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LCPOA Dues Increase

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URGENT NOTICE
La Cresta POA Board Majority Proposes 20% Annual
Dues Increase

BOARD  MAJORITY 

President Roy Paulson, VP David Boyd, Secretary/Treasurer Paul Gaarenstroom

PLAN TO RAISE YOUR DUES

WITHOUT  CAUSE or JUSTIFICATION

VOICE YOUR CONCERNS TO LCPOA PROPERTY MANAGEMENT 

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Road Committee Chair stated

Roads: $2.5–$3.2 Million

Culverts: $1.6 Million

On March 5, 2026 Open Session meeting, advise that the dues increase is "mandatory" to cover projected 5-year road costs:

1.Legal Spending (Vince Scarpino Case #CVSW2308875) Complaint for:

a. Defamation

b. Intentional Infliction of Emotional Distress

c. Negligent Infliction of Emotional Distress

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At the March 03, 2026 Open Session meeting, Board member David Boyd announced a legal fee expenditure of $13,908.50 related to a lawsuit filed by member Vince Scarpino in Riverside Superior Court. It is a matter of record that this lawsuit was never served on the Association nor any of the named former & current Board Members: Richard DeAndero, Calvin Westra, and David Boyd.

  • The Issue: Why is your Board or Litigation Committee approving legal fees to be generated for a lawsuit that was never legally served to the LCPOA?  Legal obligation begins only after the summons & complaint have been served. Many cases never reach service. Accruing legal fees before service is generally considered an unnecessary expense that primarily benefits the attorney's billing. Plaintiffs must serve all named defendants and file proof of service within 60 days of filing the complaint per California Rules of Court 3110(b).  This financial oversight appears to demonstrate that our Board & Litigation Committee is incompetent & irresponsible in managing our ongoing legal expenses. In cases of small or, in this particular case, no monetary damages, waiting is prudent & will save money.

  • The Demand: The Board must provide a line-item billing statement showing exactly what legal work was performed for an unserved complaint. What exactly was achieved or accomplished by this $14K wasted legal expense? 

2. Lack of Transparency in the $259,095 Legal Expenditure Fund

Director David Boyd announced a total legal expenditure of $259K. To date, the membership has not received a breakdown of this legal cost. Litigation Committee Chair & Board Member David Boyd is absent from any education and has only limited experience with judicial matters, but now serves as Chair of the Litigation Committee. Our excessive legal expenditures must be managed with capable, skilled oversight.

  • The Issue: Large "lump sum" reporting prevents members from seeing which cases are closed or now active, pending that continue to drain our reserves.

  • The Demand: A detailed report by filing date, service, case number & Plaintiff & Defendant names (e.g., Case A, Case B) to disclose legal fees spent per case, management "special billing" hours, and administrative costs for each case.​

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3. Disputed Dues Increase & Road Committee Claims

Road Committee Chairman claims a dues increase is mandatory due to inflation and a lack of increase since 2008.

  • The Counter-Argument:

    • Low Overhead: Unlike other HOAs, LCPOA has no clubhouse, pools, or golf courses. The only major asset is the maintenance of our roads.  Yet,  the Board continues to spend money on many frivolous, unnecessary expenditures such as the horse crosswalk $100k. 

    • High PCI Score: The roads currently have a Pavement Condition Index (PCI) of 81% (Satisfactory/Excellent). There is no structural "emergency."

    • Revenue Sufficiency: With $1.025 million currently in the association's general fund, the Board should gauge repair costs according to actual accounts receivable rather than pre-emptive dues increases.

4. Misuse of Funds for Policy Changes (Drones & Business Interests)

President Roy Paulson has proposed spending member funds on an attorney-drafted legal opinion, recently approved by the board majority regarding drone usage. Despite admitting that he has never witnessed the filmed content of the drone that he alleged was filming to count the horses in his own  barn.  It is no secret that Roy Paulson is operating a commercial horse boarding and training business in violation of our CC&Rs and Riverside County Zoning conditions by failing to obtain a CUP: Conditional Use Permit from Riverside County.

  • The Issue: Evidence suggests this policy is being pursued to protect the President's private, unpermitted horse-training commercial business from being documented or photographed.

  • The Conflict: Using HOA legal funds to draft policies that serve the personal interests of a Board member (to hide potential association & zoning code violations) appears to be a breach of fiduciary duty and considerable self-dealing for self-benefit.

5. Verification of Video Recording                           Prohibitions

The Board has claimed that "Insurance Policies" prohibit members from video recording meetings.

  • The Inquiry: We demand to see the specific section of the LCPOA Insurance Policy that prohibits video recording. California law generally protects the right of members to record open sessions, and insurance carriers rarely, if ever, dictate bylaws.

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