Happy New Year ... Not!

Dear Eastside at Crotched Mountain Condominium Association Members:

We wish that this was going to be a Happy New Year for us, but the Board of Directors have levied another bomb on us.  This post is a dissection and discussion about the budget they have sent to us via certified mail and are going to attempt to ratify at the Annual Meeting on January 29th, 2017.

2017 ECMCA Proposed Budget

While the BOD have lead you to believe that our condo fees have gone down by stating that the condo fees going to be $400.00/mo. in 2017.  Look at this document very carefully ... the BOD are looking for Ratification of this budget at the Annual Meeting according to the Agenda.

See, it says, right here, 2017 fees are $400.00/mo.!

Well, they say, ... to send the BOD a certified mailing if you have any questions ... some ambiguities and exclusions that come to mind are:

1.) How many BOD positions are to be voted and what are the respective position's terms?

2.) Where is the statement required by RSA 356B:40?

 356-B:40-c Adoption of Budgets and Special Assessments. – 
    I. The board of directors, at least annually, shall adopt a proposed budget for the unit owners' association for consideration by the unit owners. Not later than 30 days after adoption of a proposed budget, the board of directors shall provide to all the unit owners a summary of the budget, including any reserves, and a statement of the basis on which any reserves are calculated and funded. Simultaneously, the board shall set a date not less than 10 days or more than 60 days after providing the summary for a meeting of the unit owners to consider ratification of the budget. Unless at that meeting 2/3 of all unit owners or any larger number specified in the declaration reject the budget, the budget is ratified, whether or not a quorum is present. If a proposed budget is rejected, the budget last ratified by the unit owners continues until the unit owners ratify a subsequent budget. 
    II. The board of directors, at any time, may propose a special assessment. Except as otherwise provided in paragraph III, the assessment is effective only if the board of directors follows the procedures for ratification of a budget described in paragraph I and the unit owners do not reject the proposed assessment. 
    III. If the board of directors determines by a 2/3 vote that a special assessment is necessary to respond to an emergency:
       (a) The special assessment becomes effective immediately in accordance with the terms of the vote.
       (b) Notice of the special assessment shall be provided promptly to all unit owners.
       (c) The board of directors may spend the funds paid on account of the special assessment only for the purposes described in the vote.

Source. 2016, 311:2, eff. Aug. 1, 2016.

2016/2017 Annual Meeting Agenda for January 29, 2017

3.)Will the Treasurer's Report include the 2015 Audit and the date of the 2016 Audit release? If the Association members vote to dispense with the audit will a new Budget be issued and ratified reflecting the change in cost to the members? Shall the members still receive the 2016 Audit as they paid for it in 2016?

These are just a few examples of questions that instantly come to mind.

So, let's get to the meat and potatoes ...

Not only are the condo fees $400.00 per month, .... but this budget includes a $58,484.00 Special Assessment purported to be roofs (labeled as Special Assessment roof replacement) ... and not only that, but they have $27,000.00 in the itemized budget for roof/skylight repair/replacement. 

Since when, would any reasonable adult consider $40,000.00 for Maintenance/Repair ... because this is supposed to be for minor stuff ... $40,000.00 sounds pretty major ... especially since in 2016 we were promised $20,000.00 in Maintenance and Repairs and the 'mighty BOD' only spent $4,000.00 ... go figure!  

Well, that is exactly what the board figures ... they have declared that the association is a bunch of idiots ... they never read the budgets ... they never demand the audits ... except for a few ... they vote for us because we tell them to ... yes, we all have proved to the BOD that we are truly a village of idiots! No one utters a word ... no one questions their actions(both, the legality and validity)!

 Take a hard look at what they are assessing for 2017 ...

First off, THE MATH GENIUSES need to go back to school ...

#1. The planned revenue from condominium fees should read $115,632.00 ... how many more years are they going to keep making this simple math mistake?

#2. The planned revenue of $115,200.00 plus the Special Assessment of $58,484.00 equals $173,684.00 ... how are going to make planned expenses of $176,720.00 ... This is not a balanced budget!

#3. If our actual expenses are to be covered by condominium fees as all the governing documents declare than ($176,720.00/24)/12 equals $614.00./mo/unit. So, that being said, all of the Special Assessment for the expenses?  Looks that way! They are lying ... open your wallet, get out your debit card ... give them your pin # ... see what happens then! They have already assessed for roofs ... they are assessing everyone another $27,000.00 as a line item in the budget (also wrong!) The truth is condo fees are going to be $614.00/mo. plus water and sewer at $100.00.mo now total fees are $714.00/mo ...  According to the governing documents ... Article V Operation of the Property, Section 1 Determination of Common Expenses and Assessments Against Owners, Subsection b Preparation and Approval of Budget (pages 14 & 15, Bylaws of Eastside at Crotched Mountain Condominium Association):

(b) Preparation and Approval of Budget. Each year the Board of Directors shall adopt a budget for  the Condominium containing an  estimate of the total amount which it consid­ ers necessary to  pay the  cost of maintenance, management, operation, repair,  and replacement  of the  Common Area and any parts of the Units as to which it is  the responsibility of the  Board of Directors to maintain, repair, and replace, and the cost of wages,  materials, insurance premiums, ser­ vices, supplies,  and other expenses that may be declared to be Common Expenses by the Condominium Act,  the Declaration, these By-laws,  or a resolution of the Unit Owners' Associa­ tion, and which will be required  during the  ensuing fiscal year for  the administration,  operation,  maintenance,  and repair of the Condominium and the rendering to the Owners of all related  services.   Such budget shall also include such reasonable  reserves  as the  Board of  Directors considers

necessary to  provide a  general operating reserve, and re­ serves  for contingencies and replacements.  The  Board of Directors shall make reasonable  efforts to  send to  each owner a copy of the  budget, in a reasonably  itemized form which sets  forth the amount of the Common Expenses payable by the Owner, at least fifteen days in advance of the fiscal year to which the  budget applies.   The  said budget shall constitute the basis for determining each  Owner's contribu­ tion for the Common Expenses of the Condominium.

