What is "Summit HOA"? (Hint: it's not SCA)

What is "Summit HOA" (legally, The Summit HOA, Inc.)? 

Hint: It's not The Summit Community Association, Inc. (SCA), although many people refer to the SCA as the Summit HOA. It would be better to refer to it as The Summit's HOA.

Why is the distinction important?

Because Vernell Butler, a Director and Treasurer of the SCA, executed a legal agreement for supplementary patrol services with the Richland County Sheriff's Department (RCSD) on February 3, 2023. Vernell signed the document, called a Special Duty Agreement, electronically as Treasurer.

It's unclear who provided the information to RCSD, but the Agreement (legal contract) is a standard contract form used by RCSD. How did the wrong legal name show up on the contract? Why did Vernell sign a contract with the wrong legal name on it?

It sets out what the contracting party gets for its $48.00/hour. It also sets out stringent terms for Liability and, in my opinion, it contains language that could lead to the loss of $2,000,000 in Reserves and an assessment of all homeowners, if a deputy is injured or killed while working for the extra $48.00/hour or if he harms someone. 

And what it doesn't get. A deputy will not enforce the rules and regulations of the HOA, such as checking for IDs at the pools or parks.

The business name that appears in the contract is "Summit HOA". That business entity can be found on the website of the South Carolina Secretary of State and also on the list of Richland County's  Homeowner and Neighborhood Associations, where it appears as Summit HOA (The Summit).

Why is all this important?

Because the RCSD contract is not with The Summit Community Association, Inc. (to which you pay your dues every six months), BUT the invoices submitted by RCSD are being paid out of your dues by the SCA!

The contract with RCSD was signed by the Treasurer, not by the President and the Secretary. There appears to be no Resolution in SCA board Minutes that authorized Vernell to execute the contract.

If the proposed contract had been submitted to the HOA's lawyer, he would have spotted the absence of the name of The Summit Community Association, Inc. 

If the proposed contract had been submitted to the HOA's insurance company for review, because of the increased liability assumed in the contract, the lawyers at the insurance company would have spotted the omission of the legal name of The Summit Community Association, Inc.

"Summit HOA" may be a sub-HOA of one of the 28 Neighborhoods. See the Richland County list of for other names you might recognize; e.g, Autumn Glenn [sic] (The Summit), Autumn Hill (The Summit), Barony Place I (The Summit), Barony Place II (The Summit), Founders Ridge (The Summit), Hunters Pond (The Summit), Indigo Springs (The Summit), Pine Brook, Summer Chase, The Summit, Summit Comm. Assn. (The Summit), Summit Hills III, Summit Hills IV, Summit Hills V, Whitney Falls.

"Summit Comm. Assn. (The Summit)" is probably the business registered with Richland County that is The Summit Community Association, Inc. That's "our" HOA.

And some names you may not recognize, including Summit Safety (The Summit).

Autumn Run has a management company (MJS), but it's not on the County's list.

The bottom line is that no services have been legally contracted for with RCSD, but the SCA is paying for them. 

How much has been paid (Line Item 6050) to RCSD until the contract?

February 2023 $1,728

March 2023 $1,536

April 2023 $2,952 *

May 2023 $0 **

June, July - financial statements not yet posted to the website, as of 8/2/2023.

The Board budgeted $41,220 for extra services from RCSD in 2023. That's an average of $3,435/month.

* Did the Board question why the monthly invoice doubled?

** Did the Board question why RCSD was not paid in May?