Rules should be created and enforced reasonably, fairly, and consistently.
HOA Board - Breach of Fiduciary Duty
Non-Compliance: Boards have a duty to enforce their governing documents. THE BOARD IS IN VIOLATION OF FIVE (5) REQUIREMENTS IN THE DECLARATION. While the Board is busy pursuing minor violations of the Rules & Regulations against homeowners, the Board fails to adhere to the requirements of our most important and binding community document, the Declaration.
Fiduciary Duty to Act
Fiduciary Duty of Care
This requires the Board to perform the duties it is obligated to carry out.
HOA Board members must obey applicable laws and their Governing Documents.
A breach of fiduciary duty involves a willful violation of the duty imposed by law.
No inspections, no proactive or restorative maintenance performed, no inspection reports, no insurance notices sent to homeowners, and a failure to act to repair a storm water retention pond (that has not functioned for over 10 months).
Why are homeowners fined for not "following the rules?" While the list of Board violations keeps getting longer...
**Declaration: ARTICLE 3.3 MAINTENANCE RESPONSIBILITIES
"(a) Except as expressly otherwise provided herein, the Association shall be responsible for Maintenance of the Common Elements and the costs of such Maintenance shall be borne by all Unit Owners.
(c) The roofs and exterior walls of Homes shall be Maintained by the Association.
(e) the Association shall, through a qualified independent contractor, inspect all Common Elements and Limited Common Elements on a regular basis as reasonably necessary, for the purpose of determining the condition of the Common Elements and Limited Common Elements and need for Maintenance work.
Reasonably detailed written reports of such inspections shall be prepared by the independent contractor and submitted to the Association, and copies shall be made available to all Unit Owners."
**Declaration: ARTICLE 15 INSURANCE 15.1 General Provisions.
"The Board shall promptly furnish to each Unit Owner written notice of the procurement of, subsequent changes in, or termination of, insurance coverages obtained on behalf of the Association, in compliance with the Act."
Note: No written notices were sent to homeowners for three years, 2017, 2018, and 2019.
Declaration Article 6.1 (h)(ii)
"... all such Storm Water Management System shall be kept in good working order and repair at all times. The Association is perpetually responsible for maintenance of the Storm Water Management System. This obligation shall run with the Property and be binding on the Association."
Sloppy Election Procedures
April 22, 2020 TO: Sylvester & Associates and Sewickley Ridge HOA Executive Board of Directors
As a resident of Sewickley Ridge and member of the HOA, I believe it is important to officially inform you of my concerns. The following list is not a complete accounting of all election violations. The alternative election procedures created by the current Board for this year’s (2020) election have resulted in a sloppy and perhaps illegal HOA Board election.
Please clarify the following:
1. Why wasn’t a “double-envelope” process used for ballot submissions? The ballot would have been secured and separated from the resident information and signature card. It would have been a simple solution to the secret, written ballot requirement. The "double-envelope" precaution is widely used throughout HOA elections.
Combining a ballot with identifying information together in only one envelope certainly does not qualify as a “secret ballot.” This procedure eliminates the secrecy required by the bylaws. A guarantee that “anonymity will be maintained” is worthless. Observation and common-sense dictate that the exposed ballot and required homeowner identification being removed together from one envelope is, in no way, secret.
Violation: Bylaws Article: 3.3 (c)
2. The distribution of absentee ballots without the names of all candidates is not valid OR ethical. The omitted candidate properly submitted all materials to the board by the deadline established in the Bylaws, yet the incomplete and incorrect absentee ballots were prematurely distributed to the entire community.
Violation: Bylaws Article: 3.3(b)(1)
3. Your company representative indicated to a concerned candidate that the corrected absentee ballots would be distributed to any resident who had previously requested absentee ballots. Residents did not receive these ballots. Thus, they were unable to meet the deadline for ballot submission. Residents were advised by your company representatives to complete their voting via an email submission. Our Bylaws do not permit voting by email. It is neither a secret nor written ballot, as required by the Bylaws. It is an invalid voting method.
