Spring Creek Association

“Spring creek association is a homeowners association responsible for the maintenance and operation of the common areas of a 5,420 lot planned development. As per article iii of the association bylaws, every owner of a lot within the association is automatically a member of the association, and thereby entitled to vote.”

“The association holds elections for the board of directors on bi-annual basis. Members who are eligible to vote may cast their vote by mail. Votes are tallied by a third party and the results are announced at the annual meeting. This method is used both for election of members and any proposed action that is up for vote by members.”

“The association needs approval by the members for the following: a) to borrow money, mortgage, pledge, deed in trust, or hypothecate any or all of the association property as security for money borrowed or debts incurred (articles of incorporation, article iv, section 7). B) to sell, transfer, or convey all or any part of the common recreation facilities (articles of incorporation, article iv, section 8). C) to dedicate, sell, lease, or transfer all or any part of the association property to any public agency authority or utility (articles of incorporation, article iv, section 9). D) to amend the articles of incorporation (articles of incorporation, article xiii).”

“Form 990 was reviewed and approved by the president, treasurer, chairman of the board, and at least one other director prior to filing.”

“If a director has a conflict of interest with any item before the board, they inform the chairman that they will be abstaining from the vote on the matter and only provide any other information that the board requested in order to make an informed decision.”

“The board of directors bases salary on industry standards and then modifies the amount based on the experience and qualifications of the individual. Evaluations are performed annually by the board of directors and any increases and/or bonuses are determined at the time of the evaluation.”

“Governing documents are provided in the homeowner welcome packet, are handed out at the annual meeting, are available upon request, and are on the association's website. Financial statements are available upon request at the association's administration office.”

“While the association does not have a written conflict of interest policy, the bylaws do state, "in the event a director has a material personal, financial interest with a company that provides goods or services to the association, that director shall abstain from voting on issues involving a contract or transaction with that provider company." the association's policy regarding these issues is for the board member with a conflict to inform the chairman that they will abstain from any vote related to the conflict. See also answer to form 990, part vi, section c, line 18.”