The Royden Subdivision continues to conceal open violations of NC Law and the Covenants in using subterfuge and malpractice and breach of Fiduciary responsibility in the conduct of its’ affairs. Here is an open letter to the Board outlining their deficiencies.
Dear (secretary for the RHA),
We are writing to confirm that we have not received any results of the “Ballot Voting” and that we have concluded that you and the RHA BOD have suspended the Royden 2016-2017 Annual Assessment until further notice.
Please confirm the subject delay and that the Royden board is in fact withholding the results of the Board of Directors’ voting while the new Royden Board reviews several irregularities associated with the 2016-2017 “Ballot Voting” process brought up at the June 18, 2016 Annual Meeting.
Accordingly, the members are therefore to conclude and put on NOTICE that,
The irregularities discussed at the Annual Meeting are as follows:
1. The Annual Assessment fixing of $320.00 did not meet the requirements of Article IV-Covenant for Annual Assessments.
2. The financial Information as of May 31, 2016, provided at the Annual Meeting was incorrect in that it only provided an Income Statement and did not provide a Cash Flow and reconciling Cash and Cash Equivalent Balance.
3. The total Cash and Cash Equivalent basis should have been reported as $22,359.30 not the misleading figure of $714.30. The Treasurer again had an unreported Cash Shortfall of $1,645.00, similar as to the nearly $4,000.00 shortfall in 2012 and probably higher Cash Shortfalls in 2010 through 2014 un-disclosed by the RHA Board in the refusal to provide Financial information, of any kind, for the periods of 2011 through 2014.
4. The 10% Contingency Reserve was at $22,359.30 and resulted in a Cash Credit of approximately $141.00.
5. The Maximum Annual Assessment is still $210.00, per the covenants posted on the Royden Website. Resolutions for Amendments did not meet NC Law and are NULL and VOID.
6. Factoring in the 10% Contingency Reserve Credit and the Maximum Annual Assessment, the 2016-2017 Annual Assessment should be $69.00, as was discussed at the Annual Meeting.
7. The Number of Board of Directors up for nomination for 2016-2017 should have been 6. Two names were improperly assigned Board seats last year by the miss-use of proxie ballots and not the specific Board nominating and election process involving Mr. and Mr. . Mr. Mr. was in fact a co-winner of the open board seat last year and should be retro-actively assigned the seat and allowed to finish out his final term.
8. The Board is encouraged to answer the nearly 20 open questions put before the board at the Annual Meeting to address lingering issues facing the Association.
9. In particular the Board was asked at the recent Annual meeting to proceed with the implementation of the Consolidated Covenants completed by the RHA Board in 2004 and typed and distributed to the Board in 2011 and avoid any further legal costs in this endeavor.
10. The Board will promptly report any open sanctions for attorneys’ fees ($63,000.00) on the RHA Financial Reporting as an open Accounts Receivable, as required by NC Law and provide a thorough discussion of the court proceedings that resulted in this significant member collectible.
11. The Final Approved Annual Assessment results for 2016-2017 must be provided by USPS mail, per the covenants, as are the results of the Annual Board of Directors’ voting. Use of a Website posting of Annual Meeting Minutes does not meet the covenants, prior precedent of direct email or NC Law.
12. Members should challenge this newly concocted attempt at subterfuge of using the website for Annual Assessment notice, another clear violation of NC Law and the Royden Covenants. NC GS 55A clearly states that all Financial Reporting and Annual Assessment must be reported consistent to the Covenants and past precedent.
13. Voting for any Amendments, Special Assessments and changes to the CCR’s must receive a 2/3 result, by PHASE. The Royden Board has never embraced this clear covenant requirement as we are three subdivisions under one By-Law created for Phase I/II. Therefore all, non Director or Bylaw voting must receive 2/3 of Phase I/II (94), 2/3 of Phase III (9) and 2/3 of Phase IV (30)….Over 94 votes, in total are required to pass a motion and the votes must each meet the phase 2/3 value. The Board, in it’s consolidation drive, will avoid this clear fact and the historical proof of past voting by the original declarant and the merger voting. Members should be well aware of this key issue….Essentially ALL Member Voting, not complying with the Phase vote covenants, are challengeable in a court of LAW, and will be deemed NULL and VOID. Probably the most overriding issue, facing our HOA.
14. We again encourage the new Board to file a D&O Lawsuit against prior Directors for Constructive Fraud and Recover over $350,000.00 of improperly collected Annual and Special Assessments over the past 10 years.
The recipients of the Royden Counterpoint Newsletter have been copied on our “open” letter and we look forward with hopeful anticipation to learning more about the conclusions of the “New Royden Board” and the possibility of a new direction being formulated, for our neighborhood. The website subterfuge, does not bode well for any re-direction of the “corrupt” dealings.
As always, please visit for more details.