4) The BOD have failed to budget monies for road maintenance ... like the sand sweeping that costs us $1000.00 every year or any minor repairs that may be need on the road that we all pay a loan for.
5) The BOD have failed to budget any monies for septic ... yes, they just pumped the septic tanks but considering the fragile state of the Septic System as reported last year ... it should be done yearly.
6) The BOD have failed to disclose or provide funds for closing costs on the loan that needs to be redone in 2017.


All of the expenses listed are common expenses ... they constitute budgeted common expenses which is the basis of the condominium fees. The truth is our condo fees are $714.00/mo (100.00/mo paid to Mountain Maintenance, albeit against RSA 362:4) ... but since the brainiacs that run our association cannot balance the budget ... the total they plan to take in is $173,684.00.

Where do Association Members go from HERE?
1) Demand a balanced budget ... deny ratification of this budget ... it will take 16 unit owners to do so.  Don't let the BOD tell you that you cannot vote ... the RSA 356B:40 is very clear ... 2/3 of ALL owners.
2) Demand a budget that bases condominium fees on actual projected expenses according to the Bylaws.
3) Demand a statement of the basis on which any reserves are calculated and funded as required by RSA 356B:40.
4) Question $40,000.00 for Maintenance/Repair ... ask specifics!
5) Question $27,000.00 for roofs ... they already assessed $4,500.00/unit for the roofs.
6) EJNOY $250.00/mo. condo fees until a new budget is ratified!

Audits are for the protection of members ... past, current and future!!!!! The cost difference between an audit and a review is negligible.  The information relevant and crucial to the owners is critical.  You see, the audits we are currently getting are ..."Audited Financial Statements"  these are required to make a statement about The Reserve for the Replacement of the Common Area ... Reviews do not.  The Statement on our current audits confirm the misappropriation of funds by the BOD and point to their guilt of not abiding by the bylaws.  A review will not.
The Audits we should be getting are audits for condominiums (Common Interest Realty Associations which is the Industry Standard) ... but if we got those ... we all would have a clearer picture. THIS REQUEST TO CHANGE THE BYLAWS IS AN ATTEMPT TO CONCEAL CONTINUING WRONG DOING  ... PLEASE DO NOT VOTE FOR THIS ... THIS IS AGAINST EVERYONE'S BEST INTEREST. What is a few hundred $ savings when you are paying such huge fees? Do not be penny wise and pound foolish!

As far as the change in certified mail ... there are pros and cons ... yes, it will save $, but it too, offers protection to the members ... proof that something was sent and received.  Currently, in an action brought by the Association against 2 members ... one of the members has never been noticed by the BOD in any official proceedings for 10 years ... as a matter of fact a total of 3 deeded owners have never been officially noticed up to 2015 for anything ... no meeting minutes, no meeting notices, no bills, no checklists ... nothing.  This practice protects the BOD as well as the unit owners ... if you recall ... improper notice is what started the probe into malfeasance ... and has been linked to voting manipulations by past BOD. So, certainly ... a lot to consider. Without return receipt requested the BOD can say they sent you something when they actually did not.  Given their track record ... a vote of no amendment on this issue is prudent. AGAIN, ALL UNIT OWNERS CAN VOTE ON BYLAW AMENDMENTS ... regardless of owing any assessments!!!

GO TO THE MEETING ... IF YOU MUST SUBMIT A PROXY ... MAKE IT A DIRECTED PROXY ... YOUR PROXY MUST SHOW HOW YOU VOTE ON THE ITEMS UP FOR BALLOT. Ask to see the proxies at the meeting ... if any person holds more than 2 proxies that are non- directed they cannot vote more than 2 non-directed proxies! The members need to be the guard dogs!

A good reason to ask how many BOD positions and who is running for these positions and  for what terms.

THIS INFORMATION IS OVERWHELMING ... TALK TO YOUR ACCOUNTANT, LAWYER OR TRUSTED INDIVIDULS TO HELP YOU ASSIMILATE THIS INFORMATION! IT IS THE DIFFERENCE BETWEEN BEING TAKEN TO THE CLEANERS WHILE THE BOD COMMITS FURTHER BYLAW INFRACTIONS AND TAKING BACK CONTROL OF YOUR FINANCES ... YOU DO NOT HAVE TO BE AT THE MERCY OF THE BOD ... THEY WORK FOR YOU! THEY HAVE A FIDUCIARY DUTY TO BE TRUTHFUL IN PRESENTING INFORMATION ... THIS PACKET SHOWS A VIOLATION OF THIS DUTY!

This callous attempt at trying to confuse the members, subvert protections of the members and rule by lies has got to stop and only you members can make a difference in these circumstances.  This BOD does not communicate with it's members in any forms ... ask questions via certified mail? ... violating RSA 356B:37 and RSA 356B:37c?

Who out there will run for the 'NEW BOARD OF DIRECTORS' ... New owners ... please help us!