Read these FAQs for the Upcoming Town Hall Meeting

The Townhall for Sunset Dunes lot owners via Zoom is scheduled for this Saturday April 10 at 3 PM Atlantic Time and lasting approximately one hour.  This will be an informal meeting for Sunset Dunes owners providing an opportunity to bring forward suggestions and concerns for the newly established HOA.

Tim O’Neill, President of the HOA Board, will open the meeting with some brief comments on the journey over the past five months to establish the Sunset Dunes PEI HOA.  This will be followed by an open forum for participants of the Zoom meeting.  To aid in the conversation the Board has put together a pre-meeting response document of Frequently Asked Questions that have been submitted by members over the last five months as the subdivision has transitioned to HOA management.  Please take some time to review these FAQ answers prior to attending the Saturday meeting and even if you cannot attend the meeting you should still find the attached material valuable.

Prepared Responses to Frequently Asked Questions

We’ve heard rumours that the buyer of the recently purchased final lots in the subdivision is planning to put up multi-unit dwelling buildings.  Is there any truth to this?

• This is just a rumour.  Based on late 2020 conversations between the HOA transition committee and the Developer, Shaun MacIsaac, there are no such plans for those lots.

How is it that the first Board of Directors of the HOA was selected without input from the members of the Association?

• The Developer of the subdivision has the authority from the Restrictive Covenants to establish the Homeowners Association and select the initial HOA Board.  The Developer exercised this authority, selecting some of the home owners with the longest history in the community to aid in the transition and form the initial Board.  An elected Board of Directors will be chosen at the first AGM of the Association.
• The primary role of the initial Board has been to facilitate the effective transfer of responsibility for the operational functioning of the subdivision – e.g., contracting for required services, determining fees to be invoiced to owners, setting up a bank account, etc.  It also drafted proposed By-Laws, reviewed existing Restrictive Covenants and sought legal advice on several issues which are addressed below.
• This initial Board has chosen the approach for the next few months of making little to no changes in the subdivision prior to the first Annual General Meeting in early August, when a new Board of Directors for the HOA will be voted upon.  The Board expects its role in the next few months will primarily be one to help communicate and clarify on concerns within the subdivision, but not to make any impactful decisions or changes in the community.

What are the terms for members of the Board of Directors of the Sunset Dunes PEI HOA?

• The members of the Board of Directors of the HOA are elected annually by the membership.  The first elected Board will be put in place at the August 2021 Annual General Meeting of the Association membership.  Specific timing of the first AGM and the process for voting and installing the Board of Directors is not yet established.  This is something that the current Board will be working on over the next few months.
• The By-Laws of the Sunset Dunes PEI HOA currently do not place any term limits or other restrictions on Board membership.  If term limits or other restrictions are something desired by the membership, these items can be voted on by the membership and if adopted built into updated By-Laws of the Association.

We understand that only lots that have buildings constructed pay a fee for the winter snow removal on Campbells Way.  All lots have access to use the roadway, even in the winter.  Why don’t all of the lots pay an equal fee for this snow removal service?

• The Transition Committee talked about this early on in 2020 and we also looked at having that cost go to all lot owners.  The challenge with this proposed change is the Restrictive Covenants for Sunset Dunes state that the snow removal fee goes to lots with construction.  In talking with lawyers on these types of questions we’ve learned a great deal over the last few months about Restrictive Covenants.  They are a binding legal agreement with each individual lot owner, so they need to be followed by both the HOA and by the lot owner.  The Restrictive Covenants require that snow removal fees need to continue being assessed only to those lots with construction.
• Hopefully in the next few years, we will see more and more people building in the neighbourhood and this will help bring down the per home owner snow removal fee.

How much are road repairs on Campbells Way estimated to cost this year and is the Reserve Fund large enough in 2021 to cover this anticipated expense?

• Annual road repairs for Campbells Way have been estimated at $4000 to $5000 per year over the next five years by Curran and Briggs, the contractor that has done the road paving and maintenance of Campbells Way in previous years.
• A Reserve Fund fee of $180 per lot was included in the 2021 fee assessment.  This Reserve Fund will provide over $10,000 for major projects in the subdivision, including this year’s anticipated paving and road repairs on Campbells Way.

Due to the use of heavy equipment on the roadway, would there be consideration for introducing a development fee for lot owners undertaking activities such as construction of a new dwelling, major renovations at an existing dwelling, or a shoreline erosion protection project?

• The Board has discussed the option of a development fee.  Given that this type of fee did not exist for all of the previous lots that have already been developed and had significant activity we did not consider it fair to all lot owners to now charge future lots a special fee when they are developed.

Will the HOA coordinate for individual lot owners’ services for weed control spraying or bug control spraying?

