Developer Subsidy Reimbursement Agreement – Valid or Invalid?

Money Changing HandsIn October 2011, the SOA Board approved a “Subsidy Reimbursement Agreement” dated July 20, 2011, whereby the SOA would reimburse the Somersett Development Company $365,907 for subsidized services performed in the years 2004 through 2007.  After a thorough review of prior year Financial Statements, Independent Auditor Reports and Subsidy Agreements, by a Somersett resident (Cornelius E. Hardy), it was concluded that, under the terms of previous agreements, the 2011 Subsidy Repayment Agreement was invalid and no additional reimbursement was owed to the Somersett Development Company.

Mr. Hardy compiled a report (Reimbursement of Developer Subsidy Payments, dated May 15, 2011) of his findings and submitted it to the Board on March 15, 2012. This was followed by a summarization of his report, which was presented at the April 12, 2112 SOA Board meeting for inclusion into the meeting minutes.  Subsequent to submittal of Mr. Hardy’s March 15 report, the SOA Attorney provided a legal opinion (“Subsidy Agreement Allegations”, dated March 30, 2012) wherein they took exceptions to some of Mr. Hardy’s conclusions.  An analysis of the legal opinion raised additional concerns, which were documented in Mr. Hardy’s response to same.

All of the documents referred to above are available in the Blogs Reference Section for viewing by the reader. Also available in the reference Section are the 2004 and 2008 Subsidy Agreements referred to in Mr. Hardy’s report. These documents may be accessed by clicking on the following links:

2011 Subsidy Reimbursement Agreement

Report – Reimbursement of Developer Subsidy Payments

Summary Report – Reimbursement of Developer Subsidy Payments

Reponse to SOA Attorney Opinion Letter

2004 Subsidy Agreement

2008 Subsidy Agreement

One thought on “Developer Subsidy Reimbursement Agreement – Valid or Invalid?

  1. There have been accumulated actions by Somersett Development including the Subsidy Agreements where the developer has taken money from the HOA funds for personal gain. We need to come together as a community to fund legal action to make sure he repairs the infastructure defects of the rock wall and irrigation system prior to his announced leaving in Nov. 2012.

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