Annual HOA Board Meeting – October 19, 2024

The annual HOA meeting was held at the CMF Common Area’s Bard facility. Communications for the meeting were mailed and posted on the CMF HOA Website on August 12, 2024 and members who could not attend in person were given the option of connecting by a virtual, internet connection.
https://us06web.zoom.us/j/79919616986?pwd=SvWExqrun5zDGRA4a5tkAimayB86i7.1
Meeting ID: 799 1961 6986   Passcode: 756931

In the invitation letter, members were provided with a copy of the meeting agenda and link connections to the CMF HOA website for all of the content related to the agenda and a proxy vote to be submitted for the two action items on the agenda.

The meeting was proceeded by a member and invited guest community social and lunch which began at noon. Name tags were used since there were a number of owners in attendance who had recently purchased property in the community, and it was their first opportunity to meet other HOA members.

Prior to starting the meal service, the community was led in a short moment of reflection and prayer of gratitude that CMF damage from Hurricane Helene while substantial in downed trees, electrical distribution line breakage and power loss for a number of days, no home was damaged and the M&M Mowing service had the roads open and mudslides cleared in 48-72 hours.  There was also a request made by the HOA Board for silent prayers for the many residents and business owners in counties further west of McGrady who lost lives, homes, and businesses.

The HOA Business meeting began at 12:30 and the Zoom connection was initiated. There were 52 individuals at the meeting and almost all stayed through the conclusion of the business meeting. An attendance roster was updated by the Board Secretary, Susan Catoe, and many of the attendees at sign-n were able to update their email address/phone number/mail address for future reference.

CMF HOA Annual Meeting – October 19, 2024 – Agenda

1. Welcome and Introductions – HOA Board President Bruce Anderson opened the meeting and welcomed all participants, in person or via the virtual, Zoom, connection. He also thanked the Felts family who provided the room decorations in nd outside the barn and also catered the lunch meal and drinks for the group. A copy of the presentation to guide the discussions was posted on the website and throughout the meeting, there were hardcopy documents provided for some of the discussion topics; Primarily the financial results and 2025 Budget.
2. Review of Meeting Authority, Quorum validation and Proxy statements submitted by owners. -In accordance with the HOA Bylaws and charter as an organization, for any voting Issues published in advance on the agenda, there must be a quorum of the HOA Owners of no less than 20% of the community’s lots. Given the current portfolio of lots, the minimum number would be forty-three (43). The final total for in-person representation, virtual (Zoom participation) and official proxy votes received by the time of the meeting was documented at fifty-six (56) and therefore a quorum has been confirmed.
3. CMF HOA Review of 2024 Activities – Bruce made a few comments, but encourage participants to connect to the  Website for the month-by-month list of activities, decisions and actions impacting the HOA’s responsibilities: The Website link is https://www.chestnutmountainfarms.com and the password access for the property owner content is cmflogin.

One issue which generated input, and a few questions, was insurance coverage. There were comments on the status of the fallen trees and damaged trees at risk of falling into other neighbor lots or onto power lines. Likewise, the water tank focus as a fire protection option brought to light the importance of understanding our HOA policy coverage as well as individual home policies. Board member Susan Catoe has particular experience of property insurance from her decades of work in the industry. The Board will do additional research on these insurance issues in Q4 2024 and Q1 2025.

1. Overview of Property Sales, Website content and usage. – HOA Vice President Perry Swaim updated the group on the level of activity during 2024 involving the interest in properties and in the regular updating of the website.

• Perry has received some 200 inquiries on CMF properties, most of which were generated by the website in addition to any real estate agent communications since the onsite access to non-members (potential buyers with or without real estate owners) which is controlled by one-time password action.
• From all the activities above, Perry reported that there have been twenty-three (23) sales transactions. Perry shared the information that to the best of his knowledge, in sales, the price ranged from a low of $1,800 per acre on one lot to a high of $6,500 per acre on a transaction.
• At the start of 2024, the HOA had ownership of four (4) lots; 56, 65,88 and 89 which was been sold with the total sales revenue of near $60,000.
• During the course of 2024, Owners of four properties (lot #’s 77,118, 230 and 231) have been transitioned to HOA ownership in negotiations regarding their overdue Annual HOA fees and late fee assessment. The price to the HOA is the payment of the closing costs, which was no more than $600 for any of the transactions.
• Another important matter involving progress was the Approval and Initiation of the Architecture Review Committee during the summer. This is a Standing committee on the Board with five (5) members and they have been working on formalizing the operational practices and documentation. Perry, Pat, Craig, Marvin, and Karlei were recognized at the meeting and thanked for their volunteer work on the committee. Karlei has coordinated the effort to create a checklist for the architecture review process and in addition to the document being uploaded to the HOA Website, hardcopies were distributed to all in attendance.
• The meeting also included comments from Board members and others regarding the shortage of qualified, licensed contractors across the professional skills needed. It is recognized that the availability may also be further compromised with all of the likely reconstruction work as a follow up in western counties as a result of Hurricane Helene.

