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Draft Minutes for comment by Wednesday please.
by Donald Shand 13 Dec '20

13 Dec '20

Kia ora Toiora whanui Find attached draft minutes from last week for your consideration. Ka kite ano. Donald

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5% capital gain levy
by Rainer Beneke 12 Dec '20

12 Dec '20

Hi Susan and everyone After our discussion about the 5% capital gain levy on our title, and my suggestions of levying the improvement fund through monthly contributions, I set down and put it into the attached table. For the table below I have assumed a housing price increase of 10% per annum. This seemed too high for the Dunedin market 3 years ago, but recently we have had increases of far more than 10 % p.a.. You have to double the numbers in the table if you want 20% increase in property value or half it if its only 5%. I was startled to find that the total of annual contribution would be $65,000, compared to the provisional body corp fee as calculated by Min of $76,000 (see our most recent body corp rules). So Susan, I do understand your strong reservation to a monthly improvement contribution! As this Improvement Fund is only to be used to improve the common, and that indefinitely into the future as it is a covenant on the title, the common will be improved indefinitely. At an assumed annual 10% increase of property values, Toiora would have improved the common by the equivalent of $657,000 (or the cost of an Alva Street unit) within 10 years. This calculation is also valid for collecting the capital gains levy through sales as per our covenant on our title, though the money would come in big lump sums whenever someone sells on. The first 10 years will be easy to spend the money: finish the kitchen, the heritage fence, tunnel house, skylights to the dining room together with better insulation and lights, solar panels to Alva Street, solar panels to High Street, common electric car, 10 electric bikes, 2nd common electric car. Eventually, though, we will have to get golden taps for the guest bedrooms. On the other hand, no-one might sell and we have to wait longer to do any of the former listed improvements. At present we bought (and any new owner now will buy) a dwelling with the bonus of a good common ownership in cohousing. Through the indefinite 0.5% improvement per annum to the common, some time in the future people will buy into Toiora for their part of the common ownership with a nice dwelling attached. We might be changing from a ‘neighbourhood' into a ‘commune' (dare I say it, and I don’t mind commune, though I know lots don’t even like the word community). I’m sure that bankers, who are very used to calculating capital gain and creating wealth (often on fractions of percentage points), can see our scheme much clearer, than we ourself, and are wary of it. Don't misunderstand me, I am very much in favour of a common development fund. But I would like to see a setup whereby we can regulate the contribution per annum up or down, pending on need, and independent from relying on sales of units. This is in accordance with the act section 121 (b) as stated by Simon Milne in his most recent letter to us. The banks must be fine wit it. Happy thinking Rainer Please call me if you need an urgent reply. Rainer Beneke +64 21 144 7700 rainer.ucol(a)gmail.com

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FW: wilson application
by Roz Wilson 10 Dec '20

