THE ROYDEN HOAx-HOW AN ELITE COMMUNITY BECAME A ROGUE HOA
Our Homeowner advocacy and education efforts have expanded beyond the Counterpoint Newsletter. to extensive coverage of Royden and HOA covenant abuses, in our website/Blog, associationbusters.com.In today’s newsletter and blog posting, we will be covering The ROYDEN Hoax-How an Elite Community, became a Rogue HOA.
First….AN UPDATE .Following up our recent report of Royden Cash Flow Shortfalls , we have the following confirmation of the story!
FROM DATA POSTED ON THE ROYDEN WEBSITE , the following simple checkbook cash flow clearly shows the confirming proof of the treasurers’ and BODs’ deliberate obfuscation of Financial Results and clear evidence of FRAUD! This UPDATE reinforces our prior assessment that “ROYDEN IS CORRUPT”…Look Here!
JUNE 1, 2015- Beginning Cash (and Cash Equivalents) Balance-$21,660.42 (as reported)(Should Be May 31)
2015-2016 INCOME-$24,633.58 (as reported)
2015-2016 EXPENSES-($38,934.70) (as reported)
2015-2016 PROFIT/(LOSS ) ($14,301.12)LOSS (as reported)
NOW DO THE MATH
The JUNE 1, 2016-Ending Cash and Cash Equivalents Balance-$7,359.30
The website data clearly does not reconcile to the correct bank balances. It is sheer GIBBERISH!
The Data shows Cash and Cash equivalents are only $7,359.30!!!!!
Folks, the correct Cash and Cash Equivalents balance should be well over $20,000.00….NOT $7,359.30……
Why can’t the treasurer (a lawyer no less) present a simple check book reconciliation!!! Because the BOOKS don’t balance!!!!
But look closer at the five page presentation when 5 lines are all that is needed.
Why does the lawyer/treasurer use terms such as “CASH FLOW FROM INVESTING_…”Checks Issued but not cleared”..”.Net Assets”…six font size….”Co-Mingling Years”…..”June 1 not May 31
FOLKS THIS IS CLEAR OBFUSCATION AT IT’S WORST.WHAT HAPPENED TO THE CASH!!!!!!AND…WHY ARE THERE NO FINANCIAL REPORTS FOR THE PAST 5 YEARS .WHY THE COVER-UP!!!
In any other non-profit corporation situation…THE TREASURER AND ENTIRE BOARD WHOULD BE REPLACED AND AN OUTSIDE AUDIT ENGAGED IMMEDIATELY!!!!!
But, with an apathetic, uninformed, lemming community……anything goes, in Royden!!!
The Royden Hoax-How an elite community became a Rogue HOA
Leading the advocacy and education efforts, is a current Royden resident and the Royden HOA Founding Vice-President, (FVP), a seven year Board of Director member (President (5years, treasurer and Architectural Control Director) of the original subdivision, Phase I/II. He now coordinates the Newsletter and Website/Blog initiative. His terms as Royden President were marked by quarterly financial statements, quarterly newsletters, clear separation of Annual and Special Assessment approvals and …..the introduction of a “ballot Annual Assessment process”.
The ballot annual assessment was used for Phase I/II residents. In 1994 Phases III and IV were merged into Phase I/II, and the development was complete. Article IV-Covenant for Maintenance Assessments was the Creation of Lien language of the 2 merged subdivisions, and then became the controlling covenant for the three subdivisions. After the 1994 merger, the Royden Board did not take administrative actions to consolidate the language of the three subdivisions and continued using Phase I/II ballot based assessments. Article IV-Covenant for Maintenance Assessments continues to be disregarded and eschewed by the Boards’, post 2004. However, ARTICLE IV is clearly a foundational LAW of the Royden HOA, and must be used in all Creation of Lien Annual Assessments…..The question is WHY NOT?…and WHEN…..Let’s look at the WHY NOT?
