January:

 Initiated work on the Package Delivery Storage hut

February:

 With Army Corps of engineers, reviewed requirements for locating
natural springs and topographical locations for a water pond to serve
as a source for fire protection.

                       Began investigation with McGrady Fire Department on locating,
repairing, a storage tank for as an alternative water source on
premise for fire protection.

March:

          Solicited bid s for Property and liability insurance for the CMF HOA.
The gate damage in 2023 by a cement supplier and the continued
potential fire risks due to our distance from Fire Department facilities
were hurdles to overcome.

 Insurance proposal was accepted but with limited choice, we had to
accept rate increases and the exclusion of the gate from coverage.

 Began pursuit of the HOA homeowners in arrears on annual HOA
dues of two years or more with phone calls and a formal letter with
the potential execution of more aggressive actions for seriously
overdue owners.

April:

             Investigated options for CMF HOA banking services. Selected Truist
after discussions and competitive proposals from other financial
instructions with a strong presence in our area.

                       Transferred funds from Regions Bank to Truist. Set-up and
operations account and a capital account. Plans are still to establish
a “rainy day” emergency fund later this year.

 Generated the second of the payment in arrears letters
recommending follow-up actions.

 Selected a Wilkesboro attorney from Vannoy PLLC to work with the
HOA on a third letter on dues collection and authorized the
application of liens on some 15 parcels (lot owners) if no repayment
plan was negotiated.

May:

 Accepted proposals for the Sandblasting, painting, coating and
movement of the Water Tank to a CMF Common area near the
dumpster where it will be buried and connected to a spring water
source to keep the water agitated and fresh.

 In the spring, negotiated and closed on the sale of several lots
owned by the HOA for several years. These were properties that the
owners preferred to transfer title to the HOA rather than go through a
sales negotiation process. Lots 56, 64, 88 and 89 were, when
transferred to the HOA in the years before the COVID pandemic,
were not in arrears and up to date on dues and property taxes. (this
section may be updated and a refreshed version uploaded to the
website as we get closer to the October 19 th member meeting)

June:
 Negotiations with multiple owners in serious HOA Dues arrears were
initiated. Payment in full were made on at least 2, negotiated
payment mounts on another 3 and discussions began on the potential
transfer of title for three lots (118, 330 and 231) to the HOA.

 Final notification on assigning liens was initiated by our attorney in
formal correspondence to all owners who did not respond to the two
prior written requests sent.

July:
 Liens were placed on 14 lots, ten of which are managed by a
property management firm.

 Work on the Water tank final positioning and the connection to the
ongoing water source from a natural spring continued.

 Invitations were sent online to homeowners regarding the
Community “Independence Day” gathering at the CMF Pavillion on
July 4th . Best estimates were between 40 to 50 attendees at times
throughout the late afternoon cookout.

August:
 Replacement work on the roads was budgeted and the workplan with
the professional firm was initiated.

 Solicited a Bid proposal for a professional concrete provider to
complete the floor in the community property barn. The area needing
attention was previously finished as horse stalls and the concrete
should reduce the problems we have occasionally seen with insects
and other pests nesting.

September:
Updates may be made, and the revised document uploaded to the website
prior to the October 19 the member meeting.

The CMF “common area” has considerable acreage throughout the community boundaries.
While the majority of the common areas follow the roads throughout the community and require
lawn mowing, shrub and tree maintenance to support the “right of way” travel on paved streets,
gravel roads and the walking/horse trails there are structures to be maintained in attractive,
functional operation. The front entrance gate, garden area, the package delivery hut, and the
lighting in the entranceway off Cane Creek Road are the most obvious assets which require
ongoing maintenance. Also included in this category would be the map and lighting at the top of
the main entrance hill on Chestnut Mountain Parkway, the community dumpster and the soon to
be buried water tank.

The two structures which were built on common are parcels, the Pavilion and the “Barn” are
deep within the community and receive relatively little use. In terms of common area
maintenance, the “Barn” has the highest maintenance cost. Electricity, pest control, grass
mowing are regular activities which together are still modest and approximately $1,500 to
$2,000 in costs annually. Every few years, there is a larger expense of several thousand dollars
when the exterior needs to be re-stained or there is work on the doors or concrete that is
necessary.

Options for the “Barn.”

Many of the property owners have heard the background that the original owners built the Barn
as a potential community asset, but the facility constructed was not designed for practical use
and without bathroom and kitchen facilities, it has been unused except for annual HOA
meetings and even then, we have had to rent the tables, chairs and temporary restroom
facilities for the 3 to 4 hour period for the gathering.

Located in a “common area,” there are no property taxes on the facility, but also in view of this
location, it cannot be sold without extensive legal steps at the County level and changes in the
CMF HOA Bylaws and Restrictive Covenants. As a facility for inhabitation, will be many physical
modifications necessary.

