On Wednesday, the Morgan Creek HOA Board held an emergency meeting and approved the 2026 budget by a 3–1 vote, with one abstention. Whether you attended or not, there’s significant confusion about what was actually said, what’s backed up by documentation, and what questions still need answers.
If you were there, you saw a board member try to ask questions and get shut down repeatedly. You saw homeowners muted. You saw the meeting ended abruptly because it was “time bound.”
In addition, we were told that Action Property Management was selected by the Board but apparently has not signed a contract. With the abrupt firing of First Service whose last day is November 30 there is likely to be a significant gap in services. This will profoundly affect all of us. The extent is yet to be seen.
This post lays out what we know, what we can verify, and what we still need answers on, and why it is critical that every homeowner attend the November 18 meeting.
What the Board Said vs. What the Facts Show
“The budget was reviewed by the controller.”
FirstService has confirmed that Steven prepared the budget on his own. The final budget was not reviewed by the management company’s controller.
If a controller review exists, that documentation should be shared with the community.
“We are fully funding the reserves per the reserve study.”
The August 2025 Browning Reserve Study tells a different story. It shows the Lake Community funded at only 10.2 percent, far below the 70 percent threshold considered financially healthy.
The study specifically recommended a $120,000 reserve contribution (approximately $1,176 per home) for the 145 Lake Community homes, including Lake Lots, to address this critical underfunding.
That reserve contribution was significantly reduced in the 2026 budget, leaving the Lake Community even further behind on its funding trajectory.
Under California Civil Code §5550, the reserve study must be updated every three years, reviewed annually, and the association’s funding plan must be consistent with that study.
“In previous years, the budget was delivered late too.”
Yes, budgets have occasionally been delivered late. But there is a major difference between a late budget that maintains the existing structure and one delivered at 11 PM the night before a vote that changes how costs are allocated across the community.
Last year, the board received the final budget draft on the Friday prior to Tuesday’s open meeting, giving directors several days to review. That was not the case this time.
Under Civil Code §4920, agenda materials must be provided at least four days before a board meeting. That did not happen here.
The Real Issue
These are not minor line-item adjustments. This budget shifts significant assets between cost centers, changing who pays for what.
What Actually Happened During the Meeting
Here is what we know:
- The budget was delivered to board members at 11 PM Tuesday night for a Wednesday vote.
- A board member tried multiple times to ask legitimate questions and was shut down.
- Homeowners were muted, questions went unanswered, and the meeting was ended abruptly because it was “time bound.”
- Discussion was cut short, the vote was called, and Rod left immediately after voting yes alongside Stephanie and Steven.
Both Steven and Stephanie each own three-share lake lots. Under this new budget structure, their dues will decrease by $57.86 per month, while 377 homes will see their dues increase by $18.23 per month, an extra $218.76 per year for most homeowners in our community.
Why Any of This Matters to You
This is not about politics or personalities. It is about money, property values, and responsible management.
The 2025 Browning Reserve Study warns that if we continue on this path, reserves in underfunded areas will be nearly depleted by 2027 or 2028. Major projects like road repairs, fencing, and lake maintenance will exceed available funds.
When that happens:
- The HOA will face large special assessments or steep dues increases to catch up.
- Under Civil Code §4525, HOAs must disclose reserve underfunding in all resale packets. That affects property values.
- Mortgage lenders often flag financially unstable HOAs as high-risk.
- Deferred maintenance costs more in the long run and increases liability for the association.
Moving budget lines around does not solve the problem. Morgan Creek’s reserves in key areas remain critically low. Without immediate action, we are headed toward emergency assessments that will impact every homeowner.
With the impending gap in property management services there will be no one to guide the Board in fulfilling their fiscal responsibility.
What Needs to Happen
The board must reconcile the 2026 budget with the 2026 Reserve Study, as required by Civil Code §§5550–5560.
Any changes that affect how reserve assets are allocated by cost center should be supported by an official reserve study conducted by an independent expert.
A third-party financial review/audit should also be conducted by an independent CPA to verify the claims made during Wednesday’s meeting and ensure the budget is accurate, transparent, and fair.
Why November 18 Matters
The November 18 meeting is your chance to demand answers.
Here are the questions homeowners deserve clear, written responses to:
- Where is the reserve study or documentation supporting these cost-center changes?
- Where is the controller’s review of the final budget?
- Why was the $120,000 reserve contribution recommended in the2025 Reserve Study for the Lake Community reduced in the 2026 budget?
- How does the Board propose to fill the gap in services resulting from the firing of our current property managers?
Homeowners deserve transparency, documentation, and financial accountability, not last-minute decisions that leave our community exposed to future financial risk.
What’s Next
A recall election for Stephanie and Steven is scheduled for February 2026. While that process moves forward, our immediate priority is correcting the 2026 budget before then.
We cannot afford to wait. The longer we go without aligning the budget to the reserve study, the deeper the financial risk becomes.
The Bottom Line
We all care about Morgan Creek. It is our home, and we want it to remain the beautiful, safe, and well-managed community that drew us here in the first place.
Your presence at the November 18 meeting matters. Your questions matter. And your voice matters.
Together, we can ensure Morgan Creek’s finances are handled with the care, integrity, and transparency every homeowner deserves.
As always, comments are encouraged.
Thank you for this thorough update with the civil codes Jim. it was impossible to follow that meeting and homeowners are even more in the dark than they were before. I’m just grateful Lorenzo is there to give us a reality check. I will absolutely be at the meeting on the 18th to ask these questions and hopefully gain more clarity from the board. I’m appalled at Steven’s lack of professionalism during these meetings. I can only hope he is recalled.
I plan to be at the November 18 meeting
Whoever did this budget is violating basic cost accounting rules. It is not legal to move direct cost from the lake(25%) and villa(35%) cost centers to the general cost center. The general cost center receives no benefit from these cost centers(especially the homes in Pinehurst. I would be glad to work with the new management company to implement a true and fair budget.
Thinking about this more I would like to see the $1.3M budget by the cost centers (lake, villas, and general) with the appropriate subaccounts under each cost center. Then it would be nice to each the 5 biggest cost drivers in each cost center with recommendations on how to reduce the cost of each. The board has never taken any actions to help reduce or control cost. One thing for sure is the reserve is the reserve no matter how painful it is. The legal ramifications of not funding the reserve properly in accordance with California state law are not good for the community.