#48-14, 49-14, 50-14 & 51-14: Jean Huynh, et al v. Falls Farm Homes Corporation, INC.(January 28, 2015) (Panel: Fleischer, Winegar, Kabakoff)

Four homeowners filed identical complaints against their homeowners association alleging some 29 violations of Respondent’s governing documents. The multiple allegations involved the following general issues:

●  Elections and Meetings:  Failing to hold annual meetings, to elect directors to replace those whose terms were expiring, and to appoint officers for those whose terms were expiring. 

●  Fiduciary Duties:  Failing to perform various duties imposed on it by its governing documents, including keeping orderly records, managing funds, adopting budgets, performing annual audits, and preserving reserve funds.

●  Records Inspection:  Failing to allow examination and copying of its books and records by interested members.

●  Use-in-Common Driveways:  Failing to maintain use-in-common driveways.

●  Harassment:  Respondent allegedly harassed Complainants’ tenants and family members and interfered with their right to extend to those tenants and family members the easements of enjoyment they have as owners.

The evidence, documentation and testimonies presented at the hearing showed that:

The board of directors has not been consistent in holding annual meetings and conducting annual elections,  nor did the board hold quarterly board meetings in accordance with its governing documents and applicable law. However, the Board has already begun to address these issues by successfully conducting an election in August 2014 and the Board currently has five directors.

The Association has not had its books and records audited. Various expenditures that have been disputed by the complainants were not properly authorized and approved by the Board. The Board used some of the community’s reserve funds to pay legal fees it incurred due to law suits during the period 2009-2014. Although the HOA had a reserve fund, the board was unable to show how much money was in it or what it was spending the reserve funds on.