10 Dec '20

Thought people might be interested in the email we have had from Westpac. They have turned us down for a small mortgage and say kiwibank and asb are taking the same position. Regds roz From: Hayden Olsen <Hayden.Olsen(a)westpac.co.nz> Sent: Thursday, 10 December 2020 4:46 pm To: Roz Wilson <michael.rosemary(a)xtra.co.nz> Subject: RE: wilson application Hi Roz I was looking at this application subject to CT and any conditions/covenants/restrictions being suitable to us however in the meantime we have received a handful of applications from a mortgage broker in relation to lending against these properties and additional information was supplied to us and an opinion sought from our Senior Managers as to whether Westpac was willing to take these properties on as security for lending. Unfortunately the decision Westpac has made is that we are not willing to accept these properties at this stage as security for lending as the conditions that go alongside ownership make them a risk the Bank is not willing to take at this time. I would suggest the family members might be best to look at using their own equity to buy the investment property as likely to be cheaper for them to obtain against their existing properties. However if finance is still required I would suggest contacting a mortgage broker who would be able to explore other options, possibly with a second tier lender rather than a bank. Also, It is my understanding from what the mortgage broker has told us is that KiwiBank and ASB have the same stance as Westpac, SBS Bank, BNZ and ANZ are looking into it/wanting to know more information. Kind regards Hayden Hayden Olsen Mobile Mortgage Manager Mkt Segm & 3p Management Tel: + 64 3 425 9182 Mob: +64 27 586 8932 Email: <mailto:hayden.olsen@westpac.co.nz> hayden.olsen(a)westpac.co.nz Merry Christmas and Happy New Year I will be out of the office from close of business 24th December 2020 And I will be back in the office on Wednesday 20th January 2021 <http://www.westpac.co.nz/> Westpac New Zealand Limited 106 George Street, Dunedin, Otago 9016 <http://www.facebook.com/WestpacNZ> <http://twitter.com/WestpacNZ> <https://instagram.com/westpacnz/> <http://www.linkedin.com/company/289802> <http://www.youtube.com/WestpacNZ> Save a tree, don't print! Classification: PROTECTED From: Roz Wilson <michael.rosemary(a)xtra.co.nz <mailto:michael.rosemary@xtra.co.nz> > Sent: Wednesday, November 25, 2020 7:03 PM To: Hayden Olsen <Hayden.Olsen(a)westpac.co.nz <mailto:Hayden.Olsen@westpac.co.nz> > Subject: wilson application Hi hayden, did put notes on the forms but not a lot of room so story here. We are nearly ready to settle for the unit in town. We have a sale and purchase agreement for $446000 approx but that is two years old so market value would have gone up. we have already paid $180000 so, allowing for finishing etc, need another $290000 to settle. Our daughter and her husband are currently living overseas but wanted to be sure of having this place when we no longer want it. so we struck a deal. They would buy in for $290000 and we would be co owners of taieri mouth. This leaves us mortgage free and with the unit in town and 46% of the one at taieri mouth. Other family members want to buy an investment property but one not so keen on using his equity (the four of them have three houses). We offered to see if we could borrow enough for a deposit on an investment property using the unt equity. So that is what we are doing. Property not yet found, until we can work out if deposit comes from us or their equities. Thanks roz The contents of this email and any attachments are confidential and may be legally privileged. If you are not the intended recipient please advise the sender immediately and delete the email and attachments. Any use, dissemination, reproduction or distribution of this email and any attachments by anyone other than the intended recipient is prohibited.

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Fwd: Body corp rules, and how can banks view "draft" titles?
by Alex King 10 Dec '20

