Property Values and Quality of Life Threatened through Questionable Governance

Unlike some other areas, we don’t have abandoned cars on our front lawns, RV’s routinely parked in the street, bright purple houses.  It’s a major reason why most of us moved to Morgan Creek.  We are not yet to this point but are moving dangerously closer.  A recent trend in lax governance by our Boards of Directors is allowing this to happen.  It is eroding our quality of life and will eventually affect our property values.  We need to let them know we care and push for immediate action.

So, what’s the problem?  We have a governing document, the CC&R’s.  We all got a copy when we purchased our homes.  We all agreed to abide by them.  While they can be amended by community vote, they cannot be bypassed or ignored at will by individual homeowners or by our elected Board.  They are roughly analogous to our U. S. Constitution.  Our Board is analogous to the legislature.  It can only make rules that do not conflict with the CC&R’s.  The Architectural Review Committee (ARC) is established by the CC&R’s as their watchdog.  It is roughly analogous to the courts.  Through the application and review process it ensures the CC&R’s are followed.

Recently the HOA Board removed the chair of the ARC for refusing to follow the Board’s request that it ignore architectural guidelines and, specifically the Developers Notebook, in deciding on applications for paving over front yards.  This request was stated in writing by the Board to the ARC. The implication was that the ARC should not be involved in the approval process through CC&R enforcement.  This is totally wrong.  Following the firing, two other key ARC members resigned in protest.

While the firing might or might be allowed on legal grounds, we believe it is completely wrong for the community.  However, the underlying issue is the role of the ARC.  Part of the Board’s rationale in the firing is that the CC&R’s were written in 2002 and are obsolete.  This is completely wrong.  To continue the analogy, our Constitution is over 200 years old, but is certainly not considered obsolete.  The validity of CC&R’s is strongly supported by the State’s Davis Stirling Act, the guiding law for all HOAs.   The ARC is the watchdog of the CC&R’s.  It cannot and should not be manipulated by our Board.  There is a process for the ARC to decide issues on a case-by-case basis.  The Board has the right to overrule it as long as CC&R’s are not violated. The Board does not have the right to control the decisions of the ARC.

This issue has the potential to go well beyond driveway expansion approvals.  So, what are we suggesting?  The Board must recognize the ARC’s independence.  Just as with the U. S judiciary, the board must retain the right to appoint ARC members and Chair, but not the right to fire them if they don’t agree with ARC decisions.  The current ARC chairman must respect the legal role of the ARC, and not be a rubber stamp to the Board’s wishes.

Equally important to ARC independence is the current almost total lack of enforcement.  Although this should primarily rest with our community managers, Associa, the job is not getting done.  We used to have a Compliance Committee, made up of resident volunteers, to assist in pointing out violations.  The current Board, over the last several months has given lip service to bringing this function back. Nothing has been done.  To the Board:  get Associa to enforce the rules (by that we don’t mean just parking violations) or change managers.  Bring back the Compliance committee.

So, this doesn’t apply to me!   Just look around you.  Fences unpainted.  Front yards paved over to produce parking lots (especially on the Pinehurst side) where garages are used for storage, kitchens, or spare rooms.  Front yard landscaping not being maintained.  RV parking in driveways or on the street for extended periods.  The list goes on.  If we don’t act now, we might wind up with the scenario of our opening paragraph.  Write or talk to your Board members.  Ask for immediate action to fix these things.  We have a new board.  Tell them what you want.

Comments are encouraged.  Let us know what you think.

Golf Course Update and dues Increases

The HOA Board released the following golf course update on November 24:

“Morgan Creek LLC has Mid-January as their new deadline to respond to the County’s comments from Mid-October, which Morgan Creek LLC has not done in a number of key areas raised by the County. All letters and emails that have been sent to the County regarding this project will be shared with the community.”

No further details of the County’s comments have been forthcoming as yet.

By now you should have received your Annual Budget mailing from the HOA. We will be analyzing it over the next few weeks. Though it raises some questions, overall it seems to be a responsible budget. Among the most significant increases are for security and for increased funding of reserves. As a result there will be dues increases, generally between 10-20% depending on where you live. See the mailing for details.