Worried about Insolvency? Or IRS Tax Claim?

I moved to The Summit early in 2018 and soon began attending Safety Committee meetings and board meetings. As a resident I was interested in becoming part of the community.

And I began reading the By-Laws and CC&Rs. Years ago in Denver I was Treasurer of a HOA. I noticed that the By-Laws were not being followed.

I started this blog on July 14, 2020, and it was about November 2020 when I received a couple of nastygrams from Justin and George. They kicked me off the HOA website (where the By-Laws can be viewed) and banned me from board meetings.

The non-compliance continues, but it doesn't seem to matter very much to most of the homeowners, who probably aren't even aware of it. 

The homeowners should really be concerned, because it's possible there isn't even a legitimate board of directors. What does that really mean?

If the Neighborhoods don't have annual meetings and annual elections of the Neighborhood Committees, from which the Voting Member is selected, then most Neighborhoods don't have legitimate Voting Members. The Voting Member is not perpetual. The Voting Member is to be elected each year.

If there aren't enough legitimate Voting Members, then there is no quorum (15) of Voting Members to elect Directors each November, so there aren't any legitimate Directors. 

Without legitimate Directors, there is no one to hire a management company, deal with $2,000,000 in cash accounts (including Reserves), hire landscapers, sign contracts, collect and deposit dues, or pay the management company.

These problems are easily rectified. Just comply with the By-Laws.

Another possible problem is that IRS might swoop in and claim a large chunk of reserves as unpaid taxes. Hopefully, the new auditor will alert the Board to this problem and have recommendations. Attend the August 2nd board meeting at the church. The Auditor should be presenting her report. Ask questions.

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