HomeMy WebLinkAbout006a Subdivision Bylaws1
Return Recorded Document to:
Blackwood Grove, LLC
115 West Kagy Blvd, Ste L
Bozeman MT 59715
BYLAWS OF BLACKWOOD GROVES SUBDIVISION
H O M E O WN E R S ASSOCIATION, INC.
ARTICLE I
PURPOSE AND APPLICATION
These Articles are and shall be the Bylaws of BLACKWOOD GROVES Homeowners
Association, Inc. (the "Association”). These Bylaws are in addition to the rules and regulations for
the Association contained in the Declaration of Covenants, Conditions and Restrictions for
BLACKWOOD GROVES recorded at Document Number on / /22 with the
Gallatin County Clerk and Recorder. These Bylaws shall, upon being recorded with the Clerk and
Recorder of Gallatin County, State of Montana, govern and control the administration of the
Association. In the event of any inconsistency between these Bylaws and the Declaration, these
Bylaws shall control. All Owners, their guests, invitees, agents, and any renters present and future,
shall have the rights and responsibilities described in these Bylaws and shall be subject to the
provisions thereof.
The acquisition of an ownership interest of a Lot in BLACKWOOD GROVES signifies
that the owner accepts, ratifies, and agrees to comply with these Bylaws.
ARTICLE II
MEMBERSHIP
“Member" shall mean and refer to each Lot Owner including the Declarant, while Declarant owns
any Lot of Unit, Blackwood Groves. Membership in the Association shall be appurtenant to and may not
be separated from ownership of a Lot or Unit.
Persons owning a Lot in BLACKWOOD GROVES or an interest in a Lot, or owning a Lot
in any real estate tenancy relationship recognized by the State of Montana, shall be a member of
the BLACKWOOD GROVES OWNERS ASSOCIATION ("Association"). An Owner may not
decline membership in the Association. Membership begins concurrently with the acquisition of an
ownership interest in a Lot and terminates at the time such ownership interest is terminated. Such
termination shall not relieve any owner of a liability for obligations incurred while a member of the
Association; further, membership in the Association does not in any way negate or impair any
owners' legal remedies, right to bring legal action, or defenses to any and all actions involving the
Association, other Owners, or the Management, which may arise from or be incidents of
ownership.
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ARTICLE III
OBLIGATIONS
Each Owner shall be obligated to comply with these Bylaws and the Declaration of
Covenants, Conditions and Restrictions for BLACKWOOD GROVES. Such obligations shall
include, but are not limited to, the paying of assessments levied and the adherence to the protective
covenants. Failure of any owner to abide by these Bylaws, and all rules and regulations adopted by
the Board, the Declaration, the City of Bozeman, and the State of Montana, shall be grounds for
appropriate legal action by the Association or by an aggrieved Owner against such noncomplying
owner.
ARTICLE IV
MEETING AND VOTING
There shall be a regular meeting of the Association annually on the third Wednesday in
January of each year, commencing in the year the Association is established, or thereafter, on such
other date properly announced by the Association. So long as the Declarant owns Property, the
Declarant shall appoint the Board of Directors until such time as the Declarant turns to Board over
to the Association.
A quorum of the members constitutes owners of not less than ten percent (10%) of the land
area in the Property, as defined in the recorded covenants.
Pursuant to these Bylaws, the Association may at any time hold special meetings.
Such special meetings may be called by the Declarant, the Chairman of the Association, by the
Board of Directors, a signed request by the Manager, or a petition signed by fifteen percent (15%)
of the Owners. Notice of any special meeting must specify the reason for such meeting and the
matters to be raised. Only matters set forth in the petition or request may be brought before such
meeting.
A. Notice.
Notice of all meetings, regular or special, shall be mailed, personally delivered or sent by
email (if Lot Owner has consented in writing to notices being sent by email and provided an email
address) by the Association's Secretary to every Lot Owner of record at his/her/its address of
record at least ten (10) business days prior, but not more than sixty (60) days prior, to the time for
holding such meeting. Such notice shall specify the date, time, and place of the meeting and shall
make provisions to allow for the voting of each Lot Owner by proxy or by written ballot, and to
deliver the ballot by electronic voting, at the discretion of the Lot Owner. The delivery of a notice
in the manner provided in this paragraph shall be considered as notice served. If delivered
electronically, such notice shall be deemed delivered upon the Association’s transmittal of the
electronic communication to the Owner at the authenticated electronic identification designated by
the Owner for such communications. The Association shall maintain a list of the Owners, pursuant
to Mont. Code Ann. § 35-2-906, which list shall include the authenticated electronic identification
designated by each Owner. The “authenticated electronic identification" shall mean an e-mail
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address or other electronic identification designated by an Owner for electronic communications.