1. Update – CMF Road conditions, Common Area maintenance & Security – The HOA meeting presentation for HOA members includes a summary of the current procedures and activities for these important functions.
2. CMF HOA Financial Condition:

1. Current Year Financial Summary – The Financial Condition of the HOA through September 30, 2024, was uploaded to the website and hardcopies were available at the meeting. 2024 has been a year with significant activity related to the capital expenses and the sale of HOA owned lots. In addition, the professional, progressive follow up on owner accounts in arrears on annual fee payments has generated considerable transaction activity. The change of bank accounts from Regions Bank to Truist is generating interest revenue for the first time and a stronger working relationship.
2. 2025 Proposed Budget – HOA Treasurer John Belton and President Bruce Anderson made a couple comments on the proposal for 2025 which was also available in a hardcopy for the attendee review and comment. The Board with this presentation will consider the budget as approved pending the successful Q4 financial results and no further surprises like Hurricane Helene.
3. Discussion on Potential 2025 Capital Projects – A summary of potential, future projects were included below the operational budget. The point was made by Board officers Bruce Anderson and Perry Swaim that the list are projects which the Board believes can great value to the community. However, further investigation is needed on each of them before and an estimate of cost and time is prepared and adequate for HOA approval to schedule and proceed. No action was requested by the Board on this topic.

1. CMF Proposed amendment(s) to Restrictive Covenants.

1. The Restrictive Covenants Article VI proposed revision to allow the trademark siding product Hardie Board as an exterior option along with wood and stone was approved by a vote of Fifty Four (54) yes votes and two (2) no votes.
2. The second proposed change to clarify “Single Family Residential purposes…” was discussed and there was a concern regarding the minimum months for any rental agreement to be reviewed for approval by the CMF HOA Board. The Board agreed that the recommendation was with the intent of the scope, purpose and expected outcome. To follow compliance with required procedures, the wording change will be made and the document uploaded to Website along with a proxy form for this re-submitted issue to be voted on by the HOA membership. The posted material will be uploaded no later than Monday, October 21 and the voting wias authorized to be counted through Friday, October 25, 2024. At the conclusion of this period, the documented vote of the fifty-six (56) participants was thirty-seven (37) yes votes with zero (0) no votes and nineteen (19) official “abstain” recorded votes.
3. In view of the above results, both amendments have been approved and the registration with Wilkes County Registrar of Deeds will be initiated.

1. Open discussion on “Barn” – Perry Swaim led this discussion. The last time there was a serious discussion with the HOA membership was 2019 and the Boad has this year taken action to prevent further damage from termites and other animals who found was to enter the barn and provide added risks. The completion of a uniform concrete floor was a necessary investment to prevent further infestation.

1. Parry introduced a number of potential options to be further investigated. Each was focused on consideration as a valued service and amenity exclusively for CMF HOA property owners.
2. Among the options discussed were a simple, internal storage option for property owners for a modest fee. The options that expand the facility to usage outside the barn for limited (three) temporary RV storage or potentially RV hook-ups do require more implementation costs and set-up.
3. The premise for any service available to owners was that a “first come/first service” would be consistently applied in recognition that there may be a waiting list for any of the options.
4. At present, including annual insurance coverage, electricity and normal maintenance of the building and grounds along with the need for re-staining the exterior every five years sets a minimum annual average cost of approximately $10,000. Perry said that covering the operating costs by any single or combination or options will benefit the community’s financial stability in addition to any quality-of-life benefits if owners value the benefits from the service.

