Board Meeting no. (2/2021) on February 7, 2021

The Board of Directors held its meeting no. (2) for the year 2021 on Sunday, February 7, 2021 at 5:30 pm at the headquarters of the Riffa Views Company, and issued its decisions according to the items below:

1. Meeting minutes approval for meeting No. (1) held on January 17, 2021:

The Board reviewed the minutes and decided to approve it.

2- Follow up on previous decisions and topics:

The Board reviewed the previous decisions and topics and instructed all members to follow up on their respective assignments.

3- Comments and complaints received from homeowners:

The Board discussed the comments received from the Association members, and decided on the following:

- comment received from one of the homeowners on January 20, 2021 regarding the spread of yellow oily spots throughout Riffa Views: The Board decided to send a response to the owner regarding the latest updates that have occurred in this regard with the Supreme Council for Environment. The Board also decided to assign the Association Manager to circulate an update to all residents.

- Comment received from one of the homeowners on January 29, 2021 regarding the sale of the Additional Strips: The Board reviewed the response sent by the Board Chairman in this regard via email on February 3, 2021.

- Letter received from the Association Manager dated January 17, 2021 regarding a complaint from one of the homeowners regarding compensation for theft incidents to which he had previously been exposed: The Board decided to assign the Board Secretary to respond to the complainant in accordance with the Resolution (1) of 2020 issued by RERA.

4. Association Manager’s report on the actions taken regarding owners' requests for architectural changes to the units. 

The Board reviewed the report from the Association Manager regarding the procedures carried out for owners' requests for architectural changes to the units. These procedures align with the decisions and recommendations previously issued by the Board of Directors in its meetings, as well as the existing rules and regulations of the Association.

After discussion, the Board made the following decisions:

- Board members are assigned to submit their comments on the report to the Association Manager.

- The Association Manager is tasked with reviewing the new owners' requests and coordinating with Board member Eng. Reem Akbari to ensure compliance with the necessary requirements for such works.

5. The Association’s financial statements for the year 2020, and the appointment of an external auditor:

The Board reviewed the Association's financial statements for the year 2020 and, following discussions, decided to delegate the responsibility to the Board Treasurer to propose a specialized firm for contracting with the Association to perform the audit of its accounts.

6. The Association budget for the year 2021, and service charge rate:

The Board discussed the Association's budget for the year 2021, which amounted to a total of BD 1,224,676. This amount is BD 79,300 lower than the actual expenditure in 2020. Additionally, the Board reviewed the decrease in the owners' annual subscription fees, which decreased from BD 3,300 (BD 3,150 + 5%) in the previous year to BD 3,200 per square meter for the current year, representing a decrease of 3%.

Considering the current circumstances and the inability to hold the General Assembly of the Riffa Views Owners Association, the Board made the following decisions:

- Resolution (1/2/2021): Approval of the Association’s budget for the year 2021, with a total value of BD 1,224,676.

- Determining the value of the Association members’ contributions to annual subscriptions at BD 3,200 per square metre.

- Assigning the Association Manager to issue service charge invoices for the first quarter in accordance with the new budget for the year 2021.

In this regard, the Board stressed that all Association members will have the opportunity to review the budget and make any amendments (if any) during the General Assembly, and if there is any amendment, it will be included in subsequent bills.

7. Adoption of the Association’s administrative and financial measures:

To fulfill its duties and safeguard the interests of the Association and its members, the Board discussed the need to implement various administrative and financial measures. These measures aim to achieve the following objectives:

- Ensure that all Association members fulfill their financial obligations, including the payment of annual subscriptions and other financial responsibilities.

- Effective management and maintenance of common areas, such as communal gardens, green spaces, streets, and internal roads.

- Compliance with construction guidelines to ensure that construction and development projects in the units do not compromise the external appearance.

- Monitor the performance of contractors and suppliers to ensure their adherence to the necessary rules and requirements.

By implementing these measures, the Board strives to uphold the Association's financial stability, maintain the quality of common areas, and ensure compliance with established regulations and standards.

In this regard and considering the provisions and articles outlined in the Real Estate Sector Regulatory Law No. (27) of 2017, the Resolution Regulating the Provisions of Owners' Associations in Joint Properties No. (1) of 2020 issued by the Real Estate Regulatory Authority (RERA), and the RVOA By-Laws.

