Legal Questions the HOA Might Face

Because The Summit's HOA has not complied with a number of very important sections of its CC&Rs, By-Laws, and Procedures Reference Manual, what are some of the legal problems it could face?

The most important is the failure to guide the 28 Neighborhoods in holding Annual Neighborhood Meetings, election of [local] Neighborhood Committees, and election of a chairman of the Neighborhood Committee, who becomes the Neighborhood Representative and Voting Member. The result has been, for many years, there were no legitimate, duly-elected Voting Members.

The Boards of Directors have allowed a scheme of "getting signatures" to replace the requirement in the By-Laws of the neighborhood election. That scheme is not mentioned anyone in the By-Laws. It is not a legitimate process of selecting a Voting Member.

The HOA has allowed Annual Meetings of Voting Members to be held, even though there was not a quorum of legitimate Voting Members. The result is that elections of directors were held, instead of being postponed until a legitimate quorum was present.

No Minutes of the Annual Meetings of Voting Members has been created and published for inspection by the Members (homeowners). There is no written record of who attended, who voted, or who was elected.

Each November three or four directors have been elected by people who were not entitled to vote. This is called Election Fraud. And those who were "elected" were not (and are not) legitimate directors.

When the HOA conducted its Organizational Meetings,these were held as private, closed meetings, rather than in the open and in the view of Members of the HOA. These were improper elections, because there were no legitimate directors to vote. Thus, the officers are not legitimately-elected and are not, in fact, officers.

Without legitimate officers and directors, no business of the HOA can legally be conducted. There is no one to give instructions or directions. Contracts cannot be entered into, amended, or canceled.

Earlier this year (2024) the President had no authority to enter into negotiations with a new law firm, and the board had no authority to entertain or approve a Motion on May 7, 2024 to "hire" (retain) the law firm of Turner Padget. If any of the directors read any of the emails from me, there would have been aware of that question. Did Turner Padget read the emails from me that suggested they dig into the HOA and determine whether they could be retained? Or did they just take Danny's word for it?

When it came time to close and open bank accounts, did the Board or the Treasurer have the legal authority to do so?

If Signature Cards were presented to the banks and Edward Jones by people who were not legitimate officers of the HOA, was banking fraud committed? Is that a Federal crime?

There is more, but that's enough for today.