The time has come for us to DISSOLVE THE HOA & ANNEX INTO HERRIMAN CITY. WE NEED THE SUPPORT OF EVERYONE TO DO THIS. YOUR PROPERTY VALUE DEPENDS ON THIS DECISION. WE NEED YOUR VOTE!
The information on this website contains the facts and reasons why we need to DISSOLVE THE HOA RIGHT NOW and Annex into Herriman City. Please see the info here and all of the documentation to back up all of the information.
-Benefits to Dissolving the HOA & Annexing into Herriman
-Our Home Values Will Be Much Higher, Possibly Double!
-Criminal Investigations By Police & The District Attorney Against The HOA & Some Board Members For Fraud & Forgery
-HOA Sued By Several Parties, Many Future Lawsuits Are Coming
-Our Property Taxes Will Be Much Lower
-HOA Illegally Spending Money On An Unapproved Budget Since 2009
-HOA Might Send A Letter To Try To Defend Some Of Its Illegal Actions. Please Read The Enclosed Info -And Make Your Own Decisions.
-No More HOA Fees = We All Save $. (No More Wasted Money)
-What Happens When We Dissolve?
-What Will It Cost Me To Dissolve The HOA & Annex Into Herriman?
-What If We Don’t Get Enough Petitions Signed?
-We Have Two Choices: 1-Dissolve Now, Voluntarily, And Benefit From Our HOA Assets & Money. 2-Do Nothing And Watch Our Assets & Money Wasted Away In Legal Fees And We Dissolve Through Bankruptcy Anyway -WE MUST ACT NOW!!!
-We No Longer Need An HOA
-Will The Zoning Change If We Annex Into Herriman?
-Herriman City Welcomes Us In Their City
-Many HOA Member Have Stopped Paying Their HOA Dues & Many More May Stop Paying Now
-Our House Fire Insurance Rates May Skyrocket Soon!
-We Could Possibly Be Bringing Liability Upon Ourselves Personally If We Don’t Dissolve The HOA
-Our HOA Is Not Following Its Governing Documents. Our Governing Documents Also Have Many -Inconsistencies & Problems. We Can’t Function Effectively Anymore. The HOA is Deadlocked.
-Our HOA May Be Un-Insurable. No One Will Run As Board Members Because of The Liability It Will Bring Upon Them PERSONALLY
-All Votes Will Be Counted, Regardless Of Whether Or Not You Are Current In Your HOA Dues
-Who Is In The Concerned Hi Country Estates 2 Owners Group?
-The HOA’s Attorney Is A Divorce/Family Law Attorney. Many Have Questioned The Validity Of His Legal Advice Because He Doesn’t Deal With HOA’s Or Real Estate As His Primary Focus Of Law
-Our Properties Might Have Illegal Lot Sizes & Might Not Have Voting Rights In The Future
-Our Roads & Water Systems Are In Much Disrepair
-Better Services, Better Roads, Better Water System, Better Snow Plowing
-Is There Any Personal Liability If I Sign The Petitions?
-HOA Board Members Have a Fiduciary Duty To Do What The HOA Property Owners Require
Hi Country Estates 2 HOA Has Many Problems And Now Has Many Liabilities
The HOA and some of its board members are currently being investigated for criminal charges of forgery and fraud by the Police and the District Attorney. The HOA just lost a jury trial (Dec of 2012) and was found guilty of illegal actions and a breach of contract (breach of its governing documents) with its members. Damages were awarded. Many lawsuits have been filed against the HOA, many more are coming. We must act now before it is too late and before our HOA assets are squandered away in legal fees and judgments. See the topics in this booklet for more details and information.
Our Property Values Will Increase Significantly Our property values are suppressed right now. By dissolving our HOA and annexing into Herriman, OUR PROPERTY VALUES WILL SIGNIFICANTLY INCREASE! See the property value section in this booklet for more details and comps.
We All Save More Money By dissolving the HOA, we can wipe the slate clean and remove all of our legal problems and expensive fees. We will no longer be paying for HOA dues and wasted monies. Our property taxes will be lowered. Our insurance rates may be lowered.
We Need Your Help. We Need Your Vote. Please Sign The Enclosed Petitions And Return Them As Soon As Possible, But Before Feb 11, 2013 Please research and read about these issues and then sign the enclosed petitions to dissolve the HOA and annex into Herriman City. We need at least 67% of the HOA to vote in favor of dissolving it. That is a lot of votes! We can only accomplish this if everyone votes! Please vote and send it in as soon as possible. It will be hard to reach this, but we are confident we will accomplish this goal. Most of the HOA wants it dissolved and wants to end all of these legal problems, liabilities and wasted money.
All votes will be counted, even if you are behind on your HOA assessments or water bills.
It will be best for all of us to both dissolve the HOA and annex into Herriman City. There are many benefits to doing this and our property values will be much higher. Most importantly, we need to dissolve the HOA now. We ask that you sign both petitions. A few HOA residents in the past have been opposed to annexing into Herriman, but with an increase in our property values and so many other benefits, we need everyone to understand how we will all benefit greatly. Please read the info and the benefits in this booklet and make your decision. The bottom line is that we NEED TO DISSOLVE THE HOA NOW AND WE NEED YOUR VOTE FOR THAT.
Please return the petitions in any of the following ways: Email: firstname.lastname@example.org Mail: PO Box 99, Riverton, Ut 84065 (Stamped envelope included) Fax: (801)606-7436
Thank you so much for your support,
The Concerned Hi Country Estates 2 Owners Group
Questions: Most will be answered in this website. If you have further questions, you may contact the group at (801)285-9204 or email: email@example.com. Please state your name, lot number and questions and we will get to you as soon as possible. Only valid HCE2 members please.
Benefits To Dissolving The HOA & Annexing Into Herriman
-Property Values Increase Significantly, Almost Doubled! -Lower property taxes -No more fear of investigations for fraud and forgery -No more HOA Dues -BY SENDING THESE PETITIONS BACK TO US AS SOON AS POSSIBLE, AND BY FEBRUARY 11, 2013, WE WILL BE ABLE TO HAVE OUR HOA DISSOLVED IN 1-3 MONTHS TIME AND OUR PROBLEMS AND LIABILITIES WILL BE IN OUR PAST. -No more wasteful spending from our HOA dues -Our roads will be in the hands of Herriman, that has people, full time, on-staff, that can do the upgrades and maintenance to our water system and roads -We can put an end to all of the liability of the HOA and all of the lawsuits against it -We can take our current HOA assets and exchange them with Herriman for upgrades to our roads and water system before they get wasted away in expensive legal battles and judgments. -No more need to find qualified people to run for the HOA board positions and manage the HOA’s affairs. With the possible increase in personal liability of board members, we won’t need to worry if people will or will not run for board positions. -Better roads, water systems & snowplowing -No more illegal changes in voting practices -No more unapproved and illegal budgets from our HOA -No more illegal board terms (no HOA, so no need for board) -No more illegal compensation for board members (no HOA, so no need for board) -We all save money -We have no need for an HOA anymore. No extra governing body over our heads. -No more illegal governing documents (Forged 2008 Bylaws) -No more inconsistencies in governing documents (they will be dissolved) -No more inconsistencies in the way our HOA board manages our HOA with respect to our governing documents (they will be dissolved and no need for a board) -No more breaches of contract between the HOA and its members (breach of its governing documents) -No more lawsuits against illegal actions and problems of the HOA -No more wasteful spending (no more legal fees and competitive bids on work to be done) -No more questions of whether 2.5 acre lots will be legal and if they will lose their voting rights or not (HOA will be dissolved, so voting rights will be dissolved also) -No more worries about water rights being sold illegally and without a vote of the HOA (all properties are guaranteed to have water) -No changes to greenbelt status -No more HOA liabilities -Insurance rates may decline for residents due to upgrades to water systems -Water systems and roads will be in much better condition and can be brought up to code. (Safety during wildfires with water systems and better roads for evacuations. Safety of roads during winter months with snow removal.)