ARTICLE V
VOTING INTEREST
A. Procedures.
Each Owner at Association meetings shall have the voting percentage as set forth in the
recorded covenants and Exhibit C to the recorded covenants.
Each Owner in good standing is entitled to vote on all matters affecting the general
business of the Association. Action presented at an Association meeting with a quorum, shall be
deemed approved if it receives a majority of the votes cast.. No member shall be entitled to vote
during any period in which such member shall be in default in the payment of any assessment
levied by the Association as set forth in the Declaration. The Association shall be permitted to take
action by the vote of Owners consenting in the form of a record provided electronically or by
written ballot and to deliver a written ballot by electronic delivery, if a Owner gives consent for
such electronic delivery. “Vote" or "voting" shall include, but not be limited to, the giving of
consent in the form of a record provided electronically or by written ballot and written consent. A
Owner’s consent to receive notice by electronic communication in a certain manner shall constitute
consent to receive a ballot by electronic communication in the same manner.
Whenever a quorum is present at a meeting of the Association or the Board of Directors,
those present may do any and all acts they are empowered to do unless specific provisions of these
Bylaws, the Declaration, Rules and Regulations, if adopted, or the laws of the State of Montana
direct otherwise. A Owner voting electronically pursuant to this section shall be counted as being
in attendance at the meeting for purposes of determining a quorum.
B. Proxies.
Every person entitled to vote shall have the right to do so either in person, or by written
proxy, signed by such person, and filed with the secretary of the Association. A proxy shall be
deemed signed if the member's name is placed on the proxy, (whether by manual signature,
typewriting, telegraphic transmission, facsimile or otherwise) by the member or the member's
attorney-in-fact. A validly executed proxy which does not state that it is irrevocable shall continue
in full force and effect unless (i) revoked by the person executing it prior to the vote pursuant to
that proxy by a writing delivered to the Association stating that the proxy is revoked, or by a
subsequent proxy executed by, or attendance at the meeting and voting in person by, the person
executing the proxy; or (ii) written notice of the death or incapacity of the maker of that proxy is
received by the Association before the vote pursuant to that proxy is counted; provided however,
that no proxy shall be valid after the expiration of eleven (11) months from the date of the proxy
unless otherwise provided in the proxy.
C. Record Date.
In order that the Association may determine the members entitled to notice of, or to vote at,
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any meeting or entitled to exercise any rights in respect of any other lawful action, the Board of
Directors may fix, in advance, a record date which shall not be more than sixty (60) nor less than
ten (10) days before the date of such meeting. Members of record at the close of business on the
record date are entitled to notice and vote or to exercise their rights as the case may be,
notwithstanding any transfer of any Lots on the books of the Association after the record date,
except as otherwise provided by agreement or in the Montana Nonprofit Corporation Act.
ARTICLE VI
BOARD OF DIRECTORS
The governance of the Association shall be by a Board of Directors consisting of a
minimum of three (3) Directors and a maximum of seven (7), elected by the Owners except for the
Declarant’s reserved rights hereunder. The Directors need not be Owners. Such Board of Directors
shall have all powers and responsibilities attendant to the general administration and control of the
Association. Additionally, the Board of Directors shall have the authority necessary to carry into
effect the powers and duties specified by these Bylaws.
So long as the Declarant owns Property, the Declarant shall appoint the Board and
determine the number of Directors up to a maximum of seven (7) Directors. At the first meeting
after turn over by the Declarant, and at all subsequent annual meetings, one (1) member of the
Board shall be elected to serve a one (1) year term. The remaining Members of the Board shall be
elected for two (2) year terms and all subsequent elections for membership to the Board shall be
for two (2) year terms. Their terms of office shall begin immediately after election.
