Legal actions filed against Leisure World Board of Directors

https://www.justus.group/legal-actions-against-lwcc-and-lwmc

Residents File Legal Actions Against Leisure World

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• entering into any new contracts on behalf of LWCC while this dispute remains unresolved

• approving 2019 annual budget

3. establish an oversight monitor that must be approved by CCOC to oversee spending of funds while this dispute remains unresolved

4. Appointment of CCOC monitor to coordinate with resident advocacy organization "JustUs" representatives to ensure:

• election in compliance with HOA Act §11B-106.1, thereby excluding representation by "selection"

• dissolution of unlawfully seated LWCC BOD and LWCC Executive Committee

• LWCC bylaws/governing document revisions, to include but not limited to:

• providing for (1) vote per eligible unit

• 29 Mutuals to be divided into 5 Districts for purposes of decreasing the current unwieldy 34 to a more viable group of 9 representatives. Properly constituted LWCC BOD to consist of (5) District and (4) At-Large elected representatives,

• due to their ongoing and knowing non-compliance with State and County laws, current and past LW BOD representatives, with the possibility of few approved exceptions, will not be eligible to run as a candidate or be elected as a LW BOD representative

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Here's the background on the CCOC complaint Count 1:

Violation of HOA Act - "members shall elect the governing body" :

The Board of Directors of the Leisure World Community Corporation, a homeowners association, enforces unlawful bylaws, holds illegitimate annual selections in lieu of elections for the Leisure World Board of Directors, thus permitting that BOD to meet, take action and instruct expenditure of member/unit owner funds annually equating to approximately $25 Million Dollars, despite the fact that is without any lawful authority to do so.

Consisting of representatives selected from 29 individual Leisure World housing corporations,(known as "Mutuals") the LW BOD is improperly constituted because it does not permit homeowner/members from the 29 housing corporations (aka:mutuals) to directly elect their LW BOD representatives. LW BOD bylaws Article III governs the selection process - failing to permit members/unit owners to directly elect representatives to the LW BOD. As a result, member/unit owners have been denied their statutory rights under the HOA Act.

The LWCC has been a registered homeowners association in the State of Maryland since 1988. Though having been on notice regarding their noncompliance with the HOA Act as far back as 2012, the Leisure World Community Corporation and its wholly owned subsidiary management corporation, Leisure World of Maryland Corporation, continue to violate the rights of the member/unit owners by ignoring all notices and refusing to amend the governing documents, continue holding illegitimate annual LWCC Executive Committee elections, and permitting the BOD to meet and take actions, including authorizing the expenditures of funds derived primarily from fees charged and paid by LW member/unit owners. The unlawfully constituted LW Board of Directors cast votes to allow the wholly owned management corporation use of the resident funded $25 Million annual budget.

The LW BOD selection/appointment process is in direct conflict with the Maryland Homeowners Association Act - Section 11B-106-1a which expressly states " A meeting of the members of the homeowners association to elect a governing body of the homeowners association shall be held..."

On June 7, 2016 Sandra Brantley, Counsel to the General Assembly, Office of the Attorney General wrote to Delegate Ben Kramer: RP§ 11B-106.1 requires the association to "elect" a governing body, which suggests that a vote should occur,---". "--because the language of the statute says "elect" the better read of the current statute is that each member of the mutual itself would be entitled to vote as to who the governing body would be. Thus, no change in legislation is needed to require a vote."

When asked in the January, 2017 Leisure World Board of Directors meeting for a reply to the notices, then Chairman David Frager announced, "see you in court."

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