Royden Phase III and IV Poison Pills

ROYDEN PHASE III AND PHASE IV VOTING POISON PILLS

Dear Neighbors, my last email blast neglected to cover the most important topic that all Royden Members must understand  , the subject of VOTING RIGHTS……If you do nothing else, read this email!!!

Here are the results of extensive work I did on documenting each Phase addresses and consolidation of covenants.

 An HOA is ruled by NC General Statutes, Covenants and By-Laws. The applicable NC law for Royden is NC GS 55A. Changes to NC Law are obviously done by the House and Senate. Covenants are changed by Members of the Subdivision. There are three Royden Subdivisions but only 2 sets of covenants, as III and IV are the same. Covenant changes to a merged HOA, with multiple Subdivisions, must be approved by each subdivision or phase. By-Laws changes are done with simple majority……..Let’s say for now, by simple majority of all Phase members, albeit, this idea may be subject to dispute

HERE IN TABLE FORM IS A SUMMARY OF THE VOTES NEEDED TO CHANGE A SUBDIVISION COVENANT:

                                                          PHASE MEMBERS AMENDMENT APPROVAL APPPROVAL VOTES

                                                          I/II            94                MAJORITY                             48

                                                          III             14                      2/3                                    10   POISON PILL***

                                                          IV             30                     2/3                                     20

                                                          TOTAL  138                                                 APPROVAL BY EACH PHASE*

                                                                                                     *ALL PHASES MUST INDIVIDUALLY APPROVE

                                                                                                     ANY COVENANT CHANGE **

*SEE NOW WHY ALL THE POWER IS IN THE MEMBERS HANDS!!!!!!!

**(NOTE: THE RHA HAS INCORRECTLY COMBINED PHASE III AND IV IN ONE BALLOT, THERE SHOULD BE 2)

PHASE I HAS 44 MEMBERS AND PHASE II, 50 MEMBERS BUT ARE CONSIDERED ONE SUBDIVISION OR PHASE I/II……THERE ARE A TOTAL OF 94 MEMBERS IN PHASE I/II….BUT!!!!!!!     THE PHASE I/II  COVENANTS ONLY CALL FOR A MAJORITY TO CHANGE A COVENANT…….THEREFORE IT TAKES 48 VOTES TO CHANGE THE PHASE I/II COVENANTS

***CURRENTLY PHASE III IS CONSIDERED A POISON PILL IN TERMS OF VOTING RIGHTS!!!

HERE’S WHY: THERE ARE ONLY 14 MEMBERS OF THE PHASE III SUBDIVISION, WHICH HAS THEIR OWN SET OF COVENANTS. TO CHANGE THEIR COVENANTS REQUIRES A 2/3 MAJORITY,,,,OR…..JUST 10 VOTES!!!!!!!

HERE’S THE POISON PILL……IF ONLY 5 MEMBERS OF PHASE III  (5 OUT OF 14) VOTE AGAINST A CHANGE TO THEIR COVENANTS, THE WHOLE ROYDEN COVENANT AMENDMENT GOES DOWN!!!!

ALSO, PHASE IV HAS 30 MEMBERS, WITH THEIR OWN SET OF COVENANTS WHICH ARE THE SAME AS PHASE III……PHASE IV ALSO REQUIRES A  2/3 MAJORITY OR 20 VOTES TO PASS AN AMENDMENT….IF  ELEVEN (11) MEMBERS OF PHASE IV VOTE NO ,TO A CHANGE TO THEIR COVENANTS….THE WHOLE ROYDEN COVENANT CHANGE GOES DOWN……

THIS WAS ALL PLANNED BY THE DEVELOPERS WHEN THEY ADDED THE ADDITIONAL PROPERTY CLAUSE TO PHASE I/II. THEY DESIGNED THE III AND IV COVENANTS SO THEY WOULD NOT BE CONTROLLED BY THE ORIGINAL, LOWERED VALUED PTOPERTIES IN PHASE I/II.

SEE NOW WHY THE PHASE III AND IV ARTICLE IV –COVENANT FOR MAINTENANCE ASSESSMENTS IS SO POWERFUL.

              As to the RHA BOD By-Laws and Covenant Revision Voting, there ARE SEVERAL PROBLEMS:

·       THERE is NO MAIL IN provision…

·       You must either attend the un-announced Annual Meeting OR……

·       .Create a PROXY….(CONSIDER ME AS YOUR PROXY)

·       THEY HAVE COMBINED III AND IV BALLOTS WHEN THEY SHOULD BE SEPARATE

·       THE FAVORABLE VOTE TALLIES SHOULD BE AS SUMMARIZED ABOVE…..ITF ANY ONE OF THE THREE PHASES, DOES NOT GET A FAVORABLE COVENANT VOTE, THE INITIATIVE IS DEFEATED

·       WHICH THEY EXPECT TO BE ONE OF THE BOARD MEMBERS…..AS ROYDEN MEMBERS HAVE ALWAYS TRUSTED THEM IN SPITE OF MY MANY WARNINGS AND GIVEN ROYDEN BOD MEMBERS THE BENEFIT OF THE DOUBT…….

·       CALL THE RHA AND DEMAND THAT MAIL IN VOTES BE ACCEPTED!!!!!!!

MY CONTINUED RECOMMENDATION IS TO:

·       DEMAND THE 2018-2019 ANNUAL ASSESSMENT BE DECLARED NULL AND VOID

·       DEMAND YOUR FISCAL RESERVE REFUND

·       HAVE ALL COVENANT REVISION LEGAL ACTIVITY CEASE

·       DEMAND THAT ONLY THE RINALDI CONSOLIDATION COVENANTS BE SUBJECT TO SIMPLE MAJORITY VOTE…

FAILING AT THAT….VOTE NO TO THE REVISED by-laws and COVENANTS TO BECOMING A NC GS 47F COMMUNITY!!!!!