October 29, 2009 Letter to the Homeowners
Dear Neighbors, October 29, 2009
We are a group of concerned homeowners. We all live in the Fairways of Sherrill Park Homeowners Association (HOA). Our HOA is in serious trouble. We are out of money and will end the year in debt. Two years ago we had more than $40,000 in reserves. In 2008 & 2009 we collected almost $150,000 in dues. By the end of this year, all of this money will be gone. The money was intended to pay for the maintenance of our common areas and improvements to our neighborhood. We want to make sure that we all know where our money went, how much more we are going to spend, and what we can do about it.
In October 2008, the Board sued a homeowner on behalf of the HOA. We did not get to vote on this. At an HOA meeting earlier in 2008, the Board estimated the total cost of the lawsuit to date was $15,000. At the annual meeting in March 2009 the Board estimated the total cost of the lawsuit would be no more than $30,000. At the October 2009 HOA meeting the Board reported that the cost of the lawsuit through September was more than $117,000. When asked how much more, the Board refused to answer. Our individual share per household so far is over $400. We believe the actual number is higher. We do not know when the lawsuit will end, and the fees on both sides increase daily. Despite the concerns of the homeowners, the Board has decided to continue the lawsuit. Once again we did not get to vote on this.
Several weeks ago, the Court ruled against the HOA on a central issue in the case. This does not mean the lawsuit is over. We believe the ruling increases the chance that the HOA will have to pay the defendants' legal fees, along with the Boards attorney fees. We believe the Board has been informed that the defendants' legal fees exceed $200,000. Our individual share per household would be at least $1100, just in attorney's fees. Damages and additional attorney's fees could double or triple that number. The Board has not released this information. Instead, in order to reduce the amount of debt the HOA will face at the end of the year, the Board has retroactively increased our 2009 dues by $50. We did not get to vote on this. The Board can raise our dues 20% each year. The Board has stated that they will have to raise dues again next year. The additional dues for 2009 must be paid by November 15, 2009. If all of the additional dues for 2009 are collected, the Board estimates that we will be $30,000 in debt by the end of the year.
We must have a Board that will tell us the truth, no matter how bad it is. We must have a Board that will represent the best interests of each homeowner. In order to make good decisions and vote wisely, we must have accurate information about what is going on and the state of our finances. Many homeowners have asked the Board to provide this information, but the Board has refused.
In March of this year, at least 4 homeowners aware of the situation and concerned about the HOA's finances attempted to run for election to the Board. Many homeowners supported their efforts and signed proxy ballots voting for them. The Board refused to place the names of these candidates on the ballots mailed to the homeowners. At the annual meeting the Board refused to allow these candidates to speak about the lawsuit or the finances of the HOA. The Board refused to count some of the votes cast for these candidates, stating that the homeowners who cast the votes were not current on their dues. The Board scheduled the annual meeting for 3 weeks after the due date for payment of our annual dues. Many of us had not paid our dues immediately. Our votes were not counted. By virtue of the mail in proxy ballots, the Board claimed to have authority to vote on behalf of a sufficient number of homeowners to win every seat. All seats were filled by the candidates the Board voted for. If we are to have a Board that will represent all of our interests and be good stewards of our money, every vote must count.
We are responsible for the debts of our HOA. We are responsible for the actions of our Board, and we bear the costs of their mistakes. We have to find out what is going on and we have to work together to find a reasonable, well thought out, common sense way to get out of the trouble that we are in.
We encourage you to attend the monthly HOA meetings and ask questions. We believe that the HOA’s business, decisions, and finances should be out in the open and transparent for all to see. The more people who ask questions, demand answers, and learn the truth, the sooner we can take action to fix the problem. This is our neighborhood. This is where our families live. We need to get involved and make this a great neighborhood for everyone to live in. Together we can make a difference.
The next HOA meeting is scheduled for January.
Additional information may be found at www.SherrillParkHOA.com. Changes to the time, date or location will be posted on this web site as soon as they are available. If you have any questions or would like to talk to one of us about this letter, please send us an email at info@sherrillparkhoa.com.