The Phase I/II Founding Vice President has been waging a pitched battle, since 2004, to get a blatantly corrupt Royden BODs’, and their attorneys’, to comply with Article IV and the founding documents of the 1986 NC GS 55A, Non-Profit Community of Royden. The developer documents remain unconsolidated and are a bulky stack of papers, not readily readable by old and new members alike. The (FVP) consolidated the covenants in 2004, The root of the Royden HOA mis-adventure into corruption, began in 2004, when the Founding VP consolidated the three Developers’ subdivisions’, common, covenant language, into a simple, single document,. The bulky and cumbersome, repetitious Phase I/II, III, IV documents were retyped, incorporating every last word of the three documents, into ONE consolidated set of covenants. When the Covenant Consolidation plan was presented, to the Board in 2004, the Board decided to save the $1,000.00 typing and legal review, and wait until the then Annual Dues of $150.00 were closer to the Consolidated Covenant Maximum of $210.00. The FVP’s vision of Consolidated Covenants and a remodeling of the front entrances was turned down by the “frugal” board in 2004. Oh if they only had known how expensive that vision denial was to become…Royden lost it’s Soul that year!!!!!!
Under all covenant provisions, the sole functions and purpose of all the Phase I/II. Phase II and Phase IV subdivisions was to maintain the common areas (front road entrances). Also part of the covenants called for committee approval/architectural review of all new and revised, non maintenance architectural modification. (Another category of Royden Corruption to be covered in future communications.
The HOA maintains the common Areas by collecting Annual and Special Assessments. Accordingly, it has the power for the CREATION OF LIEN AND PERSONAL OBLIGATION. Not in Royden, but in other NC GS 47F situations, fining power for property related violations are the norm. This taxing power called CREATION OF LIEN AND PERSONAL LIABILITY has no limit to its’ enforcement powers, including foreclosure, for the smallest amounts. That’s why associationbusters writes profusely about HOA UNCONSTITUTIONAL TYRANNY!!!
As it turned out, the disastrous delay in the implementation of the 1994 Merger Agreement, set the course for irreversible damage, heaped on to the HOA, by subsequent power seeking “volunteers” and their fee starved attorneys. The sins of the father, now stain the reputation of all of the ensuing boards, as they become subservient to the D&O Liability Attorneys’ and resist adhering to Article IV-Covenant for Maintenance Assessments.
Here’s what happened after 2004.
The subsequent boards, after 2004, led by a realtors and lawyers, began a self destructive POWER TRIP. Rather than remodel the front entrance, they decided to repaint, a different color. In their an attempt to strong arm a common area easement holder, into economic submission, the 2004 Board began a vitriolic feud with the member easement holder over the word “maintenance”. Yes, the word “maintenance” was the demise of this once friendly, cooperative community.
Now the attorneys take over. The unscrupulous Charlotte Observer HOA legal advisor Michael Hunter, initially advised the RHA FVP that the easement word maintenance, would not support a color change, by the RHA, without approval by the members and the easement holders. The FVPs’ terms ends.
Soon after his decision was presented to the Board, he reversed his counsel when faced with the prospect of some hefty legal fees, Hunter reconsidered, and counseled the post 2004 Board to file an illegal, unapproved lawsuit against the easement holders. He readily concluded that the easement holders would fold and not fight back. Here is a central flaw in the HOA concept and why HOAs’ are Tyrants….The HOA Attorneys conclude that they control the odds and that it is impossible for a single Homeowner, to win a case. In the Royden case, 138, apathetic lemmings, are paying legal bills against ONE, single homeowner. 138 against 1 are not good odds for the HO.
Over the course of five years, $300,000.00 in legal fees, were expended by both the Easement Holder and the HOA. Not once did the Royden Board get Special Assessment approval for a single dollar of the legal fees. They created a meme that the easement holders were “bad neighbors” for wanting to “maintain the walls to the color of their home”. The BOD stopped paying for insurance and maintenance, The easement holders retaliated and took back control of the now unsightly front entrance.The Board falsified financial reports and conspired with the attorneys to not report monthly bills, holding off for over three years. A malpractice that has Constructive Fraud written all over it. After three years of non-reported legal action, a $197,000.00 Special Assessment appeared….And the Lemmings paid it!!!!!
