Another investigation needed..
Incompetent governing and miss-management of our association has put in jeopardy our status as a nonprofit corporation. Two examples are the collections by special assessment for water meters with a profit being put into the general operating fund, rather than returned to those who paid for the installation. The other is the excess funds collected from the RV storage lot beyond the amount spent for repairs and maintenance.
This is a discriminatory practice which has some members paying more than other members by the excess being put into the general operating fund. Time and again it has been requested by me and others that a separate accounting be made for the RV storage where excess funding would be used only for the storage lot.
Mutual-benefit nonprofit corporations
A mutual-benefit nonprofit corporation or membership corporation, in the United States, is a type of nonprofit corporation chartered by a state government that exists to serve its members in ways other than obtaining and distributing profits to them. Therefore, it cannot obtain IRS 501(c)(3) non-profit status as a charitable organization.
A mutual-benefit corporation can be non-profit or not-for-profit, but it still must pay regular corporate tax rates. A mutual benefit corporation will pay the same taxes as a regular for-profit corporation. (C corporation tax rates). Mutual benefit corporations must still file tax returns and pay income tax because they are not formed for a purpose that anyone in the world could benefit from. Mutual benefit corporations are formed for nonprofit purposes like managing a condo association, a downtown business district, or a homeowners association.
A utility cooperative is an example of an MBNC.
29 comments:
You make a good point, and the BOT would be wise to address this to prevent the community from further entanglements/reprisals from regulators. I know you have tried to get the BOT to correct these things without success. That arrogance is what led to the various legal messes and fines that the community is faced with.
At this point we have no evidence that the BOT is making serious efforts to fix the things that are seriously broken. The silence speaks of weakness and lack of commitment to the community. Yeah, we know the excuse - the lawyers tell us blah, blah, blah.
There has to be a difference between a gag order and proper communication with your association.
The board has an obligation as a non profit corporation to communicate with its members. So far we have seen nothing of this, and the rabbit hole just keeps getting deeper.
Most associations in this much trouble would make at least a basic attempt to get out in front of it. The fact that ours does not speaks to the arrogance of the board members. This is driven by their own special interests, not some noble desire to serve the community.
Thanks George!
In my opinion and based on my limited knowledge of this matter at this point, it appears your two examples are nonprofit corporation violations. I plan on taking some action on this matter to find out more.
Mike Riley
Funny how in all the board meetings I attended (and that was most months for many years I rarely saw George (and in fairness many other board members) offer solutions or suggestions to better SHOA. That goes for the dozen or so perpetual audience members. Since the inception of the blog all that has changed. And remember the period when the grand plan was no posts without a name? That slowed the posts to a dribble and all we received were topics suggested by the host.
What kind of weird thrill do you get continually banging on the blog host? George does a public service.
Continually looking backward is self defeating. We need to move forward.
Thanks for all your work in past years getting the Skating Lake area built. I've fished at that lake and used the facilities there many times.
Thanks again for your blog!
Mike Riley
8:10....George has had more to say than most on the BOT. With part of the Board all being in cahoots with one another, much of their discussion takes place outside of meetings, agreements made, and a quick vote of approval whisks the measure forward before any discussion can take place. Often the audience has no clue what has taken place, measures often having a number these days rather than a description.
Deception and slight of hand is considered acceptable as standard procedure.
I dislike the BOT non-transparency as much as anyone. I just wish someone had some real evidence that we could use against them at the annual meeting. Anything out there??? No grey areas, actual facts.
There is some. A lot has been shared on this blog.
My response to you is the following.
Is that the best use of that time? What do you mean use against them? What if some of the evidence is about action and inaction of a person not on the BOT, but one of the committees?
How would this evidence be presented?
If the intent is to remove the entire BOT, evidence alone won't accomplish that. We would still need a full set of replacements. We all know how that went down last year via BOT proxy voting. The BOT will have our lawyer there allegedly colluding with them.
I think we should consider attempting to remove the entire board again. Our BOT must be from 3 to 9 members, so we only need 3 to install a new BOT.
12:12....Anyone who doesn't recognize that our HOA Board is responsible for all of the management failure that has lead to a Federal investigation is just not paying attention. While North Beach shares in the responsibility, as does Bill Neal, Surfside failed to put in place ANY oversight. That should have been routine for the Water Dept. Committee of which long time Trustee Jim Flood was a part, Neal required to attend Comm. meetings.