10 Dec '20

From the Lawyer, FYI Thanks, Alex -------- Forwarded Message -------- Subject: RE: Body corp rules, and how can banks view "draft" titles? Date: Wed, 9 Dec 2020 22:56:48 +0000 From: Simon Milne <simon(a)mcmillanco.nz> To: Alex King <alex(a)king.net.nz> CC: UCOL Directors <ucol-directors(a)list.king.net.nz> Hi Alex, Thank you for your email below. We have reviewed the Body Corporate Rules and generally we see no issue with the draft Rules you have provided apart from some minor points as per our comments below. Please also see my other comments in blue below regarding the other matters you have raised. Review of Body Corporate Rules: The only rule that we can see as possibly being problematic is that requiring attendance at meetings. Apart from that, there are a few corrections all as noted below. __ _Review of Body Corporate Rules against the Unit Titles Act 2010 (“Act”):_ *Rule 3 *- Principles of Occupation – Cohousing community group attendance, requiring the attendance of owners or occupiers at group decision making meetings. *Issue 1: *Are these in effect ‘body corporate meetings’, to be assessed against those relevant sections of the Act? *Issue 2: *Does compulsory attendance go beyond the powers conferred by the Act.** ** Section 106 (2) of the Act provides that additions to the body corporate operational rules cannot confer on the Body Corporate (BC) any powers that are not incidental to those conferred under the Act…. Phraseology which is open to interpretation. BC powers are listed in s 84 of the Act. In relation to BC meetings, under s 90 the only power conferred is the power of the chairperson to call a meeting. Arguably requiring attendance goes beyond the kind of powers conferred by the Act. If included in the rules it is possible that this rule may not be enforceable. Just something to be aware of but on balance Rule 3 can remain as is. *Rule 3 -* Principles of Occupation – Commons Development fund*, *requiring vendors to contribute 5% on sale to the Commons Development Fund.** Section 121 (b) of the Act states that contributions to be levied on unit owners in the case of any capital improvement fund, are to be calculated in proportion to each unit owner’s ownership interest. The Act obviously envisions each owner paying their proportionate share, which would not be the case for those owners who do not sell. It would be difficult to evidence so is not likely to be a problematic rule. _Other points of note:_ *Rule 17 (b)* requires the repair of leaks ‘as soon as possible’. It may be better to say ‘as soon as reasonably possible’. *Rule 21*– requires that firearms ‘should’ be stored off site. You may consider a change in wording if you intend this to be more than mere guidance. Replace “should” with “must”. *Rule 24*– refers to a section when it should refer to a clause (i.e. of a regulation). *Rule 25*– the rules don’t provide for the appointment of the mediation and dispute resolution team. *Rule 26(f)*– should refer to cl 11 not s 11, and ‘regulations’ not ‘resolutions’. *Rule 28*– requires breaches to be rectified in a reasonable time, or no later than 7 days after notice. 7 days may in itself not be reasonable? Regards Simon Simon Milne PARTNER AND NOTARY PUBLIC McMillan&Co. LAWYERS ˑ MEDIATORS ˑ NOTARY PUBLIC Level 5, Forsyth Barr House, 165 Stuart Street, The Octagon , Dunedin 9016; PO Box 5547, Dunedin 9054 P *+64 3 477 2238* <tel:+64%203%20477%202238> | M *021 729324* <tel:021%20729324> | F *+64 3 474 5588* <fax:+64%203%20474%205588> | *simon(a)mcmillanco.nz* <mailto:simon@mcmillanco.nz> | *www.mcmillanco.nz* <http://www.mcmillanco.nz/> Disclaimer: The information in this email is confidential and may be legally privileged. If you are not the intended recipient, please respect this and notify the sender immediately by telephone. Please also destroy this email. Thank you. CHRISTMAS HOURS McMillan&Co. will be closed for the Christmas period from Midday, Wednesday, 23 December 2020, with normal office hours resuming Monday, 18 January 2021. *From:*Alex King <alex(a)king.net.nz> *Sent:* Wednesday, 9 December 2020 1:30 PM *To:* Simon Milne <simon(a)mcmillanco.nz> *Cc:* UCOL Directors <ucol-directors(a)list.king.net.nz> *Subject:* Body corp rules, and how can banks view "draft" titles? Hi Simon, A reminder to let me know if our adopted BC rules are legally appropriate? Also we have another issue, that (some at least) banks wont give us an indication of whether they would likely lend before they have seen the title. Kiwibank are explicitly saying the 5% capital gain on resale and the covenant requiring participation in cohousing are problematic. I presume the reference to 5% capital gain is in fact to Rule 3 (Commons Development Fund). It is possible that some banks may not be happy with that requirement on resale and therefore you may want to revisit that requirement but my recall is that this provision was important to you all. The reason that a bank may not be agreeable with this is that say on a resale of $700,000 5% of that is $35,000 which depending on what equity a purchaser has this could reduce the loan to value ratio a bank might be working on for that particular purchaser. I guess it is going to depend on each bank and each purchasers situation. Generally there should be more than enough equity ( given the currently rapidly increasing prices in Dunedin) for that not to be a problem for most purchasers and their banks. I think we already have all the covenants drafted and information that will go into the titles? Is there a way we can gather this information and show the banks a draft of what title will be like? So we can find out if these things are going to be problematic and work on them now and not just prior to settlement date? Until the new titles issue we can’t provide a copy of what the title will look like but the banks can be provided with a copy of the surveyors unit title plan which lists all the new titles, unit numbers and accessory units and easements (as per the attached received from the surveyors). Our wider group meets on Thursday evening and it would be good to be able to reassure people about those matters before then. Thanks, Alex King Director, UCOL -------- Forwarded Message -------- *Subject: * RE: certificate of title *Date: * Tue, 8 Dec 2020 18:12:10 +1300 *From: * Roz Wilson <michael.rosemary(a)xtra.co.nz> <mailto:michael.rosemary@xtra.co.nz> *To: * 'Alex King' <alex(a)king.net.nz> <mailto:alex@king.net.nz> Thanks, realise the title won’t come till later but, from what we have been told, if we could produce some sort of independent notification about what the conditions of the title would be everyone might have another source of mortgages. Regds roz *From:*Alex King <alex(a)king.net.nz> <mailto:alex@king.net.nz> *Sent:* Tuesday, 8 December 2020 5:52 pm *To:* Roz Wilson <michael.rosemary(a)xtra.co.nz> <mailto:michael.rosemary@xtra.co.nz> *Subject:* Re: certificate of title Yep, I'll explain in an email to everyone, we should know more by Thursday, but titles probably won't be issued until January some time. Thanks, Alex On 8/12/20 4:38 pm, Roz Wilson wrote: Hi, did Catherine email you? we are trying to get a mortgage from Westpac, not to buy our unit, but for another project. Two months later they still haven’t given a decision and apparently not likely to until they can see what the conditions are on the title. We were wondering how soon the conditions will be known cos a long wait if we have to wait till settlement till we find out. A bit nervous about 6 people needing mortgages and the banks not being particularly helpful, we need those mortgages to clear kiwibank! Thanks roz

