HOA Petition

Purpose: Submitted Pursuant to N.C.G.S. § 47F-3-108 & Article III, Section 3.3 of the Bylaws Purpose: We, the undersigned homeowners of Riverside Community Association, respectfully petition the Board of Directors to call a Special Meeting to address material concerns regarding financial oversight, Board accountability, and risk exposure to the community. This petition reflects a unified call for immediate governance review and corrective action. ⸻ 1. Motion of No Confidence & Call for Removal of President Steve Lima • Emails confirm that while serving as HOA President, Mr. Lima received internally approved financial relief for his personal delinquent dues. • This same relief was not transparently communicated nor offered to the other 17 homeowners in arrears at the time, per the HOA’s own delinquency report. • This raises serious concerns of preferential treatment and misuse of position, undermining equal enforcement and fiduciary trust. This petition does not make legal accusations but seeks to resolve a perceived disparity in policy application and restore confidence in our leadership. ⸻ 2. Independent CPA Audit of HOA Finances • HOA financials show a recurring $46,000 line-item carryforward in reserve spending with no public plan, itemization, or board-approved project to justify it. • Arrears have increased steadily with no defined collection policy or consistent enforcement. • A forensic review by a third-party licensed CPA is necessary to ensure compliance, reduce liability, and restore confidence in fiscal operations. The community has not been provided adequate documentation of how funds are allocated or recovered, raising concerns of potential FHA lending risks due to high delinquency. ⸻ 3. Review of Speed Bump Contract & Governance Procedure • Mr. Lima signed a $19,400 vendor contract for traffic calming devices on April 8, 2025, despite a formal contestation of the special assessment just three days earlier (April 5). • The estimate was originally dated February 9, suggesting a delayed or undisclosed approval process. • The signed agreement included a 25% cancellation clause, exposing the HOA to financial liability even if no work proceeds. • There is no evidence of a second Board signature or proper vote recorded in minutes, suggesting unilateral execution outside normal procedure. ⸻ 4. Review of Newly Adopted HOA Rules & Potential Overreach • Recent documents (July 2025) introduce stricter parking fines, leasing restrictions, and ARC controls that may exceed current CCR language. • These policies may not have followed the proper amendment procedures under North Carolina law and could be unenforceable without a vote of the membership. • We seek community-wide clarification and Board accountability for rule adoption. This is not a challenge to reasonable standards but a call for due process, clarity, and documentation of homeowner consent when policy exceeds existing CCR authority. ⸻ Conclusion & Community Expectations • We call for an open Special Meeting where community members may: • Ask questions without time-block manipulation • Offer motions, including a vote of no confidence • Receive timely notice via mail and email, as allowed by statute • Ensure the meeting is not dominated by unilateral presentations or delays • This petition reflects the will of homeowners seeking fair, transparent, and lawfully consistent governance. Failure to call this meeting or address these concerns in good faith may be construed as a breach of fiduciary duty under North Carolina law.