-No more worries of whether our HOA will be insurable or not in the future -No more worries of whether our HOA is receiving sound legal advice from its attorneys or not -We will have greater chances of receiving government grant monies for our roads and infrastructure. We will not need to rely on our HOA board to seek and find these grants. We will not need to worry of whether our board members are pursuing these grants effectively (as in the case of us losing the possibility of $11 Million in funding in 2009 because our board did not pursue the funds despite the HOA voting three times to pursue it. The vote passed with a huge majority each time.) -No more illegal practices or changes by the HOA board that have not been authorized or voted on by the HOA members -No more worries of members that have stopped paying their HOA dues. HOA dues will no longer exist -No possible liability of the HOA members personally for the actions of the HOA board -No more misappropriation of funds -No more worries of whether or not the HOA board is acting in their legal and fiduciary duties -No more deadlock in the HOA functions -Herriman City welcomes us and will give us many benefits by annexing into city limits -Lower costs for roads and water systems. -Better quality of work and maintenance on roads and water systems. -No more worries of whether the HOA board has counted your vote or not -Safer roads for driving and safer water systems for fire suppression. -We will be managed by a professional City Management, not part-time volunteers that in many cases are inexperienced in governing HOA’s and managing roads and water systems etc -No liability in signing the petitions -No cost to annex into Herriman (has been paid for already by a few group members) -By getting enough petitions signed, a receiver will be appointed by a judge to temporarily “wind down” the affairs of the HOA and to exchange our assets with Herriman City. HOA board members will not be allowed in these negotiations, so HOA members won’t need to worry about unfavorable exchanges. -By dissolving the HOA voluntarily, we will be able to save our current assets and exchange them with Herriman City for much needed upgrades to our roads and water systems. -BY SIGNING/SENDING THESE PETITIONS BACK TO US AS SOON AS POSSIBLE, AND BY FEBRUARY 11, 2013, WE WILL BE ABLE TO HAVE OUR HOA DISSOLVED IN 1-3 MONTHS TIME AND OUR PROBLEMS AND LIABILITIES WILL BE IN OUR PAST.
Our Home Values Will Be Much Higher, Possibly Double! A home value analysis was done by several Realtors to determine home values in our area. The facts and comps are very compelling when it comes to how our property values will be raised by dissolving the HOA and by being inside Herriman City. There have been several homes that have sold INSIDE HCE2 in the past year. Each of these homes sold for an average of $49/Sq Ft (see Comps below). Homes just OUTSIDE HCE2, INSIDE Herriman City limits and without our HOA, have sold recently for an average of $100/Sq Ft. The main differences between our homes and the others is that the others are in Herriman and don’t have an HOA, like ours. Here are some examples, based on square footage of your home, of what it is currently worth now vs what it would be worth if our HOA was dissolved and we were inside Herriman:
House Square House Value: House Value: Footage Current HOA Dissolved & Inside Herriman 2,000 $99,420 $200,900 3,000 $149,130 $301,350 4,000 $198,840 $401,800 5,000 $248,550 $502,250 6,000 $298,260 $602,700
Again, all of these numbers are based on comps of houses
that have sold in our HOA recently and houses that have sold nearby. Here is a brief chart of these comps.
One additional thing that is not reflected in these comps and numbers is that our houses have larger lots. Once we have dissolved the HOA and are inside Herriman City limits, our property values are much higher, but we will also have a premium on our properties because they have larger lot sizes. Most appraisers will add an additional 15-20% to the houses value for a larger lot size, like ours. For ease in this, we will not include another chart, but you can do the math and see how it affects your own property value. This could mean that our houses will have an estimated value at around $115/Sq Ft or $120/Sq Ft. Our land values are suppressed right now. By dissolving the HOA and annexing into Herriman City, we will be able to raise our property value drastically and possibly double it. These comps were pulled by and checked by several realtors for their validity. Please look at these numbers and the comps yourself.
IN ORDER TO RAISE OUR PROPERTY VALUES, WE NEED TO DISSOLVE THE HOA. WE NEED YOUR HELP TO SIGN THE ENCLOSED PETITIONS AND SEND THEM BACK AS SOON AS POSSIBLE. THE SOONER YOU SEND IT BACK, THE SOONER WE CAN END ALL OF THE HOA PROBLEMS AND RAISE OUR VALUES TO WHERE THEY SHOULD BE.
Investigations Are Underway By Police & The District Attorney Against The
HOA & Some Board Members For Fraud/Forgery/Identity Theft
We were just informed that the HOA and some past/present board members are currently being investigated for criminal charges of forgery and fraud by the Police and the District Attorney, Case # 13-14903.
Several people’s signatures were forged and used ON OUR CURRENT HOA GOVERNING DOCUMENTS! These are legally binding documents that have been used and are being used in court. The signatures that were used were not those of the board members serving at the time (which is what legally should have happened), BUT OTHER PEOPLE’S SIGNATURES WERE USED WITHOUT THEIR KNOWLEDGE OR CONSENT. Criminal charges have been filed against the HOA and these board members and they are currently being investigated for these actions. This may have severe criminal consequences for those involved. Once again, this may end up adding to our HOA’s liabilities and to legal costs to defend these actions.
Our HOA is governed by our governing documents, one of them, the Bylaws. Our Bylaws were originally created in 1988. Sometime in 2008/2009, these Bylaws were revised by the HOA board. (They were only made public on the HOA’s website in June of 2009).
The 2008 Bylaws were forged and fraud was committed. The board members of 2008/2009 should have been the ones to sign these revised Bylaws (Keith Emmer-President, Arlene Johnson, Tony Sarra, Tom Williams & Carol Dean), but none of their signatures are on it. Other signatures were used on this legally binding document.
These individuals (whose names/signatures were used) were never notified and never knew their signatures were being used without their permission. Criminal charges were filed with the Police and the District Attorney for forgery, fraud, identity theft and many more charges for these actions. You can see these documents for yourselves to validate. Compare the 2008 Revised Bylaws with the 1988 original Bylaws.
Notice: The 2008 Revised Bylaws copied the text of the 1988 Bylaws, almost word for word (except for two illegal changes), and were completely re-typed (even the last two pages, including the legal description).
Notice: The signatures on both sets of the Bylaws. They are the exact same! The signatures section of the 1988 Bylaws was literally cut out and pasted on the signature section of the 2008 Bylaws. It is clear to see that the signatures section is an exact copy. Again, these signatures were used without the knowledge or consent of these individuals. Again, look at the 2008 Bylaws and see that the text was re-typed above the signatures section and below it.
By comparing the two Bylaws, you can see, this wasn’t an innocent mistake or an error in copying the document. These were cut out and put in the new Bylaws with some skill. In the trial in December of 2012, Keith Emmer was asked about these illegal Bylaws and he said he never signed these Revised 2008 Bylaws. He was the board president of the time. He also said that the last two pages were thrown at the back because the legal description had to be included, so it was a mistake. Again, by comparing the two sets of Bylaws on this signature section, one can clearly see that they were all re-typed (the section above the signatures and even the legal description below it). The signature section was literally cut and pasted right in the 2008 Bylaws! This means that the 2008 Bylaws are NOT legal and any changes that were made should be nullified.
