The Prospectus (sometimes called an Offering Plan) is a group of documents required by NY State Law which must be submitted to the State Attorney General for approval whenever a developer of a condominium, townhouse or similar enterprise seeks to establish a homeowner’s association to manage and maintain common areas and enforce policies and regulations within the development. In our case, the Phase 1 Prospectus created the Lake Country Village Homeowner’s Association, Inc., a NY State not-for-profit corporation, for the first phase of our community. Each unit owner becomes a mandatory member of this corporation and is governed by the documents contained within the Prospectus. Phase 2, Phase 3 and Phase 2A Prospectuses were filed to include the remaining units (in stages) as members of the corporation.
The Prospectus contains information about the forming of the Association including two important documents: the Declaration of Covenants, Conditions, Easements and Restrictions and the Statement of Bylaws.
Prospectus Phase 2A – Final 10 Units on Maryland Rd.
Cooperative Policy Statement- 7
Our Developer also applied for and received approval for Cooperative Policy Statement – 7 (CPS-7) treatment for our development, which provides exemption from certain NY State regulations, provided our development has a “de minimis” cooperative interest. This means a development which owns or maintains property or recreational facilities which require limited or no maintenance. Any material misstatement or omission of a material fact in the application may render the CPS-7 treatment void and may subject the applicant to enforcement action.
An HOA with a de minimis cooperative interest is one that has, (among other criteria):
- Recreational facilities that require little or no maintenance such as basketball courts or playgrounds,
- Party walls involving no HOA maintenance,
- Vendors or contractors retained to perform occasional services, such as snow removal or landscaping.
And specifically excludes HOA’s which have the following:
- homes with shared exterior maintenance obligations
- party walls with HOA maintenance obligations
- labor directly employed by the HOA
- major recreational facilities requiring maintenance such as swimming pools
- property such as clubhouses, or any other commonly-owned property requiring substantial maintenance.
