Introduction

Bluff Country Village consists of three Homeowner Associations (HOAs). They include the Townhomes Association (BCT), the Condominium Association (BCC) and the Master Association (BCM). BCT consists or 37 units which can be identified by their red brick fronts and even-numbered addresses on Belmont Ln. The 57 condominiums have light fronts and have odd-numbered addresses on Belmont Ln and even-numbered addresses on Bridgehill Terrace. BCT and BCC are responsible for their respective buildings. The associations are funded through assessing their properties. All persons holding an ownership interest in a unit are members of their respective BCT or BCC association.  

BCM is responsible for maintaining the common areas which consist of all property not located under a building. This includes the private streets and sidewalks, landscaping, trees and plantings, entrance gardens and monuments etc. The one exception to this statement is that some areas are designated limited common areas and are the responsibility of the homeowner. The primary limited common areas are concrete driveways, the short sidewalks between the driveways and front stoops, the front stoops and air conditioner pads.

BCT and BCC each elect a board consisting of three directors at an annual meeting in May. Directors serve one-year terms.

BCM has no homeowner members. BCT and BCC manage BCM with each association having one vote through its board of directors. BCM is funded by assessments to BCT and BCC.

Governing Documents

Articles of Incorporation

The Articles of Incorporation created the association as a non-profit organization under the Minnesota Common Interest Ownership Act on January 26, 2001.A brief summary of the act is here.

BCT Bylaws

The Bylaws are the primary governing document for day- to-day administration.

BCT Declarations

            The Declarations establishing the community are here for your edification.

Board Organization and Responsibilities

The BCT board has three directors designated as a president, a vice president and a treasurer. The board meets in person four times a year and conducts a large portion of its business by email between meetings. The by-laws list the responsibilities of directors. The BCT board primarily addresses the following:

Board Policies

Ice Dams

The removal of ice dams is generally homeowner responsibility according to the Roof Snow and Ice Dam policy.

Door and Deck Colors

The colors of doors is governed by the Approved Color Notice. Deck colors are governed by this document. A homeowner who wants to use a color or colors not mentioned in the notice may request a deviation through the ARC request process.

Maintenance Matrix

The BCT Maintenance Matrix was created by a board resolution in 2015. It is important to review the matrix before authorizing repairs so that homeowners will know who will pay the bill. The matrix is provided to all homeowners annually.

Contracted Services

Property Management

The association contracts with Associa MN to provide property management services. The contract is a legacy contract with Community Development, Inc. which was acquired by Associa. The BCV master association and the condominium association contract with the same company. The contract lists the services provided by the management company. It is the board’s responsibility to oversee the company’s activities. The management company assigns a Community Manager to BCV who is the principal contact. The 2020 budget allocates $8,010 ($18 per unit per month) for property management services. Associa has provided this Service Level Agreement document. Associa charges additional fees for services not covered by the contract. They are known as Exhibit A fees.

Board Support

Associa provides staff support to the board by vetting and recommending vendors, advising on financial issues and HOA regulations etc. The board must keep in mind that Associa is a sort of legal double agent in that it has an incentive to direct business to its own maintenance arm, Associa OnCall, and other vendors who pay to be on the recommended vendor list. Associa apparently is not obligated to disclose these relationships.

Homeowner Communications

Monthly Drive Through

The Community Manager drives the BCV roads monthly and takes useless photos of streets and dirt with some sort of app. It is not clear what the resulting report is supposed to convey to the board.

TownSq

The management company provides the TownSq app to assist both the board and homeowners with various activities. About 31 BCT units are represented on TownSq making it a reasonable choice for many routine communications functions. However, for mandated communications or vital messages another method must be used. Board members have a higher level of access than non-director homeowners. More information is here.

           

Welcome Letter

The management company provides new homeowners with a Welcome Letter that describes how to interface with Associa. There is some doubt that this happens consistently as several new homeowners have complained about not knowing how to pay assessments or contact Associa.

Resale Documents

Resale(or refinancing) documents can be obtained from the Associa.US website on the Community Archives page. This page appears to be designed for real estate agents and lawyers. Homeowners are advised to call customer service if they have problems.

MACI Inspections:

Associa conducts annual inspections of the common areas which the company claims are required by a MN law known as Upkeep of the Common Interest Community. Actually, the inspections appear to be mainly an opportunity to generate revenue for Associa OnCall, their repair and maintenance arm. The board decides which repairs should be made and by whom. Larger projects should always require competitive bids. The 2020 report is here. The statute is not regulated by any state agency and according to the MN Attorney General’s office there is no further guidance. It is the type of law that the courts must define and to date there have been few if any.

