NuGrape Lofts HOA Policy

Policy Scope

Definitions

Common Elements – Those portions of the property subject to the Declaration which are not included within the boundaries of a Unit, as more particularly as defined in the Declaration.

Limited Common Elements – A portion of the Common Elements reserved for the exclusive use of those entitled to occupy one (1) or more, but less than all, Units, as defined in the Declaration.

Allocation – the process of determining to which Unit(s) an element will be licensed. The process is considered complete when the “winning” Unit(s) executes the license agreement by the specified due date/time.

Property Types

This policy covers the following areas:

• Allocation and license of Common Element parking spaces within the west parking lot on NuGrape property
• Allocation and license of Common Element storage closets on NuGrape property
• Allocation and license, or use, of vacated, originally assigned parking spaces that have been swapped and protected by the NuGrape Resident Parking Accommodation Policy

License Allocation Methods

The licensing of these property types must be preceded by a Raffle allocation process. 

Out of Scope

This policy does not include Common Element allocation and assignment of the aforementioned scope areas. See NuGrape Common Element Assignment Allocation Policy.

Background

The Board may decide, at any time, to place a non-exclusive-use portion of the Common Elements up for allocation. The area will remain with its as-is assignment status although while it is licensed, it is provided for the exclusive use of the licensee.  

Guiding Principles

The Board shall be unbiased in the development, oversight, and administration of the process. The process shall facilitate fair allocation to eligible Owners who choose to participate. 

Resolutions

The resolutions passed and approved by the Board related to this policy include the following:

1. Equal Opportunity Allocation for All Eligible Owners at Market Rate –
   1. The NuGrape Lofts Condominium Board of Directors shall not approve license of a Common Element parking space, a Common Element storage area, nor a vacated originally assigned parking space that has been swapped and protected by the NuGrape Resident Parking Accommodation Policy, without first formally executing a raffle allocation process available to all eligible Owners based on market rate.
2. See 2023 Board Resolutions.

License Agreement Requirements

1. The term of a license agreement shall not exceed one (1) year.
2. The Owner of the Unit licensing the element, and their family members, guests, and invitees, shall be permitted exclusive use of the space for the term of the agreement.
3. (Parking space only) If the parking space has been protected by the Resident Parking Accommodation Policy and the associated swap agreement is expired, revoked, or otherwise terminated, then the license agreement, and use, shall terminate on the effective date of the termination of the swap agreement. The licensee shall indemnify and hold the Association, its Officers, Directors, and Agents harmless for any loss due to third-party termination except for the pro-rated refund of monthly/annual licensing fees paid to the Association in advance of future use of the parking space. The paid unused monthly/annual fees shall be refunded by the Association on a pro-rated basis.

License Allocation Process

Administration

The property management company shall own the management and execution of the allocation process to ensure objectivity.

• The Board shall not be part of the offering communication.
• The Board shall not have insight into the order of randomized lists until after the Owner has accepted the offer and payment has been completed.
• The Board may be consulted by the management company during the allocation process as long as the randomized list remain confidential to the management company. 

Eligibility

An Owner of a Unit shall be ineligible for the allocation if at the date/time the allocation process commences there is a balance on the Unit account which is 30 or more days past due. Ineligible Owners shall be notified in writing as such.

Notification

• All owners shall be notified via written notice of an element going up for allocation.
• The allocation notice must include the following:
  • Total number of elements to be allocated.
  • Property Type and description of each item to be allocated.
  • Description of allocation process.
  • Price and expected fees required for managing the allocation process.
  • Expected date the allocation offer will commence.
  • Link to opt-out of the allocation process and request a copy of the results.
• Commencement of the allocation process shall not be less than 21 days after the day the notice is sent out; known as the Notification Period .
• Owners may formally opt-out of the allocation process during the Notification Period. Opting out removes the Owner from participating in the allocation process and removes them from further communication.
• Owners may request a copy of the results be shared once the allocation process concludes.

Price:  Raffle Price

The Board shall decide if the raffle is based on a per-month basis or, a total annual basis divided into installments.  For example, the Board may decide that they will run a raffle for the total amount to charge over the course of a one-year agreement period.  The winner would pay the amount divided into monthly installments. 

The Board shall establish the license fee per element based on local fair market value and comparables. Local fair market value and comparables is derived from the valuation and pricing of similar element types outside of NuGrape property.

The raffle price does not include management fees nor other fees to administer the allocation process. The expected fees shall be disclosed in the allocation notification. 

Multiple elements to allocate back-to-back

The allocation process shall occur sequentially one element at a time – allocate and complete the allocation process for one element before commencing the allocation process for another available element.

