HOA Abuse

The following is a list of violations of bylaws and codes of conduct by several members of the board of directors, hoamco, association attorney, and committees

Please see Links to find the governing documents of the association and Codes of Conduct for ethics policy.  (Note: some portions of SB497 may not apply to Associations created before July 1, 2013.)

  1. President and several board members accused residents of harassment and called Sheriff (in a meeting that excluded two directors).  Association Attorney advised they could do this if they felt threatened.  Sheriff found no wrong doing. See Bylaws 9.4(c), Who Called the Sheriff in February and Codes of Conduct.
  2. Community Manager refused to provide documents to a Director and called Sheriff.  See Who Called the Sheriff in March and Codes of Conduct.
  3. President has business relationship with HAOMCO and refuses to disclose potential conflict of interest; votes on contract.  See ByLaws 3.12, 6.2(iii), and 6.4, Potential Conflict, Missing Minutes, and Personal Notes by Director #28.
  4. Special Meeting request by two directors to correct October 2013 board minutes denied.  See Bylaws 3.8 and Conflict of Interest.
  5. Committee applications turned down numerous times for the same resident despite being in good standing.  Resident was libeled in an email by Secretary.  Resident filed Dispute Resolution and discontinued when BOD refused to use less expensive mediator than attorney.  See Bylaws 3.16(o), 6.1, 19.2(c), Codes of Conduct, and Personal Notes by Director #25.
  6. Large overruns in legal budget in 2013 and 2014 have occurred because President and Community Manager continually violate previous BOD decision to limit spending to assessment related items.  Full BOD is not consulted regarding expenditures until after the fact, if at all.  See Bylaws 6.1.
  7. Dispute Resolution by director to inspect records was hampered by BOD and illegal vote was taken to cover President’s legal costs. See ByLaws 3.16(o), 9.4(c), Charter 19.1, and Improper BOD vote (3.11).
  8. Resolutions introduced by a director to correct code of conduct violations of by the President and several directors were voted down by BOD and not included in the record.  In Nov 2014, VP violated CofC in email to another director.  See Bylaws 2.10, Board Resolution Not Adopted, Missing Minutes, and Codes of Conduct.
  9. Multiple incidents of lack of records transparency, altered minutes, and fraudulent proxy voting process.  At 2104 Annual Meeting, Association Attorney claimed that anyone can sign a proxy and vote, including non residents.  See ByLaws 2.10, 9.4(a) & (c), SB497 section 5, Transparency, Missing Minutes, Election Fraud, and Election Fix.
  10. President and legal counsel advised BOD to ignore letter from residents about records transparency and violations of state law.  See Sommer Karnes Letter and SB497.
  11. HOAMCO record retention policy is 3 years, which violates state law requirement of minimum 5 years.  See SB497.
  12. Request by a resident to inspect 2013 proxy voting records denied by President and Community Manager.  See Bylaws sections 2.8, 3.16(l), 9.4(a), SB497, and 10-10-14 Comment.
  13. Budget & Finance Committee Meetings closed to residents.  Bylaws 2.4,  Budget Meetings Closed to Residents, and Not Invited.
  14. Failure to conduct a financial audit and reserve study in a timely manner (none in 3 years).  Published 2013 audit at 2104 Annual Meeting that included a reserve study from 2010 that was never accepted by BODs (concern re: understated infrastructure estimates).  See Bylaws 4.2(viii) and Charter 12.2(a).
  15. Committee Meeting schedules not published to residents.  By laws section 2.4 and SB497.
  16. Numerous incidents of not posting BOD and Committee actions outside of meetings.  Many decisions made in Committees are not brought to the BOD for approval and/or are not posted to residents.  See Bylaws 3.14.
  17. No Nominations Committee in 2013 and 2014.  Board members allowed Community Manager to send residents email discrediting residents who organized a candidate forum in Oct 2014.  See Bylaws 3.4(a).
  18. Minutes of Special Meeting with association attorney in October 2013 to clarify bylaws was paid for with association funds and not made available to residents. See Bylaws 2.10 and Personal Notes by Director.
  19. Special meeting was called in September 2013 to sanction a director on charges that were proven false.  Meeting excluding two directors  (violation) was held in October and illegal resolution to remove director from office and committee liaison was passed despite proof that charges were false.  See Bylaws 3.9 and Codes of Conduct.
  20. Design Review Committee often pursues compliance issues outside the scope of its responsibility.  In October 2014, BOD asked DRC to look at all homes in Rancho Viejo for violations of Charter 7.1(a).  See also Charter 5.1, 5.3(a) and (b) “consistent character”, and Retaliation, and Personal Notes by Director #22.
  21. Enforcement procedures assess fines before giving residents a chance to rectify non-compliance (resident attended Sep 2014 board meeting and fine was rescinded, but policy has not been changed).  See Bylaws 8.1(e).
  22. Failure to review the Association’s property interests and deeds to ensure that records are updated and accurate.  In July 2014, a resident visited the County Clerk and notified the BOD that many parcels are still in name of Rancho Veijo de Santa Fe, which filed for bankruptcy – corrections still pending.  See Bylaws 4.2(ix) and Charter 3.1.
  23. Failure to negotiate reasonable assessment increases with Founder to ensure continued irrigation services/contract.  See Charter 18.6 and Ranchland.
  24. Some residents are not allowed to advertise in the Community Newsletter.  See Bylaws 6.1 (non-discrimination).
  25. No Treasurer as of 7-4-2014 and while budget was being discussed in Budget & Finance Committee.  No Treasurer was appointed at first organizational meeting in Nov. 2014 as required.  See Bylaws 5.1, 5.2, and 5.3.
  26. Community Manager, President, and some board members approved and/or distributed emails in 2014 attempting to prevent resident-organized meetings and distribution of flyers; also removed meeting flyers posted by residents.  See First Amendment of U.S. Constitution: freedom of speech and right of the people peaceably to assemble.
  27. Numerous incidents of BOD President eliminating resident comments during meetings, including 2014 Annual Meeting.
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