A. Meetings.
Meetings of the Board of Directors may be held at any place which has been designated in
the notice of the meeting, or if not stated in the notice or there is no notice, designated in the
Bylaws or by resolution of the Board of Directors. Immediately following, and at the same place
as, each annual meeting of members, the Board of Directors shall hold without call or notice other
than this bylaw a regular meeting for the purposes of organization, election of officers and the
transaction of other business. Other regular meetings of the Board of Directors shall be held
without notice at such time as from time to time may be fixed by the Board of Directors.
B. Special Meetings; Notice.
Special meetings of the Board of Directors may be called at any time by the chairman or
the secretary or any two Directors. Notice of the time and place of all special meetings shall be
given to each Director by any of the following means:
(i.) By personal delivery, or by telephone, fax, or email at least forty-eight (48) hours
prior to the time of the meeting; or
(ii.) By first-class mail, postage prepaid, at least four days prior to the time of the meeting.
C. Waiver of Notice.
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The transactions of any meeting of the Board of Directors, however called and noticed and
wherever held, are as valid as though it had been held at any meeting duly held after regular call
and notice, if a quorum is present and if, either before or after the meeting, each of the Directors
not present signs a written waiver of notice or a consent to holding the meeting or an approval of
the minutes thereof. All such waivers, consents, and approvals shall be filed with corporate records
or made a part of the minutes of the meeting. Notice of a meeting shall also be deemed waived by
any Director who attends the meeting without protesting before or at its commencement the lack of
notice.
D. Participation by Telephone or Virtual Meeting.
Members of the Board of Directors may participate in a meeting through the use of
conference telephone, virtual meeting, or similar communications equipment, as long as all
members participating in such meeting can hear one another. Participation in a meeting pursuant
hereto constitutes presence in person at such meeting.
E. Quorum and Action at Meeting.
A majority of the authorized number of Board of Directors shall constitute a quorum for
the transaction of business. Each Director shall have one (1) vote. Subject to the provisions of
Montana Nonprofit Corporation Act, every act or decision done or made by a majority of the
Directors present at a meeting duly held at which a quorum is present is the act of the Board of
Directors.
F. Action Without Meeting.
Any action required or permitted to be taken by the Board of Directors may be taken
without a meeting, if all Members of the Board of Directors individually or collectively consent in
writing to the action. Such written consent shall have the same force and effect as a unanimous
vote of the Board of Directors.
G. Committees.
The Board of Directors may, by resolution adopted by a majority of the authorized number
of Directors, designate one or more committees, each consisting of two or more Directors and each
of which, to the extent provided in the resolution and as limited by the Montana Nonprofit
Corporation Act, shall have all the authority of the Board of Directors. Further the Board of
Directors may designate one or more Directors as alternate members of any committee, who may
replace any absent member at any meeting of the committee. Each committee shall serve at the
pleasure of the Board of Directors.
H. Meetings and Action of Committees.
Meeting and action of committees shall be governed by, and held and taken in accordance
with, the provisions of this Article VI of these Bylaws, with such changes in context of these
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Bylaws as are necessary to substitute the committee and its members for the Board of Directors
and its Members except that the time for regular meetings of committees may be determined either
by resolution of the Board of Directors or by resolution of the committee. Special meetings of
committees may also be called by resolution of the Board of Directors. Notice of special meetings
of committees shall also be given to all alternate members, who shall have the right to attend all
meetings of the committee. Minutes shall be kept of each meeting of any committee and shall be
filed with the corporate records. The Board of Directors may adopt such other rules for the
governance of any committee as are not inconsistent with the provisions of these Bylaws.
ARTICLE VII OFFICERS OF THE BOARD OF
DIRECTORS
After turn over from the Declarant, the Association shall elect from its membership or
otherwise a Board of Directors which shall consist of a Chairman and Secretary/Treasurer, who
shall serve for a term of one (1) year. If no new person is elected to an officer position after
expiration of term, the officer must remain in office until a replacement is elected or appointed.
The manner of election of the Board of Directors shall be as follows:
After one hundred percent (100%) of the Lots have been transferred to third parties, unless
turned over sooner by the Declarant, at the next annual meeting of the Association, nominations
for positions on the Board of Directors shall be accepted from any of the Owners present. Voting
shall take place by ballot.
