Why Bother?

October 9, 2008 by bobfrank.

Some have asked, why did I bother to raise the questions about possible fraud concerning the co-gen and RecCtr 3
matters when the majority of the board and our law firm had 100% control of the outcome?  It was a done deal/losing proposition beforehand, what is the use of taking the time to (once again) challenge the misconduct?

In executive sessions and private conversations, I have been strongly pushing for over a year to find the way to require that Pulte honor its contracts and pay its bills.  That especially includes (but is not limited to) getting on with building
RecCtr 3.  But, at what life-cycle costs to the members of this 7,144 association?  Why should the board grant yet another cash benefit of another million dollars or so to Pulte when all it does is rip us off–time and time again? 

The basic question is, are we really a victim without any leverage–as our attorney said at the meeting?  We must not agree.  Even though it was an obvious losing situation, my duty was to inform SCA homeowners of the facts, so that at least there might be some chance for future accountability by Pulte and/or by misbehaving board members.

I am certain that an “effective” negotiation team could have obtained at least SOME consideration from Pulte–even if it was only a performance bond to back up its promises in this time of possible bankruptcy by builders. But, due to what I consider to be incompetence by our board majority and our association law firm, we received nothing but Pulte’s lame promises to honor its contracts.  We are getting nothing of meaningful value for releasing our $1.375 million, and for forgiving the two years of Pulte delays in constructing the 3rd RecCtr.

As we have seen time and time again since May 2005, the SCA board majority accepted a “take in or leave it” proposal from Pulte. Shame on our Board majority, the board law firm, and the CAM for such a miserable performance!  Is it any wonder that many homeowners feel like we have been raped by Pulte and our elected representatives?

In the negative economic future we face, we can be sure that some members will be extremely upset when they finally realize how they will have to make up for all of these sweetheart deals and wasted funds from their own wallets. But, by then, it will be too late.

So, even if a few members complain and call me the “rogue”, I am obligated to continue to demand better performance from fellow board members, and so should you.  After all, it is YOUR money they are wasting.  As they say, a million here, a million there, and soon we have some serious money issues. And, by the way, constantly calling me the “rogue” or maverick board member is a badge of honor.  I am just faithfully respecting my promises to members, and following the money.

Finally, if SCA was a normal corporation where the board was accountable to the homeowners, you might now be removing the
failed board members, along with the failed law firm, and demanding to have a new, competent team to represent your interests.  But, that is not the case in a HOA.  So, until you elect a majority of directors who truly honor their promises to represent homeowners interests, the misbehavior will continue.  We will continue to receive more of what we tolerate.

Bob Frank
SCA Director

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