HOA Board Statement Circulated to Membership

September 2025: “Maintenance Committee / Community Day” invite asked owners to power wash/stain exterior fences, scrape and repaint red curbs and light poles, replace fence boards, and place river rock along the tennis court border. Volunteers were instructed to select tasks and confirm participation ahead of October 4, 9:00 a.m.–1:00 p.m. Monthly repeats through December were planned.

• Insurance condition: “Volunteer names must be entered into the minutes so they can be covered by the insurance company.”
• Implication: These aren’t optional favors from neighbors but required common-area maintenance tasks — formal reserve study line items, not casual extras.

A Pattern, Not an Isolated Event

• Assumed assessments: Projections included ~$1,389–$1,400 per unit (2025/26) and ~$4,167–$5,000 per unit (2024) that were never billed, inflating “percent funded” and projected balances.
• Deficit in review: CPA review shows $414,869 “Cash & Equivalents” paired with a fund balance deficit of –$27,730—a mismatch homeowners wouldn’t expect if reserves were truly available.
• Major projects unfunded: The 2025 reserve schedule calls for ~$675,000 in roofing and paving work. These large-scale obligations remain on the books, but no matching funds exist in the reserves to complete them.
• Volunteers: Instead of addressing those scheduled obligations, the Board organizes repainting, fence patching, and curb touch-ups through unpaid homeowner labor. These activities create the appearance of maintenance while leaving the major unfunded projects unaddressed.

What Should Happen Next

• Independent forensic review: Reconcile reserve study projections against actual cash on deposit, approved assessments, and completed maintenance. Identify all deferred items and quantify the backlog.
• Regulatory inquiry (Davis–Stirling): Examine compliance with Civ. Code §5550 (reserve study scope/updates) and §5570 (Assessment & Reserve Funding Disclosure). Require side-by-side presentation of actual cash vs assumption-based projections.
• Governance correction: End substitution of volunteer labor for reserve-scheduled projects; adopt a transparent funding plan (dues, approved special assessments, or financing) aligned to the maintenance schedule.
• Monthly disclosures: Publish bank statements for all operating/reserve accounts, list of approved/billed assessments, and a rolling log of maintenance actually performed.
• Member protections: Provide written responses to owner records requests within statutory timelines; cease practices that may mislead owners about reserve status or project timing.
• Risk management: If volunteers are ever used for cosmetic work, implement written safety protocols, waivers, and scope limits reviewed by counsel—without substituting for reserve obligations.