• No, spraying for weeds or bugs is not a service that the HOA Board plans to supply to individual lot owners for this year.  This activity has not been provided by the Developer in the past.
• As previously communicated to lot owners, in prior years the Developer contracted for mosquito control related to Atlantic Bug Busters treatments of the subdivision marsh area, with this expense never being charged to lot owners.  The Board decided to forego marsh spraying and the associated $5,100 expense for this year to test what the impact would be on the development.  The situation will be monitored and assessed in 2021 by the HOA to determine the best go-forward long-term strategy.
• The HOA will continue to maintain the common area property of the subdivision as has been done by the Developer in the past, with the cost of this being assessed equally to all lot owners in their annual fee assessment.
• The HOA will continue to do grass cutting of vacant lots not maintained by the lot owner, with the cost of this activity assessed only to the owner of the vacant lot.

Who or what company is the bookkeeper for the HOA?

• After contacting and reviewing proposals from several bookkeepers the Board selected MRSB for bookkeeping services in 2021.
• As outlined in the HOA By-Laws, the fiscal year of the Association runs from June 1^st of each year to May 31^st of the following year and a statement of the standing of the books of the HOA will be submitted at the Annual General Meeting in August with the help of MRSB.

What is the go-forward plan to deal with renting in the subdivision?

• One objective of the Sunset Dunes PEI HOA in its By-Laws is to enforce all Restrictive Covenants applicable to the subdivision properties.  The newly established HOA Board is committed to carrying out this objective of enforcement.
• It is the recommendation of the Board that no action should be taken by the HOA to attempt to prohibit the renting of entire homes within the subdivision.  This recommendation is based on discussions with lawyers Derek Key and Paul Kiley.  The Restrictive Covenants for Sunset Dunes do not make a clear and precise statement that renting is prohibited.  The Board’s position, therefore is that it will not act against owners that rent their entire homes as the HOA has no basis to stop this activity.
• The following article from the Restrictive Covenants for Sunset Dunes properties is the most relevant to the question of renting:
  • The Lands and any building thereon shall not be used for the purpose of any profession, trade, employment, service, manufacture or business of any description, nor as a school, hospital or other charitable institution, hotel, apartment house, rooming house or place of public resort, nor for any purpose other than a private residence for the use of only one family to each dwelling building.
  • Note that the words “rent” or “renting” do not specifically appear in this article.  A home is clearly prohibited from being used as a hotel, apartment house or rooming house, but the renting of a home is different from these specified purposes.  Since the wording of the covenant article is not precise in prohibiting renting, the Board takes the position that it would not be an effective use of the HOA financial resources to attempt to stop the renting of homes.  Note that the wording of the above article is clear that the purpose of the residence is “for the use of only one family to each dwelling building”, so if renting does take place, the home must be rented in its entirety.
  • A recent legal case on PEI, MacMillan Point v Jay, illustrates the difficulties that a Homeowners Association can have when attempting to prohibit renting of homes when the Restrictive Covenants of the HOA do not have specific wording that prohibits renting.  In May 2018, the MacMillan Point HOA took home owner Nicolas Jay to court to force him to cease short-term rentals.  The MacMillan Point Restrictive Covenants are not identical to the Sunset Dunes Restrictive Covenants, but they do have very similar wording with regard to the article on the use of lands and buildings as given above.  In September of 2018 the PEI court ruled in Jay’s favour stating that:

i.     The MacMillan Point Covenants are not ambiguous and the rental of property, both long or short-term, is not prohibited by the Covenants.
ii.     Alternatively, if the particular Covenants are ambiguous then any ambiguity must be interpreted against the HOA and in favour of the home owner.
iii.     Any restrictions on the freedom to use the land must be clearly expressed in the Covenants.

• The MacMillan Point HOA did appeal the decision in May 2019 and in September of 2019 the court ruled to set aside the original judgement and to allow the case to be heard at a new trial.  Even if the MacMillan Point HOA wins at a new hearing, they will have spent several years in court and expended significant energy and financial resources on the case.  On a cost-benefit analysis basis, the Sunset Dunes PEI HOA Board does not consider this approach, with a very uncertain outcome from a court proceeding, to be an effective use of the HOA’s financial resources.
• A second article from the Restrictive Covenants for Sunset Dunes properties that is sometimes referenced when discussing the question of renting follows:
  • Nothing shall be done upon the Lands that is or would likely be a nuisance to the occupants of any neighbouring lands or buildings within the subdivision.
  • The Board takes the position that renting in and of itself is not a nuisance.  Renting is a common practice that can be carried out without unreasonable annoyance or injury to others.  The Board takes the position that if there are underlying nuisance issues with specific renters, such as excessive noise, then these root cause issues should be addressed.  This is the type of situation that the Good Neighbour Policy for Sunset Dunes is designed to help resolve.

What is the plan for updating the Restrictive Covenants for the subdivision?

