ROYDEN HOA CONSTRUCTIVE FRAUD REDUX
Hello Neighbors and blog readers. On May 1, 2018, the Royden HOA Board is scheduled to repeat a fraudulent annual assessment, in violation of Article IV-Covenant for Maintenance assessments, as outlined in the Royden Covenants, Controls and Restrictions (Phase III, IV) as shown on the Royden Website.
Continuing our education and advocacy efforts, on behalf of Royden members and readers of our blog, associationbusters.com, here are some facts regarding our long held belief that Royden is engaged in “constructive fraud” in the execution of their duties under the covenants and….IS CORRUPT! Here are the facts!
1) The Royden Covenant, Article IV-Covenant for Maintenance Assessments was part of the Royden HOA since 1994, Among other conditions it states that Annual Assessments can only be used for Common area maintenance, limited to $210.00/year and to maintain a 10% Contingency Reserve ($2,898.00). The reserve is often over $64,000.00, for absolutely no reason. An open target for fraud, as was unreported several years ago.
2) Royden has violated this covenant since 2005 by charging $320.00/year, not observing the fixing timeline, special assessment provisions and basically totally disregarding the Article IV covenant.
3) Royden Boards have been part of a closed selection process for over 10 years after a disastrous loss of $300,000.00 of member funds in an easement dispute which lost the HOA’s control of one of the main front entrances,
4) The Royden HOA has been involved in three lawsuits, spending over $30,000.00, revolving around their non-compliance to Article IV in the fixing of annual and special assessments, without ever disclosing to members, that the issues revolved around Article IV.
5) The lawsuits never were adjudicated as the HOA attorneys had the case dismissed using a defense labeled “failure to state a claim for which a remedy can be made”. This is a national ploy used against homeowners attempting to use the court system to resolve HOA disputes.
6) The Royden HOA also filed a lawsuit against the disputing homeowner, a violation of the covenants, and won a judgment for legal fees of over $6,300.00. The same litigant is working a new ArticleIV claim and claim to recover the $6,300.00 lawsuit penalty.
7) The Royden Boards have NEVER amended the Royden Covenants and specifically Article IV-Covenant for Annual Assessments. All HOA Covenants must follow FEDERAL and STATE Law and require a legally mandated 2/3 vote of all members. In The Royden Case a 2/3 vote is required by PHASE, as Royden has a three subdivision HOA.
8) The current treasurer, Ben Pleune, a lawyer, no less, attempted a surreptitious amendment several years ago. In truth, the majority vote result can only be considered a technical “motion to amend”, per Roberts Rules legal counsel advice. As presented, Pleune’s motion did nothing to state the section/sections of the By-Laws and Covenants to be amended, the reason for the amendments and a clear statement as to the language to be used in the Articles to be amended. A total SHAM….foisted on a lemming population of members.
9) The reason for the lack of clarity on the amendment process, is clear. The rigged boards, do not want to draw attention to a key Royden covenant, Article IV-Covenant for Maintenance assessments, that clearly states provisions that they have violated for over 10 years. A covenant that they failed to defend in a protracted legal struggle, unreported in any board meeting minutes and deceptively manipulated in a false an illegal attempt at amendment.
10) The Royden Board has repeatedly not allowed any member review of books and records, not published any board meeting minutes, not maintained the HOA Website, not provided legally compliant financial statements, not held open board meetings, not functioned with the covenant proscribed architectural review process and has been run as a closed society manipulating, through silence, an apathetic disinterested community of homeowners. Homeowners who continue to be represented with an outdated, deteriorating brand statement present in the over 30 year old stucco walled main entrances.
The above FACTS support the claim of “Constructive Fraud-Breach of fiduciary duty “, the legal claim that will, at some point, be made, in a court of law, against the Royden HOA. Multiple Royden boards, in collusion with their attorneys, have been conducting the affairs of the association, in clear violation of Article IV-Covenant for Maintenance Assessments. A settlement is on the table!!!!! When will the Board settle this festering dispute…and MOVE ON!?????
Our pending lawsuit is lacking 2 key elements,,,,,A books and Records review and a Notice of Delinquency of Annual assessments. In the latter case, our lawyers are prepared to re-litigate our claims of failure to meet article IV provisions, once the Royden HOA presents the plaintiff member with a statement of delinquency of annual assessment payments. To date, we have disputed, and not paid assessments for nearly 3 years. The association refuses to provide a “Certificate of Payment of Annual Assessments” as provided for in Article IV. They even have refused four Certified letters, returned by the post office, just to avoid dealing with the matter or accepting a lower payment of assessments.
Just visit the Royden Website to witness the ineptitude and incompetence of your Royden Board. There is no list of current officers, contact information, current financial information, scheduled board meetings…..nothing to give one confidence that Royden has a functional HOA….The most important legal body with the power to foreclose on your home if you fail to pay the Annual Assessment. The lack of initial and follow up invoicing for payments due, is just another deceptive practice so as to not have an actionable claim to file in a court of law.
SHAME is the only word appropriate for this body…all this perfidy while a growing Charlotte National reputation has Royden saddled with an apathetic membership and Owensby ORBS as their branding statement front entrance,,,,,
Our tireless pursuits will continue,
The Vexatious Litigant
“all that is necessary for evil to triumph, is for good men to do nothing”