Dear Neighbors, continuing our advocacy on behalf of homeowners , we continue to try to educate our readers and try to dispel the meme that “Royden HOA members have more money than SENSE!” In this newsletter we will cover:

Some Background :Having served as Royden President for 4 years, VP and Treasurer (1 year each), authored quarterly newsletters, managed a website and led Annual Meetings (1997-2004), completed a comprehensive Covenant consolidation in 2004…etc, I am well versed in the RHA By-Laws and Covenants. I, along with the founding president of the RHA, instituted the Ballot Voting Method for Annual Assessments. The Ballot Method became obsolete in the 1994 Merger of Phase I/II with III and IV. I tried, unsuccessfully to convert to Article IV in 2004 and have been arguing with all boards since. Annual Assessments in 2004 were only $180.00 and at no time did the Ballot method violate Article IV. More later….

ANOTHER ILLEGAL ANNUAL ASSESSMENT FOR 2016!..Let’s begin with the most recent mailing from the RHA.
In the 2016-2017 Annual Assessment the RHA Board have taken the following illegal steps. Yes, illegal….As a non profit organization, the RHA Board is bound by NC General Statutes 55A and 47F as well as the specific overly burdensome By-Laws, and 3 separate subdivision Covenants Controls and Restrictions…See the Royden Website.
As our past newsletters have irrefutably noted, the Royden HOA (RHA) has improperly imposed Annual And Special Assessments for the past 11 years.
The Central issue in the various lawsuits we have engaged in with the RHA, is Article IV of the Phase III and Phase IV subdivision covenants and the Phase I/II-Article IIIA Section 4-Creation of Lien and Personal Obligation-Covenant for Annual Assessments. Contrary to Article IV (Att 1), the current Treasurer violated every Section of the Covenant. The treasurer (a lawyer, no less) not only incompetently introduced several meaningless amendments to our governing documents last year, but also displayed his lack of ability in simply balancing the RHA checkbook. The last time a lawyer and Dr. got control of Royden, it cost us over $197,000.00 in a futile easement lawsuit……oops…back to the Annual Assessment illegalities…
1) Notification for the Fixing should have been May 1 with all Annual and Special Assessments due an Payable May 31, 2016-per Article IV. NOT JUNE 18, 2016-On June 18 all board members terms have expired leaving only Matthew in place…more laterlllll
2)The 10% Contingency Reserve Credit was not properly credited to each member and this years financial statements were “doctored” so that the illegal action was masked. The presented Financial Statements violate NC Law in that they do not represent a consistent format (See Att 2), do not include a GAAP compliant Cash Flow Statement, do not reconcile cash and have an incorrect May 31, 2016 Cash Balance, Here’s what the “check book challenged Treasurer should have reported;
TOTAL ASSETS AS OF MAY 31, 2015…….$36,660.42
TOTAL RECEIPTS-JUNE 1-MAY31…………$24,633.58
TOTAL DISBURSEMENTS……………………..$(38,934.70)
TOTAL ASSETS ENDING MAY 31,2016 $22,359.30…..NOT $714.30 as wasreported!!!…The 10% Contingency Reserve Requirement in Article IV dictates that this amount must EQUAL $2,898.00!!!!!!
EXCESS FISCAL RESERVES $19,461.30…….FOR A 2016 CREDIT TO EACH MEMBER OF $141.02………Note: Total Assets as of May 31, 2014 were $30,995.01-The !0%Contingency Reserve for 2015 should have been $203.60…Never Credited to Members’ Accounts. See Royden Financial History Summary 2004-2010 (Att. 2). Note the appropriate format and accounting convention assuring that debit and credit balances are reconciled. A new treasurer should be appointed since the current treasurer has gotten it wrong for two straight years and doctored the convention reporting to MASK a significant breech of fiduciary responsibility. A violation of NC Law!!!….. Oh, and where are the 2011, 2012, 2013, 2014 Fiscal Year Financials that the RHA refuses to provide because of significant Cash Shortfalls…The current VP lied in a court affidavit that ALL FINANCIAL INFORMATION WAS AVAILABLE!!!!!!.Can you say…..COVERUP!!!!!…OR has it become CORRUPTION!!!!!!!
3) The Maximum Annul Assessment per Article IV remains $210.00….The amendments proposed last year did not meet NC State Law GS and minimum acceptable standards in terms of a clearly stated resolution ie.. noting the Article, Section, old language and new language and reason for change. Something I would think a lawyer would be familiar with?????? Google _How to make a board resolution!!!!
Also note:Last year $8.500.00 was budgeted for Wall Reconstruction!!!! Nothing was spent! Per Article IV, anything other than common area maintenance can be included in the Annual Assessment. Wall reconstruction is a SPECIAL ASSESSMENT, per the covenants. Another violation of NC Law…This year another wall construction is incorrectly in the budget at now $5,500.00. We now are looking at having spent over $30,000.00 on wall reconstruction in the last 4 years!!!! Not once was member approval made for a Special Assessment element to be added to the Annual Maintenance Assessment.
Legal fees are also a special assessment as are any Social activities. If the board wishes to incorporate a social purpose to the covenants, it simply can amend the covenants or include a special assessment vote each year. Legal fees can only be incurred, per the covenants to “employ attorneys” in the event the association is sued. Any Covenant consolidation activity but first be presented to the members with the estimated legal cost, for approval, by Phase.

