Jan
16
2025

From The Blog
Updated Covenant Amendment FAQs
A MESSAGE FROM THE KICA BOARD
The KICA Board of Directors has become aware of recent questions and comments on the proposed covenant amendments. As such, we are updating the KICA Covenant Amendments Frequently Asked Questions document to provide several pertinent clarifications on the five recommended amendments on the active KICA ballot.
The complete KICA Covenant Amendments FAQs can be found here.
The following highlights the latest additions to the document.
- Developer Board Seat (FAQs 16a): The removal of the Type-E Membership category removes the special membership right reserved solely for the developer, their right to appoint a board seat. With the removal of the seat on the KICA Board of Directors, the developer will have restored the same rights as all other existing member types (residential: Type A or commercial: Type B & C), based on their property ownership. No additional rights are granted to the developer with this amendment. The developer currently has very few Type A votes, in this late stage of development.
- Quorum for the Amendment Vote (FAQs 7a): A quorum of 60% is required for a valid covenant amendment vote. An eligible member may choose to vote to approve or deny each amendment, or abstain; these votes or abstentions count toward quorum. However, an amendment will pass or fail based on 75% approval of the non-abstaining voters only. This means those who vote for or against the amendment decide the outcome. This has been confirmed by KICA’s legal counsel.
- Rules, Regulations and Enforcement Amendment (FAQs 32a): For purposes of clarity, this amendment explicitly contains the requirement that any rule violation is subject to Notice and Appeal. Member protections are further strengthened by adding a provision that requires explicit Board of Directors approval prior to enforcement of the most severe sanctions for rule violations, such as filing a lien or suspension of voting rights.
- Board of Director Qualifications (FAQs 39a): This amendment corrects a serious technical flaw in our covenants relating to board service eligibility, which prevents those who own properties through a legal entity structure, like an LLC, from serving on the board. This amendment will prevent disenfranchisement of many Members and their spouses from serving on the KICA Board. The amendment allows the legal entity owner to designate a single natural person as eligible to run for and serve on the KICA Board. Although a few members have suggested that “qualifications” should be specified for designees, the board does not feel this is necessary or appropriate. We are confident that KICA members are fully capable of assessing the qualifications or suitability of Board candidates.
- General Approach to Covenant Amendments (FAQs 3a): Although a comprehensive rewrite of the KICA Covenants may be ideal, a full rewrite could take years and tremendous legal fees, so the board chose to pursue five vital and pertinent amendments in attempt to make some improvements now. A comprehensive rewrite is still under consideration, but the board is confident that the proposed amendments are positive and constructive for our members, and believes they are necessary and time sensitive.
The KICA Board remains fully supportive of these important amendments and encourages your active support and the support of your neighbors.