Board Response, January 4

From: theboard@plantation-springs.com
Sent: Monday, January 04, 2010 10:57 AM
Cc: recipient list not shown:
Subject: Board Response

James,

You have stated that "First, homeowners do have the option to contact PMG to organize a payment plan if they are not able to pay their assessments all at one time. However, what the board fails to mention is that the payment is considered late and fees can be assessed for late payment. Currently it is my understanding that the board does not impose a fee, however PMG does apply a fee for the "management of your payment plan." Homeowners are penalized for a "post-payment plan option."

Please note that this statement is incorrect. When a homeowner contacts Principal Management Group regarding a request for a payment plan, their account is automatically placed on hold during the approval process. This is to prevent any late and/or collection fees to be assessed to the account. Once the payment plan is approved, the account remains on hold (no fees assessed) during the entire term of the payment plan. Only if the homeowner stops paying according to the terms of their payment plan will the fees begin to be assessed to the account. Principal Management Group will also notify the homeowner of this.

You also stated that "PMG have advised that they need to have these documents reviewed by their attorney, however it is in PMG's interest to do this given the extra income that they will get with this".

This statement is incorrect. The HOA attorney is an outside firm and a completely separate entity from PMG. This relationship is between the Board of Directors of the HOA and the attorney firm representing the HOA, hired by the Board of Directors.

Another statement you have made is that "The proposed amendments provide that a homeowner could elect to choose the payment option, and a homeowner would be able to make this selection once the amendment has been past (providing this was done prior to the homeowner paying their dues before January 30)". If the amendment passes before January 30, then homeowners immediately have that option".

Please note that currently, our fellow homeowners have been notified that the assessments are due January 1, 2010 and considered late after 30 days. Any changes would need to be re-sent to all of the homeowner's thirty days prior to the effective date.

Lastly, you have stated that "Finally the extra costs that may be associated with these changes, can be offset by other savings that could be implemented by the board, and by more strict review of financial records kept by PMG (for example, the extra cost of 3 mailings would have been offset by the savings found in ONE accounting errors that were made to our records during the year by PMG)".

James, please note that one mailing costs the HOA approximately 241.86 whereas four mailings would cost the HOA 967.44. Additionally, the accounting error that we believe that you are referring to was actually a coding error that has been changed. This was not associated with any hard costs to the Association; therefore this did not affect the HOA's bottom line.

You are bringing so much "extra" information with your e-mail and requests that the issue begins to get lost. The bottom line is that the Board has always been willing to work with our fellow homeowners by offering an approved payment plan for homeowner's who need special consideration. Additionally, please note that because there were errors made in the past regarding the adoption of the fining policy by previous board's that resulted from not consulting with the HOA attorney, this Board will not adopt any policies or amendments written by any other entity without a review and the preparation of related documents, by the HOA attorney.

Since you will not withdraw your petition, then the Board will send out a Special Meeting notice for the same date as the Annual Meeting. Once the Annual Meeting is adjourned at approximately 9:00 p.m. we will begin the Special Meeting. This extra expense for the mail out and the related documents to the amendment will be approximately 163.56 plus the costs associated for the attorney to review the governing documents and prepare the amendments. Please remember that the HOA attorney works at 250.00 per hour so this will add up quickly. Additionally, please note that for the amendment to pass 51% of the community (89 homeowners) will have to vote to approve the amendment.

Thank you,
The Board of Directors

Prepared by April Tuey, Property Manager