Special Assessment Possible?

How would you feel about a $3,000 Special Assessment levied by the HOA against you and every other HOA Member (homeowner)?

Article X, Section 4 in the CC&Rs allows this. Are you aware of that?

Should the Board do everything possible to eliminate the possibility of such a Special Assessment?

What is the Board doing that might just lead directly to such an Assessment?

The HOA, by actions of the President (Justin Martin), the Treasurer (Vernell Butler, and the Safety Committee Chair (Dennis Rybicki) entered into a contact with the Richland County Sheriff's Department, effective February 1, 2023. They arranged for special patrols in the Summit at a cost of $48.00/hour.

In the Special Duty Agreement is a Liability clause. It reads, 

"The Requestor will hold harmless the Richland County Sheriff's Department from any and all claims or liabilities resulting from service and indemnify RCSD for any loss due to any injury of its employee unless there is a determination of negligent actions / activity or performance of duty."

What does that mean?

1. If a deputy is injured, the HOA is on the hook. Worst-case scenario? A deputy becomes permanently disabled and hospitalized at major medical expense. How much could that be? Thousands of dollars? Hundreds of thousands of dollars?

2. Under the "hold harmless" condition, again assuming a worst-case scenario, the deputy is pursuing a perp and the perp is seriously injured, sues the RCSD and the HOA, and wins. Who is on the hook? Not RCSD. The HOA!

The Board of Directors never authorized, by recorded vote, either the re-negotiation of the Agreement or the execution of it. That should all be detailed in the Minutes.

Did the HOA's lawyer review the Special Duty Agreement and give a legal opinion, before it was signed?

Did the HOA's insurance company review the Special Duty Agreement?

Or did Justin, Vernell, and Dennis just decide, "No problemo"?

If RCSD and the HOA lost a $10,000,000 verdict (and you know how free juries are to spend OPM (Other Peoples' Money)), all of the HOA's $2,000,000 in cash and reserves could vanish. Where does the other $8,000,000 come from?

If the insurance carrier says, "Not from us", then you pay. Art. X, Section 4 kicks in. $8,000,000 divided by 2,480 homeowners equals $3,225. And that's not counting defense legal costs.

How certain are you that there is no problem with the Special Duty Agreement? Speak up now - at the next board meeting, May 2, 2023.

Comments

  1. Calvin KennedyApril 15, 2023 at 10:01 AM

    This would definitely not concern me, cause I simply would not pay it!!!

    ReplyDelete

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