The HOAs’ power grab, to force a change of the walls color of the drab, gray stucco walls failed in court. The easement holders WON and were paid damages. . The revised easement agreement. even more strongly reinforced the easement holders control over the common area. As relations stand, the $90,000.00 the easement holders spent to defend their contract, will never allow the HOA to upgrade the stucco walls!!!!!!The drab gray walls still exist today. Royden is “STUCK WITH STUCCO” is their legacy. Just look for the absence of the pillar “ORB” on the easement wall!!!!! “ORBS MATTER”.
As stated, the Boards after 2004 were led by a realtors and a lawyer/treasurer, just as is the case today!!!! A toxic mix…Where are the Bankers and accountants???
For the next 12 years Royden was Rigged!!! The COVER_UP began!! Board nominations were rigged and by acclamation only..ie, 3 open seats, 3 nominations. This malpractice allowed for the President of the corrupt board, that lost the $300,000.00 of legal fees, to control the narrative and all transparency. No minutes were ever published, no financial information issued, no announcement of meeting dates. The leading bad actor, in this melodrama was another Lawyer/Medical Doctor, Doctor “O”. as in loser…… was allowed to continue as President.. …..Obviously a well deserved vote of confidence from the lemming community.
Dr. “O”, aided by the “wolf”, the “yard queen”, the “social princess”, “the mall man” , et al, continued the “reign of terror” on the community….lemming community, as was stated earlier……AND CONTINUES, EVEN TODAY, TO CONTROL THE RHA BOARD, WITH HIS CRONY ATTORNEYS STILL CALLING THE SHOTS!!!
Dr. “O”s BODs’, ,having successfully bilked Royden members of over $300,000.00 in legal fees, for the corrupt HOA attorneys, without adverse reaction from the covenant illiterate community now led subsequent boards and trampled the Article IV covenants. They raised Annual Dues to $310.00, $110.00 above the Article IV covenant maximum, amassed nearly $45,000.00 in Fiscal reserve, when the Article IV 10% Contingency Reserve Covenant of allowed a mere $3.000.00. The Dr. “O” Boards withheld the Member Fiscal Reserve Excess credit for over 10 years straight, manipulated notification and voting covenants, misused the proxies process, allowed NO Transparency and…..turned a blind eye to repeated misappropriation of funds beginning in 2012 and with the 2015-2016 breach, discussed in the beginning of this piece. Imagine….. Over $20,000.00 in missing CASH!!!!!!! NO ACCOUNTABILITY…NO OVERSIGHT….NO MEMBER OUTCRY!!!!
Truly…… “Citizens get the Government they Deserve”……JUST LIKE THE US of A in 2016!!!
In 2011, after repeated failures to energize the lemming community, the Founding VP filed a prose’ lawsuit (self represented) in Small Claims Court. The failure to activate the community was promulgated by a concerted, and unfortunately, successful attempt, by the Royden Board, and President “Wolf”, to marginalize the FVP and his claims of Article IV covenant violations.
The unscrupulous Charlotte Observer HOA Attorney, Michael Hunter was then called in to do some “ad hominem” hatchet work on the “complainer”, FVP. Hunter wrote a scathing condemnation of the complainers use of our Royden Counterpoint newsletter, that was published, to the entire membership. Hunter posited that the violations noted were false and that the newsletter was detrimental to the well being of the community and its’ property values…(copies available upon request). He also incorrectly stated that Annual Dues were $320.00………Clear ignorance of Article IV-Covenant for Maintenance Assessments-ANNUAL DUES MAXIMUM….$210.00.
Just another example of the unholy alliance between fee hungry attorneys’ and a corrupted board. Attorneys do not represent the Homeowner, they are in it solely for the fees that can be made by HOAs’ tyranny over the HO. Just try to find a HO HOA Attorney, there are none. They will only represent the HOA….Because in complicity with the unconstitutional court system…THE FIX IS IN…..See the associationbusters.com for more articles on the absence of court venues for HO complaints….Also Google NC Rules of Civil Procedure 12(B)(6)!!! to be covered later.