Violation: Bylaws Article: 3.3 (c)
4. The Executive Board election should be held during the Annual Meeting. The election should have been conducted during the rescheduled Annual Meeting.
Violation: Bylaws Article: 2.2
I look forward to further clarification and explanation of the above-mentioned issues.
Comments from last year's election.
Dear Sewickley Ridge Homeowners:
April 2020
For the past three years, I have been advocating for you utilizing my expertise and experience as a trained investigator and cyber-security professional. My efforts have been aimed at making the Board accountable for their fiduciary responsibilities so that our homes are maintained, and our money is spent wisely. I have often offered to work with the Board in this venture, but my offers have been consistently refused. Although my efforts have been misinterpreted, mischaracterized, and, in fact, demonized, I hung in there with the best of intentions to make this community an enviable place to live.
I have recently learned that my reputation as a leader in problem prevention and solving, negotiating, and financial management has spread throughout a rather large segment of the Pittsburgh area. As a result, I have received and accepted two offers to act as consultant on such issues for two local HOA communities. I have been asked to keep these arrangements confidential. In addition, I will be advocating for the men and women serving in our U.S. military. I have accepted a role as an ombudsman with ESGR (Employer Support of the Guard and Reserve), a Department of Defense program, to assist in the resolution of conflicts arising from an employee's military commitment. I will also continue my commitment as a Court Appointed Special Advocate for abused and neglected children.
These responsibilities will require most of my time; time that will no longer be spent on Sewickley Ridge issues. Some other residents have expressed an interest in supplementing my previous Sewickley Ridge advocacy efforts and you may be hearing from them soon. I wish them well and will be available to assist them. The website will be temporarily unavailable as it undergoes reconstruction by the new team.
Below is a link to a PDF file with a list of accomplishments that the current advocacy group has achieved and a list of unresolved HOA issues that require prompt attention. You will note certain themes in the unresolved issues. These include continued wasteful spending, favoritism, self-dealing, and selective enforcement of the rules by the current Board. These themes suggest that it is time for new leadership—leadership that is devoted to the well-being of ALL residents. Leadership that takes its fiduciary responsibility seriously. Leadership that is not petty and vindictive. Leadership that gives the same consideration to others as it gives to itself. LEADERSHIP THAT DEMONSTRATES COMMON SENSE AND COMPASSION. Please vote wisely in the upcoming HOA Executive Board 2020 election.
And the next time an advocate tries to apprise you of the issues, don’t bite the hand that is trying to feed you. Your ignorance may come back and bite you in the tuchus.
the mystery of the vanishing hoa office
March, 2017: The Board "repurposes" the Massage Room to create an on-site HOA Office in the Clubhouse
"Massage Room: After consideration of HOA needs, the Board has elected to repurpose the Massage Room in the Clubhouse." Source: Board Briefs, March 9, 2017
June, 2019 Residents ask the Board to follow the Bylaws and the Association office mysteriously morphs into a "Mechanical Room."
Bylaws
"2.11 Documents and Records. Copies of the Declaration, Plats and Plans, Bylaws, Rules and Regulations, contracts to which the Association is a party and all books, records and financial statements of the Association, including the minutes of Executive Board and Association meetings, shall be available for inspection in the offices of the Association....."
**May we suggest a place in the Clubhouse be designated as a location for future financial document reviews by homeowners.**
June, 2019: How convenient for the Board and management company: No Association office -- no on-site review of HOA financial documents.
1. May 23, 2019: The Management Company Search Committee receives a request (from a homeowner) to include Association office, on-site review of HOA documents in the RFP's sent to potential candidate companies.
2. June 19, 2019 The request mentioned above is referenced at the Board meeting.
3. July, 2019 The on-site Association office is now labeled a "Mechanical Room."
4. If there is no Association office in the Clubhouse -- homeowners will be required to travel to the management company to review HOA documents.
5. Why create obstructions and difficulties for homeowners?
6. By the way, WHEN WERE WE GOING TO BE TOLD ABOUT THE "REPURPOSING" OF THE ASSOCIATION OFFICE?
re: clubhouse decision
today's Hoa vocabulary words
Coerce
To compel by intimidation or authority.
