Turf War

A prominent West Ashley neighborhood is now subdivided from within, with some residents clamoring for the complete removal of all board members from its homeowners association (HOA).
Two weeks ago, a group looking to “take back Shadowmoss” launched a protest website,
Shadowmess.com, that included a surreptitiously video-recorded HOA board meeting, replete with edits and a dramatic, arguably over-the-top soundtrack.
Among other things, the website alleges that the current board is:
• “still closely tied” to a management company that has reportedly stolen money from as many as 50 other HOAs;
• in constant violation of its own bylaws where it comes to who can sign checks;
• excessively fining residents;
• buying properties and entering into lawsuits without resident approval;
• and refusing to answer questions from homeowners.
The tangled knot of claims, counterclaims, and anxiety dates back a few months, to when a court reportedly ordered a local HOA management company, Marshland Communities, to hand over its clients to other companies amid allegations of fraud from then-current employees.
Last week, Shadowmoss resident and HOA president Aaron Richard released a three-page typed response that addressed many of the claims listed above.
In that letter, Richard claimed among a litany of responses, that the group was presenting inaccurate information, that the board was acting within its covenants, and that the volunteers on the board are doing what they think is best for the neighborhood.
Richard also claims in the letter that the video presented at Shadowmess.com was edited in such a manner that the board’s responses were not included, and that it did not present a “clear or comprehensive” reporting of the meeting.
Marshland owner Karen Colie lives in Shadowmoss, not too far from Richard’s own house. Richard states in the letter there is no connection between the board and her business.
He also stresses that there are “no known allegations of funds misappropriated from individual homeowners,” adding that that the board “has no information regarding the FBI’s investigation” of Marshland.
Shadowmoss resident for the past 19 years, Rebecca O’Grady says that it’s the ongoing lack of information coming from the board that is exactly her problem with it.
O’Grady claims that the board is required by its own bylaws to conduct regular financial audits, something she says hasn’t happened and should have happened immediately after allegations against Marshland surfaced.
Richard’s response letter does not tackle this issue.
But it does address another allegation — that for too long the president and treasurer have not co-signed all checks written on behalf of the HOA.
O’Grady, and others like longtime resident Steve Taylor, contend that the board is in violation of its own bylaws by allowing a management company to sign off on checks, which could expose members and residents to fraud. Taylor has put himself forward as a potential board member replacement.
Quoting the board’s bylaws, Richard states that the board is able to hire a manager to handle the “daily business” of the association. He goes on to remind residents that all board positions are volunteer and the “logistics are cumbersome for physical check signing.”
Richard further stated that every payment and invoice is first approved by an officer “electronically” before any check is printed.
A request for comment from the HOA’s current local management company, Community Management Group, was not returned.
Neither was a request for comment from local attorney Derek Dean, whom O’Grady and others allege has entered the neighborhood association into a lawsuit without proper member-resident approval.
Richard acknowledges in his response that the board has spent $39,000 in legal fees in recent months for a host of legitimate reasons. But, he points out that the board’s legal counsel has also recently collected over $64,000 in delinquent HOA fees of the total amount, which exceeds $100,000.
In his letter, Richard says that the association still holds more than $90,000 in a reserve fund, with an operating account in excess of $74,000, and that all of its financial records are available for member inspection.
O’Grady is not won over.
Other issues, like the initial board purchase of a partial lot for the construction of a member pavilion, still rankles her. She vows to continue digging.
O’Grady has decided to stand up, speaking, she says, for other HOA members who feel the way she does but fear retaliation from the board. One neighbor, speaking on condition of anonymity, says they fear retribution.
O’Grady says she hasn’t been targeted for fines by the association.
“I realized I have two choices,” she says. “You can either stand up or you can just take it and not complain, and just sit there and shut your mouth.”
The tangled knot of claims, counterclaims, and anxiety dates back a few months, to when a court reportedly ordered a local HOA management company, Marshland Communities, to hand over its clients to other companies amid allegations of “misappropriations of funds.”
Last week, Shadowmoss resident and HOA president Aaron Richard released a three-page typed response that addressed many of the claims listed above.
In that letter, Richard claimed among a litany of responses, that the group was presenting inaccurate information, that the board was acting within its covenants, and that the volunteers on the board are doing what they think is best for the neighborhood.
Richard also claims in the letter that the video presented at Shadowmess.com was edited in such a manner that the board’s responses were not included, and that it did not present a “clear or comprehensive” reporting of the meeting.
Marshland owner Karen Colie lives in Shadowmoss, not too far from Richard’s own house. Richard states in the letter there is no connection between the board and her business.
He also stresses that there are “no known allegations of funds misappropriated from individual homeowners,” adding that that the board “has no information regarding the FBI’s investigation” of Marshland.
Shadowmoss resident for the past 19 years, Rebecca O’Grady says that it’s the ongoing lack of information coming from the board that is exactly her problem with it.
O’Grady claims that the board is required by its own bylaws to conduct regular financial audits, something she says hasn’t happened and should have happened immediately after allegations against Marshland surfaced.
Richard’s response letter does not directly tackle this issue.
But it does address another allegation — that for too long the president and treasurer have not co-signed all checks written on behalf of the HOA.
O’Grady, and others like longtime resident Steve Taylor, contend that the board is in violation of its own bylaws by allowing a management company to sign off on checks, which could expose members and residents to fraud. Taylor has put himself forward as a potential board member replacement.
Quoting the board’s bylaws, Richard states that the board is able to hire a manager to handle the “daily business” of the association. He goes on to remind residents that all board positions are volunteer and the “logistics are cumbersome for physical check signing.”
Richard further stated that every payment and invoice is first approved by an officer “electronically” before any check is printed.
A request for comment from the HOA’s current local management company, Community Management Group, was not returned.
Neither was a request for comment from local attorney Derek Dean, whom O’Grady and others allege has entered the neighborhood association into a lawsuit without proper member-resident approval.
Reached for comment just before press time, Richard confirm the content of his letter and said the board is still open for working with and compromising with homeowners and other parties.
He acknowledges in his letter that the board has spent $39,000 in legal fees in recent months for a host of legitimate reasons. But, he points out that the board’s legal counsel has also recently collected over $64,000 in delinquent HOA fees of the total amount, which exceeds $100,000.
In his letter, Richard says that the association still holds more than $90,000 in a reserve fund, with an operating account in excess of $74,000, and that all of its financial records are available for member inspection.
O’Grady is not won over.
Other issues, like the initial board purchase of a partial lot for the construction of a member pavilion, still rankles her. She vows to continue digging.
O’Grady has decided to stand up, speaking, she says, for other HOA members who feel the way she does but fear retaliation from the board. One neighbor, speaking on condition of anonymity, says they fear retribution.
O’Grady says she hasn’t been targeted for fines by the association.
“I realized I have two choices,” she says. “You can either stand up or you can just take it and not complain, and just sit there and shut your mouth.”