Supplementary memorandum submitted by
British American Chamber of Commerce
1. Since writing our previous letter dated
April 16 2003[25]
we have now obtained a copy of the Covenants, Conditions and Restrictions
(CC&Rs) relating to Presidio Terrace, which runs to 42 letter
size pages. These were originally drawn up in June 1905 and amended
by a vote of 75% of the members of the Association on June 19
1995.
2. Important clauses to note:
Article I
Section 25. "Residence" means a private,
single-family dwelling constructed on a Lot or Lots.
Section 26. "Single Family Residential
Use" means occupancy and use of a Residence for single family
dwelling purposes in conformity with this Declaration and the
requirements imposed by applicable zoning or other applicable
laws or governmental regulations limiting the number of persons
who may occupy single family residential dwellings.
Article II
Section 2. Persons Subject to Governing Documents.
All present and future Owners, tenants, residents, and occupants
of Lots within the Properties shall be subject to and shall comply
with, each and every provision of the Governing Documents, as
the same or any of them shall be amended from time to time.
Article III
Section 4. Assessments. The Association shall
have the power to establish, fix, and levy Assessments against
the Owners of Lots within the Properties and to enforce payment
of such Assessments in accordance with Article IV of this Declaration.
Any Assessments levied by the Association against its Members
shall be levied in accordance with and pursuant to the provisions
of this Declaration.
Article VI
Section 1. Use of Lots.
(a) All Lots within the Properties shall
be used solely for the construction of Residences whose occupancy
and use shall be restricted to Single Family Residential Use as
defined in Article I, Section 25 hereof. In no event shall a Residence
be occupied by more individuals than permitted by applicable law,
zoning, or other local governmental regulation.
Section 7. Business Activities. No business
or commercial activities of any kind whatsoever shall be conducted
in any Residence garage or out building or in any portion of any
Lot without the prior written approval of the Board.
3. In our previous letter we pointed out
that:
— It would be extremely embarrassing
to the British Government if it was found, on further investigation,
that the proposed house is not permitted to hold any functions
apart from those a normal householder would hold in their home.
4. It is apparent that the CC&Rs place
a lot more restrictions on homeowners than do the rules of normal
homeowners associations.
It has been our experience with homeowners associations
that there are very few residents who take an actual interest
and are prepared to serve on the board. For this reason it can
often be taken over by a group of activists, and it would only
need some anti-British owners to assume control and then raise
difficulties relating to events held at the Residence. It would
be our recommendation that a lawyer well versed in the laws relating
to private communities and homeowners associations be asked to
give an opinion that no restrictions can be imposed on the use
of the Residence now or at some future date. Unless this assurance
is received, the British Government should withdraw from the purchase
and accept that it may forfeit its deposit, although we feel there
is a liability on the real estate agent employed who should be
knowledgeable about the restrictions placed on residents of Presidio
Terrace and should have checked out the CC&Rs knowing the
purpose for which the house would be used.
5. In our previous letter to you, in our
enclosures, we set out our principal reasons at that time for
not selling the present Residence.
An additional reason for not replacing it with
12 Presidio Terrace is The Americans With Disability Act. If a
number of functions are held there it could be subject to the
Act and would have to provide for wheelchair access. Whilst a
ramp can be easily constructed to permit wheelchair access at
the present Residence, it would be impossible at the new Residence
due to the steepness of the steps. We do not think the British
Government would want to stand on its rights as a diplomatic mission
and defend itself as not being subject to local laws if accused
by the newspapers.
6. The emergence of these facts would indicate
that the British Government runs a very real risk in purchasing
12 Presidio Terrace and then finding it could not hold receptions,
etc to promote inward investment and British exports.
7. Finally, some of our members have learnt
that this purchase was made without the approval of the British
Government Ministers responsible, which does not reflect the high
regard for which the British Government is held over here and
how it works with many watching and enjoying the parliamentary
debates which are shown in part on television over here on a regular
basis.
The way in which Foreign Office Officials have
circumvented the rules by not receiving the Minister's approval
for the purchase harks to "Yes Minister", a very popular
programme here still being run on TV.
President,
British American Chamber of Commerce
May 2003
25 Ev 125 Back
| 