Assumptions and Previous Research Shared with the HOA Owners in the 2018 and 2019
annual meetings.

1. There was little support for converting the barn to a facility that would involve a
commercial activity bringing guests into the community, e.g., an “Event Center” which
would be available for rental for weddings, parties, retreats, etc.

2. There was modest interest in an upfit to provide HOA Owners with an opportunity to use
it as a meeting center or even as an apartment for owners to use before or while building
their homes on lots within CMF.

3. In both of the above reconfiguring of the Barn facility, we reached out to local builders
who came on site and provided estimates which were between $150,000 to $260,000 for
the construction cost which did not include the furniture and some appliances or devices.
A half decade or more has passed since that research was accomplished and share with the
HOA Owners. As we approve our 2025 CMF HOA Budget for Operations and Capital projects,
the agenda for our annual 2024 meeting includes an open discussion. The last time the HOA
membership discussed potential options was over five (5) years ago. This is an opportunity to
discuss the current condition of the facility and grounds and to see if there are any factors in an
assessment of options which are new or have changed since the last discussion.

No action is necessary. But the future of the CMF Common Areas as an asset will continue to
include the Barn structure and adjacent grounds. The Board is seeking comments and
suggestions for the Barn facility, and the common area where it is maintained. As suggestions,
what options might we consider as a community?

1. Continue the status quo. The motivation would be that conditions in the future regarding
the active population within the community, might identify usage not previously
considered.

2. Disassemble the Barn facility and sell off the material, returning the site to a more
natural state. The concrete slab and patio areas would be a significant cost effort which
would wipe out much if not all of the “sale” of the above ground lumber and stonework.

3. Pursue and update the design and costs associated with making modest investments
(Bathrooms and septic system and a small kitchen) which would facilitate usage by CMF
owners for family gatherings or for the HOA meetings and modest social activities. This
would still be a capital investment of minimally between $50,000 and $75,000.

4. Reconsider and re-estimate the idea of conversion to apartment(s) for buyers who do
not have a home built on their property. We would expect this to cost at 2026 prices,
considerably more than the 2018-2019 estimate.

5. In addition to adding a bathroom and shower along with the septic system, for the benefit
of CMF Owners who do not yet have a home constructed, would we consider including
RV Hook-up infrastructure so that they could stay in an RV when visiting CMF and their
property.

6. Consider the Barn facility and protected area surrounding the Barn for Property Owner
only space rental for equipment. This could be bare bones, no frills, with a rental fee or
it could be done with linkage in partnership to some or all improvements in point #5.

7. Other Ideas to consider?

There is no immediate crisis that dictates that some action is necessary. The Board has
approved additional maintenance (Concrete floor extensions for risk prevention and
maintenance simplification.

The discussion at the annual meeting is for feedback and input. If no suggestions on a longer
term strategy receive a reasonable level of support to further research, the minutes will reflect
that the status quo remains.

Suggested Option for the barn.

The barn with the current improvement of concreting the stalls has given us a meeting place in doors and eliminates the outlay for tent rentals.  The HOA has also purchased our own tables and chairs, eliminating another rental expense. Currently the barn presents us with an annual expense, (per the 2023 financial year) as follows.

Insurance                                                                                                                               $4,074.00

Maintenance                                                                                                                         $2,928.60

Annual Meeting Expense                                                                                                   $2,418.96

5 Year log refinishing                                                                                                          $1,000.00

Annual Total                                                                                                                        $10,418.96

Concrete, Table & Chairs expense eliminated                                                              $2,000.00

Effective 2025 Annual Expense                                                                                       $8,418.98

This option is for use by HOA Members ONLY.  Hold Harmless Agreements.

2025

Using 4 stall spaces as Storage Rentals

4 x $40 X12 months                                                                                                              $1,920.00

5  RV Storage Spaces

5 X $65 X 12 months                                                                                                             $3,900.00

2026

3 RV Full Facilites Service Hookups.

3 x $65 per day x 9 days x 12 Months                                                                               $21,060.00

Total Revenue Potential by 2027                                                                                      $26,880.00

Provides cash Flow of                                                                                                           $18,461.02

Assuming a Capital Expense                                                                                              $60,000.00

ROI   In 3 years.

(No assumptions on rate increases)

After your review, please complete the Voting Proxy Form for these Board Recommended Amendments at the end of the document.

Article VI Architecture Review – Proposed Amendment  

Current Text:

VI 6:    Last sentence in this paragraph. “All houses, garages and outbuildings on the Property shall be constructed with materials whose exteriors incorporate natural products including but not limited to wood or stone.”

As of July 2024, each single-family residence constructed within Chestnut Mountain Farms has an exterior which is 100% wood and or stone, exclusive of glass for doors and windows and the roofing. As of July 2024, each roof is either asphalt shingles or steel which are not considered to have well established industry standards and advantages over wood shingles for fire protection.

