07 – 1 Minutes of Special Meeting September 10, 2012

Tanglewood Homeowner Association of Sebring, Inc.
Sebring, FL 33872

Special Board of Directors Meeting Minutes for September 10, 2012

Estimated number of residents in attendance – 189
Meeting was called to order by Don Toth at 11:00 A.M. in the Tanglewood rec hall bingo area. Don Toth led the Pledge of Allegiances to the flag.
Don Toth asked that roll call be taken by Merritt Wiley:
Present: Don Toth, Gladys Nealon, Merritt Wiley, Jack Nelson, Garland Wampler and Bill Evans.
Board members excused from the meeting: Bob Cartwright, Jim Child, and George Weyrauch.
To reaffirm the HOA purpose, Don Toth read the HOA’s “Mission Statement.”
Don Toth announced this was a special meeting of the Board of Directors to discuss the results of the Rents Committee meeting on September 8, 2012 and the issue of rent increases.
Because this was a special meeting, Don Toth suspended each of the Board of Directors reports and all committee chairpersons’ reports except the Rents Committee.
Property rents committee: Garland Wampler reported the results of his committee meeting on September 8, 2012. The committee thoroughly investigated rent increases at comparable parks and submitted the following letter to the Board of Directors:

To Tanglewood of Sebring HOA Board of Directors
September 7, 2012
First we want to thank Gena Paugh for meeting with our Board of Directors on September 6th, at which time she allowed our initiative to construct in writing specific remedies concerning our lot rent amount and the method used for assessing annual increases. Now having documented that Tanglewood residents currently pay an average of twenty-two percent (22%) above market rent, and the 3.9% increase compounded annually is out of line with all of the parks in the twelve comparable parks in our survey, we request a one year moratorium on rent increases, beginning on January 1, 2013.
During the moratorium interval ending on December 31, 2013, we request the drafting and approval of lease revisions that will reflect the method of rent increases consistent with the practices used in most of the comparable parks in our survey; that of raising rents by $5 or CPI, whichever is greater.
Finally, during the moratorium, we offer to work with Hometown America toward the goal of bringing the language in leases, rule and regulations, and prospectus into full compliance with the letter and intent  of Florida Status 723.
Submitted by the Rent Committee
Garland J. Wampler, Chairman

Don Toth asked that the Board of Directors to accept the letter from the Rents Committee. A motion was made by Jack Nelson to accept, seconded by Merritt Wiley and accepted by the Board.
Don Toth discussed our meeting with HTA on September 6, 2012 and their reception to the Rents Committee in-depth study of comparable parks.
Don Toth asked each of the Board members to give a short report about their observation from the meeting with HTA as related to rents and rent increases:
Jack Nelson gave his report of how and what was put into the comparable rents chart.
Merritt Wiley reported on the Board of Directors conversation with Gena Paugh.
Bill Evans reported on his findings from his visits to the parks that were included in the comparable parks study.
Gladys Nealon commended the rents committee on their outstanding work.
Garland Wampler thanked the rents committee for their contribution to complete the comparable rents study.
Don Toth asked for comments and discussion from non-director members of the association.
Jack Nelson read the letter that was drafted to be sent to Gena Paugh and Robert Lethbridge of Hometown America.
Don Toth asked the Board of Directors to approve this letter. Jack Nelson made a motion to approve, Bill Evans seconded the motion and approved by the Board.
Don Toth asked for a motion to close the meeting at 11:45 A.M. Motion to close the meeting was received by Merritt Wiley, seconded by Bill Evans and passed by Board.

Merritt Wiley – as its Secretary
Underlined corrected September 19, 2012