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Well folks, welcome to our Blog. It seems that the people who set the "industry standards" for HOAs are following developments in our little Community Association very closely.

We were recently copied on this little gem:

To: Mr. Wrathbone, CAI National HQ
From: Rebecca, PCAM of Sunnybrook Farm HOA

Jeepers, Mr. Wrathbone, those pesky homeowners in Lake Braddock don't exactly seem to be signing up for the amendments to the Declaration in anything like the numbers we're going to need! I think they may need some help from you folks, since you set the Industry Standard for changes to Governing Documents.

As you know, the HOA Board told the owners that the "reserved" townhouse parking spaces weren't really "reserved" any more and that they'd need 'em to vote for an amendment to the Declaration if they wanted their spaces back. That sure got the owners spun up. But after the HOA spent all that money drafting and "marketing" the amendment, it's just kind of sitting out there without the landslide of signatures the Board expected.

Seems there are a couple of things going on here: Instead of just signing where the Board told 'em to sign, Homeowners are READING what the Board sent out. As you know, that's usually a bad sign. And some of the pesky Homeowners have started to put out fliers explaining the RIGHTS that owners would GIVE UP if they vote for the amendment! Even worse, in the fliers they've told the owners how to link to the transcript of that disaster of a court hearing on the internet! You know, I don't think that even the Board members read that transcript....

What if the owners start telling the Board to draft a much simpler amendment that just restores parking spaces as "rights" and then STOPS? How will the HOA be able to "fine" people and suspend their "privilege" to park?


I still think the HOA should have taken my advice and drafted an amendment with the simple "rule" that ALL UNIT OWNERS MUST HAVE A GOOD ATTITUDE." And if they don't, well the HOA can just "fine" 'em and foreclose nonjudicially to collect the "fine." That sure works swell here in Sunnybrook Farms HOA.


Rebecca, PCAM of Sunnybrook Farms HOA

Here's another item I was copied on:

Sgt Schultz, at CAI General Staff, wrote:

Shhhhhhhh......

Za CAI General Ztaff ist not happy mit der unit owners in Lake Braddock.  Za General Ztaff does not zink zat I zee anyzink because of der sctupid Amerikaner TV show -- but zumtimes der zings I zee are verrrry interestink......

Der LBCA Board hast told der CAI General Ztaff zat der unit owners are beginnink to ask der questions about zese amendments.  Zese are ztandart CAI anebdments, but der Board zays dat der unit owners do not zeem to know vat ist gut fur dem, und will not vollow der Board's directions to vote fur der amendments to gif der Board der power to impose fines etzetera.

Za General Ztaff vast not happy ven der Ztadart CAI amendment about der Kooler vast not even zent out mit der uder amendments fur der vote!  Der Kooler ist not zo bad as der fines, I zink, but I am only der guard......

Zum of der Board members zay dat if der unit owners do not vote fur der amendments -- der Board vill not propose der vun amendment vich der unit owners vanted in der vurst place: an amendment to gif dem back der parking places.  Zounds like "My vay or der autobahn," ya?

I sink I can zee vich vay der vind ist blowink here und I vant you to remenber ven ziz ist over zat I am only za guard und must vollow der CAI orders, ya?

Zo maybe if I help you mit der invermation I stay out of der dock......OK?

Your pal,

Schultzie
CAI General Staff
(but only za guard, right....)

The LBCA Assessment Amendment

The formula for calculating each year’s monthly assessment from the original Lake Braddock Covenants (the Declaration) is a simple formula consisting of:

1. A ratio of the new CPI (January CPI from the previous year) to the Base CPI (CPI from January 1970)
2. Times a base assessment (the original monthly assessment of $12.50)

This formula is a standard method of providing cost escalation based on the inflation rate and is derived from two sentences in Title VI of the Declaration as follows:

Title VI, Section 3 Basis and Maximum of Annual Assessments: Until January 1 of the year following the conveyance of the first lot to an 0wner, the class A members assessment shall be $12.50 per month.

Title VI, Section 3(a): From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased effective January I of each year without a vote of the membership in conformance with the rise, if any, of the Consumer Price Index (published by the Department of Labor, Washington, D. C.) for the preceding Month of January 1970.

The third proposed amendment to the Declaration is to replace the National Average CPI with the Washington-Baltimore Area CPI. The amendment replaces the existing Section 3 with a new Section 3 as follows:

Section 3. Basis and Maximum of Annual Assessment.

(a)               After consideration of current maintenance costs and future needs of the Association, the Board of Directors may fix the annual assessment at an amount not in excess of the maximum as set forth in this Section 3.

(b)               From  and  after  January  1  of  the  year  immediately  following  the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased effective January 1 of each year without a vote of the membership in conformance with the rise, if any, of the Washington­ Baltimore Area Consumer Price Index.

The problem is that there is no reference to a base assessment or a base CPI included in the proposed amendment. In fact the amendment specifically states that the Board may fix the annual assessment anyway they want as long as they somehow use the Washington-Baltimore Area CPI. In addition, Section 3 (b) is unworkable on its face simply because the Washington-Baltimore CPI is a relatively new creation with no data prior to the mid 1990s and certainly no data going as far back as the conveyance of the first Lake Braddock lot.

In my opinion this is a formula for disaster. With no specified base assessment or base CPI; each Board will have the freedom to set the assessment to just about any dollar amount they want simply by selecting a new base each year and base assessment at will. There are no protections to the homeowner’s whatsoever from a run-away Board that wants to jack up the assessments on a whim.

This is a bad amendment that leaves the homeowner’s vulnerable to sky-high assessments and I urge all homeowners to reject it.

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