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Tuesday, August 18, 2009

Collections Resolution

Can anyone tell me when the Board of Trustees voted to approve the resolution we recently received that has so many errors in it? I try to keep up with these matters but find it very difficult to get accurate information from any source. Terry Holzworth

Issues may arise if a Board violates its own governing documents---it looks like our board is having trouble with this...


  1. As far as i can tell there are no minutes that approve this. I just don't understand how we got a board that refuses to present matters to the board for a vote. Where is our attorney? Don't we have a new that specializes in HOA law? Why isn't he advising the board how to behave? Or is he????

  2. The Collection Resolution was signed August 3, 2009. I do not know where or when it was voted on.

    I asked Jim Taufer on Saturday, at the Neighborhood Forum when it was approved. He could not remember, but agreed it was probably done some time this summer.

    The attorney was aware and consulted with the Board regarding their options for collections. I personally saw a letter addressed to the Treasurer outlining collection options available to the Board. But I do not know if the Attorney helped write the Resolution.

    The Collection Resolution effects the membership long range and I believe should have been voted on by the membership.

    Personally, I have a problem with paragraph 4, which allows foreclosure on a lien. I also have a problem with the last line of paragraph 6, which mentions an Association and Attorney Representation Agreement, which is not included and makes me wonder what does it say and how could that effect us?

    State Law 57-8a-203 allows foreclosure as a collection proceedure. And allows the manager or Board of Directors to bid at the sale or foreclosure; or hold, lease, mortgage, or convey the lot subject to the lien. UNLESS OTHERWISE PROVIDED IN THE DECLARATION OF COVENENTS.

    I believe the combination of State Law and the HVPOA Collection Resolution could possibly open members to future abuses and it is our responsibility to make sure that does not happen.

    I believe we should all pay our debts. But I don't believe we should force our neighbors into homelessness over association dues and/or any fines or penalties which could be imposed on them.

    It has been said that when a member does not pay their assessments they are stealing from us. I would agree they are not pulling their weight, but they are not taking money from the Association. They are withholding their required contribution. There is a fine distinction here to remember. If you steal something it is a crime.

    Currently, a judgement can be obtained for a deliquincy. A lien then is placed on the property for the amount of the judgement. If the property is ever sold, transfered, or refinanced the lien must be satisfied. The land and the Association will be around long after the average person's life expectancy. I believe this is the correct method for uncollectable accounts, not foreclosure.

  3. Members finally received the minutes where the resolution was adopted. It was written by the attorney, Harrison based on the Cash Enhancement flow program that Vial Fotheringham has developed for collections. The board adopted it on July 15, 2009. They apparently never discussed whether it was in keeping with our new by-laws--the ones that give members the right to vote on everything that affects our rights, creates regulations, and enforces our covenants.

    We have been told that only 15% pay their dues and all the rest of you (85%) are stealing from us. The truth is, about 25% have always been behind...and that is the case--now, well its about 1/3 behind, but even everyone behind is not "stealing" from you. Most are paying something but just behind. Once the board follows the documents like they require of us, then I believe in my heart, most people will catch up

    Anyone who told you only 15% are current, are misleading you. Over 2/3rds are current or ahead. Only 27 lot owners are significantly behind.

    We do not have to foreclose to collect money. We can get money judgments, take cars, garnish wages or simply let a lien sit until the land sells. We'll get the money eventually, the lots do not have feet. In fact many lots have been paid off this year through change of ownership.

    My biggest problem is the method by which the board adopted the resolution. I think members need to vote. If the trustees won't let us vote on something like this collection resolution, what else will they deny us a vote on? I don't want to set a precedent of boards not letting us vote again--we fought for this right for 18 months--lets not lose ground now.

    We now have an attorney giving us an independent opinion on whether our documents require us to vote. Although Harrison has given his opinion, I consider it a conflict of interest for him to give us an opinion on a policy that HE will make money on.

    See you all at the board meeting. Shelly

  4. I find it ironic that one of the members was shouting at a board member to "pay his dues" when in fact this lot owner was behind for THREE years themselves!!?*#! They only this year got caught up and they didn't pay money, they worked for the association to catch up! In addition, if any board members are behind, how would lot owners know unless they were given the records?

    Who is giving them the records? I want them too! I want to check up on the numbers the board is throwing around--85% of us are behind--baloney. I don't believe it.


Any one is allowed to make comments. You can use your real name and lot or an assumed name. Please be respectful of everyone, especially our trustees who donate a lot of work for us. Even if you believe they are not acting in our best interests or following our documents, stick to the facts--no name calling or innuendos and unfounded accusations. We want to set a good example for our trustees.