This is a background briefing for a topic that will come up in the November 5th HOA Assembly – your approval of the “New Garages Project.” I don’t anticipate any objections, but it’s sufficiently complicated that I wanted to give you the full story in advance.
The HOA desires to build five new garages and sell them to Owners in Las Mañanitas who need them. (See the Waiting List.) We also want to use some of the proceeds to create a new cistern (beneath) and a new storage area (above) these five new garages (the "New Garages.")
Here is an 8-minute video explainer that I created for the Phase III folks who need to approve the project at the 75% level … for reasons I explain below. I’m also holding an “Open House” on Zoom twice on Tuesday, September 20th – once at 2 PM and once at 7 PM Las Mañanitas time. (No RSVP needed. Just drop in to either one if you want.)
I’m seeking support from the Owners of all 106 Units because a) this project is beyond “the normal course of HOA business” and should therefore get extraordinary approval, b) it involves the sale of an HOA asset (the land on which the new garages will be built), and c) some of the proceeds from the sale of garages will be invested to create the “second floor storage area” and the cistern beneath the garage.
Phase III was defined legally in 2007 and included garages, some residential towers, common areas and amenities. (See the PowerPoint deck for maps.) The original developer (Amarado) did not build five of the garages, even though they are fully described with sizes and tax IDs in the Phase III Condominium Declaration. Our HOA bought out the developer in 2017 with the intent to finish building the last five New Garages. That’s what we are talking about now.
Members of the HOA have an indirect interest in the assets owned by the HOA, including the land where the New Garages will be built. So, we are asking you to approve building five garages on that land and selling them to five Owners on the Waiting List. The net proceeds from the sale will augment our contingency reserves, which benefits ALL members of the HOA.
But wait! There’s more! (Does anyone remember Ron Popeil’s TV pitches for schlocky kitchen appliances?) While building the New Garages, we can add a second floor inexpensively, which creates 1200 square feet of luscious storage space that the HOA can really use (the “Second Floor Storage Area”).
Oh! And one more thing! (Does anyone remember Steve Jobs always saving the best for last?) Before we build these New Garages, we can put a large water tank (the “Cistern”) under the New Garages. That adds additional capacity to our existing water storage. (See “Water Security” on our website for details.)
So, Why Does Phase III Need 75% Approval?
Well, the Condominium Declaration that defined the Phase III Regime in 2007 specified X square meters of “Private Areas” (basically the Units and the Garages) and Y square meters of “Common Areas.” The Second Floor Storage Area and the Cistern are going to add an additional 222 square meters to the Common Areas of Phase III. Any change to the condominium regime incorporation deed requires a 75% supermajority of the total votes of the Phase III condominium regime.
A request going to the Owners in Phase III seeks that 75% majority. It also makes it clear that the Second Floor Storage Area and the Cistern will be managed by the HOA for the benefit of all Owners, not just those in Phase III. The legal mechanism involved is a draft “Cross Sharing Agreement,” which all three Phases have been observing for the last few years and which I intend to get ratified and signed by all three Phases at the November meeting. (See “Cross Sharing Agreement” for details.) Bottom Line: The approval from Phase III Owners adding the Second Floor Storage Area and the Cistern will also make it clear that both resources will be subject to the Cross-Sharing Agreement.
At the November 5th HOA Assembly, there will be a formal motion ratifying both the Cross-Sharing Agreement and the New Garages project. No action is required now other than to raise any questions and concerns you might have so I can address them prior to November.