ARTICLE VIII
LIABILITY
Members of the Board of Directors and their officers, assistant officers, agents, and
employees acting in good faith on behalf of the Association:
(1) shall not be liable to the Owners as a result of their activities as such for any mistake of
judgment, negligence or otherwise, except for their willful misconduct or bad faith:
(2) shall have no personal liability in contract to a Owner or any other person or entity under
any agreement, instrument or transaction entered into by them on behalf of the Association
in their capacity as such;
(3) shall have no personal liability in tort to any Owner or any person or entity, except for
their own willful misconduct or bad faith;
(4) shall have no personal liability arising out of the use, misuse or condition of the Property
which might in any way be assessed against or imputed to them as a result of or by virtue
of their capacity as such.
ARTICLE IX
POWERS AND DUTIES OF THE BOARD OF DIRECTORS
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The Board of Directors shall have the following powers and duties:
A. To call annual meetings of the Association and give due notice thereof
B. To conduct elections of the Board of Directors
C. To enforce the provisions of the Declaration and Bylaws of BLACKWOOD GROVES
SUBDIVISION by appropriate action.
D. To promulgate and adopt rules and regulations for the use and occupancy of the Common
Areas and for the occupancy of the Lots consistent with the recorded covenants.
E. To provide for the management of BLACKWOOD GROVES by hiring or contracting with
suitable and capable management and personnel for the day-to-day operation, maintenance,
upkeep, and repair of the Common Areas.
F. To levy assessments as allowed by the Declaration, these Bylaws, and the State of Montana,
and to provide for the collection, expenditure, and accounting of said assessments.
G. Adopt fines as may be required to support the recorded covenants.
H. To pay for the expenses of the maintenance, repair, and upkeep of the general Common
Areas and to approve payment vouchers either at regular or special meetings.
I. To delegate authority to the Manager for the routine conduct of Association business,
however, such authority shall be precisely defined with ultimate authority at all times
residing in the Board of Directors
J. To provide a means of hearing grievances of Lot Owners and to respond appropriately
thereto.
K. To meet at regularly scheduled times and to hold such meetings open to all Owners or their
agents.
L. To prepare, adopt and present an annual budget to the Association in order to determine the
amount of the assessments payable by the Owners to meet the expenses of the Association,
and allocate and assess such charges among the Owners. To levy and collect special
assessments whenever, in the opinion of the Board of Directors, it is necessary to do so in
order to meet increased operating or maintenance expenses, costs, or additional capital
expenses, or because of emergencies.
M. To take appropriate legal action to collect any delinquent assessments, payments or
amounts due from Owners, or from any person or persons owing money to the Association,
and to levy a penalty and to charge interest on unpaid amounts due and owing. However,
other than for the collection of delinquent assessments or accounts, the Board of Directors
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shall not initiate any litigation or lawsuit without prior notice to the Association.
N. To defend in the name of the Association any and all lawsuits wherein BLACKWOOD
GROVES is a party defendant.
O. To enter into contracts necessary to carry out the duties herein set forth.
P. To establish a bank account for the Association, and to keep therein all funds of the
Association. Withdrawal of monies from such accounts shall only be by checks signed by
such persons as are authorized by the Board of Directors.
Q. In general, to act for and carry on the administration and affairs of the Association as
authorized and prescribed by the Declaration and these Bylaws, and to do all those things
which are necessary and reasonable in order to carry out the governance and operation of
the Association.
R. To arrange, keep, maintain, and renew the insurance for the Association and the Common
Areas.
S. To receive and make payment for common utility expenses, including the power bill, for
the Common Areas. The Common Area expenses shall be paid by the Lot owners as part of
their assessment, with the method of payment to be determined by the Board of Directors.
T. To carry out the duties and responsibilities of the Board of Directors in all other matters as
may be authorized, needed, or required by the Declaration.
U. To make repairs, alterations, additions, and improvements to the Common Areas consistent
with managing the Association in a first-class manner and in the best interest of the Lot
Owners.
V. To provide the perpetual maintenance of the Common Areas and landscaping, the parking
areas, sidewalk, tracts and driving lanes, and to make any assessments necessary for such
maintenance as provided herein. Such maintenance shall specifically include the control of
noxious weeds.
