Complaint Review: Lake Holiday Country Club - Cross Junction Virginia

Beware of the Lake Holiday HOA in Cross Junction, Virginia. I purchased a lot for almost $10,000 in 1975. I am still waiting for utility service to my lot. Can you believe that???? Without utility service my lot is worthless. The Lake Holiday HOA owned until just recently owned the utility company providing water and sewer. The HOA and its President promised getting the utilities to me and probably hundreds of other lot owners. They have collected MILLIONS of dollars in dues from people like me based on the false promise that they would use these funds to improve roads and provide utilities. I have heard numerous times at meetings that the Board was developing a plan to extend the utility lines but nothing has ever happened.

In 2002, the President of the Association said that selling the Lake Holiday Estates Utility Company required a membership vote but a membership vote was never taken on the Utility sale. Then in 2006, the HOA sold the utility built with my dues. After the sale was final, the HOA said they had no responsibility for the utilities and used the proceeds of the utility sale to build a new $1.2 million clubhouse.

My lot sits two lots away from a home with existing utility service. Last year, I learned about an important rule in the utility companys tariff called, Rule 16. This rule has been in place for over 30 years and the accepted method by the SCC to extend utilities to the membership lots at Lake Holiday. This rule was concealed from me and all lot owners waiting for utilities. The President of the Association tried to remove it without even sending me a notice about the change. I learned about this rule not from the Lake Holiday Board but another property owner. I would have made a formal Rule 16 request decades ago. I was tricked into waiting and waiting for Lake Holiday to extend utilities to my lot. Unfortunately, this community has been plagued with endless mismanagement and these problems never seem to get resolved, and just keep piling up.

In a 2 year period, the Board spent over 1 Million in legal fees in a community of 700 homes. Theres a 4-5 Million upcoming dam repair bill, and wasting so much money on lawyers is completely irresponsible! Another low point, a Lake Holiday committee member sent around a 5 page letter mocking another members handicap. Unfortunately, the same small group seems to retain control of the HOA board, and nothing seems to ever change at the place.

In January of 2008, the Virginia Supreme Court ruled that the authority to collect dues has to be in the deed to your property, but in many sections at Lake Holiday theres absolutely no requirement in the deeds to pay dues. Lake Holiday was advised of this problem with the deeds by their lawyers but ignored the advice and collected millions in dues anyway. Like a scared bunny, President Wayne Poyer is making the rounds of the local media outlets shouting going bankrupt to anyone that will listen. Hes so concerned about the place going bankrupt that hes not making any attempt to settle the case - not believable! Hes going to take his chances in court. Hes going to take his chances against 3 recent Supreme Court rulings? This whole mess about the dues was created by the Board. They didnt honestly explain to members about the problems with the deeds and people are sick of their endless lies and mismanagement!

I noticed that another person filed a complaint about Rees Broome of Mclean, Virginia. Lake Holiday used this same law firm to handle collections and general legal work.

Jake

Mclean, Virginia

U.S.A.