Reserves - Anyone Worried Yet?

At the May 2026 Board Meeting it was mentioned that no Reserve Study had ever been done by The Summit's HOA.

Keep that in mind as you read the following post, which was copied in part from a Facebook post associated with the HOA Reform Leaders National Group.

How smart is going on a long road trip in a gasoline powered vehicle and not knowing the capacity of the fuel tank and not having a fuel gage [sic] with a Full display?

Taking such a road trip, is like living in an HOA community with a Reserve Study that omits a Full Funding alternative as a benchmark so Percent Funded can be determined.
According to reserve experts, if the reserves’ amount is less than seventy percent (70%) of a Fully Funded Balance (FFB), an owners’ association is at risk of a special assessment.
A practical owner-friendly guide:
  • 0% to 30% funded: high-risk zone.
  • 30% to 70% funded: moderate-risk zone.
  • 70% to 100% funded: stronger reserve position.
  • 100% funded: at or near Full Funding benchmark
At the present time it is impossible to determine in which "zone" The Summit's HOA falls. The fact that neighborhood landscaping projects (e.g., the entrance to Barony Place II) are on-hold illustrates the great concern of the Board of Directors about the impact of the cost of repairs to the Indigo Lake dam.

In 2024 the HOA "invested" $126,352 in an annuity on the life of a board member who is today still a board member. Will that money be needed to pay for dam repairs?  What is the Net Cash Surrender Value of that annuity? Had that money remained in the CD at 4%-5%, what would its value be?

Danny Trapp was Board President then. Why weren't the surrender of the CD and the purchase of the annuity discussed in public at a monthly Board Meeting? Why didn't the Board vote on those transactions and approve them? Which Board Officer(s) facilitated the termination of that CD? Why aren't those transactions recorded in the Minutes of Board Meetings?

Why is the current Board silent about the annuity and whether it was a suitable "investment" for the HOA?

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