Board in crisis- Open letter to owners

Dear Fellow Southern Highland’s Homeowners

Subject: Open letter to owners- a SHCA governance crisis; November 20, 2023

The developer appointed majority of our community's governing body has disenfranchised the owners of SHCA. In May 2023, with no authority to do so, the SHCA board "voided" my election as your representative. It did so to silence my efforts seeking transparency and an authoritative ruling on the legality of the developer's twenty-three years controlling our community- seeking to fulfil promises I made to owners when you elected me in 2021 to represent you.

As one of only two elected board directors, I believe it is my obligation to share my assessment and the egregious conduct of our SHCA board. I am also alarmed by owner contentment with what I see tantamount to the “personalist dictatorship” of our community. It places our home investments and community's future at risk.

Our community's governance is in crisis. At the heart of the crisis is how the board should be chosen - appointed or elected. Lacking electoral accountability, when the time comes (if not already here) owners and those that govern Southern Highlands- presently the developer- disagree on the direction of our community, owners will have little immediate recourse.

We live in one of Las Vegas’s best communities. If we are to remain on of Las Vegas' best, having all directors elected by owners, representing owners, is critical. HOA owners have few options outside trusting those that govern. The checks and balances provided in the US Constitution for other community governance do not exist in HOAs (read more here). I believe the current directors are inappropriately retaining their appointed positions. Is this where you wish to place your trust? In my assessment, this does not serve the best interest of SHCA owners. Owners deserve an authoritative and transparent ruling the present situation- twenty three years of developer control with no end in sight- is lawful.

Outside ensuring our community operates within the law containing our largest investment, why should owners care? Consider the following:

I believe our board inappropriately contracted with Clark County to maintain, at owner expense, public parks. Owners had no voice in the decision as the law requires. This is costing SHCA well over a million dollars per year. It is a significant portion of our annual assessments and does not take into account the huge potential liability all owners collectively assume in operating these public parks.
There has been repeated no bid contracting with Olympia Management, a wholly owned affiliate of the developer Olympia Companies. The contract is a nearly two-million-dollar annual expense. Are we getting the premium service and responsiveness we are paying for?
How about owners paying $500K to the developer for a lot that cost it $1?
Why are community leaders not representing our community interests on important subjects like the public safely underfunding, LVVWD’s excessive water usage fees, the costly mandate for turf conversion, the blind eye of Nevada's sole HOA regulator, and more? Could the fact developers and builders benefit from the status quo be the answer?

There is more but hopefully I have made my point. Lacking transparency, we are left to simply trust our future to those mostly un-elected, some employed by the developer who do not even live in our community.

Since my election as a director in December 2020, the board has refused to provide me numerous association records – many related to possible board improprieties. For example, I believe the records will show the board likely long violated Nevada laws in failing to terminate developer control of our association. I asked to see legal opinions allegedly obtained by the board supporting its actions. I even asked the association's attorney to opine. But the board and attorney refused. Is this kind of governance secrecy good for Southern Highlands? I think not.

A few months after assuming my role as a director the majority appointed board took an extraordinary action. It filed, without notice to owners or deliberations involving me, a baseless complaint with the Nevada Real Estate Division (NRED) seeking to have me removed. The board sought NRED act to do what they knew they were prohibited from undertaking. At the heart of their allegations- I was asking too many questions. Nothing would come of this effort except a huge legal expenses paid for by owners. At end, NRED has taken no action.

Likely recognizing their baseless NRED complaint would fail, the board turned to a new tactic - void my November 2021 election. The board alleged, I stood to gain personal profit or compensation in seeking with another owner, a court determination the 2020 election was improper. A sham May 2023 "hearing" was held. Owners were never informed. At end, the SHCA Board unilaterally acted to “deem void” my lawful election as your representative. It was a clear last-ditch effort to silence my voice- a voice owners elected eighteen months earlier to speak on their behalf.

I beg owners get informed and engaged. Demand a viable explanation. The SHCA board has not been candid with owners as to why the declarant’s control continues, under what authority it removed a duly elected owner, and much more.

I am being personally disparaged and attacked for my advocacy. Mr. Goett and Olympia Companies attempted to disparage and intimidate me in 2017 when I first wrote to owners asking to serve on our board. Nevada courts found the actions of Goett and Olympia a violation of law- a SLAPP (Strategic Lawsuit Against Public Participation- see Olympia v Kosor). Olympia was sanctioned by Nevada courts for attempts to suppress dissent. I am confident the courts will similarly find the recent actions of this developer appointed board inappropriate. Unfortunately, as this plays out, owners are on tap for much of the costs.

I have acted on your behalf (read more here). But what can you do? Take a few minutes to learn more about the governance issues and others facing our community. This website can serve as a good starting point. Information is available via other sources. I encourage you to use them. Second, make your voice heard. Contact my fellow directors. Demand full transparency and a viable explanation why they are not holding free elections for all directors while removing duly elected directors? Third, attend a board meeting. You can do this virtually. Make it known you care. Fourth, vote in the community election. Less than 10% of owners did in the last election. At end it is imperative our community install trusted owners to govern us that will represent owners – not the developer.

I can be contacted via this website. You may find contacting the other directors challenging. This should tell you something about their representation and accountability. Thank you for taking the time to read this letter. It contains my opinions as your elected representative. I now ask you act- VOTE.

Respectfully,

Mike Kosor

Colonel, USAF (Ret)

Elected Director, SHCA