Another main reason I decided to interrupt my treasured
retirement to run for the HOA Board, is the systematic over-charging and
accumulation of our annual assessments, contrary and in violation of IRS Ruling
70-604, that requires excess revenues to be returned to the property owners,
either in a rebate or by lessening the assessment the following year, otherwise
the excess revenues are subject to taxation.
Revenue Ruling 70-604 states that the sole authorized
activity of the HOA is the assessment of the homeowners for the purposes of
managing, operating, maintaining and replacing the common elements of the
association. It also mandates that a meeting be held each year to let the homeowners
decide whether to return any excess assessment to themselves or to have the
excess applied against the following year’s assessments.
Let’s take a look at the excess revenues collected since the
arrival of PCM, the Association Management Company that Pulte contracted with
in 2008 to manage our Association:
In 2010, PCM and the HOA Board, which for the first time had
a majority of elected residents, raised the monthly assessment to $237
unnecessarily, generating even higher amounts in excess revenues, with the
trend continuing through 2012, even though in February 2011, the California
Department of Real Estate recommended the dues to be at $208, instead of $237.
The creation of a “Slush Fund” by HOA management companies
such as PCM is not particular to our community; in fact, there is a well
documented case of Sun City Anthem, in Nevada, which suffered of the same
malady and which they overcame after a community struggle similar to the one
we’re experiencing in our community. Please use the following links for details
of their struggle:
It is very alarming when you realize your are being
“gypped”, and being that I’m a child of the 60’s, my immediate reaction is: “I’m
not going to take it anymore, someone has to do something about it”.
Joan Dzuro and Judi Kleckner, who have been aware of these
issues for some time, and run for the HOA Board last year, convinced me to join their quest to
restore fiscal responsibility in our community, and stop the excessive
accumulation of our monies.
Because of the pressure the HOA Board has received from the concerned
community members, our dues have been reduced to a more reasonable level. But
the next step, we need to take is to return the slush fund accumulated over the
last 5 years to whom it belongs, the homeowners of our community.
Joan Dzuro, Judi Kleckner and I, are committed to bringing
fiscal responsibility to our community and explore the option of a self-managed
association, like our sister community, Sun City Palm Desert.
Manny Rosas,
“Working to create a community we can all be proud of”