*****UPDATED INFORMATION: As of 2/4/13 you could see these forged Bylaws on the Hi Country Estates 2 Website, but because of the info that has been sent out to the HOA and the criminal investigation, they just changed and added new Bylaws to the website. This is very interesting. Please notice that they have not been signed by the board members. Why would the HOA make a last minute change to our Bylaws on our website on 2/5/13 and put Bylaws on the website that have not been signed by the HOA board members? Is there no current Bylaws with board signatures on it? Why would they need to change them so quickly? http://www.hi-country2.com/dotnetnuke/GeneralInfo.aspx
This raises many questions: -Did they do this because the two changes made to the 2008 Bylaws were both illegal changes? -If a governing document was forged, it is possible that other HOA documents used forged signatures also? -Why would they do this? It is clear to see that it wasn’t an accident. -Were they not willing to sign because of the nature of the changes? -Were there other possible plans or schemes? -Has fraud been committed in other instances? -Did they do this to eliminate personal liability? -Why would the board still continue to govern and use these 2008 Revised Bylaws, if they know that they are illegal and that they were never signed properly by the board members in 2008? (See the HOA’s website to verify they are using these 2008 Bylaws still)
The 2008 revised set of Bylaws made two changes, both were illegal: 1-Compensation for Board Members -This change was illegal. To make any changes to our governing documents, it requires a proposition and a majority vote of the HOA members. THERE WAS NEVER A VOTE TO GIVE HOA BOARD MEMBERS COMPENSATION, EVER! The HOA board members decided to throw this into these new Bylaws without ever telling the HOA property owners and without ever voting on it.
-In the recent trial in December, Keith Emmer was asked, on the stand and under oath, if this change was voted on in 2008 by the HOA membership. He admitted it was not. With such limited HOA funds and our roads and water system that are deteriorating, wouldn’t it be nice to know that our HOA Board Members decided to take more money out of the HOA pot (several thousand dollars per year) for their personal benefit?
2-Change Of Board Member Terms To 3 Years -This change was illegal because our board members are only allowed to serve 1 year terms. -Our Articles of Incorporation (which are our HOA’s highest governing document) clearly state: “. . . shall elect three Directors for a term of one year, and at each annual meeting thereafter the members shall elect the number of Directors provided in the By-Laws for a term of one year." (Cert of Incorp, top of page 4).
-If there is a conflict between any of the governing documents, our Bylaws clearly state: “In case of conflict between the Bylaws and the Articles of Incorporation, the Articles shall control” (Bylaws, Art XIV, Section 2)
So, we see a conflict between the Articles of Incorporation and these new illegal 2008 Bylaws, yet they still state that the Articles of Incorporation shall control. The Articles state that the term for the Directors shall only be for 1 year. By serving longer than 1 year terms, our HOA board members are knowingly going against our HOA documents and are serving illegal board terms.
Having illegal Bylaws that were forged has opened the door for much more HOA liability, additional lawsuits and increased legal fees to be spent by our HOA to defend its poor actions. This is our money! Why should we continually be responsible for these actions of the HOA and its board members? When should it become their personal duty to defend their own actions and pay for their own legal fees?
These Bylaws are illegal, not valid and should be rescinded immediately. They were not executed properly and were not signed by the board in 2008, so they cannot be legally binding as our governing documents. Many believe our HOA should cease and desist their actions immediately. Many believe that the board members that were serving during that 2008/2009 timeframe should never be allowed to serve as board members again. Some of the board members that were serving during that 2008/2009 time are still on the current HOA board. Many believe that they should resign immediately for these actions. If they are serving for more than 1 year, and if the 2008 Bylaws are illegal, many believe they aren’t valid board members anyways and should be removed from office immediately.
Time will tell what results will follow from the criminal investigations and any other lawsuits that come as a result of all of this. These people’s signatures that were used illegally have the right to sue against the HOA for damages and the fraud and forgery. If your signature was forged and used illegally, wouldn’t you sue also to eliminate the liability the HOA has brought upon your head personally?
Results From The Illegal Bylaws: -Unauthorized Compensation, Board Members Are Behind On Their Dues: Board members have received compensation illegally since 2008 and have not paid their annual HOA assessments. Because these Bylaws are illegal, these assessments have never been paid so the board members are behind on their dues. -Board Members Votes Were Counted Illegally: If we, as normal HOA members, are behind on our assessments, we are not allowed to vote in HOA elections. These board members have not paid their dues,have voted in all of these elections and their votes have been counted illegally. -Illegal Board Members Because Not Current On HOA Dues: If we, as normal HOA members, are behind on our assessments, we are not allowed to serve as board members. These board members have served illegally because they are all behind on their assessments. -Board Members Should Be Liened & Sued By The HOA For Non-Payment: If we, as normal HOA members, are behind on our assessments, legal action is taken against us. These board members must be required to pay these back assessments or legal action should be taken against them, liens should be placed on their properties for non-payment immediately. Principals of fairness and equality should be applied when applying legal action for non-payment of HOA dues (board members shouldn’t be treated differently, especially by the attorney they had/have a relationship with). -Board members are currently serving illegal terms because they can only serve 1 year terms according to our Articles of Incorporation (which are the highest governing document in the HOA). -Illegal board members received financial gain from illegal actions -As Illegal board members, are illegally managing the HOA’s precious assets of water rights and bank monies (currently around $295K in the bank), their checkbooks, payments etc.
-As illegal board members, they illegally tried to sell the water rights of the HOA for $1.8Million with no vote and no telling where they would spend that money once received. -Illegal board members SPENDING OUR MONEY ILLEGALLY ON AN UNAPROVED BUDGET with no checks/balances (this is against Utah law, Community Association Act, 57-8a-215).
-As illegal board members, they shouldn’t have the right to access our HOA’s bank accounts. -These illegal actions have affected the lives of all of the HOA members (over 360) as well as the lives of those whose names/signatures were forged and used fraudulently. -By forging these signatures on this governing document, the HOA (and these illegal board members) have possibly brought excessive liability upon the heads of those whose signatures were used illegally on these legally binding documents. -With no checks/balances of our HOA monies, how are the HOA property owners to know that their money wasn’t going to be wasted or used in any other illegal actions?
YOU BE THE JUDGE. LOOK AND COMPARE THE TWO SETS OF BYLAWS.
ASK YOURSELF IF THESE ARE THE TYPES OF ACTIONS WE PROMOTE IN OUR HOA. ASK YOURSELF IF THESE NEW LIABILITIES ARE WORTH HOLDING ONTO AND FUNDING AN HOA THAT IS FALLING APART.
NOW IS THE TIME TO DISSOLVE OUR HOA, VOLUNTARILY, BEFORE IT IS TOO LATE. PLEASE SIGN AND RETURN THE ATTACHED PETITIONS NOW. WE NEED EVERYONE TO VOTE.
The HOA is Being Sued By Several Parties Right Now and Many Future Lawsuits Are Coming
There has been a major lawsuit against the HOA since 2009. Part of that lawsuit went to court recently. The trial was three full days in December, 2012. It was determined, by 8 jury members that the HOA has committed illegal actions and was found guilty of breaching its contract with its HOA members (breaching its governing documents with its members).
To put it in simpler terms, “breach” means “break”. The contract it is referring to is all of our HOA’s governing documents the HOA is supposed to follow. We, as members of the HOA, each have a contract with the HOA. We pay our dues, and they give us services to our roads/water systems etc.
In this trial, the jury determined that the HOA breached this contract with its members and that it wasn’t fulfilling its duties to the HOA and its members. Damages were awarded. This lawsuit was only from a few HOA members. As a result, the word is out, and the precedent has been made that the HOA has been found guilty of these actions. This has opened the floodgates for many more lawsuits to be easily proven against the HOA for similar charges. Many other members believe to have been damaged also, so there is much liability. Just one more lawsuit could be filed and it could bankrupt the entire HOA.
Many members receive very little services for their HOA dues, so they are angry with the HOA. Many other members have received no services for many years (residents living on Rose Canyon Road and land owners with roads that have been abandoned of maintenance by the HOA).
