The following letter was sent to Roz Berman, and copied to every Board Member of the current Board of Directors. There has been NO reply to address the questions or the FACTS presented in the letter.

While most of the letter relates to a long standing dispute that involves the 162 Villa home owners in our community, the letter also briefly highlights some facts that concern EVERY citizen living in Sun City Anthem. For my efforts to uncover the facts I have suffered intimidation by the Current Board of Directors (with the exception of Bob Frank), and my wife and I have been threatened by the boards insistence that I “cease and desist”.

It’s time for the truth. It’s time for the members of this community to DEMAND a full and complete disclosure of the past failures be uncovered and explained. It’s also time that we admit that for POLITICAL reasons, we will not be getting the answers we need from the present (or past), members of the finance committee.

Here then is the letter sent to Roz Berman and copied to all other members of the Board.
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To:Roz Berman
President - SCA Board of Directors;

I received “The Presidents Statement” released on 2/26/2009. In your statement
to the residents you stated that at the February 12 Executive Session;

“The Board approved that a demand letter, outlining monies owed to SCACAI
by Del Webb/Pulte, be sent to our corporate counsel for processing. The
demand items noted include a shortfall in Association reserves funding at
transition, reserve funding for leased fitness equipment at transition, and an
unresolved Accounts Receivable balance due at transition.”

I would like to know if that demand letter to Del Webb includes the shortfall in
the Neighborhood reserves funding that was delineated in the 2006 reserve
study commissioned (and paid for), by Del Webb. As you know, the 2006
reserve study was adopted by the board of directors and it delineated a shortfall
in all four of the Villa communities. Before you remind me that a previous
board of directors entered into an agreement with Del Webb that decided the
matter by settling for LESS than the amounts indicated, I will take this
opportunity to point out some pertinent FACTS that you never seem to
acknowledge.

FACT: The previous board of directors that voted to adopt the agreement were
purposely misinformed that the terms of the Villa agreement had been
hammered out and that two members of the Board (Favil West and Kay Dwyer),
had signed the agreement on behalf of the remaining board members. That was
untrue, the agreement was not even signed until the day AFTER the vote to
approve the document.

FACT: The previous board of directors were told that Favil West and Kay
Dwyer had consulted with legal council BEFORE signing the agreement. That
also is an untrue statement. There are no records to show that ANY attorney
was sought to oversee the document and/or the legality of the terms agreed to.

FACT: The community attorney (John Leach), has denied any involvement in
the Villa agreement or the terms referred to in the document.

FACT: the figures used to calculate the agreed amount of $241,000 (plus some
hardscape), have NEVER been explained let alone presented to any member of
the Villa neighborhoods. In point of fact they have been withheld from the
residents in violation of NRS statutes.

Fact: The association (via prior Board) accepted liability from Pulte on any
future complaints regarding reserve funding for the Villas. (Quoted from page
10 of Part one of The Villa Report of July 20, 2007).

This is what your husband said of the neighborhood reserves in a report on his
BLOG website in his July 07, 2007 entitled “The July 20 Villa Owners
Meeting”; Quote:

“The amount of developer contribution to Villa reserves was to have been
calculated in the 2005 reserve study, which was a legal requirement to be
performed at transition in May, 2005. But the study, commissioned by the
developer, was so inadequate and superficial that the Board rejected it and had
a new reserve study done in 2006.”

The 2006 reserve study that was commissioned and paid for by Del Webb then
become the Declarant’s replacement reserve study but as you well know it did
NOT include the most important date in the history of ANY homeowner
association - The Date of Transition.

Del Webb cheated not only the neighborhoods of Sun City Anthem, but also
every citizen living in this community.

Your husband also said in his BLOG report of July 07, 2007; Quote:

“If there IS a financial problem, it is not that the Villas didn’t receive what they
were owed, but that money that should have gone into reserves went into the
Villas’ operating accounts instead. But the figures presented by Roz and Mike
suggest that all the money is there, in one account or another.”

That statement brings into question the possibility that the money that was
entrusted to Del Webb by the Villa home owners, was co-mingled from one
account to another in violation of State statutes. Now (from your presidents
report), we are told you are also concerned about the shortfall in the
Association’s reserves as well as some “unresolved Accounts Receivable
balance due at transition.”

How bad does it have to get before you admit that the finance committee is not
capable of fairly and accurately determining the amount due from Del Webb?

At least one board member is concerned enough about the accounting provided
by Del Webb at the time of transition, to call for a forensic audit, but you have
refused to consider the proposal.
Considering all the additional information that has been uncovered since the
July 20, 2007 meeting that Mike Dixon and yourself conducted, I think it is
time you considered that some explanations are due. In fact out of a total of
nineteen (19) issues that you delineated on July 20, 2007, only the two issues
that related to the 33 13% increase in our annual assessments were even
answered.
That is a sad commentary on the co-operation you profess to extend to the Villa home owners.

One Villa owner said it best on July 23, 2007 when she commented on your
husbands BLOG. She said; Quote:
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“Roz showed us a “revised painting approach” which stretches out the painting
for another five years and that is only after we continue to pay the additional
$500.00 per year for the foreseeable future. Why is this necessary if we are
fully funded now?
We were told some of the reserve funds may have stayed in the operating
account. If that is true, then why are our operating accounts short and needing a
transfusion?
There are more questions to be answered but those require a complete
accounting of the Villa assessments paid since the first Villa was built.”
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Roz, there are still too many questions unanswered. I would like you to explain
to the residents of this community, what your reasons are for opposing a
forensic audit of the financials at the time of transition. You are on the ballot
running for another term on the Board of Directors. It’s time for these questions to be answered NOW. If you are successful in your bid for another term, it will not mean an end to the questions - you may as well face them now.

Norman McCullough
Spokesman for the Villa homeowners.