HIGHLANDS COOPERATIVE ASSOCIATION

Open Minutes

October 24, 2004

Board Members Present: Ellena, Guyer, Smith

Board Members Absent: Jane, Smydra

Management Present: Lyon, Miller

Meeting called to order at 5:05 p.m.

OPEN MINUTES

Smith moved, Guyer seconded to accept the September 26, 2004 Open Session Minutes. Approved 3-0.

MEMBER CONCERNS

Linda Masters, 6222 Balfour Drive: Ms. Masters asked by what date are members required to remove window air conditioners. Ms. Miller advised that the date is November 1.

COMMITTEE REPORTS

None at this time.

MORTGAGE REFINANCING

Mr. Lyon updated the Board, Management, and members present on the status of the mortgage refinancing for Highlands Cooperative.

Items discussed:

· ALTA survey will be complete on 10/25/04.

· Title search is complete.

· Researching and getting recommendations on 3 different financial institutions (EF & A Funding, Arbor Financial and National Cooperative Bank).

· Working with the 3 financial institutions to get the best interest rate and terms

· Specific rates/terms for the 3 financial institutions, with recommendation to enter into agreement with EF & A Funding.

· HUD Use Agreement will remain in place until the original mortgage payoff date of 2011.

· Once all necessary paperwork is complete, a 45-day closing track will be requested. The anticipated closing date goal is December 10, 2004.

· Membership meeting regarding the refinancing will take place on November 7, 2004 at 4:00 p.m.. An informational flyer will go out to all members tomorrow, October 27, 2004. An additional flyer will be distributed to all members two days before the meeting.

Guyer moved, Smith seconded to approve proceeding with the loan process with EF & A Funding, with the understanding that Management will fulfill their necessary paperwork needs as soon as possible.

NOTE: Mr. Smydra, President, has given Ms. Ellena, Vice President, full authority to sign anything that is necessary to be signed before he returns from out of town.

NEW BUSINESS

Gutter Stuff: Ms. Miller informed the Board that Len’s Carpet & Consultants has given Highlands a sample of their product, Gutter Stuff, to use and evaluate. This product prevents leaves from being trapped in building gutters, but allows water to flow through. If the evaluation is positive, Highlands will consider purchasing the product for use on buildings with leaf/gutter problems.

Leaf Vac: Mr. Lyon asked the Board and Management if they would be interested in splitting the cost of a leaf vac with Village Cooperatives to be used on a shared basis between the two cooperatives. Ms. Miller reported that Mr. Robert had mentioned the same idea recently. The approximate cost for half of the purchase price of a leaf vac would be $4,500.00.

Smith moved, Ellena seconded to approve the expenditure of $4,500.00, covering half of the cost of a leaf vac, with the other half being paid for by Village Cooperatives. Approved 3-0.

OLD BUSINESS

None at this time.

BOARD MEETING DATES

November 21, 2004

MEETING ADJOURNED AT 5:45 p.m.

I certify that this is a true and accurate statement of the Board Meeting of October 24, 2004.

Respectfully Submitted,

Elizabeth A. Smith

Secretary

Highlands Cooperative Association Board of Directors