Many members have made demands in the past and are making preparations to sue. The HOA has made many mistakes and has done many things illegally, so the liabilities are high. Now there are criminal charges against them also! There is little chance that these problems will ever end, unless we all VOTE TO DISSOLVE THE HOA VOLUNTARILY NOW, BEFORE IT IS TOO LATE! We can wipe the slate clean and end all of these problems.
Our Property Taxes Will Be Much Lower
Salt Lake County Tax Rate = .000750 Herriman City Tax Rate = .000435
Right now, we are paying these property taxes to Salt Lake County. They have paid for very little in our HOA. The County maintains Rose Canyon Rd, so that benefits all of us because we all drive on it, but they have not paid to improve or maintain any of our other roads. By annexing into Herriman and dissolving the HOA, some of those monies, that we already pay in our property taxes, will be used towards our road maintenance and snowplowing etc.
When comparing the two options (stay in Salt Lake County vs being inside Herriman City) we would be paying about half of taxes to the City that we are paying to the County right now.
OUR POCKETBOOKS DEPEND ON THIS DECISION. PLEASE SIGN THE ENCLOSED PETITIONS (BOTH TO DISSOLVE THE HOA AND TO ANNEX INTO HERRIMAN). WE NEED THE HELP AND SUPPORT OF EVERYONE IN THE HOA! THAT MEANS YOU. PLEASE SEND THEM BACK AS SOON AS YOU CAN!
HOA is Illegally Spending Our Money With an Unapproved Budget Since 2009
For almost 40 years, the HOA has presented the annual HOA budget to its members at the annual HOA meeting. Each year it had a vote, by the HOA members/property owners, to accept or reject the budget. It has been approved each year by the membership up until 2009.
In the 2009 Annual HOA meeting, the budget was presented and voted on, and was rejected by the majority of the HOA members. Many complaints and questions to the board members arose about the budget (from residents and land owners). The members asked why we couldn’t spend more money on road improvements and why the budgeted amount for legal fees was so high ($35,000). They argued that too much was being paid to the HOA’s attorney and not enough was being paid toward road maintenance. The members proposed a change to the HOA’s budget. They voted to change the $35K budget for legal fees down to $5K for the year. The $30K that was saved would go towards more road improvements and maintenance. (This would have almost doubled our road improvement amount spent and would have made a real impact on our community).
Keith Emmer, the board president at the time, vocalized the changed budget that was proposed and took the votes of all those present. The new proposed budget passed with a large majority. Almost all in attendance voted in favor of this (land owners and residents).
Did our elected officials listen to the requests of the HOA? They did not. Roughly one month later, we all received a postcard in the mail from the HOA board stating: “This year at the Annual meeting the HCII budget was presented but was not approved by those in attendance. The By-Laws state that the Treasurer “shall prepare an annual budget of planned Association expenditures for the coming year and present it to the membership at the regular annual meeting. After conferring with the Hi-Country II attorney, the board decided to move forward with the budget as presented, since formal approval is not required. Hi-Country cannot simply turn the water pumps off or cease to carry on business within the community. Thank you Keith Emmer President”
The HOA members were not asking to turn any water pumps off. They were asking to spend more money on road maintenance that are in much disrepair and less money on legal costs. If roads are maintained better, we would probably have less legal issues to deal with anyways.
The HOA board has not allowed us to have a vote on the annual budget since that time.
These are our elected officials. We elect them to run and manage the HOA according to what WE AS THE HOA MEMBERS WANT, NOT WHAT THEY WANT. Our board members have a fiduciary duty to do what we say as the members and owners of the HOA. We wanted to spend OUR MONEY a certain way and we voted on it, but they decided to act against our wishes and decided to listen to their attorney (who interestingly was the one that benefitted financially the most from that decision).
IT IS AGAINST UTAH LAW FOR AN HOA NOT HAVE THE CONSENT OF THE HOA MEMBERS FOR THEIR BUDGET
Utah Code, Community Association Act, 57-8a-215
The HOA is illegally spending and using our money without our authorization and without an approved budget. This is against Utah law! HOA members could sue for this one action alone. This is one more reason, why we need to DISSOLVE THE HOA, to end the illegal actions of the HOA and end the liabilities this HOA has brought upon all of us.
We, as members of the HOA, deserve to vote and decide where OUR MONEY is spent in the HOA. We deserve to have someone representing us that will follow the rules and laws. We deserve to have them doing what we tell them to do, not doing what they want to do.
WE NEED TO END THE PROBLEMS, THE ILLEGAL ACTIONS AND THE LIABILITIES OUR HOA NOW HAS. PLEASE SIGN THE ENCLOSED PETITIONS AND SEND THEM BACK AS SOON AS POSSIBLE.
The HOA Might Send A Letter To Try To Defend Some Of Its Illegal Actions. Please Read The Enclosed Info And Make Your Own Decisions.
Our HOA has recently been proven, in a jury trial, that it has breached its contract (breached its governing documents with its members) and has been found guilty of illegal actions with damages awarded. The HOA and some of its board members are also now being investigated for criminal actions of forgery and fraud by the police and the District Attorney. If the HOA board sends you contrary information against the info in this packet, please consider the source. We ask that you research the issues yourself and make your own conclusions. The HOA’s attorney is paid between $35K -$41K per year from our HOA monies. It is probably in HIS best interest to keep the HOA from dissolving (wouldn’t you if you had a nice retainer like our HOA pays him each year?) It is in OUR best interest to dissolve the HOA and to end the problems. One interesting point: Our HOA’s attorney, for over a decade, is a divorce/family law attorney and spends most of his time in that area of law. Many HOA members have questioned the validity of his legal advice because he doesn’t deal with HOA or real estate as his primary focus of law; http://www.djplaw.com/howard-lundgren. Please educate yourself on these issues and don’t be persuaded by the HOA board if they send you contrary info. The HOA has much liability and quite possibly will be dissolved in the next 6 months from a bankruptcy or other liabilities from lawsuits. IT IS TIME TO DISSOLVE THE HOA NOW. PLEASE SIGN THE PETITIONS AND SEND THEM BACK AS SOON AS POSSIBLE.
No More HOA Fees = We All Save $$. (And No More Wasted Money)
Our HOA currently spends $35,000 - $41,000 per year on expensive legal fees! This is about 30%-40% of our annual HOA budget! In a recent trial in December of 2012, the HOA was found guilty of illegal actions and breached of contract (breach of HOA governing documents) with its members. This has opened the door for much more liability, law suites and many more legal fees in the future. Our HOA dues will be spent on defending the criminal investigation against the HOA and some of its board members now also. By dissolving the HOA, we can eliminate these HOA fees that are not paying for our road & water system upgrades, but that are and will be paying for expensive legal fees and possible judgments.
There is much wasteful spending by our HOA. Our governing documents require the HOA board members to receive 3 or more bids for any road maintenance, upgrades and snow plowing etc that is more than $1,500 (Bylaws, Article XVI, Section 4).
In the past 30 years, the board has only done this a handful of time. They typically use the same company to contract this out year after year. If they are required to receive bids from other competitors, and to shop these costs out, why are they not doing it to save more of our money? If the same contractor keeps getting the job each year, and there are no other competitive bids, there are no checks and balances to keep costs lower or at normal rates. The HOA must get several bids, it is required by our governing documents, but is also just a good common sense practice.
The residents that live on Rose Canyon Road receive road maintenance and snow plowing from Salt Lake County and this is paid from their property taxes with no added fees or assessments. Similar to this, much of these services will be paid through our property taxes. This will end up saving us a lot of money through the years. There may also be a special service district setup with Herriman City.
What Happens When We Dissolve?
