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7 physically further down the road. That probably has a tinge of bias to it… Larger over lots lead to moving 323 development further and further towards the County. 324 325 Kim Piracci: If there’s a big development it requires more homeowners associations. 326 327 Patrick Mallet: Well it’s pretty rare unless you’re doing the other variation of subdivisions that we get being that are 328 typically the 2 lot subdivisions and it’s The Leda’s Egg Ranch and Grandma Leda is subdividing to give the 329 grandson a 2 acre lot. The vast majority of them are going to be the 5 lot subdivisions or the 4 lot subdivisions and 330 because they have to maintain a private road they’ll reform a HOA to enforce the road maintenance agreement. 331 332 Kim Piracci: But that slide that you had that you showed that everybody has their own lot and the lots go to the 333 creek and all of this is open land. Who owns that open land? 334 335 Patrick Mallet: It can come in different shapes but basically the property owners association would own it or at least 336 control it and they would maintain it and if it’s a natural area it’s a wooded area there is no real maintenance. If 337 there’s a pastural area they… 338 339 Craig Benedict: They would have a 1/12th interest in that land. 340 341 Tony Blake: Or shares in a corporation or… 342 343 Patrick Mallett: Interesting nuance is that they could theoretically be smart about it and possibly explore a 344 conservation easement or they could take a rolling pasture land and work out an agreement with a farmer and then 345 they can raise grass or hay and then they get some income from that and the farmer benefits from that. 346 347 Kim Piracci: So that County or the State has oversight over what HOA’s can and can’t do? 348 349 Patrick Mallett: Well part of it is the regulatory aspects of the subdivision section about ordinance. Part of it has to 350 do with zoning and that part of the development and when they come in to be able to get a building permit there are 351 different rules that apply. We do record in conjunction with subdivisions things that are called declarations of 352 restrictions. They cannot neglect restrictive covenants but they don’t speak to things like you can’t have a purple 353 door or polka dots on the mailbox. Declarations have to deal with what their setbacks are specifically. 354 355 Tony Blake: But this does bring to mind one question that I had. A lot of times subdivisions are owned by the 356 developer until a sufficient amount of the houses are sold. I guess they would just be transferred? 357 358 Patrick Mallett: Yes. Your typically subdivision has some magic number. It’s quite often 20-30% of the homes get 359 built. 360 361 Tony Blake: So that leads to the second half of my question which is when we worked with the second fire station 362 we had had a water garden and we had to deed and access to the County so that if we went bankrupt or something 363 like that you guys had access and could come in and clean it and charge us for it or charge whatever. Is that same 364 sort of regulation? 365 366 Patrick Mallett: Sort of. This is kind of a better scenario because that easement that would go to those deeded 367 septic systems. It has a requirement for all weather assistance and all weather access. So someone could get out 368 there, through the field to get to the actual site and you could point to, if a system fails, it is definitively locked under 369 the owner lot 1. The fines are directly attributed to that owner versus having the HOA responsible. 370 371 Craig Benedict: Even more importantly, when we rewrote the UDO 4 years ago now we require a meeting from the 372 developer to the home owners. Some homeowners moving to a rural area don’t know what’s their responsibility or 373 what’s a common responsibility and so this will be more important because they’ll be having off site septic’s, access 374 areas, fencing. So these developing restrictions are going to say you can’t necessarily commercialize your open 375 space but you can have certain agreements. 376 11