Parsons sues Property Owners Association over election method

BENTONVILLE — Jim Parsons has sued to stop what he describes as an illegal election by the Bella Vista Property Owners Association to raise assessments.

Parsons filed the lawsuit against the POA in Benton County Circuit Court on Thursday.

Parsons seeks a preliminary injunction to stop the election and prevent any votes from being counted, according to the lawsuit. Parsons wants a judge to prohibit the association from having the election.

“We believe it is an illegal election,” Parsons said.

Parsons will act as his own attorney.

POA general manager Tom Judson said that for months the POA has worked to be in constant contact with the membership regarding the assessment election, to keep them informed of our actions and decisions with regards to the assessment increase vote.

“Our members have shared through meetings and personal contact that they are in favor of the Board’s actions and we are encouraged by the substantial number of returned ballots received thus far,” Judson said. “As a very active POA with more than 38,000 members, we always respect the right of any of our members to express a difference of opinion. We are confident we will resolve this issue and move on to more pressing business.”

The association’s board in July approved a plan for an assessment election. The plan calls for a $9 increase for residents that would bring monthly fees to $33, and a $3 increase for nonresidents for a total of $19 per month. Assessments can only be raised if at least 50 percent of the membership votes, and then only if at least 51 percent of those voting vote to approve.

The last time that happened was 2001.

Ballots were mailed Sept. 1 and results will be announced Nov. 1.

Parsons said the association has held three elections in the past two years trying to increase assessments on members of improved and unimproved lots. It was a yes-or-no vote on the ballots in those elections, Parsons said.

Parsons said the latest ballot is designed to pit unimproved lot owners against the improved lot owners, according to the complaint.

The ballot consists of two questions. The first question asks, “Do you agree that the monthly assessment for improved property owners should increase by $9?” The second question asks, “Do you agree that the monthly assessment for unimproved property owners should increase by $3?”

Improved and unimproved lot owners are asked to vote on both questions.

Parsons said it is unfair to owners of improved property that owners of unimproved property could decide whether they pay an assessment increase.That is so because of the sheer number of unimproved lots in the POA.

“They will sock it to us,” Parsons said in the suit.

The lawsuit states there are owners of 20,000 unimproved lots approved to vote, but only 13,000 owners of improved lots in good standing to vote.

Parsons notes that the document that created

Bella Vista Village POA, the Declaration, states the assessment fee of a specific amount ($60 a year when adopted in 1965) was for lot or living unit.

He also notes that the POA’s bylaws allow each member to have one vote in an election, but the election in question allows two votes.

Parsons also is concerned there’s nothing preventing the association from having similar elections in the future.

Additionally, Parsons complains that, while the membership list is for POA use only and shall not be distributed to other parties, the POA provided some members with a list t0 make telephone calls to encourage them to vote, and provided the last to a telemarketing company to solicit votes. He asks for a complete list of members, including all contact information.

The lawsuit also complains that the POA spent money to promote a ‘Yes’ vote, but did not provide any money on behalf of members opposed to the increase.

He also alleges that the POA is not named in the Declaration, therefore it is not authorized by the Declaration.

The case is assigned to Benton County Circuit Judge Doug Schrantz.