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Southern Walk Expenses Out of Control? $360 increased assessment for 2013!

Discussion in 'Broadlands Community Issues' started by Neighbor, Nov 8, 2012.

  1. Neighbor

    Neighbor Member

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    Someone needs to get control of Southern Walk spending. Our legal fees are 1/4 of our telecommunications contract. At some point, enough is enough! Our community should not be used as a blank check. Last year we were assessed a "special" assessment of $155. This year, we have a $30 increase per month ($360 per home). What are we spending a half a million dollars on for legal fees? These litigations will likely last for years and years. Are we really going to spend millions and millions of dollars to dispute the OB contract? Is there is no ceiling to the spending?

    The letter states "All of the legal actions have been very expensive and a strain on the association budget..." Well, logic says it may be time to cut back. If we are being billed over $40,000 per month by a law firm, I think we need some of our financial folks to step up in the community and volunteer to audit the monthly statements from the law firm(s). I think another survey needs to be sent around now that we are being charged $360 additional in 2013. The community may decide that their hard earned money is best spent on other things, other than the OB battle.

    What are your thoughts?
     
  2. L0stS0ul

    L0stS0ul hmmmm

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    I always thought the litigation had gotten out of hand but now it's just completely ridiculous. There is NO benifit to us and now with OpenBands 50 million lawsuit against Southern Walk. Where do you think that money will come from if SWHOA looses.
     
  3. KTdid

    KTdid Well-Known Member

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    Just curious...before the lawsuit was filed was there a community wide survey to determine if a majority SW homeowners wanted to pursue it, or was it solely a decision by the SWHOA?
     
  4. pamD

    pamD New Member

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    There was a survey, and I remember part of it being "how much would you pay." Sadly, I think many of us who don't think it's worth it are too lazy to deal with all the craziness of figuring out the litigation and rulings, etc.
     
  5. glencastle

    glencastle The Paterfamilias

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    This is ridiculous. Half a million dollars in legal fees? Who committed us to this? Someone needs to do a cost/benefit study...if it costs more to win our freedom from Openband than we would save by canning them and having less expensive service, it isn't worth it. Right now we have the worst of both worlds.
     
  6. '03 Cavalier

    '03 Cavalier New Member

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    I would agree if it weren't for the fact that the HOA has made huge strides against OB:
    -Two different BoS have denied OB's franchise.
    -Lansdowne won their federal suit against OB.
    -The FCC has declared OB's contract to be illegal and recommended the judge for our case early next year rule the same way that Judge Trenga did.
    -These types of agreements are now illegal at the state level.

    As I understand it, the $50 million lawsuit is generally viewed as a desperation move on OB's part. It is not solely against us. It is against the county, our HOA and Lansdowne's HOA.

    OB is on the ropes. There is a very good chance they will get booted from the neighborhood and we will have the choice to choose (or not) services from other providers. Quitting now would be like forfeiting the game in the 4th quarter when you are winning. Let's at least see how the case goes at the beginning of 2013.

    $30/month isn't trivial, but there's also a big potential upside. OB is fighting an uphill battle as a last ditch effort to protect its cash cow.
     
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  7. KTdid

    KTdid Well-Known Member

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    Agree, seems too close to give up now...
     
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  8. smile2u

    smile2u New Member

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    I am relieved that I am not the only one that is upset. Last year I felt like I was alone, so I paid the assessment and kept my mouth closed. Except that we can't have competitors in our neighborhood, I have been happy with Openband. When I visit other people with different internet providers, their internet speed doesn't come close to mine. The customer service I have received has been superb compared to other companies. When I asked last year about a survey, the SouthernWalk HOA said the comment cards they sent out was how they determined if we wanted a lawsuit. I sadly didn't fill it out because I thought they were looking for complaints. I wish I had known it was to support there lawsuit.

    Last year they said a one time assessment. Now it is $30 a month. Where will it stop? Why do I have to pay for something I didn't want to be part of. I feel like I need a lawyer to see if I can sue the SouthernWalk HOA for all these fees.
     
  9. Neighbor

    Neighbor Member

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    While I don't totally disagree with your tactic, I am VERY concerned about our spending. There seems to be a lack of monitoring spending. Who is in charge of the budget for legal fees? Anyone who has worked at a law firm, knows that there is a monthly budget and that it needs to be closely monitored. Right now, we (general Southern Walk population) feel like we have very little control or confidence in this process. We are totally disconnected from the front line decisions. It doesn't need to be posted on a public forum, but someone needs to tighten the reins. Who is representing us? How much are they billing per month? What are the associated costs (travel, filing, vendors, etc.)? Are we employing 3 attorneys full time at $350 per hour for 40 hours per month??? We need a breakdown for each matter (BoS, Federal suit, assist Lansdowne, State matter) showing the cost of each action.