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next UCOL meeting
by Sander Zwanenburg 10 Dec '20

10 Dec '20

Hi all, Our last meeting in 2020 will be this Thursday in NumberWorks and Zoom, 7:30pm. We'll cover: * Reports (PCG/BCG if any) * Timeline review * A2 sale proposal (forthcoming) * Legal update (BC rules, other) * Registered valuation for mortgage lending * Common Kitchen * Christmas gathering If you cant attend or have something to table, let us know. To those tasked with timeline items, can you update the status please? https://docs.google.com/spreadsheets/d/1H0NKzfH9NQXamP-Hx6HyrS0hvkhZ_TFpfl6… Regards Sander

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Re: [Ucol-shareholders] A2 Working Group Report #2
by Y Lee 09 Dec '20

09 Dec '20

As Attached Regards Min

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Minutes from 3 December UCOL meeting attached
by Donald Shand 08 Dec '20

08 Dec '20

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minutes re kitchen budget approved
by Roz Wilson 07 Dec '20

07 Dec '20

Not sure the whole picture is coming through to the group for the kitchen price. As much information as I can get below and for some things eg domestic oven and range hood these have not yet been agreed so prices may be indicative only. SH latest $42750 incl Excess on delivery allowance ? Installation ? Cooker per rainer $4608 incl or plus? Extractor per rainer $1074 incl or plus? Electrician ? Move handbasin/plumber ? Final coat of paint for walls ? Vinyl flooring ? Additional cost for wooden benches ? still waiting for these from SH and no decision yet reached Total $48432 minimum All the items with ? above need to be added to the total so that is going to be more than the approved $50k. There are ways to keep the total below this, deferring some benches, deferring the freezer, buying a cheaper fridge or cooker. These are all things that can be investigated if the final cost exceeds the money available. Regds roz

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Euroblinds
by Tim Ross 06 Dec '20

06 Dec '20

Hi All, Pip and I are looking at getting www.euroblinds.co.nz for some of our windows. Similar to this clip https://www.youtube.com/watch?v=bAXSXqYwMcM The benefit of these blinds is that they move with the window sash or door. So for instance if you wanted blinds on your glass back door and you didn't want to have to open them every time you opened the door or wanted to leave your blinds down and still come in through the back door, then these blinds work really well. Also if you want to have your windows open at night during the summer months, but don't want curtains blocking the tilt opening these are also a good option. I have had confirmation from the window supplier that these would work with our windows even though the reveals are rather more narrow than the ones shown on the clip above. I am organising to have a sample set up in H1 so that we can sort out the fixing detail and so that others can see the blind in situ and decide if this is something they would be interested in. It is possible that if we order a decent order that we could get some kind of discount. As the blinds are made in Mosgiel the lead time would be very short. Perhaps only a week or two. Cheers, Tim.

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Word version of last weeks minutes attached
by Donald Shand 06 Dec '20

06 Dec '20

Kia ora suggest you use this version of draft minutes which I understand is more compatible for windows users. Donald

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