HOA dispute goes to trial next month: Homeowners at The Pointe South Mountain claim funds are being misspent - Ahwatukee Foothills News: News

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HOA dispute goes to trial next month: Homeowners at The Pointe South Mountain claim funds are being misspent

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Posted: Saturday, July 6, 2013 9:40 am

A trial has been set for a judge to decide if The Pointe South Mountain Homeowners Association is using the correct funds to maintain the correct areas of the neighborhood, or if funds paid by one group of homeowners is subsidizing improvements to the whole community.

Penelope Johnson v. The Pointe South Mountain Residential Association will go before Judge Douglas Rayes for two days Aug. 12 and 13.

Former board member Penelope Johnson and her attorney, Chris LaVoy, allege that the local HOA is collecting funds from all homeowners to maintain common areas and is collecting additional funds from Courthome residences that should be used to repair roofs, painting, stucco repairs, and other maintenance on Courthome residences specifically. Instead, they say those Courthome Exterior Maintenance funds are being used to subsidize common area expenses, leaving not enough money to cover Courthome residences. Johnson claims the Courthome residences are paying more than their fair share to maintain common areas while regular assessments are being used to pay for cable for all residences.

Attorneys for the HOA argue that the Courthome Exterior Maintenance funds were used to install landscaping along the streets outside Courthome and so a small portion of those funds are being used to maintain those areas. The funds are not being used to help maintain all common areas.

The two parties disagree over how the CC&R’s are being interpreted. The homeowners association claims the wording in the declaration is ambiguous and inconsistent, while Johnson disagrees. The judge will decide how it should be interpreted and how the funds should be used in August. Judge Rayes said during a hearing on Monday, July 1, that it will be important for the HOA to show exactly where Courthome Exterior Maintenance funds are being used as the HOA maintains that the Courthome funds are being kept separate from common area maintenance funds. 

The Pointe South Mountain has 841 homeowners. Four-hundred thirty-six homeowners are in single family and garden-attached homes while 405 are in Courthome residences. The HOA’s board of directors has seven seats, only one of which is occupied by a Courthome owner. 

• Contact writer: (480) 898-7914 or ahurtado@ahwatukee.com.

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