Ocean Sands Budget 2019 ~ 12.12.18

2019 Budget Is Done, But

 

For the first time in anyone’s memory, the Ocean Sands Property Owners Association (OSPOA) upcoming budget has been completed prior to the start of the budget year. Signature Touch led this effort. If you will recall, past annual budgets have not been finalized until March or even April of the current year. This is a great step forward in improving the management of OSPOA. 

The budget contains several attractive features:

  • Continued spending to upgrade landscape appearance of Ocean Sands 
  • New focus on road maintenance
  • Material spending on dune crossovers to complete overhaul started last year 
  • Any back dues or fines collected go to the Capital Reserve fund 
  • Year-round trashcan roll-back was added for an additional $4,000 

Taken together, this spending is aimed in the right direction for Ocean Sands. Dues will not increase this year, after three straight years of increases totaling $220 (+ 58%). 

That was the good news! On the downside, $44,033 of the budget is being taken by Coastland Corporation as an “Administrative Fee”. This is over and above what we pay Signature Touch for “soup-to-nuts” management of our community. Coastland claims that they still spend a lot of time on Ocean Sands issues, but those activities are regular board functions, not management functions. Despite questioning from multiple owners at the 2018 Annual Meeting and continued pressure by Owner Board Reps Coastland is unable to demonstrate the services provided. 

The N.C. Non-profit law has clear prohibitions against self-dealing. OSPOA board members who are employees of Coastland, voting monies to Coastland Corporation, appears to be the epitome of self-dealing.  We believe that this conflict of interest transaction may not be legally authorized unless approved by “non-Coastland” board members. See NCGS 55 A-8-31(https://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByChapter/Chapter_55A.pdf)
At the very least, we believe that it is a breach of fiduciary duty for the “Coastland” directors to approve this payment. You already know that your Owner Board Members are opposed to this payment.  

The OSPOA did not follow legal process for securing a budget vote, by not doing so at a board meeting or by “unanimous written consent”. Your two owner representatives made it clear they could not vote for a budget that would include the Coastland administrative fee.  The three Coastland appointees on the board, of course, were in favor.  We know from examining documents obtained by Crown Point that this “administrative fee” has been used to cover the expenses of Coastland’s Virginia Beach office.  In other words, it subsidizes Coastland’s real estate development business.    

For any of you who have not signed the Written Consent to Amend form, please do so now. The owners need to operate OSPOA for the benefit of all owners, not just Coastland. And an owners’ board would do it for free.  If you need a form or have questions, please reply to this email. 

The Governance Committee
Al, Rick, Jeanne, Robert, Chris, Greg, Jim and Dennis

Copyright © 2018
Home Owners Of Ocean Sands Governance Committee
All rights reserved

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