ROYDEN HOA is STILL CORRUPT-THE ROGUE HOA SERIES BEGINS
Dear Readers, Before we start, all Royden Members should note the dilapidated 1980’s designed , stucco front entrances. Updating will never be agreed to by the easement holders, thanks to the unapproved, failed legal action costing $300,000.00 in Legal fees spent by prior boards in their attempt to steal the easement holders property.Thanks Owensby and Gressette!!!!! Royden Property values reflect your egregious violations of the CCR’s with ARTICLE IV-COVENANT FOR MAINTENANCE ASSESSMENTS BLATANTLY VIOLATED FOR OVER 12 YEARS….Now the Newsletter.
ROYDEN IS STILL CORRUPT-The irrefutable evidence, that Royden is still corrupt, is corroborated by the fact that the Royden Board of Directors, have failed to provide basic Financial reporting, that meets established precedent and NC Law conventional report formatting. The report formatting mandated is that associated with simple checkbook balancing, as summarized below (with 2008 Actuals from Royden Statements): The Royden Format convention is but 5 lines, Here it is:
May 31 Bank Statement Beginning Cash Balance:(Fiscal Reserve)……May 31, 2008-$21,,228 (Fiscal Reserve)
Cash Receipts (June 1-May 31): (Annual assessments)………… June1-May 31 2008–$44,959
Expenses (June 1-May 31): Common Area Maintenance…………….” ” ” ” ” $52,205
Profit or (Loss) (Cash Receipts minus Expenses); Also Cash Flow…..Profit or (Loss) ($7,246)
May 31 Bank Statement Ending Cash Balance: (Fiscal Reserve).Ending Cash Balance-$13,982….Note the 10%Contingency Fiscal Reserve Max is $2800 and a credit was not paid!
Again, Financial reports have not been provided to the required basic format, or not provided at all, for the years beginning with May 31, 2011, 2012, 2013, 2014,2015 and 2016. In fact, in 2015 qnd 2016, the treasurer, Ben Pleune, doctored and falsified the year end reporting to mask a cash shortfall of an estimated $12,000. The pattern of deception began with Charlton Owensby in 2006-2009 and continues today to cover-up the fact that Fiscal Reserves rose to over $45,000 and multiple boards had seen apparent miss-appropriation of significant funds during the period of non and false financial reporting.
If the current Board feels that these accusations are false, they need to simply provide electronic copies of financial statements (as dictated in the covenants and by-laws) for 2011 through 2016 that meets the basic checkbook accounting methodology outlined above. Either the data exists or it doesn’t exist!
The Royden Boards continuous failure to meet this fundamental obligation, confirms that gross irregularities exist for multiple years and they are unwilling to provide the documentation that will irrefutably confirm our accusations to be true or not true?
How an Elite Community became a rogue HOA Our newsletter and blog at associationbusters.com is continuing to spotlight the Royden HOA violations of NC law with articles broadly titled “How an Elite community became a rogue HOA”.The series of articles will have the framework outlined herein. Subscribers and visitors to the site will have a real time understanding of the history of perfidy foisted on the Royden Homeowner community. At some point it is hoped that truth will prevail and Royden will abide by the founding covenants, the writer was part of implementing in 1987.
To date , the Royden member community continues to show an apathetic indifference to the repeated violations, by the volunteer boards, of the fundamental governing Covenants, Controls and Restrictions outlined in Article IV-Covenant for Maintenance Assessments. The Royden Board of the quasi-government, non-profit organization under NC GS55A, maintains a total silence to all issues covered in our newsletter. This strategy has worked in the past. However in the age of social media technology, we hope our blog, facebook presence and exposure by other media outlets, will cause the Royden Board of volunteers to recant past vio;ations and observe the simple provisions of Article IV.
To keep what we have oftimes called, the lemming community, informed, we again present a summary of the Royden HOA current and past violations of NC Law .Each area subtopic to be part of the associationbusters.com series, “How and elite community became a rogue HOA”
The Royden Board as of 11-26-16:
HAs NOT Published Current 2016-2017and Past Financial Statements for the past 7 years that meet NC Law with opening and closing Bank Balances reconciliation.
HAs Not Addressed the over $12,000.00 of CASH SHORTFALL/Mis Appropriation(?) of funds in evidence in 2016 Financial Reports and as far back as 2012
Has NOT removed Ben Pleune as treasurer for blatant violations to Article IV and the doctoring of several years financial statements to cover up cash flow losses.
Has NOT Addressed apparent Incidents of a Board of Director Members’ Miss-Appropriation of Funds during the past 5 years
Has Not properly made a fixing of Annual Assessments to meet Article IV for over 12 years and overcharging the Maximum annual assessment of $210.00
Has NOT Credited each member with 10% Contingency Reserve Credit of approximately $160.00 for over 10 years.
