Questions discriminatory HOA fees increase –

Last updated 12/28/07

After reading the CC&Rs and By Laws, I do not believe the Palm Royal Board of Directors has:

· The authority under the CC&Rs or By Laws to assess this discriminatory rental fee that discriminates between those owners who rent, those who don’t, and those who share rentals.

· Used anything close to an open process to decide upon this discriminatory HOA fee increase.

· Has the Big Brotherish type authority to deem a) who is or is not a renter, b) when the renters move in or mover out, c) and what fee structure should be assessed on those they are determining as such.

I hope other concerned owners will add any concerns you have to the questions below. Sometime in December, before the Board’s rental increase edict goes into effect, I hope with the help of other owners to change the HOA Board’s decision on this issue. If they do not erase this discriminatory decision, I will likely consider other legal options and hope you will consider the same. Please contact me (415-383-7880) or my sister (415-673-0369) on this issue.

These questions need detailed answers from the HOA Board. Until they are answered, a number of us owners will be depositing the discriminatory escrow fees you have assessed on owners you deem as renters into an escrow account where they will remain until this discriminatory fee assessment is settled.

(The escrow account is now established. Concerned owners may now send their $50 (discriminatory owners who rent fee assessment) on the first of each month to:

“Palm Royal Disputed HOA Assessment”

Citibank, 130 Throckmorton, Mill Valley, CA 94941

415-383-0511, questions to Eddie Nelson.

Memo line place this account #: 202-534-905

You may also be able to do deposits from a more convenient Citibank branch.)

For legal reasons and due to the need for good governance procedures, the HOA Board’s answers should be supported by written documentation, not by a simple answer covered by a statement that, “These decisions were made in Executive Committee.”

1) What was the reasoning behind setting discriminatory HOA fees? Do you have documented factual evidence showing that renters cost the HOA more? Share that evidence with us concerned and reputable owners.

2) When and where was notification of this discriminatory rent increase publically agendized?

3) At what open board meeting was the rent increase for owners who rent and those you deem renters voted upon?

4) What was the vote count?

5) Who voted for and who voted against the proposal?

6) If this was not voted upon in an open, agendized board meeting, where, when, and by whom was the decision made?

7) Who voted for and against this decision then? Please provide me the minutes with the above information of the meetings where these issues were discussed.

8) Were those who share their units with renters also assessed a discriminatory fee?

9) If a parent rents their unit to their children or a relative, are they also being assessed a rental fee increase? What legal advice did you receive determining such an increase on these relatives to be legal?

10) What if an owner uses their unit as a second residence and rents to a friend or relative, are they assessed a rental fee increase? Who on the board is making and has made the decision as to the renter/shared rental/owner/second residence distinction on this proposed discriminatory rental increases? Provide legal documentation.

11) If so, what was the legal basis for the board assuming it had the power to make distinctions around this renter/shared rental/owner/second residence discriminatory rent increasel decision?

12) Please provide the owner names, unit addresses, and contact information of all units on which you have assessed this rental fee increase?

13) What legal authority (individual[s]) indicated to you that a discriminatory HOA fee rate was legal?

14) What legal authority (foundational, legal, and historical sources) indicated to you that a discriminatory HOA fee rate was legal?

15) What did the Board spend on obtaining this legal advice?

16) If these legal fees were expended, at what board meeting was this discussed and the decision made?

17) What specific Article and Section of the CC&Rs has given you the belief that Marlene Hunn, who has served on the HOA Board of Directors for about ten years and as Vice president or President for over three years, is a tenant? From where did you draw the conclusion that Marlene Hunn was a tenant? I, Dwayne Hunn and my sister, have asked for such information orally and in writing several time over the years. This is another written request that you provide this information in writing.

18) How confident is the Board that the basis upon which you base this question in #17 is legally uncontestable and will not cost the Board money should a legal challenge to your legal assumption be mounted?

19) Who voted for and against this expenditure of legal fees to establish a discriminatory HOA fee basis?

20) Who is the HOA attorney that needs contacting if legal proceedings need to be undertaken?

21) Since owners generally pass on rent increases to tenants, who gave you the legal opinion that your proposed rent increase would not be discriminatory against renters as well as owners?

22) At what board meeting(s)was it discussed that this discriminatory HOA fee decision might cause a homeowner to sue the HOA Board?

23) At that meeting(s) discussing a potential lawsuit, what amount was suggested or set aside to deal with a potential lawsuit over these discriminatory fees?

24) Was this discriminatory rent increase directed at my handicapped sister, Marlene Hunn, who sat on the HOA board from approximately 1989 – 2002, and served as board president from about 1998-2000, but has been recently deemed as ineligible to run for a board position? Has some personality discomfort with Marlene Hunn influenced the HOA Board in any way to levee this discriminatory rent increase?

25) At any of the open or closed Board Meetings, or related outside meetings, where this discriminatory rent increase was discussed, was unit 201, Marlene Hunn, discomfort with her personality, or Dwayne Hunn mentioned?

26) If so, how did their names or the unit 201 come up and what was discussed about them?

Draft December 28, 2007

Additional questions:

29) If a rental is unrented for weeks or months who and what process determines when the discriminatory rental fee is applied? (Symmes question)

30) If a unit owner has long-term guest (boyfriends, girlfriends, relatives, care-givers, etc) who share expenses, who will determine whether they should be charged the rental fee increase? The HOA Board or their appointees? (Li) Who has the Board designated to carry out this Big Brotherish oversight responsibility?

31) Some owner occupied units have more people in them, spend more time in them, and consequently use more utilities, would that be a reason for the Board to consider a fee increase on them? (Li) Is the Board going to levee an increase on these owners?

32) Some of us owners have been very selective and careful in choosing tenants. Sometimes we have chosen the best tenants even though other wealthier tenants were available. Did you consider that this fee increase may push us conscientious owners to pick tenants who may not be as good for the condo but more able to pay the discriminatory rental fee increase you are trying to establish? (Li)

33) What prevents the board from annually moving more and larger discriminatory fee increases onto renters?