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RandyJ1 (South Carolina)
Posts: 1
Posted:
South Island Plantation is a development on the intracoastal waterway/Winyah Bay in Georgetown SC. In one day 188 lots were sold ranging in price from $100,000 to $500,000. Soon after the market fell out and to date only one has was built and one presently being built.

Over time the property has fallen into disrepair ranging from the large dock system to general maintenance. Lot prices now range from $15,000 to $50,000. Three years ago the HOA board dropped the HOA fee from $150 to $90/month. The $150 was the amount it should be to maintain a property of this size with it's amenities. Recently at a board meeting he told the board he intends on dropping the HOA to $75/month.

The President of the board purchased 3 lots at $5,000 a piece and has owned them for about 5 years. With the HOA fee/property taxes he's probably upside down on his investment at this time. He's tried to sell the lots but no success. His investment has soured him on the property in general from what he told me privately.

There are 5 members on the board with two of us new members. Myself and the new board member have continually tried to get the changes needed to get back into fighting shape especially with the market on a strong upswing and the coast of SC a popular relocation area. We two always vote the same but the President and the other 2 members vote together voiding out our votes It's as if the President has the other two members on some kind of Kool Aid. They just won't do what's needed. The general fund usually runs in the red and the Reserve fund now has $130,000. With the HOA fee reduction over 3 years it's cost the fund almost $400,000. There's also never been a reserve study done in all these years.

Is the board responsible for these bad decisions which seem to be personally motivated? Is there a liability issue here if a property owner or home builder decided to pursue legal action?

Thanks!
Randy
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Randy

Like it or not you are out voted and so now you are looking for a way around it. The answer is to change the BOD makeup. Get others that think like you elected to the BOD.
FredS7 (Arizona)
Posts: 927
Posted:
1. It is recommended that you NOT give the name of your HOA.

2. "What is needed" depends on the observer. Some may very reasonably feel that they have a considerable amount of sunk $ and want to spend as little as possible on a declining asset.

3. Are you saying there are 188 SOLD lots and 1.5 houses??

4. Liability- the individual directors can only be held liable if they make decisions contrary to the business judgement rule.
GenoS (Florida)
Posts: 4,276
Posted:
It's more than a recommendation. There are only 3 posting rules here and that's one of them:

"No Mention of Community/Company/Person Names"

Now that the cat is out of the bag, que sera sera since you can't go back and edit any posts here. It would be nice, though, if people would actually look at the posting rules before diving in.

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