But the mendacity is not over. Article IV must be destroyed, or the Constructive Fraud-Breach of Fiduciary Duty time bomb will remain fused and ready to go off and cripple the D&O Insurance Company.
Here’s where the NEW…yes NEW….Consolidated Covenant Scam will be introduced by the “yuppie” board, too incompetent, naïve and spineless to resist their crooked D&O attorneys..
We use the term NEW SCAM, because back in 2011, the Royden board including un-named characters (we will refer to as the “wolf”, “lawn queen”, “social princess”, “mall guy”) tried to foist a “Covenant Consolidation/Revised By-laws” gambit on the lemming Royden Community. The BOD falsely postulated that the new covenant and by[laws were to be approved to correct the burdensome/bulky three phase documents. Under the guise that they were consolidating, they were dramatically CHANGING the fundamental character of this 25 year old community. Mind you now, a fully complete consolidated document resides in the Royden Boards’ files, waiting to be printed.
But no!!! With the stinging loss to the easement holders, the Royden Board has been emasculated…ie…They have LESS, yes LESS power than they did before 2004. Through deceit, AND A LEMMING Community, they were going to gain new, monetary fining enforcement powers. Just so that the “lawn Queen” secretary did not have to live in a community where she could not control her neighbors lawn maintenance program…..YES, THE NEW COVENANTS GAVE THE BOARD MORE ENFORCEMENT POWER, THROUGH FINING POWERS!!!!!…Remember, a $100.00 unpaid HOA fine could lead to foreclosure!!!!!! This was their vision for ROYDEN…….GFL….Said the FVP!!!!!!!
With the “lawn queens'” obsession for manicured lawns and pristine bed maintenance, the Board doubles down and issues a revised/consolidated covenant initiative to incorporate broader “fining powers” to the Royden Board for yet undetermined architectural control property rules. Yes, the simple common area maintenance only GS 55A, non-profit community was to evolve into a GS 47F common interest association with the Board of Directors having expanded powers to dictate and ENFORCE, THROUGH FINING POWERS, violations to an undisclosed, yet to be determined set of property maintenance related covenants.
Besides the 47F based covenants, the Royden Board developed a new set of By-Laws, totally unrelated to the prior By-Laws and founding By-Laws, to be co-joined to the BRAND NEW COVENANTS!!!!! NOT CONSOLIDATED COVENANTS……The vote, for the first time and only time was to be by PHASE, as required in the PHASE I/II, III and IV covenants. As called for in Article IV. What!!!! Some young attorney, not named HUNTER, actually read the covenants and correctly outlined the VOTING BY PHASE covenant!!!!
With some fortunate luck and in spite of a “wolf” driven last minute vote tampering/manipulation onslaught, the 47F covenant amendment failed,!!!!!!! By 5 votes….in PHASE I/II!
The new By-Laws, designed for the NEW Covenants passed, again through vote manipulation. Upon challenge, these by-laws will be ruled null and void. The failed vote was coincidently, taken, by the HOA attorney designated voting process……now get this Hunter……..A PHASE VOTING PROCESS.IS THE LAW IN ROYDEN!!!!.
.YES…yet another example of how uninformed the arrogant and incompetent Mr. Hunter was of the Royden Covenants. His ad hominen email said that “there was no such provision for Phase Voting”…But, when presenting the members with amendments to the covenants, his own attorneys called for VOTING BY PHASE…..Blatant ignorance on full display….And he writes an HOA Opinion in the Observer!!!!!!!
The FVP is now more energized than ever. The Tyranny must be stopped.
The FVP tries the no cost Alternative Dispute Resolution Process with the HOA and fails., The FVP decides to test the Court System
…Long story short…He finds the Courts, after 3 years, 300 hours and $10,000.00, will not allow homeowners disputes to be litigated by a jury. An unknown, seldom successful gambit, called a 12(B)(6) dismissal (failure to state a complaint for which relief can be sought) was employed by the Royden (D&O) attorneys to get the Breach of contract case dismissed by a, non-sympathetic, adversarial Judge, the Hon,Elizabeth Troisch. The judge was obligated to evaluate the contract (Royden Covenants), the complaints (10 years of incorrect Annual Assessments) and relief (damages in overpaid annual and special assessments). Simple Breach of Contract situation….NOT IN NC OR even the US..(see asscoiationbusters.com related articles on the unconstitutionality (due process under the law) of the HOA laws in NC and most states. The case was dismissed without a single exhibit being heard…FINI! KAPUT!