According to our governing documents: “The Association may be dissolved with the assent given in writing and signed by not less than two-thirds of all members; provided, however, that the assets must then be dedicated to an appropriate public agency to be used for the purposes similar to those for which this Association was created.” -Certificate of Incorporation, page 4 (top of the page)
Most of the HOA members see all of the problems and liabilities and want it dissolved. Most don’t want to worry about any more HOA legal battles and lawsuits. We need two thirds of the votes to pass this officially. That is a lot of votes! This may be hard to accomplish, but we are confident that the HOA members will all pull through and send these petitions back as soon as possible so we can end all of our problems and raise our property values.
WE CAN ONLY DO THIS IF WE HAVE YOUR VOTE! WE NEED YOU TO SIGN THE PETITIONS AND SEND THEM IN. WE NEED EVERYONE TO VOTE, AND WE NEED THEM BACK AS SOON AS POSSIBLE!
Once the petitions are signed, they will be given to the HOA board. They will also be given to a judge to make things official. The HOA board members will have no more authority and will not be the ones to handle the finalizing affairs of the HOA. A “receiver” will be appointed by a judge to “wind down” the affairs of the HOA. This court-appointed receiver will temporarily manage the assets of the HOA and negotiate their exchange with Herriman City for upgrades to our water system and roads.
The latest HOA financial statement showed we had around $295K in the bank and our water rights (that Herriman City has already agreed to buy) are worth over $2 Million. These will be transferred to Herriman City and we will be under their jurisdiction. There will be no HOA dues and no more HOA liabilities and illegal actions.
Currently in the HOA, we, as the members and property owners inside it, are required to pay for our upgrades and maintenance to our roads and water systems. The residents that live on Rose Canyon Road receive road maintenance and snow plowing from Salt Lake County and this is paid from their property taxes. Similar to this, some of these services will be paid through our property taxes. Herriman City may setup a special service district to help pay for these upgrades and maintenance also. We will still be required to pay for our own roads and water systems (same as now). By annexing into Herriman, it is not a free pass to get free services and upgrades. But the costs will be much lower and expenditures will be spent much more efficiently.
There are many benefits to having Herriman City manage these services: -No more wasted money on legal fees (as we do now in the HOA). -All of the money paid into this will go directly into the road and water system upgrades and maintenance. -The city has a professional city management staff that already manages road and water systems in Herriman City full-time. They are much more equipped to handle these affairs. Our HOA board members do this in their free time and are volunteers (usually inexperienced in handling the management of these types of systems effectively). -Costs will be much lower than the HOA has been spending because Herriman City has many of these services done in-house. -Costs will be much lower because when upgrades need to be done, they are bid out by several competitive bids. The construction is managed by city engineers and inspectors to make sure our prices are fair and that quality is high. -The city has many more avenues to accessing government grant monies for upgrades to roads and water systems etc. They will be able to help us in obtaining some of these monies to help pay for our systems and upgrades. -There are also many other options with the city with bonding and long term, low interest, financing for these large types of projects. By doing these projects this route, it makes it very affordable for everyone to enjoy all of the luxuries of paved roads and better water systems that are brought up to code and safe standards.
What Will It Cost Me To Dissolve The HOA & Annex Into Herriman?
Nothing! All we need from you are the petitions to be signed (and please send them back as soon as you can). There is a small fee to annex into the city (for the whole group), but this has already been paid by some of the group members.
What If We Don’t Get Enough Petitions Signed?
IT IS CRITICAL THAT WE HEAR FROM EVERYONE IN THE HOA! WE NEED A LOT OF VOTES TO ACCOMPLISH THIS. THAT MEANS YOU! WE NEED YOUR SUPPORT TO END ALL OF THESE PROBLEMS AND TO DISSOLVE THE HOA. NOW IS THE TIME, WHILE WE STILL HAVE ASSETTS IN THE BANK AND WATER RIGHTS TO TRADE WITH HERRIMAN CITY.
One more expensive lawsuit or judgment, and it could wipe us out completely.
Most of the HOA has expressed interest in dissolving the HOA. If, for some reason, we don’t get up to the 2/3 votes that are needed, many members have threatened lawsuits and many more members have vowed to stop paying their assessments into a lost cause. We will probably self-destruct and our HOA will fall apart and dissolve on its own in the next 6 months or so through a bankruptcy or other court ruling. With so many upset members and limited money coming in as well as other lawsuits coming up against the HOA, this will probably be our reality.
Once our insurance limit is met, the board members are liable personally for their actions if they are sued. There is also a very good chance that our HOA will be un-insurable in the near future. With no insurance to back the actions of board members, no one will ever attempt to run for a board position if they had so much personal liability. Past and current board members are currently being sued personally for their actions. No one will want this liability, so no one will ever run for these positions in the future.
We are anticipating a large majority of people in favor of dissolving the HOA (most have already expressed this verbally). By having this majority of the HOA in favor of dissolving the HOA, and by making these voices and votes clear to our HOA board, the board will be required to follow our wishes also. If we don’t reach the required 2/3 vote of the whole HOA, our board will still legally be required to be pro-dissolution and will be required to bring these wishes to a judge, who has the ultimate power to dissolve the HOA. By the members voting for something like this, the board has a fiduciary duty to act in that way. If we, as a majority, tell the HOA board that we want to dissolve, they must do everything in their power to aid in this or else they are going against our votes and our desires illegally.
One of the lawsuits against the HOA currently is asking to dissolve the HOA, but the HOA is fighting back to keep itself alive and afloat. By the HOA members signing these petitions and showing a majority in favor of dissolving the HOA, the HOA board will be required to not fight against dissolving the HOA in this upcoming trial, but to be in favor of it also. This will save all of us a lot of money in expensive legal fees because we will have all spoken and will all be telling the judge (both parties to the lawsuit) that we all want it dissolved. We will just need his official stamp of approval on it and it will be done. This should be done within 1-3 months of when we send the petitions in.
If the HOA board and their attorneys decide to go against the HOA members requests to dissolve (that were voted on), these board members may be bringing on more legal costs, more liabilities, more lawsuits and more problems to the HOA. We hope that they will not do this and will follow all of our wishes so that there are no more problems and we can end all of this before our assets are wasted away.
AGAIN, THE WRITING IS ON THE WALL. WE WILL PROBABLY BE DISSOLVED SOON. WE MUST ACT NOW TO DO IT, VOLUNTARILY, TO SAVE OUR ASSETTS. PLEASE SIGN THE PETITIONS AND SEND THEM IN NOW! WE NEED YOUR VOTE AND SUPPORT.
WE HAVE TWO CHOICES: 1-WE CAN DISSOLVE OUR HOA NOW, VOLUNTARILY, AND BENEFIT FROM OUR HOA ASSETTS/MONEY.
2-WE DO NOTHING AND WATCH OUR ASSETTS/MONEY BEING WASTED AWAY IN LEGAL FEES AND JUDGEMENTS AND WE WILL GO BANKRUPT AND DISSOLVE IN THE NEAR FUTURE ANYWAY
We can either dissolve this now, while we still have money in the bank and we can trade it with Herriman for roads and waterline improvements, or we can sit back and wait and watch it all happen in the next 6 months to a year anyways through the lawsuits, expensive legal fees and bankruptcy. We will be dissolved either way, but if we do it ourselves and now, we will be able to protect these valuable assets and get something out of them instead of losing all of it.
MANY OF US USUALLY DON’T WANT TO GET INVOLVED IN HOA MATTERS, BUT IF WE SIT BACK AND DO NOTHING, OUR ASSETTS WILL WASTE AWAY AND WE WILL NOT BE ABLE TO GAIN FROM THEM.