Raffle Configuration

The property management company shall use a publicly available randomizer tool to randomly generate a list of 22 numbers, where each number is 1 through 22.

• The order of the randomized numbers represents the order of the Units which shall be offered the unallocated element.
  • Units of ineligible Owners shall be skipped.
  • Units of Owners who have opted out shall be skipped.
• If there is more than one element to allocate:
  • The Unit Owner that is selected during the raffle shall have the discretion of picking the particular element from the available elements.
  • Payment in-full must be received prior to commencing the allocation of a subsequent item.
  • The same ordered list shall be used for multiple allocations until all non-opted-out eligible Owners on the list have been offered an available element or all elements have been allocated, whichever occurs first.
  • If all non-opted-out eligible Owners on the list have been offered an available element and none accept the Offer, then the raffle allocation process shall end and the element may be made available for a future raffle allocation process and new randomized list.
  • If an Owner accepts an element, the next Owner in the same list shall be the first to be offered the next available element, if applicable.
  • An eligible Owner who previously accepted an Offer is eligible to accept a subsequent Offer of a different element after all remaining non-opted out eligible Owners from the “current list” have been made an Offer.

Allocation Execution

• On the expected commencement date/time, the management company shall generate the randomized list of Unit numbers that will act as the established ordered list for raffling off the element(s). The manager shall generate the randomized list from the tool. For example:

	Randomized list of numbers from x to y
	32
	24
	45
	29
	25

 

• The manager shall transfer the list of numbers and place them in order on a spreadsheet. For example:

Order	Unit Number
1	32
2	24
3	45
4	29
5	25

 

• If the Owner(s) of a Unit opted-out of the raffle allocation process during the 21-day notification period, their row will be skipped in the process.

Order	Unit Number	Opted out Yes?
1	32
2	24	Yes
3	45
4	29
5	25

 

• If the Owner(s) of a Unit is ineligible for the allocation when the randomized list is generated, their row will be skipped in the process.

Order	Unit Number	Opted out?	Ineligible
1	32
2	24	Yes
3	45		Yes
4	29
5	25

 

• The Owner(s) of the Unit that is first in the ordered list shall be notified by the management company by email with “the Offer”.
• The Owner of the Unit which has been sent the Offer shall respond in writing to the management company within 24 hours of the timestamp of the email with an accept or decline of the Offer. Responses after 24 hours will not be honored.
  • If the Owner(s) of the Unit accepts the Offer in writing, the management company shall immediately begin the payment steps.
  • If the Owner(s) of the Unit does not respond within 24 hours:
    • Non-responsiveness is equivalent to a decline of the Offer.
    • The Offer shall be rescinded and voided.
    • The management company shall notify the Owner by email that the Offer is rescinded and void.
    • The process moves to the next non-opted-out eligible Unit in the established order until a Unit accepts the Offer in writing.
  • If the Owner(s) of the Unit declines the Offer in writing, the process moves to the next non-opted-out eligible Unit in the established order until a Unit accepts the Offer in writing.

Payment

• The management company shall record the Date of Acceptance:
  • The Date of Acceptance for the raffle process is the date and time the Owner emails the management company with acceptance of the Offer.
• The management company shall specifically assess the HOA account of the winning Unit within one (1) business day of the Date of Acceptance with the total administrative fees due.
  • The total administrative fees due shall include: the expected total cost of allocation management, the expected cost of tool fees, and any other reasonable fee incurred as part of the allocation process.
  • Administrative fees are subject to late fees and interest.
• The management company shall complete the draft License Agreement template including but not limited to the agreement commencement date, termination date, billing frequency/increment, total annual amount, incremental payment amount, etc., and send the draft agreement to the Owner of the winning Unit within one (1) business day of the Date of Acceptance.
  • The agreement shall commence on the first calendar day of the month following the date of acceptance.
• If the agreement is not complete and executed by the Owner of the winning Unit and emailed to the property manager within three (3) business days following the date of acceptance:
  • The Offer shall be rescinded and voided.
  • The management company shall notify the Owner by email that the Offer is rescinded and void.
  • The management company shall refund/return all administrative payments to the Owner of the winning unit.
  • The management company shall specifically assess the refund fees (total) to the Owner of the winning unit.
  • The process moves to the next non-opted-out eligible Unit in the established order.
• After the agreement is complete and executed in full, the management company shall notify all Owners of the successful outcome of the allocation process within three (3) business days of payment received.
• The management company shall specifically assess the HOA account of the winning Unit with the monthly fee on the 1^st of each month and due immediately.
  • Similar to Annual Assessments, the monthly fee is subject to late fees and interest.
  • Owners may choose to accelerate the billing for the remainder of the duration of the agreement.