ROYDEN-BREACH OF FIDUCIARY RESPONSIBILITY CONTINUES
For the past 5 years the Royden Homeowners’ Association has failed to publish annual financial information in regard to the management of over $60,000.00 in members assets. Gross negligence has resulted in unreported annual cash shortfalls of from $2,000.00 to over $4,000.00. Repeated member requests for annual financial statements has been denied by the Royden Board of Directors. Below is a list of questions that, if answered would reveal the corrupt conduct of the Board whose volunteers are caught in a trap of deceit. If they admit to the corruption, the Association is facing over $350,000.00 in liability claims. Thus the SCANDAL has turned to a COVERUP and now sheer CORRUPTION. Unfortunate turn of events for an otherwise elite South Park community
The Royden Board is asked to answer the following questions at the June 18, 2016 Annual Meeting.
The central issue is the Boards’ failure to implement: Article IV-Covenant for Maintenance Assessments, as covered in the Phase III and Phase IV subdivision covenants and made part of the Phase I/II covenants in the Merger Agreement of 1994.
1)On what authority given to the Royden Board, per the By-Laws and Covenant, was the Annual Assessment fixing action of $320.00 made for the 2015-2016-2017fiscal periods?
2) If Article IV-Covenant for Maintenance Assessments (Exhibit 1) was not used in the fixing of the 2015-2016-2017 Annual Assessments, why not ?…
3) What specific covenant then, other than Article IV, was used for the Creation of Lien and Personal Obligation in the fixing of the Annual Assessments?
4) What covenant was to be amended by last years’ Maximum $320.00 Annual Assessment changing the current Maximum of $210.00?
5)Why was the accounting reporting format convention used as of May 31, 2015 and 2016 not complied to and consistent with the cash flow reporting format used in the prior RHA handout labeled the Royden Homeowners’ Association Historical Financial Data for 2005-2010 (Exhibit 2)?
6) Why have there been no Annual Financial Reports provided to members for the Fiscal Years’ ending May 31, 2011, 2012, 2013, 2014 and the reconciling bank balances for those periods?
7 Why has the RHA not reported the10% Contingency Reserve Credits for over ten years and the credit for 2016-2017 as well as all other prior years? (Exh.2)
8) Why were there no Special Assessment projects submitted for membership approval for over 10 years for social, legal and in particular for the extensive reconstruction work performed on the entrance walls?
9) Why were legal fees incurred for over $197,000.00 and a resultant Special Assessment in 2009 (Exhibit 3) without member approval?
10) Why are there no ORBs on the Moorland Farms Entrance and original lanterns replaced?
11) Why are there not six nominees on the ballot for 2016-2017, term limits ending on May 31 and proxies miss-used last year to install two prior directors not on the ballot?
12) Why was the use of the D&O attorneys’ and legal action taken against a member, Richard Rinaldi, (who was cited for sanctions of over $6,300.00) without holding the required membership meeting?
13) Why are no Minutes shown on the RHA website and open board meetings held for general member attendance and books and records reviews not allowed?
14) Why are the consolidated covenants completed in 2004 not being implemented?(Note the By-Laws also need to be revised as they do not match the merged covenants and did not receive Phase vote.
15) Why is the fixing notification covenant of May 1, with payment due May 31 not being followed and done by email rather than the required use of USPS?
16) Why are Phase voting rules not used for all amendment and annual assessment voting.?
17) Why were covenant amendments introduced without the appropriate resolutions as dictated by the use of Roberts’ Rules of Order?
18) Why has there been no member notification of Ballot voting results from the June 18, 2016 Annual Meeting?
19)Why are the May 31, 2016 Royden Financial Reports missing a Cash Balance statement and beginning and ending Cash and Cash equivalents balances?
20) Why is the Cash Balance for May 31. 2016 not stated and attached comments show balance of only $714 with a &20,000.00 CD when the actual balance should be $22,359.30. a $1,645.00 cash shortage…AGAIN!!!!!
21) Why are Annual Assessments fixed at $320.00 for 2016-2017 when the correct Annual Assessment according to Article IV should be only….$67.00!!!!!