We have 2 choices:
1-We dissolve the HOA now, voluntarily, while there is still time and our assets are still intact. We can exchange these assets with Herriman for much needed upgrades to our water system and our roads. To do this, WE NEED EVERYONE (THAT MEANS YOU!) TO SIGN THE PETITIONS AND SEND THEM BACK AS SOON AS POSSIBLE.
Results: We will have more than $2.5Million in assets to trade with Herriman and get that amount of upgrades to our water system and roads. Our assets and money will not be wasted away in legal fees and judgments. We will have many more upgrades to our roads and water system in the near future. Our personal liabilities in paying current and future judgments owed by the HOA in lawsuits will be gone. Our property values will be much higher. Our property taxes will be lower. Our community will be in much better shape and much more aesthetically appealing after these upgrades are made.
2-Do nothing and watch the HOA self-destruct because no one will want to be a board member for the liability. The HOA will continue to get sued and continue to waste its money on expensive legal fees and judgments. Our HOA bank account currently has $295K and our water rights are worth over $2Mil. These assets will get squandered and wasted away quickly. The current lawsuit is suing for over $2Million alone, plus its legal fees. This is just one lawsuit and just the beginning of the floodgates of other lawsuits that are coming because these property owners won their trial. We could all be wiped away in the next 6 months. We will have a large judgment to pay the winners of the lawsuit. We will either have to keep paying our annual HOA dues each year into the HOA pot, only to keep paying off the debt and liability to these property owners or we will go bankrupt. We will then possibly all be liable as individual property owners to pay these debts and liabilities on a pro-rata basis. This could go on forever!
Results: This will waste all of our HOA assets, will open us up for more liability in the future and will possibly make all of us liable to repay these liabilities and debts. We probably will have to dissolve through a bankruptcy and will have no assets to trade with Herriman City for upgrades to our roads and water systems.
The HOA will most likely be dissolved in the next 6 months one way or another. THE WRITING IS ON THE WALL. WE HAVE THE CHOICE AS TO WHETHER WE WILL BENEFIT FROM THIS OR LET IT BE SQUANDERED AND WASTED AWAY. PLEASE SEND IN YOUR PETITIONS AS SOON AS POSSIBLE!
WE MUST ACT NOW!!!
The time is now and there is very little time before these assets could be wasted away. We must all take action now and call all of our friends and neighbors in Hi Country 2 to tell them the importance of signing the petitions also. Your pocketbook and your property value will definitely be affected by this decision one way or the other. Let’s dissolve the HOA voluntarily now and take advantage of the assets or else they will be lost forever.
We understand that you probably might not want to get involved in this and get in the middle of anything. This is our only chance to do this the right way and the timing is crucial right now that you respond quickly to this petition. There is already a large portion of the HOA that has signed this already, but we need 2/3 of the HOA to sign this. We really need your help to finalize this to get the required amount of signatures for the petition. Please respond! Please vote now! PLEASE SIGN THIS PETITION TO DISSOLVE THE HOA AND TO ANNEX INTO HERRIMAN CITY BEFORE IT IS TOO LATE.
We No Longer Need An HOA
When our HOA was first formed, in 1973, this area was all by itself, way out in the middle of nowhere. There were no other houses for miles. The property owners needed an HOA at that time to help one another to spread the costs for road upgrades and maintenance, snow removal, and water systems.
Growth continued to spread throughout the Salt Lake Valley and eventually, Herriman City was formed and has grown significantly over the past 10 years. The Herriman City borders are literally adjacent to our HOA. Herriman City has management, on-staff and full time (not inexperienced volunteers working on a part time basis), that manage roads and water systems. They already manage our water system and payments etc. It only makes sense to dissolve the HOA and have Herriman manage our roads also.
The HOA’s main purposes are to manage:
1-Roads (Herriman City can do this much better for us. They have a full time staff of engineers and road maintenance crews that do this. They can do this at much better costs, and much more efficiently). 2-Water System (Herriman City already manages this.) 3-Architecture Control (Herriman City has full time staff in their building and code enforcement departments that do this)
By being managed by Herriman City, road maintenance and water system upgrades will be bid out and competitive prices obtained. The city knows what things will cost and will get the best prices. Our HOA rarely gets multiple bids (as required by our governing documents). Road and water system upgrades could possibly be paid by government funding and grants. We have had government grant monies available to us in the past (one in 2009 for around $11 Million) and our HOA did nothing, despite us voting 3 times for them to seek this funding!
The HOA has told us in the past that we can be in Herriman City, and still have an HOA. This is true, BUT WE DO NOT NEED AN HOA AND WHY WOULD WE WANT TO KEEP THIS HOA? They have brought on much liability, they are wasteful in their spending, and Herriman City will be doing all of these things that the HOA currently attempts to do, but will do it much more effectively. There is no reason to keep the HOA if we are in Herriman. Now is the time to end the problems, the wasted money on HOA dues, and the liabilities of the HOA. In 1973, this HOA was needed. We no longer need an HOA.
PLEASE SIGN THE ENCLOSED PETITIONS TO DISSOLVE THE HOA AND TO ANNEX INTO HERRIMAN. PLEASE SEND THESE BACK AS SOON AS POSSIBLE.
Will The Zoning Change If We Annex Into Herriman City? No, The Zoning Will Be The Same As Now
Currently zoning, in the County, is 2.5 acre lots per house. Some of us residents have had concerns that if we annex into Herriman City, the zoning will change. Herriman has told us that we will be brought in at the same 2.5 acre zoning, so we will be in the exact same situation and zoning that we are in now.
The HOA board has stated this in their letter to the members also:
“If annexed, HI Country Estates II would be zoned similar to the current zoning and building requirements (as in the County).” -Six Month Update on the Status of HCEII (Section D), Jan 3, 2011
In the past, HOA board members have said that Herriman doesn’t want us and won’t take us. This is absolutely false. Please see the Official Memo (signed by the Mayor of Herriman) that was sent to Hi Country Estates 2 HOA regarding these issues of annexation. They clearly state that they will take us in. They also address the issue that they will not be paying for our road and water system upgrades out of their pockets, but that we will need to pay for them ourselves over time. This is to be expected. Right now we are required to pay for these services ourselves through the HOA. The difference will be that Herriman City will be governing these expenditures instead of inexperienced volunteers that do it in their spare time. These costs will be much lower and will be managed much more efficiently. We will also know that the majority of our money is going towards the actual improvements and not towards expensive legal fees (as is being done now in the HOA).
Herriman City has many benefits to offer us. They will gladly take us in and welcome us. By annexing into the city, we will have a much greater chance of receiving government grant monies to help pay for road and waterline upgrades. We will also have a full time staff that works on these issues, all day long (road maintenance and water systems etc). They are already managing our water system, the only thing left is to manage the roads.
PLEASE SIGN THE ENCLOSED PETITION TO DISSOLVE THE HOA AND TO ANNEX INTO HERRIMAN CITY. WE ALL BENEFIT AND HAVE MUCH TO GAIN. OUR PROPERTY VALUES AND POCKETBOOKS DEPEND ON IT.
Many HOA Member Have Stopped Paying Their HOA Dues & Many More May Stop Paying Now
Many HOA members have stopped paying their annual HOA dues because they know that nothing will happen for several years anyways. The HOA doesn’t foreclose on properties right now, so many members don’t pay their dues because there are little consequences for not paying. It was estimated that over $250K has not been paid to the HOA.
-Many HOA members are upset with the services of the HOA and feel it is a waste of money, so they have stopped paying. -Many HOA members receive little or no services for their annual HOA payments, so they feel it isn’t fair that the HOA charge them these dues.