The Board reviewed the report from the Association Manager regarding the proposed administrative and financial measures of the Association. After thorough discussion, the Board made the following decision: Resolution (2/2/2021): Approval of the implementation of the Association's proposed administrative and financial measures, which are as follows:

1st: Permits and Services Fees

- Entry permits for structural expansion/works and swimming pools construction work: 1 to 6 days, FREE - 7 to 13 days, BD 20 - 14 to 30 days, BD 40

- Entry permits for landscaping and external painting works: 1 to 6 days, FREE - 7 to 13 days, BD 15 - 14 to 30 days, BD 30

- Entry permit for maintenance and internal works in the units (interior painting and regular maintenance of swimming pools, gardens, air-conditioning and cleaning): 1 to 6 days, FREE - 7 to 13 days, BD 10 - 14 to 30 days, BD 20 - Yearly permit, BD 120

- Entry permit for a heavy truck that require coordination of traffic movement: BD 10, on daily basis

- Permit to occupy a part of the common area (building materials storage): BD 5, for area of 4 square meters per day

- Issuing cards for domestic workers: New application, BD 10 - Renewing, BD 5 

- Issuing an NOC letter: BD 100, per letter

- Issuing RFID for resident’s vehicles: BD 5, per sticker

- Issuing and printing detailed engineering drawings of the units: BD 10, upon request

2nd: Returnable Insurance Charges

- Reserving communal garden for a private event: BD 100

- Issuing a permit to carry out structural expansion construction work, exterior painting, gardens, and swimming pools development: 15 days, BD 500 - 30 days, BD 1,000 - More than 30 days, BD 1,500

3rd: Financial Fines

- Late service charge payment exceeding 3 months from the due date payment: 10 % annually

4th: Discounts

- Annual service charge (full year in advance): 5 %

5th: Financial Penalties

The following financial penalties shall be imposed for violations committed by the members of the Association, without prejudice to the responsibility of the perpetrator of the violation to bear the costs of removing or fixing the committed violation; the Association reserves the right to claim compensation:

1- General Violations:

- Distribution or placement of commercial flyers (door to door) or in mailboxes without prior approval / Financial penalty = BD 200

- Allowing guests or visitors to behave in a way that conflicts with the peace of the residents or causes offense / Financial penalty = BD 50

2- Common Area Violations:

- The use of the common areas thereof for illegal activity or any activity considered unethical or inconsistent with the laws of the Kingdom of Bahrain, or any use that may disturb peace or cause inconvenience to the owners or occupants / Financial penalty = BD 200

- Consuming alcohol or any illegal substances in common areas / Financial penalty = BD 200

- Installation of temporary buildings or structures on any part of the common areas / Financial penalty = BD 200

- Causing damage to any part of the common areas that would incur financial losses to the Association / Financial penalty = BD 200

- Storing any materials or equipment in any part of the common areas / Financial penalty = BD 100

- Parking or storage of inoperable, commercial vehicles, living and entertainment wagons, boats, watercraft or travel trailers in any part of the common areas / Financial penalty = BD 100

- Conducting private events in any part of the common areas without prior approval / Financial penalty = BD 100

- Littering or disposing waste in any part of the common areas / Financial penalty = BD 50

- Causing any form of damage to trees and plants in any of the common areas / Financial penalty = BD 50

- Smoking (in all its forms) in any of the communal gardens / Financial penalty = BD 25

- Climbing on fences, walls, or trees in any of the common areas / Financial penalty = BD 25

3- Construction Violations:

- Executing any construction work in units without prior approval / Financial penalty = BD 200

- Changing the architectural facade of units in a way that contradicts the applicable standards / Financial penalty = BD 200

- Executing construction work in the units that does not comply with the issued permits / Financial penalty = BD 200

- Leaving a unit under construction for a period that exceeds 60 days / Financial penalty = BD 200

- Causing damage to any of the common areas as a result of executing construction work in the unit / Financial penalty = BD 200

- Executing construction work that block streets or obstruct traffic without prior permit / Financial penalty = BD 100

- Storing construction material or equipment in any part of the common areas / Financial penalty = BD 100

- Failure to follow security and safety guidelines while carrying out construction work on the unit / Financial penalty = BD 100

