The Condominium Documents including the Master Deed, the Bylaws and the Articles of Incorporation have been updated to meet modern standards and practices. Each Co-owner will have received the full informational packet as a printed copy in the mail.
This vote is extremely important for aligning the Association’s governing documents with current laws and requirements. Approval requires 65 2/3% of the membership (45 votes), so every response is both necessary and greatly appreciated. Thank you to those that have submitted their ballot and mortgagee form already.
Please take the time to carefully review all materials before submitting your required voting documents.
Ballots may be submitted in any of the following ways:
– By email to contactks@ksmanagement.org
– By mail to KS Management 15755 Northline Rd., Southgate, MI 48195
Introduction and explanation from the Memorandum to Co-owners Outlining the Significant Changes:
The Board of Directors and the Association’s management company have been working with our firm to develop a new, updated set of Condominium Documents.
Condominium documents primarily serve two purposes: (1) describe what each Co-owner owns individually (i.e., their Unit) and what they own in common with other Co-owners (i.e., the Common Elements); and (2) inform all Co-owners of their and the Association’s rights and obligations relative to the upkeep, use, and administration of the Units and Common Elements.
As condominium developments mature, updates are often necessary to remove outdated references, reflect changes in the law, and clarify operational aspects of the community. Additionally, since most condominium documents are created on a template used by the developer’s attorney at the time the development is documented, most condominium documents are not initially drafted to address the uniqueness of a given community. Accordingly, over time it becomes necessary to update the Condominium Documents so that the documents can serve their primary functions.
Further, as the condominium market changes, condominium developments must stay competitive to enhance market value. To maintain this competitiveness and protect market values, it is important to avoid high assessment levels. One effective way to protect against high or increasing assessment levels is to assign to Co-owners responsibility for items that all Units have, like Unit entry doors and windows, but that do not otherwise involve foundation, perimeter wall, ceiling, floor, or roof construction. By not placing this responsibility on the Association, the overall budget and the need to reserve for those items is reduced. Condominiums that do not assign more responsibility to Co-owners invariably have higher assessment levels.
Equally important is the need to clearly define and allocate responsibility for maintenance and repairs between the Association and Co-owners. A well-structured apportionment ensures transparency, prevents disputes, and helps maintain the financial stability of the condominium. Clearly outlining these responsibilities also allows for better long-term planning, reduces unexpected costs, and ensures that both the Association and individual owners understand their obligations. Without clear distinctions, confusion can arise, leading to inefficiencies, increased costs, and potential conflicts over maintenance and repair duties.
Additionally, for a combination of reasons, the condominium association insurance market has shrunk dramatically over the years, resulting in premium increases. To help prevent Association- insurance premium increases that could result in increased assessment levels, and to help control insurance loss histories, it would benefit Co-owners to change how some items are insured. As discussed in greater detail below, because Co-owner insurance is more readily available at a lower cost than is available to the Association, the proposed documents have been drafted so that the Association will continue to insure all Common Elements with the Co-owners insuring items located inside their Unit like fixtures (e.g., light fixtures, cabinets, and countertops), equipment and trim located within the Unit. These changes are important and are meant to save the Co-owners money.
Lastly, it is necessary to conform the governing documents to relatively newer conventional financing requirements. In a market where the majority of loans are sold in the secondary market, compliance with these regulations is vital to help ensure prospective purchasers will be able to obtain loans and that existing Co-owner loans can be refinanced.
