Is Receivership Ahead For the HOA?

Could Receivership be ahead for The Summit's HOA?

What is it? 

"A receivership is a legal process where a neutral third party, called a receiver, is appointed by a court to manage a financially distressed company, property, or assets. This appointment is an equitable remedy, designed to preserve the value of the assets for the benefit of creditors, shareholders, or other stakeholders." (Source: Google AI)

Why might it happen?

The Board has a long history of failing to comply with the By-Laws. The result is that the HOA has no legitimate directors and no legitimate officers. There are people "acting as if" they are directors and officers, but they didn't get into those position by compliance with the By-Laws.

What the Board could (should!) do now.
  • Admit that it has been doing things incorrectly and that it will correct its course;
  • Affirm to the Members and Voting Members that it will immediately improve compliance with the CC&Rs, By-Laws, and published Guides, such as the PRM;
  • Direct the (HOA's) Neighborhood Committee and its chairperson to add members and present a written plan within two weeks for how it will implement its Mission;
  • Retain a Parliamentarian for 90 days to get Board Meetings on track;
  • Formulate and announce immediate steps to increase transparency;
  • Extricate itself from all prohibited, unapproved lawsuits;
  • Remove Danny Trapp immediately* as Board President and make sure he is not allowed to be a candidate in the November 2025 election;
  • Remove any other officer who will not commit to complying with the By-Laws, CC&Rs, and published Guides (ex., PRM).
  • Consider replacing the law firm that filed legal action in a case that was never approved by the Board. **
* Trapp, as Board President, initiated a lawsuit against Gus Philpott (me) in the name of the HOA in December 2024, even though the Board of Directors never voted to approved the lawsuit or authorized him to have it filed.

The HOA has incurred substantial legal fees for the unapproved (and prohibited) legal action.

As a former Board member (until 2016), long-time Voting Member, and  Board Member and Board President since November 2023, Trapp knew, or should have known the rules, for starting litigation.

** The law firm should have checked the CC&Rs before filing the case against Philpott. They should have confirmed that the Board had approved it. 

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