Bliss said after the court held the HOA in contempt last year, the homeowners approached the HOA about ways to move forward, but their offers were rebuffed and the HOA decided to move forward with bankruptcy instead. But Bliss also took issue with the HOA’s suggestion that the issue over Lake Elaine was the primary cause of the bankruptcy. Indeed, in a letter to HOA members, Held said the organization also has a $600,000 balloon payment on a loan taken out in 2011 for the installation of a new irrigation system. Bliss said the HOA also has lots of deferred maintenance fees, while also having some of the lowest member fees in the state. Based on the HOA’s rules, those fees can only be raised by a two-thirds vote by all members.

Source: Daily Sun February 17, 2021 13:41 UTC