-Residents living on Rose Canyon Road are expected to pay their HOA dues, but they live on a County maintained road. The cost for maintenance and snow removal of that road comes from their property taxes. So they literally receive nothing from their HOA dues, but they are still required to pay them. -Vacant land owners have roads that have been abandoned by the HOA management (even though the HOA is required to maintain all roads) -Many HOA members have vowed to stop paying their HOA dues if we do not dissolve now. They feel it would be paying money into a lost cause and a sinking ship and do not want to support our HOA and its illegal actions anymore. They believe the HOA will be dissolved soon anyways, so there is little use in paying these dues. It’s only a matter of time before the majority of the HOA will not be paying their HOA dues. Each year, many more HOA members stop paying their dues for one reason or another. This number is increasing each year and will continue to increase much more each year now. The HOA won’t have enough money to do anything in the near future.
How are we going to get any improvements to our roads or water systems if we don’t have enough money to do anything now? How are we going to get any improvements if we are wasting more and more of these funds on expensive legal battles? How are we going to get anything done with a majority of the HOA that has stopped paying their HOA dues?
PLEASE HELP US AND SIGN THE ENCLOSED PETITIONS. PLEASE RETURN THEM AS SOON AS POSSIBLE SO WE CAN DISSOLVE OUR HOA AND END ALL OF THESE HOA FINANCIAL PROBLEMS AND USE OUR ASSETTS TO OUR BENEFIT.
Our House Fire Insurance Rates May Skyrocket Soon!
We all know that our water system is old, dangerous, not up to code and has not been very reliable in the recent forest fires we have had. We have been very lucky in the past, but we may not be so lucky next time. Some residents have already seen a raise in their insurance rates because of these fires.
The fire marshal determines the risks of homes in each area and our area has been put on high alert. Some homeowners that have recently tried to change insurance to another company have been denied! This may also affect our home values because if new buyers cannot get fire insurance for their house, they will see the red flags and not want to buy in our area. This affects us all. Not only do our rates go up, but our property values may go down.
By dissolving the HOA and annexing into Herriman City, we will be able to exchange our current assets for upgrades to our roads and water system. We will also be better off with the long term upgrades Herriman can offer to our roads and water system.
Better water system = Better Fire Protection = We Are All Safer = Our Insurance Premiums Will Go Down = Our Property Values Will Be Higher
We Could Possibly Be Bringing Liability Upon Ourselves Personally If We Don’t Dissolve The HOA
By staying in the HOA, we are all affected financially. We need to dissolve the HOA to protect ourselves from possible future liability personally (from the HOA and its illegal actions). If the HOA keeps getting sued, the insurance amounts and the HOA bank accounts will get depleted. The HOA could have multi-million dollar liabilities that the HOA members would be responsible for. If the lawsuits keep getting claims against the HOA, the members could be responsible to pay these liabilities on a pro-rata basis for many years. If we dissolve the HOA now, we can avoid this possibility and wipe the slate clean.
Our HOA Is Not Following Its Governing Documents. Our Governing Documents Also Have Many Inconsistencies & Problems. We Can’t Function Effectively Anymore. The HOA is Deadlocked.
Our governing documents are a mess and make it almost impossible for us to vote on or pass anything. There are so many loopholes and vague descriptions. Past and current board members have seemed to have made up their own rules as they go. Some examples of these are:
-According to the Certificate of Incorporation, the term for the board members to serve is 1 year. It is very plain in the way it states this, yet our board members are serving 3 year terms (also due to the illegal 2008 Bylaws)! (Page 4 of Cert of Incorp)
-Our Protective Covenants state that if someone is behind on assessments, the remedy is to foreclose. It says nothing about voting rights being taken away, yet the board will not allow you to vote if you are not current on your HOA assessments (Protective Covenants, Article II, Section 2).
-According to our Certificate of Incorporation, our board members “need not be members of the Association” (page 3), yet our HOA board requires you to be a member of the HOA and current on your HOA dues. We is our HOA acting completely opposite of what our Cert of Incorp states? If it allows people to be board members that aren’t even members, they obviously haven’t paid dues either. Why have they limited board membership in this fashion?
-Our governing documents don’t even describe our current voting system (that has been historically used for over 30 years).
-They don’t even state how much HOA dues/fees/assessments should be!
These are basic things that need explanations and governance, and they are not even in our governing documents! The list goes on and on. Why is our HOA board governing against its documents instructions when they are so clear in these areas? Why has there never been any action to remedy these?
These are some of the reasons why the HOA is being sued so much, there are too many ambiguities and problems with our governing documents and too many problems with the way the HOA has governed from these documents. These documents were created almost 40 years ago. Things have changed, laws have changed. The only real way to eliminate the liability of these governing documents is to DISSOLVE THE HOA.
In a recent letter to the HOA, from the HOA board, the board admits that we have these problems with our governing documents:
“During the past six months questions have arisen regarding three areas ofinconsistency in HCEII documents. Length of terms of directors, method of counting votes and minimum lot size. These questions have been brought to the board in the form of two lawsuits and a petition from the membership.”
“. . . The proper procedure for amending the Protective Covenants was not followed.”
“. . .This change was made to the Bylaws, but the Certificate of Incorporation was never amended.” (The certificate of Incorporation rules over and has more authority than the Bylaws)
“. . . This change was not reflected in the Bylaws and the Certificate of Incorporation was never amended.”
-Six Month Update on the Status of HCEII (Section C), Jan 3, 2011
We can never get enough votes to get road improvements and upgrades. We are deadlocked. We are literally deteriorating. We need to take action and DISSOLVE THE HOA NOW. The only options to fix these problems in our governing documents are:
1-Vote on the changes as an HOA (This will require 75% of the HOA to vote on all of the changes. All 75% will need to agree on every part of the changes also. This is nearly impossible!) (We would still have the past liabilities and problems hanging over our heads) 2-A judge can make the decisions for us and mandate them (This will cost us all a lot of money in legal fees and we may not like what he forces upon us) (We would still have the past liabilities and problems hanging over our heads) 3-WE DISSOLVE THE HOA VOLUNTARILY. This will be our decision and our doing. We will be able to wipe the slate clean and be rid of our HOA problems and legal liabilities.
NOW IS THE TIME FOR US TO VOTE TOGETHER AND DISSOLVE THE HOA. THIS WILL END OUR PROBLEMS AND OUR LIABILITIES. WE HAVE MANY THINGS TO GAIN AND BENEFIT FROM AND NOTHING TO LOSE IN DOING THIS! PLEASE SIGN THE PETITIONS AND SEND THEM BACK BEFORE FEB 11, 2013. WE NEED THEM AS SOON AS POSSIBLE.
Our HOA May Be Un-Insurable. No One Will Run As Board Members Because of The Liability It Will Bring Upon Them PERSONALLY
Board members, past and present, have been sued personally. There is a possibility with all of the liability and the costs the current insurance company is paying, that OUR HOA WILL BE UN-INSURABLE in the near future.
If there is no insurance, the liability of the HOA decisions will lie solely on the HOA board members personally. With this liability, no one will run in the future for board positions because they won’t want to bring the liability upon their heads. Once the current insurance company’s limits are paid, these board members that are being sued personally may be liable for the remaining amounts. Could the insurance company come back and sue the HOA when it is all said and done? Hopefully we can dissolve before this question has to be answered.
Also, the fact that our current HOA board is governing on the illegal 2008 Bylaws (that were forged), there may be more personal liability against the current board members. Some may resign because of this. The HOA and some of the board members are being investigated for these criminal actions right now of forgery and fraud. This may result in more future lawsuits and legal actions.
With no board members and no one wanting to run, our HOA will self destruct.
All Votes Will Be Counted, Regardless Of Whether Or Not You Are Current In Your HOA Dues
Historically the HOA has had votes that dealt with important issues of the HOA, its structure and governing documents. All votes were counted in these important issues, regardless of whether was current or behind on HOA assessments or water bills. This happened in 1998, where the board told all HOA members to vote, regardless of their standing with their HOA dues.