- Carrying out construction work that causes noise or disturbance to residence on Fridays and official holidays or outside the permitted times / Financial penalty = BD 50

4- Vehicle and traffic violations:

- Driving golf carts for those under the age of 18 or not following safety and security procedures while driving golf carts / Financial penalty = BD 200

- Driving recreational quad motorbikes / Financial penalty = BD 200

- Driving in a manner that threatens the safety of others, trespass private property, or causes disturbing noises / Financial penalty = BD 200

- Blocking streets or obstructing traffic / Financial penalty = BD 100

- Parking vehicles incorrectly in public parking, or in a manner that obstructs traffic / Financial penalty = BD 25

- Using public parking for storage or long-term parking / Financial penalty = BD 25

- Parking vehicles in emergency lanes and or areas identified with "maintenance areas" or "no parking" or over green areas or inside communal gardens / Financial penalty = BD 25

- Failure to comply with the maximum speed of traffic of 30 km/h / Financial penalty = BD 25

- Carry out cleaning, maintenance, or repair of vehicles in common areas / Financial penalty = BD 25

- Not cleaning the vehicles or leaving them in a condition that causes distortion of the aesthetic appearance / Financial penalty = BD 25

5- Pet Violations:

- Raising or hosting animals that are not classified as domestic pets / Financial penalty = BD 200

- Bringing pets to communal gardens or Agricultural areas where they are prohibited / Financial penalty = BD 100

- Failure to remove pet waste from common areas / Financial penalty = BD 100

- Failure to insure that pets remain in unit premises at all times / Financial penalty = BD 50

- Failure to place a warning sign on the unit’s fence indicating the presence of a domestic pet / Financial penalty = BD 25

- Leaving domestic pets (dogs) without a leash / Financial penalty = BD 25

- Allowing domestic pets to cause excessive noise, disturbance or harm to others / Financial penalty = BD 25

6- Unit Usage Violations:

- Using the unit for a non-residential purpose or exceeds the carrying capacity / Financial penalty = BD 200

- Use of temporary structures or mobile vehicles for residential purposes / Financial penalty = BD 200

- Installing shades outside the boundaries of the unit / Financial penalty = BD 200

- Leasing units on daily or weekly basis / Financial penalty = BD 200

- Causing water run-off to common areas resulting from cleaning unit or vehicles / Financial penalty = BD 200

- Installing units that affect the external appearance of the unit such as air conditioners, heaters or water tanks, vents, water and electrical power connections supplies / Financial penalty = BD 200

- Failure to clean the unit or leaving it in a condition that causes distortion of the aesthetic appearance / Financial penalty = BD 100

- Install garden water hoses in the front of the unit / Financial penalty = BD 100

- Installing outdoor lighting that causes disturbance to others / Financial penalty = BD 100

- The use of parking garages for storage, living or recreational purpose / Financial penalty = BD 100

- Causing noise or disturbance that disrupts calm and peace or cause harm to others / Financial penalty = BD 50

- Placing goods or materials for sale outside the unit / Financial penalty = BD 50

- Installing clotheslines or hanging fabrics, clothes, upholstery covers and curtains, or carpets from any window, door, fence or balcony in a way that is visible to others / Financial penalty = BD 50

- Planting plants and trees that encroach on common areas or other units or that are classified as harmful trees / Financial penalty = BD 50

- Failure to notify the Association of a change in the ownership of the unit / Financial penalty = BD 50

The Board also passed the following resolutions:

Resolution (2/3/2021): Approval to include an agenda item titled "Administrative and Financial Measures Adopted in the Association" for the upcoming General Assembly meeting.

The Association Manager, in coordination with the Board Secretary, is assigned to prepare the final report on the administrative and financial measures implemented in the Association. This report will be presented at the next General Assembly meeting.

8. Registration of the Association with the National Bureau for Revenue (NBR) for value added purposes:

The Board reviewed the circular issued by the National Bureau for Revenue (NBR) on October 1, 2019, which pertains to the value-added tax on unit owners' associations in shared properties. The circular highlights the requirement for owners' associations to register for value-added tax if they generate annual revenues that are beyond the scope of their basic duties. Following deliberation, the Board made the decision to assign the Association Manager with the responsibility of carrying out the official procedures required for registering the Association.