ARTICLE X
VACANCIES AND REMOVAL
After turn over by the Declarant, should a vacancy occur on the Board of Directors, the
Board of Directors, subject to the exception described below, shall appoint a member of the
Association to serve for the unexpired term. Such vacancy shall be filled no later than the next
regular Board of Directors meeting after which it occurs. Should such vacancy not be filled by the
Board of Directors at the next regular meeting of the Association, the Association may fill such
vacancy.
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At any regular or special meeting of the Association, any member of the Board of Directors
may be removed by a majority of the votes available for election of the Board of Directors. Such
vacancy shall be filled by the Association. Such removal matter must be announced in the notice of
such regular or special meeting. The personal delivery of such notice by the Secretary of the
Association shall be considered notice served.
ARTICLE XI
COMPENSATION
No member of the Board of Directors shall receive any compensation for acting as such.
Nothing herein, however, shall be construed to preclude compensation being paid to Managers
who are hired by the Board of Directors.
ARTICLE XII
MANAGERS
The Manager shall be appointed and/or removed by the Board of Directors. The Manager
(or any member of the Board of Directors or Association handling Association funds or having
power to withdraw or spend such funds) shall be bonded if required by the Board of Directors, and
shall maintain the records of the financial affairs of the Association. Such records shall detail all
assessments made by the Association and the status of payments of said assessments by all
Owners. All records shall be available for examination during normal business hours to any Owner
or his assigned representative. All functions and duties herein provided for the Manager may be
performed by the Board of Directors, or the Chairman, if the Board of Directors should decide not
to have a Manager.
A. Accounts.
The receipts and expenditures of the Association shall be under the direction of the
Manager and s hall include a provision for current expenses which shall include all receipts and
expenditures to be made within the year for which the budget is made, including a reasonable
allowance for contingencies and working funds, except expenditures chargeable to reserves or
betterments. The balance in this fund at the end of each year shall be applied to reduce the
assessments for current expenses for the succeeding year. Other budget items may be provided for
in the discretion of the Manager.
B. Budget.
The manager shall prepare and submit to the Board of Directors each calendar year, a
budget, which must be approved and adopted by the Board of Directors. The budget shall include
the estimated funds required to defray expenses and to provide and maintain funds for the
foregoing accounts according to Generally Accepted Accounting Practices.
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C. Financial Report.
An audit and financial report of the accounts of the Association may be made annually by a
Certified Public Accountant, if required by the Board of Directors, and a copy of the report shall be
furnished to each member no later than March 1st of each year for which the audit is made.
The Manager shall generally operate and manage the Association for and on behalf of the
Lot Owners and shall have such other powers and authority as the Board of Directors may
designate. If there is no Manager or if the Manager resigns, is terminated or his contract expires,
the Board of Directors shall perform all the duties of the Manager.
ARTICLE XIII
AMENDMENT OF BYLAWS
The Declarant may amend the adopted Bylaws. After Declarant turn over of the
Association, amended Bylaws may be adopted by the Members at their annual meeting, or at any
meeting of the Members called for that purpose, by a vote of seventy-five percent (75% )of the
Members. These Bylaws may be amended at any regular or special meeting of the Association
providing that a copy of the proposed revision is included in the notice of such meeting.
After turn over, upon a vote of over seventy-five percent (75%) of the Owners the
amendment shall be declared adopted. The Secretary shall as soon as practicable after adoption,
prepare a copy of these Bylaws as amended for certification by the Chairman and Secretary of the
Association. Such amended and certified Bylaws shall then be filed and recorded in the office of
the Clerk and Recorder of Gallatin County, State of Montana. Bylaws as amended shall become
effective at the time of such recording.
ARTICLE XIV
ASSESSMENTS
Owners shall be assessed for Association expenses based the Exhibit C attached and
incorporated in the recorded covenants. Such assessments shall be collected and paid according to
the terms and under the procedures more particularly set forth in the Declaration. The amount of
assessments described above and any other assessments allowed by these Bylaws, the Declaration,
and by the State of Montana, shall be fixed by the Board of Directors. Notice of each Lot Owner’s
assessments shall be mailed to said Owner at his/her address of record.