“Please remember that every vote will count regardless of your standing with the association. We need everyone to vote.”
-Letter from HOA Board to HOA members in 1998. Signed by Keith Emmer.
Our Certificate of Incorporation (page 4), states, “The Association may be dissolved with the assent given in writing and signed by not less than two-thirds of all members. . .” Nowhere in the Certificate of Incorporation (which is the highest ruling document of the HOA) does it state that you must be current with your HOA dues to vote on these major issues. For this reason, the board counted ALL VOTES in 1998, regardless of whether they were current or not in their HOA dues and water bills.
As has been done historically in the HOA for almost 40 years, all voting is based on the number of voting units each property owner has.
Who Is In The Concerned Hi Country Estates 2 Owners Group?
This group is made up of MANY people in Hi Country Estates 2. Both land owners and residents are involved proactively. All agree that we need to dissolve the HOA and annex into Herriman. All desire their property values to be higher. All are very concerned with the happenings of our HOA, the wasted money, and the liabilities it now has. We are asking for your support and your vote in this to end our HOA problems and to wipe the slate clean.
The HOA’s Attorney Is A Divorce/Family Law Attorney. Many Have Questioned The Validity Of His Legal Advice Because He Doesn’t Deal With HOA’s Or Real Estate As His Primary Focus Of Law
For over 10 years our HOA has had their primary attorney, Howard Lundgren, giving them most of their legal advice. If his primary focus of law is divorce, many HOA members have questioned his legal advice, with respects to our HOA, through the years. His bio on his law firms website states:
“Mr. Lundgren joined Durham Jones & Pinegar in April 2007. He is the Chair of the firm's Family Law Section. His practice has concentrated on family law, divorce, custody, and related matters for more than 25 years. . . He has been a frequent presenter at family law seminars sponsored by the Utah State Bar Family Law Section and Utah Chapter of the American Academy of Matrimonial Lawyers.”
He is paid between $35K-41K per year from our HOA monies.
Our Properties Might Have Illegal Lot Sizes & Might Not Have Voting Rights in The Future
Our governing documents state that the smallest lot size currently allowable in the HOA is a 5 acre lot. There are many 2.5 acre lots in the HOA. These were allowed, against the governing documents, in the late 1980’s. Anyone with less than a 5 acre lot could possibly be deemed as not having a legal lot in the HOA and their voting rights could be stripped. They could also be sent out of the HOA. When these 2.5 acre lots were first introduced into the HOA, they only paid half of an assessment and they received ½ vote unit. In 1992 the HOA voted to assess these smaller lot sizes as a full assessment, and it passed, but there was nothing in the proposition to give them a full vote. These could all be deemed as illegal lots and these could possibly lose their voting rights. These could possibly be required to pay a full assessment, but not have any voting rights.
The HOA board knows and admits to these problems in our governing documents regarding this issue. In a recent letter to the HOA:
“In 1990 an amendment to the Protective Covenants was recorded permitting a 2.5 acre minimum lot size in HCEII. The proper procedure for amending the Protective Covenants was not followed.”
“Property was divided by 5 acre units with one vote and one assessment for every 5 acres and 2.5 acre lots having ½ vote and ½ assessment. When the Protective Covenants were amended to allow 2.5 acre lots in 1990, this was changed so the 2.5 acre lots got one vote and one assessment. This change was not reflected in the Bylaws and the Certificate of Incorporation was never amended.”
-Six Month Update on the Status of HCEII (Section C), Jan 3, 2011
WITH SO MANY LEGAL QUESTIONS AND LIABILITIES, OUR BEST OPTION IS TO DISSOLVE THE HOA COMPLETELY. BY DISSOLVING, WE DON’T HAVE TO WORRY ABOUT THIS ISSUE ANYMORE.
Our Roads and Water System are in Much Disrepair
Our roads and water system are in much disrepair. We really need the upgrades. If we dissolve the HOA right now, we can use the left over monies we have right now in the bank ($295K) and our water rights (over $2 Million) to trade with Herriman in exchange for upgrades to our water system for free.
We will have better roads, better water system. The city standards will be much better than our current standards.
Better Services, Better Roads, Better Water System, Better Snow Plowing
Herriman has a full time staff to manage our roads and water system efficiently and cost effectively. They are well equipped to manage the affairs of our water system (already doing it) and our roads. They have snowplows right down the road from our properties. With Herriman having their in-house snow plows, costs will be less than what we are currently paying. The city has many more avenues to accessing government grant monies for upgrades to roads and water systems, etc.
Is There Any Personal Liability If I Sign The Petitions?
No, we are asking you to research these issues for yourself and make your own decision. Please read this pamphlet and please SIGN THE ENCLOSED PETITIONS. We are asking for your vote to end these HOA problems and to dissolve it. There is no liability and no harm in doing this. Most of the HOA wants this to happen, we just need everyone to send in these petitions to make it a formality. PLEASE SIGN THE PETITIONS AND SEND THEM IN AS SOON AS POSSIBLE.
HOA Board Members Have a Fiduciary Duty To Do What The HOA Property Owners Require
This HOA will be doing all of us a HUGE DISSSERVICE if they interfere with what the HOA members want. Our board members legally have a fiduciary duty to do what we ask and require of them, especially when we vote on something as an HOA. We all voted in the 2010 election to annex into Herriman and to dissolve the HOA. We expected the HOA to be aiding us in dissolving the HOA and annexing into Herriman at that time, but nothing has been done. They are actually fighting one of the lawsuits that wants to dissolve the HOA! They are legally required to follow our desires and our vote. If the majority of the HOA members want the HOA dissolved and have voted in that manner, why is our HOA spending more money on legal fees to keep it from dissolving? This is against our desires.
This vote passed by a large majority. Our board members are legally required to follow the desires of the HOA vote and to aid us in dissolving the HOA and annexing into Herriman City. We are now voting to officially dissolve the HOA and they should support this action, based on our vote from the 2010 election. They should legally be pro-dissolution and pro-annexation into Herriman now, but they have remained silent on these issues. If they send out a letter, trying to persuade you to do otherwise, they will be acting in their own personal interests, and not in their fiduciary duties as a board member.
By keeping us afloat and involved in all of these legal battles, they are wasting our money, not theirs. They must support this action to dissolve the HOA because it is what the majority of the members of the HOA want and have voted on in the past.
It may be in the best interests of the HOA’s attorney’s to keep us afloat (they have a lot to gain in legal fees), but it is in our best interest to Dissolve the HOA and end all of the problems and the legal mess we are in.
We are anticipating a large majority of people in favor of dissolving the HOA (most have already expressed this). By having this majority of the HOA in favor of dissolving the HOA, and by making these voices and votes clear to our HOA board, they will be required to follow our wishes also. If we don’t reach the required 2/3 vote of the whole HOA, our board will still legally be required to be pro-dissolution and will be required to bring these wishes to a judge, who has the ultimate power to dissolve the HOA.
One of the lawsuits against the HOA currently is asking to dissolve the HOA, but the HOA is fighting back to keep it alive and afloat. By the HOA members signing these petitions and showing a majority in favor of dissolving the HOA, the HOA board will be required to not fight against dissolving the HOA in this upcoming trial, but to be in favor of it also. This will save all of us a lot of money in expensive legal fees because we will have all spoken and will all be telling the judge (both parties to the lawsuit) that we all want it dissolved. We will just need his official stamp of approval on it and it will be done. This should be done within 1-3 months of when we send the petitions in. If the HOA board and their attorneys decide to go against the HOA members requests to dissolve (that were voted on in the 2010 election and through these petitions), these board members may be bringing on more legal costs, more liabilities, more lawsuits and more problems. We hope that they will not do this and will follow all of our wishes so that there are no more problems and we can end all of this before our assets are wasted away.