9. Report of the Subcommittee on the Organization of the General Assembly:

The Board received an explanation from the Board Secretary regarding potential solutions for conducting the upcoming General Assembly meeting of the Association, taking into account the current circumstances. The Board Secretary shared the outcomes of a meeting held with "We Say E Company" in the presence of the Association Manager. The discussion focused on the possibility of conducting the General Assembly meeting virtually, utilizing an electronic application with video calling capabilities.

The Board Secretary confirmed that a virtual meeting could be organized, providing Association members the option of electronic voting.

Following deliberation, the Board acknowledges the guidelines and directives issued by the National Medical Team to Combat the Coronavirus (Covid-19), which prohibit gatherings and conferences. Additionally, they considered the circular issued by the Real Estate Regulatory Authority (RERA), advising against traditional meeting formats and encouraging the use of electronic means instead.

Accordingly, the Board made the following decisions:

Resolution (2/4/2021): Setting the date for the second General Assembly meeting of the Riffa Views Owners Association as a virtual meeting on Saturday, March 13, 2021, at 7:30 p.m.

Assigning the Association Manager with the following tasks:

- Finalizing the preparation of meeting invitations and all relevant documents for presentation at the General Assembly meeting.

- Engaging with "We Say E" to organize the virtual General Assembly meeting.

- Distributing the draft agenda of the General Assembly to Board members.

- Preparing a draft communication to be circulated to Association members, informing them of the Board's decision to hold the virtual meeting on March 13, 2021, at 7:30 p.m.

- Compiling lists of Association members and their registered addresses for the purpose of sending invitations.

- Furthermore, the Board instructed all Board members and the Association Manager to adhere to the requirements and provisions outlined in Resolution Regulating the Provisions of Owners' Associations in Joint Properties No. (1) of 2020 regarding the conduct of General Assembly meetings.

10. The Riffa Views Steering Committee’s request to postpone the General Assembly:

The Board examined the letter received from the Riffa Views Steering Committee, dated February 1, 2021, in which they requested a postponement of the Association's General Assembly to allow for the committee's thorough review of the Riffa Views Master Plan. The Master Plan is one of the key items to be voted on during the upcoming General Assembly meeting.

The Board verified that the statement made in the committee's letter, implying that the responsibilities of owners' associations are solely limited to managing, operating, and maintaining the common areas, is incorrect.

Accordingly, the Board made the decision to assign the Treasurer with the task of preparing an appropriate response to the letter received from the Steering Committee. The response will include Board Resolution No. (4/2/2021), which was issued during this meeting, confirming the decision to hold the General Assembly virtually on March 13, 2021, at 7:30 p.m.

11. Other Business:

The Board discussed the following:

1- Renewal of the annual Association Manager contract:

Considering the expiration of RV Real Estate Company's annual contract as the Association Manager at the end of 2020 and in alignment with General Assembly Resolution No. (8) passed on December 7, 2019, which approved the continuation of RV Real Estate's role as the Association Manager, the Board has decided to assign the Vice Chairman and Treasurer with the responsibility of drafting a new contract for RV Real Estate Company as the Association Manager for the year 2021. The draft contract will be presented for discussion at the next Board of Directors meeting.

2- Courts and playgrounds in communal gardens:

The Board reviewed the recent decisions issued by the National Medical Team to combat the Coronavirus (Covid-19), aimed at supporting efforts to combat the virus, minimize its transmission, and prioritize the health and safety of the community. Consequently, the Board has decided to assign the Association Manager to temporarily close all courts and playgrounds in communal gardens until further notice. A circular will be issued to residents to inform them about this decision.

3- Infrastructure development work in Riffa Views:

The Board reviewed the progress of development and infrastructure activities being carried out by Riffa Views Company. These activities include the completion of remaining gardens, modifications to internal roads and agricultural areas, as well as adjustments to sidewalks to accommodate additional parking spaces for vehicles. Following deliberation, the Board reached the following decisions:

Resolution (5/2/2021): Establishing a sub-committee responsible for overseeing the development of infrastructure works in Riffa Views. The committee will be chaired by Board Member Reem Akbari and will include representatives from the Association Manager. The committee's main task will involve proposing improvements and enhancements to the infrastructure works. Additionally, the committee will be required to provide regular reports to the Board of Directors.

The meeting ended at 8:00 pm.