Bernie, an interesting survey copied from Wikipedia explains why the conditions in our Sun City exist. These HOA's such as SCSCAI are organizations created by a real estate developer for the purpose of controlling the appearance and managing any common-area assets during the marketing, managing, and selling of homes and sites in a residential subdivision. It grants the developer privileged voting rights in governing the association, while allowing the developer to exit financial and legal responsibility of the organization, typically by transferring ownership of the association to the homeowners after selling off a predetermined number of lots. It allows a civil municipality to increase its tax base, but without requiring it to provide equal services to all of its citizens. Membership in the homeowners association by a residential buyer is typically forced as a condition of purchase; a buyer isn't given an option to reject it; these conditions are the fundamentals of SCSCAI's social and financial problems.
The he only foundation of real business is "service". These "services" are provided for the home-owner by a collection of people who are brought together to do work and not to write letters to one another (The Management). It is the business of those who plan the entire work to see that all of the departments are working properly toward the same goal, "service" to the customers, not to defend the HOA against its members. The BoD's function is to provide oversight of the Management, insuring the resident members investment and lifestyle in their community. I might point out not one of the Management has the qualifications or mentality to run this community business.
A survey, conducted by a home improvement trade organization vendor, of over 3,000 people found that two-thirds found their HOAs were "annoying" or worse. 25% of those who responded had never lived in an HOA, 19% had been in a "war" with their HOA, and the remaining 56% had never had a conflict or resolved it quickly / considered it no big deal. 54% of the respondents said they would rather live with a sloppy neighbor than deal with an HOA. 24% responded positively about an HOA, and 45% responded positively or felt the HOA was a minor nuisance.
Advocates often maintain that people choose to live in HOAs, but some note that "choice" is misleading. HOAs have been mandated by municipalities for decades either directly or indirectly. This is often accomplished by conditioning plat or other approval on the creation of amenities such as roads, open areas, greenbelts, retention basins, etc. and an obligation to maintain them. In towns where such regulations exist, people who wish to purchase a home have no choice but to live in an HOA. Finding a non-HOA neighborhood of homes built in the last several decades is virtually impossible. The choice for most buyers seeking a newer home is not HOA or non-HOA but which HOA
The imposition of an HOA accomplishes several benefits for the municipality. First, these amenities may be burdened with property taxes which would not be the case if the amenities were owned by the municipality. Thus the mandated private amenities are cash generators for the municipalities. Second, the municipalities bear no obligation to maintain the amenities given that they are owned by the HOA.
copied from: From Wikipedia
Dwain A. Kramzar
2624 High Range Dr.
Las Vegas, NV 89134
From: Bernard Silver [mailto:silverinvegas@yahoo.com]
Sent: Sunday, August 01, 2010 7:21 PM
Subject: Re: [SC-SCOOP] Provide a law? WE DON' NEED A NEW ONE!
I remember very well discussing some of the features when we were negotiating to purchase our unit in this Sun City Summerlin, Common Interest Community (CIC) around September 1996. First of all, as a confirmed non golfer I asked whether as a member I would be required to financially support the activities of golf. NO! NO! was the response I received in front of two witnesses. Secondly, having learned that in many country clubs, the members are billed a minimum of $ XXX per month, even if they do not eat in the restaurant. This of course encourages the members to do just that and use up their "tax", if you will. Again, NO! NO! was the response I received in front of two witnesses. It is because that I am in general one who trusts his fellow man, I failed myself in getting it in writing. Anyhow, as a result of what I can only describe as totally inept management, and almost dishonest representation of the Financial Statements, and a succession of outside Annual Audits by a CPA that as far as I'm concerned is of very little value in that he is paid only to verify the 'numbers given to him', for that year, and if there were to be an error of over a $1,000,000, as there was for about two Fiscal Years, he would not be expected to catch and correct it. This cost the members. So why bother with an audit by a CPA? These conditions and the facts that the annual losses, that we can see from the very nebulous attributions of Revenues & Expenses, have grown to over $2,000,000 are not clearly visible to the average unit owner in this 7,781 unit community. Additionally, we have hade about $7,000,000 of Special Assessments and new unit owners are dunned a one time charge of about $1,100 for a Reserve Assessment. Yes, my fellow unit owners, the Sun City Administration knows how to raise money but does not know how to reduce costs. This year, in the Budget there is over $500,000 to replace 200 golf carts -- all at one time. The members are continuously lulled into a condition of trust because the Annual Budgets show a small surplus after what I call mischievous bookkeeping methods that should not be accepted by any CPA performing a real paid for Annual Audit. Of course, this is my opinion, as a retired engineer, but its based upon dealing with CPAs performing unqualified audits for publicly owned corporations, subject to SEC standards. Anyhow, shortly after becoming a member of this CIC in 1996, I received notification that the Nevada Legislature ( heavily lobbyed by the Community Association Institute from Alexandria ,Virginia -- my home state after getting out of the US Army in 1953) had created a new Chapter of Law to protect me from 'Abusive Boards'. This was a gradual process and like "creeping crud" has grown, with each legislative session, to be a stranglehold on unit owners who can no longer rely on their original Purchase Contract and cannot be treated as knowledgeable members of a CIC. Heck! I can't even get a copy of the attorney opinion that relates to the interpretation of a portion of our governing documents, which we the members have paid for. This, does, this not decrease the attractiveness of our community to potential buyers of our property? I know that I wouldn't buy a unit here until this Administration shapes up. Bottom of the line. Thank you Bob Hall for filing your case in District Court. Case # A 10- 620564-C Dept XV showing that our Fed and State Constitutions have been violated by the Nevada State legislators. If I owned all 7,781 units I declare I would immediately explain to the Executive Director that the growing losses are unacceptable and he would be given a couple of months to keep his job by presenting a clear and tangible Business Plan convincing me that he is worthy of his job by showing a reduction in the growing losses. If he couldn't do this -- why would I keep him? So lets be realistic. Who is directly responsible? 1. The Board of Directors who as "Fiduciaries" have failed to protect their unit owners. 2. The unit owners who elect the Directors. 3. The Executive Director who has the job to hire and fire all staff and to operate this community in a business like manner. Remember, in a manner similar to our Federl Gov't, we the unit owners are indirectly responsible because we elect the Board Directors. Do not hesitate to pass this to others who may not be on distribution. Do not be deceived by the real estate salesperson, Sheila, or Stan Bjonerud that this is the lowest cost community with the ammenities that we have. It isn't so -- we are losing not only $2,000,000 plus per year that is made up in our Annual Dues, we are losing real estate value very rapidly. ==============================================
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