Has not obtained Special Assessment Approvals for wall orbs, street signage, common area expansion, assumption of street signage maintenance and over $30,000.00 of wall reconstruction.
Has NOT informed all members of a members three year long D&O Insurance Claim/Lawsuit involving Article IV-Covenant for Maintenance Assessments.
Has Not obtained Approval of a legal action/sanction against Rinaldi resulting in Rinaldi Paying $6,300.00 of Roydens’ legal expenses.
Has NOT obtained Easement Holders Approval of the wall ORB due to previously forcing easement holders into a $90,000.00 Legal Bill over a paint color which failed.
Has NOT addressed the over $200,000.00 unapproved Special assessment in 2009 and the deceptive financial non reporting of monthly legal fees for over 3 years.
Has NOT answered 20 key questions on the conduct of the Board of Directors presented by Rinaldi at the 2016 Annual Meeting.
HAs NOT Commissioned an immediate AUDIT of all Financial Reports to reconcile Bank Balances and account for the apparent Cash Shortfalls.
Has NOT allowed access to books and records and provided electronic copies of last 5 years of Financial Records required under the covenants.
Has Not properly administered the nomination and election of Board of Director candidates and allowed the misuse of proxies to allow 2 Directors board seats.
Has not removed Charlton Owensby and Ms, Gressette as board members as a result of their illegal appointments using proxies and subverting the election process.
Has Not appointed Mr. Mihaltian to fill the board vacancy created by Mr Arringtons’ departure (see website).
Has Not scheduled an open board meeting for member participation or published meeting minutes for member review of multiple court appearances by Board members.
Has not retracted Attorney Michael Hunter post, for members viewing, of libelous, false email deriding Rinaldis’ newsletter in a stated attempt to marginalize the member.
Has Not provided consolidated covenant documents prepared in 2004 and typed in 2011, to the membership to reduce the multi-subdivision covenants currently posted on the website.
Has NOT Dissolved the Board and called a SPECIAL MEETING to review the prior illegal positions taken by the D&O Insurance Carrier and the failure to abide by Article IV.
Has NOT Commenced Filing of a CONSTRUCTIVE FRAUD SUIT against prior Board members for their egregious miss-application of basic covenant provisions of Article IV
Has rigged Board nominations for 12 years allowing only repeat board members or limited nominations equal to the number of open seats.
Has Not empowered an Architectural Review Committee as required in the covenants nor made any attempt to report on any member architectural review matters as required in the CCRs.
Has Not proposed the use of a D&O claim to recover over $350K from the D&O Insurance Carrier that could be used to upgrade the dilapidated front entrance walls.
Has Not properly presented Covenant amendments, by-laws amendments and improperly administered voting by sub-division and a vote by phase balloting process.
Has Not met the notification covenant of Article IV and fails to provide USPS Annual Dues Invoices in favor of emails from the personal account of the clueless president.
Has refused four (4) certified mail letters from Rinaldi exposing the RHA to legal action for failure to meet the basic HOA member contract.
Has not removed the SOCIAL EVENT labeled “catered parties” from the website as no Annual Assessment funds may be used for these purposes.
Now for the really bad news….As a result of the many violations over many years, the Royden HOA is being managed essentially by the Directors and Officers Liability Insurance Carrier, Here’s why!
The Royden Board cannot suddenly abide by Article IV-Covenant for Maintenance Assessments, as required. To do so would be an open admission of many years of violations exposing the Insurance carrier to a breach of fiduciary responsibility-constructive fraud claim. This claim could be sought by members or a new board and has a ten year statute of limitations. The egregious Special Assessment fixed by the Owensby’s board in 2009 ($197,000.00) would allow an action to be brought, if filed before the year 2019.
Accordingly, the current Board is in a holding action, waiting to run out the clock on the potential landmark legal action. An action, by the way involving the Charlotte Observer’s HOA writer, Attorney Michael Hunter. Just imagine the embarrassment to Hunter and Horrack, Talley. if and when the D&O Claim were to be filed…and succeeded. Hunter and Horrack Talley have played a key role in the deception foisted on Royden homeowners for over 12 years.
So enjoy your left over Turkey and the Blessed Christmas Holiday Season. But each time you look at the Royden Front Entrances, think about that Easement Lawsuit some 10 years ago, and the LEGACY the prior Boards have left the new and remaining homeowners and the stained Royden brand that will be memorialized on associationbusters.com.”How an Elite community became a Rogue HOA”
The Vexatious Litigant ……………………………………………………”.We may not be able to keep our government from lying to us, but we’ll be damned if we let our neighbors lie to us”