This is how I handle..........
Gheber,
Yes, I had done just that since I discovered this trick in the February of 2001.
Please read the following letter on my Web site at http://www.BeatGreedyBoard.com
Dated: 2/25/2003
Dear neighbors:
Two years ago of this month, I discovered that the Circle C Homeowners' Association had been overcharging on the association fees. I immediately contacted the Bookkeeper, Terri Giles, and urged her to refund the overcharge back to all the homeowners. At the time, I assumed the overcharge was an honest mistake. But later when I realized that it was not an honest or careless mistake, I started asking myself, ''Why would the Board intentionally overcharge the fee if it couldn't benefit from it?''
According to the Covenants and the Bylaws, the assessments levied by the Homeowners' Association shall be used exclusively for the purpose of promoting the comfort, health, safety and welfare of the owners of the properties. No director shall receive compensation for any service he may render to the Association. So, I started analyzing the Income & Expenses Statements. I noticed that the percentage increase in the expenses, especially for the Landscape Maintenance, did not correlate with the actual increase of the common areas and the inflation rate. I also noticed that the expenses seemed to be increased to match with the amount of the income we received. In other words, the Net Profit (RESERVE) would always remain low. According to the Convenants, the Association may not accumulate a surplus at the end of any year which is more than two times the maximum permissible annual assessment for that year. The Convenants also states that if an excess surplus exists at the end of any year, the Board of Directors should reduce the next total annual assessment by an amount at least equal to said excess surplus. In other words, by inflating the expenses, the Board was able to maximize the assessment year after year and also allow it to increase the assessment by 5% annually.
My seven months long investigation was done completely by analyzing the financial statements and by doing the research. I did not have access to the books and the backup documents because the Board stonewalled me when I requested them. No matter how hard I tried, there were some items just could not dig down to the bottom of without the access of the books and the related financial documents. Therefore, I am going to initiate a class-action lawsuit. I expect this lawsuit will help all of us to find out the whole truth behind Circle C Homeowners Association's financial expenses.
Sincerely,
Lisa
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The above letter was written before Mr. Gammon's lawsuit. Since then I got an opportunity to access and examine the financial documents of the Association. I now have more evidence than I need to bring this case to the Travis County District Attorney's Office. I hope justice will be served one day.
Lisa
