Understanding the McFarland Farms Property Owners’ Association: Purpose, Powers, and Member Contributions

The McFarland Farms Property Owners’ Association, Inc. (the “Association”) plays a vital role in maintaining the quality and character of the McFarland Farms community in Marion County, Indiana. Established through foundational documents like the 1989 Declaration of Restrictions by The Shorewood Corporation and the Amended Code of By-Laws (updated on December 6, 2012), the Association oversees the neighborhood’s development and ensures it remains a desirable place to live. This article explores the Association’s purpose, the powers and duties of its Board of Directors and officers, how members contribute, and the Board’s role in recent zoning issues, such as the proposed development of The Trees at Southport Crossing.

Purpose of the McFarland Farms Property Owners’ Association

The Association was created to manage and enhance the McFarland Farms community for the benefit of all residents. According to the 1989 Declaration, its primary purpose is to “promote the recreation, health, safety, and welfare of the residents” by maintaining common areas and enforcing community standards. Specifically, the Association is responsible for:

• Maintaining Common Areas: This includes landscaped easements, parks, and the swimming pool, ensuring these spaces remain clean, safe, and presentable (Declaration, Paragraph 66.72–66.75).
• Enforcing Community Standards: The Association ensures that all properties adhere to the Restrictions, such as keeping lots well-maintained, managing waste properly, and following construction guidelines (Declaration, Paragraphs 26–32).
• Providing Services: The Association can contract for services like snow removal, trash collection, and security to support residents’ quality of life (Declaration, Paragraph 66.77).
• Insuring Common Assets: It procures casualty and liability insurance for common areas, including directors’ and officers’ insurance, to protect the community’s assets (Declaration, Paragraph 66.76).

The Association can play a key role in community governance, such as addressing zoning issues. This, however, is not obligatory.

Powers of the Board of Directors and Officers

The Board of Directors and officers of the Association hold significant authority to manage the community, as outlined in both the Declaration and the By-Laws.

• Board of Directors’ Powers:
  • Rule-Making: The Board can adopt and publish rules governing the use of common areas, such as parks, streets, and recreational facilities, ensuring they are used appropriately (By-Laws, Section 5.08, Clause 5.081a; Section 5.09).
  • Financial Oversight: The Board sets the annual assessment (a fee paid by members) before April 1 each year to fund the Association’s operations, such as maintenance and insurance (By-Laws, Section 5.08, Clause 5.082; Declaration, Paragraph 78).
  • Committee Creation: The Board can establish committees to handle specific tasks, such as maintenance or event planning, and appoint members from the Association (By-Laws, Section 5.10).
  • Enforcement Actions: The Board can suspend voting rights and access to facilities (like the pool) for members who fail to pay assessments or violate Restrictions (Declaration, Paragraph 88).
  • Contract Management: The Board can enter into contracts for services like professional management, with a maximum term of three years and a 90-day termination clause (Declaration, Paragraph 66.71; By-Laws, Section 8.02).
  • Zoning Advocacy: The Board represents the Association in zoning matters, as seen in the recent agreement with Davis Building Group, where it negotiated terms to mitigate the impact of the new development (e.g., $25,000 for sidewalk repairs and controlled amenity access).
• Officers’ Powers:
  • President: The President, a Board member, manages daily operations, oversees meetings, and ensures the Board’s decisions are implemented (By-Laws, Section 6.05).
  • Vice President: The Vice President assists the President and steps in during their absence (By-Laws, Section 6.06).
  • Secretary: The Secretary keeps records, such as meeting minutes and member lists, and handles notices for meetings (By-Laws, Section 6.07).
  • Treasurer: The Treasurer manages the Association’s finances, including collecting assessments, paying bills, and maintaining financial records (By-Laws, Section 6.09).
  • Assistant Officers: The Assistant Secretary and Assistant Treasurer support their respective officers as needed (By-Laws, Sections 6.08, 6.10).

What the Board Can Do (But Is Not Obligated to Do)

While the Board has broad powers, there are actions it can take but is not required to perform:

• Maintenance of Individual Lots: If a homeowner fails to maintain their lot (e.g., not mowing the lawn or removing debris), the Association has the right to step in, perform the necessary work, and charge the owner for the cost. However, it is not obligated to do so (Declaration, Paragraph 32).
• Enforcement of Restrictions: The Association can take legal action to stop violations of the Restrictions (e.g., building an unapproved structure), but it is not required to enforce every rule. Neither the Association nor the Developer is liable for failing to enforce Restrictions (Declaration, Paragraph 92).
• Issuing Membership Certificates: The Board has the power to issue certificates to prove membership but is not required to do so (By-Laws, Section 3.02).
• Providing Additional Services: The Association can contract for extra services like security or additional landscaping, but it is not obligated to provide these beyond the basic requirements (Declaration, Paragraph 66.77).

How Members Contribute to the Association

Members of the Association—every owner of a residential lot in McFarland Farms—play a crucial role in supporting its operations and maintaining community standards:

• Paying Assessments:
  • Annual Assessments: Each lot owner (except the Developer) must pay an annual assessment to fund the Association’s activities, such as maintaining the pool, parks, and landscaping. This fee is set by the Board and becomes a lien on the property if unpaid (Declaration, Paragraph 78).
  • Special Assessments: The Association can levy special assessments for major projects (like repairing common areas) or to cover operating deficits, but these require a majority vote of members at a meeting with a quorum (Declaration, Paragraph 80).
  • If assessments are unpaid, the Board can charge 12% annual interest, pursue legal action, and suspend the owner’s voting rights and access to facilities (Declaration, Paragraphs 86, 88).
• Following Restrictions:
  • Members must adhere to the Declaration’s Restrictions, such as building only single-family homes, maintaining their lots, and getting Committee approval for construction or modifications (Declaration, Paragraphs 8–50).
  • For example, members must install a dusk-to-dawn yard light and a Committee-approved mailbox, and they cannot park large vehicles like boats or trucks overnight unless hidden from view (Declaration, Paragraphs 37, 38, 43).
• Participating in Governance:
  • Members vote to elect the Board of Directors at the annual meeting in February (By-Laws, Section 4.02). Each lot gets one vote (or three votes for the Developer until 1999 or until it sells all lots; Declaration, Paragraph 66.69).
  • Members can call special meetings to address issues like special assessments or Board removal (By-Laws, Section 4.03).

Conclusion

The McFarland Farms Property Owners’ Association exists to maintain the community’s quality of life by managing common areas, enforcing standards, and representing residents in matters like zoning. The Board of Directors and officers have the authority to make rules, manage finances, and negotiate on behalf of the community, as seen in the recent agreement with Davis Building Group for The Trees at Southport Crossing. While the Board can enforce rules and maintain lots, it is not obligated to do so, giving it flexibility in addressing issues. Members contribute by paying assessments, following Restrictions, and participating in governance, ensuring the Association has the resources and support to fulfill its purpose. Through this collaborative effort, McFarland Farms continues to thrive as a well-maintained, cohesive community.