLATIONS     $300.00 Fine 

The Board of Directors, without the necessity of an amendment to these Bylaws, may make such changes in said fines or adopt alternative fines, including the indexing of such fines to the rate of inflation.   For purposes of this Section, the number of the violation (i.e. first, second etc.) is determined with respect to the number of times that a Lot Owner violates the same provision of the Association Documents, as long as that Lot Owner may be an owner of a Lot or occupant of the Subdivision, and is not based upon time or violations of entirely different provisions.  In the case of continuing violation, a new violation will be deemed to occur each successive week during which a violation continues.   Nothing in this Article shall be construed as to prevent the Association from pursuing any other remedy under the Association Documents for such violations, or from combining a fine with any other remedy or requirement to redress any violation. 

F.       Collection.   The fines levied pursuant to Section E. above shall be assessed against the Lot Owner and shall be due and payable on the first day of the following month. Unpaid fines will be declared Delinquent and will subject the Lot Owner to all liabilities set forth in Article VIII and elsewhere in the Association Documents. 

G.       Failure to Enforce Rights.   The failure of the Association to enforce any right, provision, covenant or condition which may be granted by the Association Documents shall not constitute a waiver of the right of the Association to enforce such right, provisions, covenant or condition in the future.