Failure to properly permit construction of the Water Dept. Equipment shed built in 2017, as well as the Carbon Treatment Plant, holding pond, and enclosure Bldg. for the Plant, was mishandled by the BOT Treasurer James Clancy. All of these projects should have been scrutinized by all Board members.
There have been many improprieties in conducting HOA business, particularly on the part of Gary Williams, making secret decisions in private meetings in violation of the State RCWs and our Bylaws, and spending vast sums of member funds on ill-founded lawsuits which have failed, totaling well over $125,000 and counting. The BOT has done nothing to set tight limits on this runaway spending.
No progress has been made in gaining approval of construction permits, the CTP stop-work order issued last July. The Plant has not been properly maintained since started-up about a year ago. Worst of all, the BOT has lied about our status with regulators, and has refused to disclose ANYTHING about the numerous fronts on which we are in serious trouble with County, State and Federal regulators. We know that the BOT issued a check to L&I ($27,000)to pay Asbestos related fines in November, and have never acknowledged it.
So we don't have any evidence to base a recall on ? You gotta be kidding. The challenge is getting members to give a damn. That's as much the cause of all of these problems as Board incompetence. Many owners would rather ignore the truth or pretend it's not so. Facts are facts folks, and these are the facts. Still, no word from a single Trustee to apologize for management failures, incurring fines through sheer stupidity, and wasting member money on frivolous legal exploits which have failed.
Those that dont live here, and many that do, dont have a clue about any of this. How would they except for this blog? Few are aware of it. You wont see anything on shoa site or fb, as per bot planning.
It is fairly obvious that the board has somehow been able to silence the Chinook Observer. Where are they in all this? Do they not care for their community?
Something is terribly wrong there.
Now the BOT controls the Observer? You tin foiled hat folks are too much.
Nice try, troll boy.
Unfortunately for you, this is news. One way or another it will be spread. Don't worry, we'll take care of that for you.
Towards the end of jan, i was told reps from the bot and Laura visited the paper, the reporter confirmed that n said next article would appear hopefully the next week. That was on jan 28. Draw your own conclusions.
Any bets the word 'lawsuit' was used frequently during the course of the conversation? How long can they smother basic communication?
I have Emails back and forth between the paper and the member about the next article. They were not at all intimidated by the cry babies saying further articles would hurt Surfside. The damage is done, and the paper will report it, They only have so much space in the paper, and Surfside is not their number one priority. If they think they can stop the newspaper article, they are fools, but guess we knew that already.
Thanks for the clarification, George! Anxiously awaiting the next thrilling chapter.
Can I ask why Flood is still on the board when he physically attended only 5 meetings last year. The others he was via phone or absent.
Isn't it required to be attending 60%
maybe the paper doesn't have a story with any content worth printing, if they did i'm sure it would print it, they usual don't have much for press on any given week
Nice try. There's plenty here for a multi-edition investigative report.
well then @1105 am we are waiting for this big multi edition you keep threatening our readers with
Exactly 2:02. Just because some people here keep repeating the same comments over and over doesn't mean it's news worthy. When the "multiple investigations" come to an end with actual results maybe, but until then no. Saying it requires a multi-edition investigation is laughable at best.
I'm tired of all the sinister posts about proxy voting and how board members use one's sent to them for their own gain. A properly filled out proxy only gives the proxy holder the responsibility to submit it for a member who is not in attendance. Once again, fill it out and unless you authorize voting on floor motions or board members it will be counted as you submitted it. Insanity reigns supreme here.
After watching this situation very closely for over 2 years, the only insanity is that you support these fools!
Once again, your special interests are showing. Defaming the people on this blog is only gonna make us more determined to effect the change that is desperately needed.
As to repeating the same nonsense over and over again, we've already seen that from your side.
Stop making sense 10:34, it's not welcomed here.
To 10:40. I'll be looking forward to your candidacy for the board. The first question I would ask is how your views are not special interests?
6:23 - How about fairness as a doctrine, starting with how the association deals with trees, moving on to RV's, and dealing with the water mess?
In other words, kind to your worst nightmare.
I actually have a set of skills that would suit this association well. When I brought that topic up to my attorney, he counseled against it. His quote "junior high politics are mature by comparison". Over the last 2 years, he's been 100% correct.
I guess we will see who really steps up here. A lot of talk but I haven't heard that anyone is actually running for the board.
Who would want to? Get elected so you can be vilified and marginalized for having different ideas?
I'm starting to agree with the person above. Dissolution maybe the only answer.
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