ARTICLE XV
MISCELLANEOUS
A. Records and Inspection Rights.
The Association shall keep such records (including member's lists, accounting books,
minutes of meetings and other records) as are required by the Montana Nonprofit Corporation Act,
and these records shall be open to inspection by the Directors and Members of the Association to
the extent permitted by the Montana Nonprofit Corporation Act.
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B. Availability
The Association shall make available to Lot Owners, lenders and the holders and insurers
of the first mortgage on any Lot, current copies of the declaration, Bylaws and other rules
governing the Association, and other books, records and financial statements of the Association.
The Owners Association also shall be required to make available to prospective purchasers’
current copies of the declaration, Bylaws, other rules governing the condominium, and the most
recent annual audited financial statement if such is prepared.
C. Checks. Drafts. Evidence of Indebtedness.
All checks, drafts, or other orders for payment of money, notes or other evidence of
indebtedness, issued in the name of, or payable to, the Association, shall be signed or endorsed by
such person or persons and in such manner as, from time to time, shall be determined by resolution
of the Board of Directors.
D. Execution of Corporate Contracts and Instruments.
The Board of Directors may authorize any officer or officers or agent or agents, or appoint
an attorney or attorneys-in-fact, to enter into any contract or execute any instrument in the name of,
and on behalf of, the Association, and this authority may be general or confined to specific
instances; and unless so authorized or appointed, or unless afterwards ratified by the Board of
Directors, no officer, agent or employee shall have any power or authority to bind the Association
by any contract or engagement or to pledge its credit or to render it liable for any purpose of for any
amount.
E. Transfer of Control.
Except for those rights specifically reserved by Declarant, the Declarant shall relinquish all
retained rights to appoint Members of the Board of Directors, and all such rights and authority
shall pass to the Lot Owners within the project, upon one hundred percent (100%) of the Lots
being sold or otherwise transferred by Declarant to a third party.
The foregoing requirement shall not affect the Declarant's rights, as a Lot Owner, to
exercise the vote allocated to Lots which it owns.
F. Association's Rights and Restrictions.
The Association is granted a right of entry upon Lot and Common Areas to affect
emergency repairs, and a reasonable right of entry thereupon to effect other repairs, improvements,
replacement or maintenance deemed necessary.
The Association is granted the right to grant utility easements under, through or over the
Common Areas, which are reasonably necessary to the ongoing development and operation of
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BLACKWOOD GROVES Subdivision.
ARTICLE XVI THE DECLARATION OF COVENANTS, CONDITIONS AND
RESTRICTIONS FOR BLACKWOOD GROVES (“DECLARATION”)
The undersigned has filed, along with these Bylaws, a Declaration whereby the properties
known as BLACKWOOD GROVES. The Declaration shall govern the acts, powers, duties, and
responsibilities of the Association of Lot Owners.
The definition of terms set forth in the Declaration shall be applicable throughout these
Bylaws and the interpretation thereof.
By virtue of these Bylaws and the Declaration, each Lot Owner has the right to
membership in the Association of Lot Owners and any Lot Owner may be on the Board of
Directors of the Association.
The Association and its Board of Directors shall have the primary and final authority on all
matters solely affecting the property, subject to the laws, rules and regulations of the City of
Bozeman, the County of Gallatin and the State of Montana.
IN WITNESS WHEREOF, the undersigned, as the Declarant and owner of record of all of
the property and 100% of the voting interests of the Association as of the date hereof, hereby
appoints the following three (3) people to serve on the initial Board of Directors and as officers
until the first annual meeting of the Association, to-wit:
Grant Syth
David Gordon
Matt Hausauer
And, the Declarant, as 100% of the Lot Owners, and hereby declares and affirms the
adoption of the foregoing Bylaws on the day of________________, 2022.
SIGNATURES CONTINUE ON NEXT PAGE
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BLACKWOOD LAND FUND, LLC
By:_
Grant Syth, Member
STATE OF MONTANA )
: ss
County of Gallatin )
On this day of 202 , before me a Notary Public in and for
the State of Montana, personally appeared GRANT SYTH, known to me to be Members of
BLACKWOOD LAND FUND, LLC and the person who subscribed their names to the within
instrument and acknowledged to me that they executed the same pursuant to the authority vested in
them.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the
day and year above written.
Notary Public for the State of Montana
(SEAL) Residing at , Montana
My Commission expires