Restrictive Cov./ Water Availability

THis is going to be long, so I apologize now, but please dont be discouraged by the length. I am in a loop of complete "no one knows"!! and need some help.

I am a member of the by laws committee in my association. I have been reading codes of VA and bylaws and rules and regs for literally the last year. Then I re read some things and found this paragraph in the associations restrictions:
“grantee for himself, his heirs executors or assigns agrees that as a consideration of sale and as a condition precedent to the installation of water mains adjacent to the lots as herein described and as appears on the map of X Development which said mains are to be located X Association, its successors or assigns that the grantee jointly and severally promise to pay to the grantor or its assignee a minimum of $4 per month payable annually in advance so long as water service is available. Payment thereof for the first year or part thereof shall be due on the first day of the month immed. following the availability of water service to grantee, his heirs, executors or assigns, for the period beginning with said month and ending on march 31st subsequent thereto, and thereafter die and payable in the amount of $24.00 semi annually in advance on the first day of April and November of each year. The foregoing charge is for the availability as well as the full use of the water service. At the time the cost of the original installation has been recovered through the payments above described the water system shall be the sole property of the X Association, Inc. at which time new, lower rates may be prescribed.”

So then I am reading the last paragraph of the restrictions and it states that certain sections, the above one being one of them “shall continue perpetuity”. And we need at least two thirds of agreeing lots in writing to change the restrictive covenants.

My point: we pay $25 per month for water these days. Does the above paragraph contradict what they have us paying currently? We have no amendments to these bylaws, articles of incorporation, restrictive covenants. I was working with the county to find our last set of recorded bylaws and finally found them filed with someone’s deed from the 70’s. It's not about the money, its about the integrity of the comunity (if that makes sense?!?)

Any help, ideas, suggestions on interpreting my information so I know what I am dealing with? Thanks in advance

It doesn't matter what kind of paperwork you found from the past. The rates MAY have changed, as voted per the bylaws, over the years - maybe even several times.

The Association's secretary is the guardian of all the legal paperwork of the group - Articles of Inc., IRS Determination Letters, Bylaws, Annual Reports, Fiancial Reports, etc. etc.

So, where is your secretary and where are the legal documents of this group?

Susan – this paperwork is our bylaws, restrictive covenants and article of incorporation that is being given to all homeowners of the association. So these documents are in our disclosure packet. The secretary, well, we have had several and ever since the last property manager was sued for embezzlement a lot of paperwork has suddenly disappeared. Legal document, to this association is a really fancy word, sadly.
However, if they changed said fees and raised them legally and fairly then why keep handing out the wrong disclosure packet? Any and all changes to the bylaws, articles, restrictive covenants must be recorded with the county clerks office, if that fails to happen then any changes are null and void. The last recorded set of bylaws and etc was recorded in 1999. If they raised the fees and dues, then in essence according to law, and did not record them with the clerks office then the fees being raised is null and void.
Basically though, you are suggesting that I go to the secretary and ask for said paperwork on the raising of the water fee.
I am just trying to separate the eggs in the basket. Our bylaws and rules are the most confusing things ever and this entire community was originally a campground in the 1960’s turned residential community and the bylaws still reflect this as a campground. That being said, thank you for your response.
Sara

Susan - we have a new property manager. I have lived here for almost 5 years and in the last 3 months is when i finally started getting an actual water bill, otherwise i was sending my check monthly with no actual bill (just knowing it was due) no big deal i suppose. The property manager is the one who stuffs the envelopes and mails out the water bill, she is going on the directive of the board i assume for amount to be billed.
The information in the restrictive covenants and the informaion in the bylaws and the listing of fees due are all contridicting one another. I will approach the board and ask that they provide information and meeting minutes of the increase of fees. Then i can in turn put the changes in the bylaws and restrictive covenants for approval to help avoid future confusion.
as always, thank you,
Sara

Sara said -
"In the bylaws it says “the board shall have the power to levy regular or special assessments if the purpose in so doing is found by such board to be in the best interests of the association pursuant to section 55-515 of the Property owners act.”

She needs to determine if that means the water rate.

If not, it should clearly state - SOMEWHERE, in SOME document - WHO sets the water rates!!!

This is most likely a private water system. (she said it used to be a campground, now is residential.)

Her rate seems VERY low. If the government gets in there, expect a huge increase. Most likely it's out of date and hasn't been inspected, updates, etc.

Keep us informed . . .