Ms. has been a board director since 2004, when I nominated her (my bad!). Dr. was president during the easement lawsuit debacle and served with Ms. . The legal fees amounting to over $197,000.00, were never approved by the membership as a Special Assessment. Not one dime!!!!!(Att.3). Yet both continue to serve as directors????Last year, through the abhorrently dishonest vehicle for the misuse of proxies, Dr/ and Ms. appointed themselves to the board…with NO VOTE… A patently dishonest and reprehensible action, foisted on a trusting membership. Remember. the accumulated violations of these two directors, are the target of our Constructive Fraud Claims and main focus of our appeal for the membership to commence a D&O claim for improper Annual and Special Assessments amounting to a claim of over $330,000.00 or $2400.00 for current or past members as applicable. You now can add the current President and Treasurer to the list. As of May 31, 2016, 4 rotating board slots and the 2 proxies slots are open. Six open slots…not four!! At present we have a one person board..l!!!! Should be an interesting Annual meeting!!!!!

Attachment 4 shows a disappointing trend for Royden property sales values. While Charlotte and the nation are seeing values at recent (2006-2009)record levels, Royden valuations are significantly off the $200-210/heated Square foot levels. The RHA however cannot address the one remaining avenue to change the Royden brand from the dated and staid stucco wall look, to a more elite front entrance branding statement…WHY!!!. Because NOTHING but COMMON AREA MAINTENANCE CAN EVER BE DONE TO THE EASEMENT ENTRANCE!!!!…The Easement holders wont even approve AN ORB!!!! Thanks to Dr. Only a D&O Liability Claim can give Royden Homeowners the Funds to overturn this disastrous and malicious prior board initiative…Again, led by Dr. and a Lawyer, since relocated from Royden!!!!

The Hypocrisy of this board is staggering to behold. They fight in court for nearly 2 years to ban any jury from dealing with Article IV and the improper application of the Article IV-Covenant for Maintenance Assessments-Creation of a Lien and Personal Obligation. They refuse to accept Rinaldi’s dues payment, forge USPS documents to meet a filing deadline for their Sanctions action against RInaldi, argue in court that Rinaldi had NO CLAIM of ACTION or RELIEF SOUGHT (Rule 12B96 resulting in a Sanction of over $6,300.00….Not shown as a receivable on the financials!!!!!!
However, now the members need to consolidate the covenants!!! Covenants that are not being followed (Article IV). A convenient way to change the narrative to some new attorney created compendium that avoids the RHA exposure to legal action for 10 years of violations. Folks, the Covenants have been consolidated (Att. 5) . Artcle IV is all you need to keep and the only relevant covenant except for the Architectural Review Covenant…which apparently no member committee exists to control and report to members (Can you say painted brick fascia remodeling). The Board took nearly 2 years and at least 6 trial dates, without a single statement to the members. Rinaldi spent over $10.000.00 and the RHA possibly $30,000.00 in legal fees……..All because the RHA did not follow ARTICLE IV for 10 years!!!! Just that simple folks….