• Changing the Restrictive Covenants for the Sunset Dunes properties is not really something that can be done.
• The Restrictive Covenants for each lot in Sunset Dunes is an individual agreement between the first purchaser of that lot and the subdivision Developer.  This original agreement continues on for each subsequent owner of that lot.  This original agreement also continues on when the Developer transfers the subdivision to the HOA, with the HOA taking on all of the roles and responsibilities of the original Developer.
• For the HOA to attempt to make a change to the Restrictive Covenants for the full subdivision would require that every single lot owner in the subdivision would have to legally sign-off on that change.  It is not a matter of the HOA membership voting on a change.  It is a matter that requires 100% of all lot owners to agree to the change.
• With the large number of lots in the subdivision, the Board does not believe that this 100% approval requirement for a change to the Restrictive Covenants is achievable, therefore, changing the Restrictive Covenants for the subdivision is not something that can be done.

What can the HOA do if someone does not adhere to the Restrictive Covenants?

• Over the last five months, the HOA Transition Committee learned a tremendous amount about the subdivision, but during that education, we discovered very, very few significant deviations from the Restrictive Covenants.  The Board is of the view that the Sunset Dunes community is made up of lot owners that take seriously the legal responsibility that they took on when they purchased their property and signed the Restrictive Covenants.
• As a first step in enforcing the Restrictive Covenants, the Board encourages all lot owners to take some time to once again review their Restrict Covenants to help become more familiar with what activities are prohibited at the properties and what activities require written approval to proceed in the subdivision.  If you don’t have easy access to your covenants, here’s a link to the document posted at the Sunset Dunes PEI HOA website, Sunset Dunes Restrictive Covenants.  Note that the website is currently in the process of being updated to better meet the needs of the HOA, so please be patient with us!
• Being knowledgeable on the Restrictive Covenants is an excellent way for lot owners to avoid accidentally not adhering to the covenants associated with their property.
• In addition, a Good Neighbour Policy for Sunset Dunes was recently communicated to lot owners and many of the principles contained there also are valuable in dealing with Restrictive Covenant enforcement.  Such concepts as proactive positive communication and looking to achieve mutually acceptable solutions are things that the HOA and Board would utilize to enforce the Restrictive Covenants.
• Finally, the HOA always has the option to take legal action against a lot owner to enforce the Restrictive Covenants, but the Board’s view is that this is a measure of last resort.

What are the architectural standards of the subdivision and how will the HOA ensure people will adhere to the standards?

• The Restrictive Covenants contain the architectural standards of the subdivision Sunset Dunes Restrictive Covenants.
• Once again, the Board is of the view that the Sunset Dunes community is made up of lot owners that take seriously the legal responsibility that they took on when they purchased their property and signed the Restrictive Covenants, including the requirement to obtain written approval from the HOA before commencing construction on all buildings, fences, walls, gate posts, clotheslines, or any other structures.
• The Board is currently working to establish an Architectural Review Committee (ARC) to carry out for the HOA and Board this construction plan review and approval process.  It is the expectation of the Board that creating the ARC will provide a clearer understanding of the approval process and the requirements for lot owners planning to build.  It is expected this will in turn help achieve adherence to the standards of the subdivision and greater transparency of the process for the full community.

What is the plan to deal with speeding on Campbells Way?

• Earlier this year, the HOA Transition Committee sent out the following email reminder to all lot owners to encourage safe driving practices on Campbells Way.
  • A short note to pass on a report that there was a near miss on Campbells Way this morning while a resident was out walking on the roadway.  When approaching the corner near the pumphouse they had to react suddenly to avoid a fast-moving vehicle.  Unfortunately, the resident was unable to speak to the driver or identify the vehicle.  So, a reminder to residents and any contractors you have working at your properties, even though it is winter there are still walkers out on Campbells Way on a regular basis and motorists need to be attentive and travel at a safe speed.
  • With the coming of better spring weather conditions and more pedestrian activity on Campbells Way, let’s once more take the opportunity to ask lot owners and any contractors working at your properties to practice safe driving.
  • As in recent years, the two “speed bump” locations along Campbells Way will be installed to assist in controlling the speed of drivers along the roadway.
  • The HOA Board members have also discussed several options for improving safety on Campbells Way including the installation of additional signage along the roadway.  At this point no firm plan has been finalized.

Are the duck ponds owned by the Sunset Dunes subdivision?  Has the agreement with Ducks Unlimited to maintain the duck ponds been renewed?

• There are three ponds located in the Sunset Dunes subdivision in the vicinity of lots 42, 43, 44, 45, and 46.  In 2004, the Sunset Dunes Developer entered into an agreement with Ducks Unlimited Canada for them to manage and maintain these duck ponds.  The agreement has a term of thirty (30) years and is automatically renewed from year to year thereafter, unless one party wishes to terminate the agreement.  The agreement with Ducks Unlimited continues after the Developer transfers the Sunset Dunes common areas to the HOA.
• The Sunset Dunes subdivision still owns the ponds under the terms of the agreement.  Ducks Unlimited only has the right to operate, manage and maintain the ponds.  In fact, there is a significant area of land to the south surrounding the ponds that is Sunset Dunes owned common area.  This area has not been developed with lots by the Developer as there was no roadway access to the area, but the land remains common area owned by the Sunset Dunes subdivision.  This area has not been utilized by the Developer, but the HOA may in the future wish to examine options to utilize this common area such as developing a walking nature trail.