Insurance

The association carries various insurance policies  through Association Insurance which are described in this summary. The association insures the following items:

• Ceiling finishing materials
• The external structure of the building
• Cabinetry
• Finished millwork
• Electrical fixtures serving a single unit
• Plumbing fixtures serving a single unit
• Heating, ventilating and air conditioning equipment serving a single unit
• Built-in appliances

This insurance package including the crime/fidelity, directors and officer and umbrella coverage costs about $62 per unit per month.

Homeowners additionally must carry an HO-6 or the Minnesota HO-MN (commonly called condominium insurance) policy to insure all other items within the structure.

Income Tax Reporting

The association’s annual tax return is compiled by Darian Klein, LTD at a cost of about $47.00 per unit. The 2019 report is here.

            The association contracts with a collection agency to collect delinquent account in accordance with its delinquency policy. The current collection agency is Equity Experts which operates under this agreement.

Pest Control

The board contracts with Xtreme Pest Solutions to control rodents and insects in and around the townhomes. Homeowners can contact the company directly for interior pest services at 612-961-0022. Outdoor services are generally provided regularly by the vendor. The cost of this service is about $3.00 per month per unit.

Garbage and Trash Removal

The association contracts with Dick’s Sanitation for these services. Garbage is picked up weekly while recycling is collected bi-weekly.  The cost is about $18 per unit per month. The website contains holiday pickup schedules and recycling schedules. It is also the vehicle for getting new carts to replace damaged carts.

Gutter Cleaning

The association provides gutter cleaning every fall, usually in November. The cost is about $14 per unit.

Dryer Vent Cleaning

The association provides outside dryer vent cleaning bi-annually at a cost of about $14 per unit. This is a fire prevention measure. The vendor will clean vents and dryers inside the unit at homeowner expense if contracted at the same time as the exterior cleaning.

Financial Information

2020 Budget

A primary responsibility of the board is the preparation and administration of the annual budget. The 2020 BCT budget looks like this.

The total operating expense for 2020 is estimated at $155,399.86 and is assessed to homeowners at $350 per month. The total operating expense includes $ 103,451.70 ($233 per month) for expenses related to the townhomes. An additional $51,948.16 ($117 per month) goes to BCM for upkeep of the streets and grounds. Thus about 33% of a homeowner expense is related to BCM.

The association has allocated $5,000 ($11.26 per unit per month) for general repair and maintenance. This includes such items as reattachment of loose siding, wind damage to shingles, caulking of roof leaks, shutter repair and other common repairs.

Included in the BCT assessment is $48,000 ($108 per month) for long-term reserves. These reserves are accumulated for replacement of various building items when they reach the end of their useful lives. Included are roofs, shingles, siding, masonry, soffit and facia etc., See below for more details.

 2020 Financial Reports

The board receives a monthly financial report. A sample is here. There is no training or written explanation of these reports. The only recourse for a director is to ask a myriad of specific questions of the community manager or other directors until the report is understood.

Collection Policy and Procedures

            The board is responsible to assure that homeowner assessments are paid in a timely manner. Occasionally homeowners fail to pay monthly assessments or other assessments related to their townhomes. The Collection Policy is the board’s primary guideline. This policy is in effect from the time the account goes delinquent until it is referred to the collection agency.

Architectural Review Committee (ARC)

The BCM rules and regulations originally contemplated an Architectural Review committee appointed by the board to review requests for changes to townhomes or the common areas. The board has never found volunteers to perform this function therefore the committee consists of the directors of BCT and BCC.  The process begins  with the homeowner completing the ARC form.

Long-term Reserves

The association maintains a long-term reserve account for major future expenses. Homeowners contribute to the account through monthly assessments. The long-term reserve plan is based on a study by a reserve engineering company which was first conducted in 2012 and was updated in 2016.

Reserve Improvements Calendar

Item	Funded	Scheduled	Cost
Painting and wood trim	2020	2021?	$7,007
Gutter & Downspout Replacement	2021		$34,264
Asphalt Shingles Replacement	2021		$296,830
Exterior Light Fixtures Replacement	2026		$20,363
Chimney Cap Replacement	2026		$21,667
Vinyl Shutter Replacement	2026		$10,264
Masonry Insp & Repoint	2029		$10,876
Vinyl Siding Replacement	2041		$880,708
Soffit & Fascia Replacement	2046		$252,494

Annual Calendar for Operating Budget

Item	Frequency	Next Scheduled	Estimated Cost
Gutter Cleaning	Annual	November 2020	$500
Dryer Vent Cleaning	Bi-annual	March 2021	$550
Inspect and Repair Window sealants		2021?