Next HOA board meeting is Tuesday, August 1, 2017, 7 pm at the clubhouse!
As previously presented, installment 1 and 2 presented information directly from the audit detail provided after a concerned property owner requested to audit the HOA books. When the audit was requested initially, it was done according to guidelines outlined in our by-laws and state property code.
During the initial audit request, Spectrum provided no support documentation as requested or required when an audit request is presented. No one from the board attended the audit, and when Spectrum was asked questions by the two property owners who physically went to do the audit at Spectrum’s offices, Spectrum referred to their computers to provide answers but did not provide paperwork requested nor an ability to review any documents independently.
It was not until a further formal request was made by an attorney retained by the property owner seeking the audit and a concerned group of property owners that the audit details actually in possession now were released, even though they had been paid for previously.
The board did meet with the individual property owner who requested the initial audit, refusing to allow any other property owner to attend this meeting with that property owner even though that request was made, and while there was cordial conversation and exchange of information, nothing substantial has resulted except more questions. This meeting occurred approximately 6 weeks ago, allowing ample time for the remaining questions to be responded to and remainder of the paperwork requested sent (most of those items presented in Installment #1 and #2) –it hasn’t happened yet.
In this installment of information to property owners, additional support information is provided below showing examples of potential conflict of interest and conflict with our HOA by-laws. If you would like to review a full copy of our HOA by-laws visit the Spectrum website and click on their documents tab to see our by-laws document posted.
Looking at C. Powers and Duties. Section 2, page 11, Management:
“The Board may employ for the Association a professional management agent or agents at a compensation established by the Board….In the event that the Association employs a manager, the manager may not be an owner and/or resident in the Timberwood Park subdivision.”
Since entering into the agreement with Spectrum in 2011, it is believed the board has been in conflict/breach of our HOA by-laws. There are currently two high level officers of Spectrum who are property owners and reside in Timberwood Park. Both high level officers of Spectrum purchased and began living here prior to the turnover in 2011 and prior to the signing of the agreement by the board to bring Spectrum on as our property manager. If the by-laws had been fully read and discussed by our board, this contract should never have been consummated according to Section 2, page 11, Management.
In bringing this potential conflict to the attention of the board during the meeting held following the audit, the board made comment that they felt that it was helpful to have high level management of Spectrum owning and living in Timberwood because they could reach out to these Spectrum high level officers of the company thereby receiving answers to questions faster using these individuals living in the neighborhood. While this may be the reasoning for the board’s response, as a client of any management company, whether it is Spectrum or not, our HOA board should be able to receive timely answers from anyone working for the management company upon request.
A second comment made by the board was if the by-laws were amended it would look as if the board was trying to hide something. Probably an accurate comment, but that again does not change the fact that under our current by-laws it is a potential by-law violation which the board should have known existed if they had made themselves familiar with the by-laws when they took their oaths of office.
The Spectrum contract automatically renews each year. To our knowledge and that of Spectrum management the contract has not been reviewed by the board since its original inception with the turnover board in 2011. This can be validated by the fact that the signed contract holds the original president’s signature and the 2011 date signed, no amendments or changes made.
Disenfranchisement of the Villas Property Owners
also known as Taxation without Representation
As an additional point of concern, we believe the Villas property owners have been disenfranchised since turnover which is also known as “taxation without representation”. Those owners currently have no official opportunity or position to participate in or vote on anything which is brought before the community having to do with how their assessment money is spent…like whether a community improvement is built, whether they get to vote in the election of the board members, etc. Again, our HOA by-laws state:
“Article II. Association Membership, Meetings, Quorum, Voting, Proxies
Membership. There shall be one class of membership.
Then look at Page 3 and 4 of the by-laws– (again, you can find a complete copy of the HOA by-laws on Spectrums website under the documents tab if you want to verify the content)
“Section H. Voting
The voting rights of members shall be set forth in the herein. One (1) vote shall be granted to each member in good standing for each lot owned that is subject to payment of an assessment under the restrictions.”
There is one class of membership – those property owners who pay an assessment fee under the restrictions.
The Villas owners pay the same assessment fee under the restrictions that all Timberwood Park Property Owners pay. Additionally, they also pay a separate fee to a Villas HOA which was set up with the specific intent of managing their unique self-contained community septic system and some unique common areas expenses for those homes. The community septic system has an operator and other specific needs to maintain it to TCEQ and SAWS standards which made it necessary for the Villas to be assessed an additional fee to own in that section of Timberwood Park. The Villas units are shown as a part of our Master Timberwood Park Plan. They are not a separate development, are not separated by private roads, nor gated community and TPOA HOA pays the street light fees for that area of Timberwood Park just as they do for all the other common area lighting in the neighborhood, a fact additionally uncovered in the audit.
We believe the assessment fee the Villas owners pay to the TPOA account entitles them to actively participate in and vote in all matters brought before property owners, to include elections, as they are bound by the same restrictive covenant requiring payment of the assessment fee as the rest of us. This last electoral cycle Villas ballots were thrown out by Spectrum as invalid even though they had been submitted by proxy or absentee ballot.
Spectrum also manages the Villas HOA as well as collection of the fees to TPOA from the Villas.
Because of this inquiry and concern, we were provided the recorded deed restrictions for units 47, 48 and 49 (the Villas) by the board, but nowhere in those deed restrictions (units 47, 48, and 49) does it say the villas owners are not eligible to participate in the TPOA nor ineligible to vote. Their restrictions do say they are bound by the same requirement we are to pay the same assessments fees for the operation and maintenance of our park and common areas in Timberwood Park which is what makes us all members of the TPOA according to our by-laws. Why aren’t they able to participate? We’ve asked the board for any further documentation which exists denying them the same rights, but to date have received no response back nor any further documentation.
Installment #4 will follow soon for you, the property owners of Timberwood Park to consider.
Come to the August HOA board meeting! Ask Questions!