    Second, did our attorneys have anything to do with "BoS have denied OB's franchise." Of course we had representation, but did we submit briefs and make appearances? What legal fees were associated with that?

    We can not operate without some close monitoring of the legal fees. I suspect that our "leadership" is stretched very thin and may be burned out. As you know, there are school boundary issues that are sucking much of the time out of our "leadership."

    The cost of litigation was my original concern (see e.g., http://www.broadlandshoa.org/hoaforum/showthread.php?p=151806#post151806

    and unfortunately, it is still my concern going into 2013 and beyond.
     
  10. HappyFeet

    HappyFeet New Member

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    Count our family in the mix as one that is also having a difficult time trying to understand and accept the justification of this increase in monthly assessment fees needed to cover litigation expenses.
     
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  11. L0stS0ul

    L0stS0ul hmmmm

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    I agree with Neighbor. If we are paying these fees for legal representation everything should be itemized and not just lumped into one number. Someone is accountable for this spending and needs to answer with specifics and justification of the costs.
     
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  12. Tech91

    Tech91 Member

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    Agree. Why are those that are content with OpenBand also being charged the "one time" assessment fee(s)? Why should those of us who do not want to fight this fight pay?
     
  13. Tech91

    Tech91 Member

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    And if we are paying, we should be privy to the itemized bill.
     
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  14. kevinq

    kevinq Member

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    "the Board made the decision to reaise the monthly assessment for 2013 by $30.00"..."to avoid another special assessment." I fail to see how a monthly increase, which totals $360, is different than a special assessment, except for the fact it is much more expensive. The $30 increase was also an unexpected, unbudgeted cost for 2013.
     
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  15. glencastle

    glencastle The Paterfamilias

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    Agree, but let's quantify the upside. Hopefully, that would help everyone understand the benefit of what they are paying to fight. For example, we now pay ~$70/mo for cable service, but under a non-OB arrangement we would likely pay ~$50/mo, so as a household I save ~$240/yr into the future. I recoup the legal fee assessment within a couple years.
     
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  16. rjg350

    rjg350 New Member

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    Maybe. That's if the $360/household increase is only for one year. What if it extends longer and requires more 'assessments' in future years?

    Even if this lawsuit doesn't extend beyond 2013, what is the likelihood that our fees will go back down after litigation is complete? Now that this is a raise in our HOA dues and not a 'one time assessment', I find it unlikely...
     
  17. Asmat

    Asmat New Member

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    I am totally disagree with the increase in HOA fee for $30 a month its a burden on my house hold and and what I am getting out just fake promises. HOA went to the court on their own nobody ask home owners and now we are going to pay $30 for 2013 and who knows how much we have to pay in the years after and after all that extra charges even if we win the case we ultimately loose. So in my opinion HOA need to get rid of that lawsuit, must cut down there expenses even we don't need a HOA its just a body to charge huge fee and in return give us nothing except cut grass, threatening home owners by sending letters. this is expected to be a rough winter and they are going to charge us extra fee to remove snow if you can't manage your budget then you have no right to be in the office and run a useless association. once again I strongly condemned the increase in assessment which need to be take back and it's a hard earned home owners money which need to be spend on their household and their kids not the deep pockets of HOA on the name of useless law suit.
     
  18. glencastle

    glencastle The Paterfamilias

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    Good point. I think we are all now seeing the painful side of fighting OB. Like I said, someone needs to project the financial "pain" for us.
     
  19. msflynn

    msflynn New Member

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    Asmat what you are talking about are 2 completely separate HOA's. The Master HOA also known as BHOA has not released their budget that I am aware of. That is the one that cuts the grass, sends the letters, plows some of the streets, etc as you mentioned. The $30 increase that is being discussed is just for your SWHOA which manages all things related to your Openband bill - including the lawsuit against Openband. This is the payment for your cable, telephone and internet connection.

    I know it is easy to confuse them, but one really has little to do with the other and they are 2 completely separate boards.

    Staci
     
  20. rich351854

    rich351854 New Member

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    I strongly support this litigation and think it has the potential to yield a long term benefit for the community. I have to admit though, that it concerns me (maybe in error) that those managing this litigation may not have prior experience managing litigation related expenses on this scale.


    I personally do not have the experience to manage litigation expenses....but I understand the workings of law firms....To that end, I volunteer to Audit the Law bills to ensure we can itemize out what we are paying for and map it back to the budget that has been set up.....if somebody wants my help to do so...let me know.

    Clearly, more ideally we would have an expert in such manners assist the HOA
     
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