As was reported in our August edition, after the Verandah Community Association (VCA) was turned over to our homeowner-controlled Board of Directors in October of 2021, it conducted a review of the Developer’s financial records and practices about the VCA. This review raised numerous concerns. It was clear to the Board that when the Developer controlled all aspects of Verandah, the operations and finances were structured to benefit Kolter, and not necessarily to serve the long-term interests of the community.
In March of 2024, with the aid of legal counsel, these concerns were brought to the attention of Kolter Development to resolve them. Unfortunately, with minor exceptions, the Developer declined to resolve our concerns amicably, which meant the Association had to either abandon its claims or pursue legal action.
The VCA’s claims against Kolter Development include, but are not limited to: the misuse of Association funds, failure to meet its obligation to install a traffic signal adjacent to the main gate, improper construction of roadways, improper assignment of maintenance responsibility to the Association for Developer-owned assets, failure and refusal to fairly share costs of maintaining Joint Assets as required by Verandah’s Governing Documents, and underfunding of the Association’s reserves. With the approval of 75 percent of Verandah’s Neighborhood Representatives and owners, legal action was commenced by the Association at the end of June 2024. Since then, the Developer has denied the Association’s claims, which will result in the matter proceeding to mediation or other court intervention.
The VCA Board is cooperating with its legal counsel to pursue a resolution of these matters, which will most likely continue for some considerable time. The Board will provide updates as new information is obtained.