The length of time for the assessment of siding material and support posts is not nearly as long as that for the roofing material. However, the HOA is aware that builders are suggesting alternative manufactured, not natural, products for exterior siding. Perry Swaim has compiled comparative information on a particular manufactured siding material which is not metal, which can be produced with natural colors to blend into the community. The analysis addresses the issue of the alternative material durability, appearance, and cost. Attractiveness is more subjective and is the role of the Architecture Review Committee.

Given the above, there is hesitancy of the HOA Board to make a decision without any installed base of alternative products successfully installed and maintained on-site within CMF. Because it is manufactured, the quality of the composition of the product is critical and cannot be allowed to vary in any significant manner. Two pilots have been approved but are not yet installed. An amendment may be drafted which can very tightly consider alternatives to the “wood and stone” requirements.

Proposed amended wording.

Immediately following the wording in section VI.6. All current text remains in place with the following addition to the section.

The alternative siding exterior coverage to the natural products of wood or stone will be limited to the product trademarked as Hardie Board. Owners providing a proposal submission with this product will be required to provide the product supplier name and contact information. The Architecture Review Committee will approve the proposed usage if the siding texture and color maintains the rural and wilderness character of Chestnut Mountain Farms.

Article VII Restrictions and Requirements – Proposed Amendment  

Current Text:

1. Residential Use No Lot shall be occupied or used except for single family residential purposes, or as Common Areas if owned by the Association.

The HOA has consistently interpreted this to exclude using owner erected facilities to be used for commercial purposes.  Questions regarding “short-term” rentals have been addressed that such usage is outside the intent and specification of “single family residential purposes.”

At this point in the existence of the CMF Community and the Homeowners Association, suggestions have come to the HOA Board from existing owners that this section would benefit from additional guidance.  The justification is that commercial activities including short term rentals provides risks that add risks to the community that add costs and damage the sense of security and community continuity.  The property and liability insurance coverage the HOA has in place would be much higher if even available in view of the security and physical damage risks.

Extended period rental agreements do need to comply with the Single Family Residence conditions and for security and liability management, the Board will apply a procedural review for the rental contract to be submitted to the Board for review and approval

Proposed amended wording

Immediately following the wording in section 1. Residential Use;

For the CMF community, “Single Family residential purposes” prohibit short term rentals which are defined as any duration less than six months.  For rental agreements of a minimum of six months, the owner’s proposed rental contract must be presented and approved by the HOA Board  for compliance with mandatory,  standard requirements.

Fire Safety – Protection and Prevention Controls – May 2024, Advisory Notice

Background:

Property owners in Chestnut Mountain Farms enjoy the benefits from the natural beauty of our heavily wooded mountain terrain throughout the annual four seasons. With the beauty of this protected wilderness is the responsibility to protect the environment from physical damage and personal safety. While natural forces (heat, wind, lightening strikes) are beyond human control of the risks from wildfires or home fires, owners do have a responsibility to prevent our personal actions from contributing to fire risk.

Insurance carriers for both the CMF common areas managed by the HOA and for individual homeowners consider CMF to be in a high-risk category for fire damage.  The HOA is responding by working with the McGrady Fire Department to lower the community risk. Individual action by property owners is also required.

Fire Prevention Owner Responsibilities:

Owners will be held accountable for the following practices. This applies to locations where the owner has a home on their property, has ownership of undeveloped parcels, or for all communal areas and facilities within CMF.

Owner initiated fires for pleasure or for ground and facility maintenance are prohibited unless they meet the following criteria.

• An adequate source and volume of water must be accessible.
• The location of the fire must be free of excessive brush and tree canopy coverage.
• The fire must be contained in a formal firepit lined with rocks or other fire-resistant materials such as the brick composite components used in fire pits.
• Grills and other formal fire containers are also allowable, but also must be in areas generally free of excessive brush or tree coverage.
• Ashes must be completely extinguished promptly before individuals depart from the fire source.
• Our security service, our road and common area grass and tree trimming and snow plowing service providers and HOA Board members will report any violations of these guidelines if the non-compliance is identified in the performance of normal community responsibilities.

The intent of this advisory notice and the controls established are not intended to prevent outdoor cooking and the pleasure that a fire can bring for warmth in an appropriate container. As owners in this community, we seek to reduce the risk from any nature driven or unintentional fire related event.

There have been questions about how the gate operates when leaving the community.
Drivers must be aware that they need to stay to the right side of the pavement as they approach
the gate. Marvin explains below:

“The sensors are in the pavement, the only way to get the gate to open from the inside is to run
over the sensor. There’s not any above ground sensors to wave at, that is a camera. What
makes the gate open is it detects the metal in your vehicle as you run over it, it does not detect
motion. The sensor is on the right side of the road about 150ft from the gate in the curve. If you
drive slowly as you approach the gate on your side of the road (the right side) you should have
no issues with the gate opening as you leave.”