During the entire three years of litigation, by the Founding VP and the Royden attorneys, no mention of the dispute details, issues or costs, were transparent to the Royden Membership. The President, “clueless” skated through his two years virtually spoiling in his pants, for fear that he might have to testify to a jury concerning the RHA violations to Article IV. The VP, “lying Jon”, submitted a blatantly false affidavit claiming that he was aware of the covenants and that financial statements had been issued for every year. Apparently he either lied….or doesn’t know what a financial statement looks like…wethinks…he did both!!!!!
Basic logic would conclude that an honest and forthright, rational board would state the case, surrounding the FVP suit, present their position to the members and allow all to conclude that the dismissal was warranted……..WHY NOT…Because the Attorneys case is unsubstantiated!!!!! AND, get this, the Attorneys sued the Founding VP as a “vexatious litigant”.. won and received $6,300.00 in sanctions for legal fees. All quietly withheld from the membership. And in violation of a covenant requiring legal action against a member to be presented to all members.
The poet, Maude Roydens’ quote aptly applies…”the corruption of the best, is the worse”. Open mendacity, to protect the D&O Attorneys!!!!!! The $6,300.00 sanctions were the final straw and forced the FVP to resort to the use of public opinion, using websites, blogs, facebook, twitter…whatever, to force justice and honesty to be returned to the community of Royden.
But the Hoax continues. Waiting in the weeds, is the Boards’ “promised” consolidated covenants??????? Which the attorneys “are working on”??????? Consolidated…OR…Revised! Remember, the 2004 Consolidated Covenants already exist and have been electronically sent to all Newsletter subscribers and boards’ over the past 6 years!!!!
Article IV is scheduled for destruction. Otherwise a Constructive Fraud D&O Claim and a $350,000.00 Insurance loss is the Attorneys’ fate!!! If the lemmings….ever WAKE UP!!!!!!..And a redesigned front entrances fully paid for!!!! If just one more member will STEP UP?????
The current Board is planning yet another deceptive maneuver to try to make Article IV obsolete. The statute of limitations for the constructive fraud complaint-breach of fiduciary duty D&O claim ends in 2019. This means the lemming community has time to get educated. But will they!!!
Over the years, Royden Corruption has been perpetrated by over zealous, untrained, vindictive volunteers, realtors and attorneys….and in the case of the “social Princes” possessing clear conflict of interest motives. Imagine, the Princess coordinates catered parties for the board and her friends with no more than 15 out of the 138 members present. Using Annual Assessment funds!!! And…get this she has served unchallenged for over 12 years and was a leading instigator in the failed easement lawsuit!!!!!!!…WTF!!!! Is anyone home!!!
The Tyranny of the HOA thrives because of unprincipled Attorneys’, directing power hungry, untrained volunteers with apathetic, ill informed member communities in fee generating lawsuits against defenseless homeowners under the vast quasi-government, unconstitutionally designed and morally vacuous concept called …..the HOMEOWNERS’ ASSOCIATION.
With the continued use of this Newsletter, website, blog, social media, letters to the Editor, Wall Street Journal articles and HEAR4NC lobby support, we hope to energize Royden members and homeowners’ at large. With rising public awareness of the, readily confirmable, incompetence, and out of control nature of the Attorney driven Royden Hoax situation, Royden may well become the “poster child: of a Rogue HOA and make an otherwise positive contribution to homeowners at large, and assist in leading the way for legislative reforms to become a reality in NC..
NCs’ leader in Homeowner advocacy, Jim Lane (nchoalaws.org) quotes….Everything will be all right in the end. If it’s not all right, it is not yet the end” – The Best Exotic Marigold Hotel
Proudly and Defiantly,
The vexatious Litigant,
Richard A. Rinaldi
3935 Moorland Drive
Charlotte, NC 28226