VOTING VIOLATIONS-There is no voting requirement for the Annual Assessment. Once the Maximum is set per the amendment process in Article IV, the Annual Assessment is sent out prior to May 1 and collectable by May 31. The Annual Assessment is for common area maintenance, only. NO BALLOT VOTE NEEDED! Voting for Board Directors is a simple majority of votes cast. Note this year the board incorrectly are showing 4 nominees and 4 open positions. That’s not a vote, that’s a CORONATION!!! Essentially there is no vote. Also the Board has miss used the proxy voting concept and use of proxies in the hands of the president are discouraged in all legally bound situations. Proxies should be used by trusted members who plan on attending. In normal situations the board completes all planned actions by the use a vote. Nothing says that the President represents all of the Board members opinion. You can have a 4-3 voting board. The President may or may not be with the majority. Why should he be given the power over all other board members????Roberts Rules specifically does not allow Board members use of proxies for that reason. This years’, as was last years’, Board nomination and voting is rigged!!!! and the current directors have told you who they have selected (not the members) to continue the COVERUP.
Here’s what the covenants say on Voting. Voting on raising the Maximum Annual Assessment is to be done by Phase. Voting for any By-Laws and Covenant resolutions is also required by Phase with a 2/3 majority(NC LAW). The RHA has never followed this rule except during the failed Covenant Revision action. The na├»ve lawyer didn’t ask Hunter or Nichols and mistakenly followed the subdivision covenants!!! Note the inclusion of your address on the ballot. No vote is required for the Annual Assessment but they may be looking to tabulate the vote by Phase (I/II 94, III,14, IV, 30)…For the first time.!!!

Attachment 6 shows the logo of the blog dedicated to SPOTLIGHTING ROYDEN and at the same time act as an aggregator for other homeowners with HOA issues. We will be placing the logo Ad regularly in Charlotte Observer, Home and Design Section and eventually other communities in NC. We are working with Alan Norwood on a follow up piece from his “Tough HOA Love-Foreclosure” piece recently with a +Tough Love-Sanctions” piece. We will also be scheduling meetings at the Morrison library. We have had over 2500 hits and once we can get a following, we plan on making Royden the poster child of A ROQUE HOA…….An HOA that totally disregards clearly written covenants because they have become beholden to pernicious attorneys’ that will take any measure to avoid a judicial hearing on an individuals’ monetary complaints, NC Alternative Dispute Resolution Laws HB 278 must be expanded and made MANDATORY…Otherwise the tyranny of the HOA private government will continue to abuse it’s power to exert control over a powerless homeowner, with no venue of recourse to address indisputable evidence. This newsletter will also be posted at the site.

DIRECTORS’ AND OFFICERS’ LIABILITY CLAIM-ATTORNEY DRIVEN VIOLATIONS -The is not only for Royden residents, but will be an aggregator of Homeowners comments concerning their individual HOA experiences. We encourage neighbors to get involved and seek to convince the new board to discontinue lying to the membership and seek recovery of past violations of the clear Annual Assessment covenants in Article IV. Alternatively we will seek to convince a member to file a prose claim against the RHA using our extensive files. Again, any award received from the claim would be used toward revitalizing the Front Entrances and re brand Royden to the elite status it deserves.

COVENANT CONSOLIDATION-Counterpoint has attached the consolidated covenants (Att.5) again since you must be vigilant to any new “private governments’ attempt to change the members LAWS!!!!. We suspect that the RHA attorneys will present a new set of covenants that will not conform to Article IV…How can they, since Article IV has been violated for over 10 years. The RHA Board will tell you how great they are and how diligently they worked on them….BULL____! Look at the consolidated covenants. All the Board has to do is to offer up for vote, by Phase) to consolidate (ie, remove redundant clauses) and we’re done….NO ATTORNEYS or FEES!!!!!

We trust we haven’t burdened you with TMI…However, if we are to overcome our member apathy and indifference as to how the Royden HOA is functioning as our local “private government”, just because the dues are low, we must be informed. Yes there is a SCANDAL, yes there is a COVERUP, and yes ROYDEN is RIGGED…..When the HOA Treasurer can’t follow a clear subdivision covenant in Article IV, can’t perform a simple checking account reconciliation and can’t even issue 2015-2016 year end financials, with the correct ending balance…..ROYDEN…is CORRUPT…..and hopes that adverse public opinion will purge this dishonesty, where the NC Legal System has proven to not be a homeowner venue to hear the complaint.
Our Government may be able to lie to us, but we will be damned if we let our neighbors lie to us…..Where will you stand…or will you just write the check!!!!

The Proud Vexatious Litigant,