Hypothetical situation: forcing an apology.
Bully
A blustering, mean, or predatory person who, from a perceived position of relative power, intimidates, harasses, or coerces people, especially those considered unlikely to defend themselves. To coerce or compel by bullying. (See above)
Extort
To wrest or wring from a person by abuse of authority. To compel (something) of a person or thing.
Hypothetical example: "The board will not meet with you unless you apologize."
HOA & homeowners Insurance
HO3 v. HO5 Homeowners Insurance
The difference between the basic H03 policy and the premium H05 policy for homeowners is what perils or dangers to your home are covered; for most people, H03 policies are sufficient.
There are 16 named perils that are generally insured against in a typical H03 (traditional) policy. A basic policy covers all risks to the building structure, including the outside of the building, while personal property, including everything in your home, is only covered if it falls under named perils in the policy.
With a premium policy, all risks to the building structure are covered, but all personal property, or everything in your home, is also covered unless it falls under the list of perils that you have chosen specifically to exclude.
H03 or basic policies are less costly than H05 or premium policies because they cover less.
Source:
https://www.investopedia.com/articles/insurance/09/ho5-home-insurance.asp
Open Perils v. Named Perils
Open perils coverage "insures against loss to covered property from all causes except those that are specifically excluded." A peril is, of course, simply the cause of damage or loss. People may choose an open perils policy because of its comprehensive coverage. However, this type of coverage also tends to be costlier because of its extensive protection.
Named perils coverage, on the other hand, means your policy will cover only those risks explicitly named within it. Anything outside of the perils listed is excluded, which could lead to homeowners having to pay out of pocket. However, the premiums tend to be lower on policies featuring named perils. Homeowners can also elect to add extra endorsements to a named peril policy to fill in specific protection gaps.
Source: https://coverhound.com/insurance-learning-center/homeowners-insurance-open-vs-named-perils-policy
HOA - Loss Assessment Coverage
If a shared space within the HOA sustains damage, or if a guest has an accident in a common area and the association is held liable in court, your building or community’s HOA insurance, or “master” policy will cover the loss up to its coverage limits. If the claim amount exceeds those limits, HOA [governing documents]* usually stipulate that each member be assessed and pay an equal share of the leftover loss amount.
[*SR Declaration: 15.9 Unit Owner Insurance, p. 29 ]
The policy limits you select for your individual loss assessment coverage should depend on your HOA’s master policy limits.
Talk to your HOA association about the HOA master policy’s loss assessment limits before getting an insurance quote.
Source:
https://www.policygenius.com/homeowners-insurance/what-is-loss-assessment-coverage/
Questions to Ask About Any Policy
No matter whether you choose an HO3 or an HO5 homeowner's policy, you should ask your agent or broker these questions:
What are the exemptions? Even if you have an HO5 policy, you could have exemptions – items not covered in your policy – for a few items.
Is replacement value or cash value covered?
If you are covered for replacement value instead of cash value, you are paid enough to buy the item new instead of what the item is worth at the time it is damaged.
Source:
https://www.investopedia.com/articles/insurance/09/ho5-home-insurance.asp
View the SR HOA Certificate of Insurance
HOA & Homeowner Insurance Information Resources
Visit the Sewickley Ridge HOA Website
https://www.sewickleyridgehoa.com/
Home Page
Community Documents
II. Policies, Procedures or Other Community Documents
Certificate of Insurance
H. Sewickley Ridge HOA Insurance Certificate August 10, 2020
HOA & Homeowner Insurance Information Resources
HOA & Homeowner Insurance Information Resources
Opinion
A "leader" 🤡 on the HOA board has reached a new low. He is sending email messages labeling homeowner advocates and those who support us in seeking transparency and accountabiity of the board as "MINIONS." Calling them names, much like a schoolyard bully. Does this behavior remind you of anyone? There is a good chance they are a "Board Bully."
A favorite target for HOA bullies is the homeowner who challenges the board’s decisions or asks too many questions. A resident that doesn’t “fit in” or conform to community customs is often labeled a “troublemaker” or a “disgruntled homeowner.”
