234 Background
		From: Kevin Herman [kevin@hermanmgmt.com] Sent: Wednesday, June 09, 2004 3:45 PM To: Jessica Thurbee Cc: Troy Newell; Preston Pettit Subject: Legal opinion on Curtis Pond Jessica, We need a legal opinion on a portion of the Curtis Pond HOA documents. A full set of the documents are on our website at http://www.hermanmgmt.com/curtispond.htm This issue is a developer (not the declarant Curtis Pond LLC) is developing a second phase located adjacent to Curtis Pond and appears ready to bring the second phase under the control of the original document. The developer (Mag Development) has not asked the homeowner controlled board for permission to add this phase. The original developer (LandCraft) did have plans to add other phases, hence the language in the original CCR. LandCraft held options on the property that expired. Please review Article II and give us an opinion on: 1. Can the new developer, in fact, bring in a Phase 2? 2. If a new phase is brought in does this require the signature and approval of the current controlling body? (the HOA homeowner board) This would be our preference. 3. If the current developer recorded a Supplemental Declaration without approval, would it be valid? 4. As all lots have converted to Class A in Curtis Pond, would the new lots supplemented in be Class A as the time of the Supplemental Declaration? This would be our preference as the dues would be at the full Class A rate. 5. We also want to assure that control would not revert back to a new developer based on number of lots brought in under a phase 2. Read the Article with this information in mind. 6. Review Exhibit A as we believe this to be the only phase currently assigned to these documents. Do you concur? 7. Can the HOA board bring in a Phase 2 through Supplemental Declaration without the need for Curtis Pond LLC to be part of the transaction. Curtis Pond LLC relinquished control last November based on the turnover criteria of Class B to Class A lots. If needed, we believe Curtis Pond LLC would be a willing participant to assist the homeowner controlled board. I know it is quite a few questions, but they revolve around a central issue of Phase 2 participation in current documents. Thanks, Kevin Herman Herman Management Note to Preston Pettit (cc line) I've talked with Troy at length on this and he can fill in the details.
		SHADL Ltr of opinion 7-2-2004