1. Follow-up on Action Plans – in the presentation document for the meeting, HOA and comments at the meeting HOA President Bruce Anderson covered the current Board roles for 2025. Given that this will be the second year of two-year terms, the Q4 2025 annual meeting will include the election of Board members.
2. The meeting adjourned at approximately 1:35 pm.

 

 

 

 

ANNUAL MEETING IS STILL SCHEDULED FOR OCTOBER 19, 2024 AT NOON.

October 2, 2024

While we cannot describe the weather events of the past week, this is a
brief summary of how the heavy rains and winds from Hurricane Helene
impacted our CMF Community.
Thursday, September 26 th , in the day before Helene came onshore, CMF
was already receiving heavy rains. Perry Swain reported that per his rain
collection system, the area was already absorbed 12 inches of rain.
Friday, September 27 th brought the force of additional heavy rain and much
more rain. When the worst of the storm proceeded north, there were many
downed trees blocking roads throughout the CMF neighborhood. Electric
services from both Duke Energy and Surry-Yadkin Electric Cooperative
were both knocked out with the downed trees bringing down the distribution
lines. In the wider area around McGrady, cell towers were also damaged or
inoperable. Traveling on CMF roads was impossible. Fortunately, on the
afternoon of Friday, Marvin and Matt Felts were activating their equipment
and crew to begin clearing our roads.
Saturday and into Sunday, while the electric power was still out, the Felts
teams worked tirelessly from dawn to dusk to clear or roads. There were
other challenges including mudslides along Chestnut Mountain Parkway.
We are grateful for the efforts of Marvin and Matt and also to Geraldine
during this crisis.

Current State (as of 10/2/2024)

 The CMF paved and almost all of the gravel roads are open and
largely cleared. There is still debris to be cleared from the drainage
channels along the roadways.

 On the afternoon of Monday, October 1 st the power was restored by
Duke Energy and Surry-Yadkin Electric Cooperative.

 Cane Creek Road also have significant fallen tree damage, but the
roadway is clear.

 Route 18 heading north of McGrady towards Sparta was closed as of
October 1 st .

 All of the current homes within CMF have been spared damage from
Fallen trees and wind. But the cleanup (including trees potentially
falling near homes) will continue.

Chestnut Mountain Farms – 2024 – Brief Summary of HOA Activities

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. 

June:

• • • Negotiations with multiple owners in serious HOA Dues arrears were initiated. Payment in full were made on at least two, negotiated payment mounts on another three and discussions began on the potential transfer of title for three lots (118, 230 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:

• • • The paperwork and legal research for applying Liens were on a minimum of fourteen lots was initiated, ten of which are managed by a property management firm.  Our research with our attorney for the legal actions identified the small number of cases where the owners were also in arrears on their Wilkes County Property taxes. 
    • Work on the Water tank final positioning and the connection to the ongoing water source from a natural spring were major tasks initiated.
    • Invitations were sent online to homeowners regarding the Community “Independence Day” gathering at the CMF Pavilion on July 4th. Best estimates were between 40 to 50 attendees at times throughout the late afternoon cookout. 

August:

• • • Repaving work on the roads was budgeted and the workplan with the professional firm was initiated and completed. 
    • 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:

• • • The grading and gravel coverage along with protective fencing for the Water tank was completed.
    • Final staining on the package delivery hut was competed.
    • Follow-up activities on overdue accounts reached the stage after three letters and numerous individual calls, the action of applying liens on more than a dozen parcels/lots were initiated and certified letters indicating the action were processed.
    • Three lots, after negotiations with owners, underwent closings for title transfers to the CMF HOA in exchange for waiving the overdue account balances. This is an option that the HOA Board approves when the owner can make no commitment to paying the overdue amounts and, in reality, has little interest in ever visiting and building a home at Chestnut Mountain Farms. 
    • First Response to the Tropical Storm Helene wind, fallen trees and mudslides begins and continues as a “sunrise to sunset” set of activities through M&M Landscaping, our security and the electric utility companies that serve Chestnut Mountain Farms; Duke Energy and Surry-Yadkin Electric Cooperative. 

October:

• • • Work continued throughout the first week in October on the clean-up actions resulting from Tropical Storm Helene.
    • The electric power was restored on October 2nd.  

 

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)

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.”