A board member should have better things to do. Get on to bigger and more important projects addressing the serious issues facing Sewickley Ridge and do something that actually benefits homeowners.
His silly name-calling has inspired us to announce new advocacy mascots. Say hello to the new, official Advocacy Minions!
Happy Holidays! 🎅🎄❄
NO TRANSPARENCY, NO ACCOUNTABILITY
Homeowners' comments on the latest HOA budget process:
"Just so you know, I am in FULL agreement with all your points. Keep fighting. This is extraordinarily shocking how the board is behaving. It is like the residents are the enemy!"
"Do not lose heart. We are living in a dictatorship."
"The recent response by the Board to residents budget questions was an obfuscating narrative that failed to answer the questions."
"What exactly are we paying [HOA legal counsel] every month and how are these fees accounted for in the budget? "
"Why did the board ask us to submit questions they had no intention of answering?"
"What a bunch of bs! Notice they said they approved the budget today. They never gave adequate answers to our questions and no resident input on anything is being considered. Is there anything we can do legally since it doesn't seem to me they are fulfilling their responsibilities? Can we register a complaint with the state?"
"I am confused, did we elect a new board or is this the same board as it seems to me?"
"Board decisions should be for the good of the Community; not for a small, select group. This thinking goes for other homeowners too. Just because you WANT something your way, does not mean it is good for the entire Community."
NO TRANSPARENCY, NO ACCOUNTABILITY, AND NO ANSWERS
March 2021: Still no answers. Questions from October 2020 the board continues to ignore.
QUESTION: When will the board vote on this budget and how will it be done, as it is required to be done at a public meeting?
QUESTION: What are budgeting alternatives that would result in no increase in fee?
QUESTION: With a [Reserve Study] discrepancy...why are we waiting until 2022 to have an updated and accurate Reserve Study conducted?
QUESTION: The board recently dismissed a petition by about 100 residents who wanted to weigh in on the covid clubhouse policy. Yet, a small number of pickleball players have requested re-surfacing of the court and this item has been approved in the 2021 budget. Why are the people who caused damage to the court not being held responsible for the repair?
QUESTION: Exactly how much of our money was paid to [HOA legal counsel] for lawsuits?
QUESTION: That entry [Deferred Revenue] had been on the balance sheet since at least early 2018. It had recently grown to about $35,000. It has now been removed or perhaps placed somewhere and labeled as something else for the 2021 budget year.
My question is 3 part. 1). What is the status of that revenue? 2). What was that revenue composed of ie. future rebates from contractors, resident fines etc. 3). What is the impact on the current balance sheet?
QUESTION: Has the HOA community been under-insured for four years?
QUESTION: As you can see lots of questions being asked. Are we going to be able to reply to the answers?
Bill Information: PA General Assembly - House Resolution 69
Representative Valerie Gaydos Wants Your Help!
If you live in a Planned Community and fall under the rule of a Homeowners Association, (HOA) the House could use your input!
Participate in a survey to be used to strengthen the crafting of the resolution regarding common interest owned communities (CIOCs) and HOA fees. Here is the link to take part.
Recently, Rep. Gaydos and many of her colleagues introduced HR69 that would direct the Joint State Government Commission to study common interest owned communities. The study would focus on the impact the communities have on local governments and Pennsylvania, the challenges facing the residents and governing bodies of these CIOCs, and the opportunities for the Commonwealth to assist local governments and CIOCs to deliver adequate services to their residents at an affordable cost.
why conduct a survey if the board IGNORES the results?
What is it the Board doesn’t want homeowners to see or know? And why ignore the results
Homeowners are capable of interpreting and understanding the results of the survey. We do not need self-appointed, pseudo-intellectual intermediaries on the Board to tell us what the results of the survey indicate. A Board “summary” does not convey the actual answers and verbatim comments of individual homeowners. Why not provide transparency?
We ask the Board to please share all the actual survey results including additional homeowner comments. We don't need to be spoon-fed the biased and cherry-picked topics the Board provides in its "summary." Concealing the survey results only leads to suspicion.
What information from the survey is the Board not sharing with us? And why?
