The Board of Directors of Broadlands Association, Inc. has become aware of a communication distributed by the Southern Walk at Broadlands Homeowners Association, Inc. (“SWHOA”) urging its members to contact Broadlands board members regarding the proposed dissolution of SWHOA. That communication characterizes Broadlands’ position as imposing “unreasonable pre-conditions” on their dissolution.
The communication contains material mischaracterizations and omissions that warrant clarification to ensure all Broadlands homeowners have an accurate and complete understanding of the issues involved.
Broadlands recognizes that homeowners in Southern Walk did not create the circumstances leading to this situation, including the legacy fiber infrastructure and prior contractual arrangements and is empathetic to that reality. However, dissolution of an association must be handled in a manner that is legally compliant, fiscally responsible, and fair to all affected parties, including the 4,070 members of Broadlands as a whole. These obligations should not be transferred without appropriate resolution.
To that end, Broadlands identified several necessary and reasonable conditions to be addressed prior to dissolution:
1. Removal of Abandoned Infrastructure
SWHOA has indicated that it intends to transfer remaining funds to Broadlands. Broadlands requested that these funds be used to remove obsolete and abandoned telecommunications equipment.
- This infrastructure is currently unmaintained, deteriorating, and poses both aesthetic and potential safety concerns.
- The obligation to remove this equipment should have been addressed when prior service agreements were terminated.
- SWHOA has asserted that it lacks legal authority to perform this removal, yet has not provided supporting legal documentation. Broadlands has expressed its willingness to cooperate in granting or facilitating any authority needed.
Allowing dissolution to proceed without resolving this issue would:
- Transfer uncertain and potentially substantial future costs to Broadlands.
- Expose Broadlands to liability risks associated with unsafe conditions.
- Potentially require all Broadlands members to subsidize a legacy issue from infrastructure that supported only a portion of the community.
Accordingly, Broadlands maintains that this work should be completed prior to dissolution, using available SWHOA funds and qualified third-party contractors.
2. Owner Account Balances and Reserve Funds
SWHOA has indicated:
- The existence of reserve funds to be transferred.
- Approximately $72,000 in homeowner account credit balances.
Broadlands’ position is as follows:
- All individual homeowner account balances should be reconciled to zero prior to dissolution.
- Credits should be refunded directly to owners, transferred to their Broadlands account only upon explicit owner authorization, or handled in accordance with applicable escheatment laws.
Automatic transfer of individual balances to Broadlands without clear authorization and documentation would:
- Create accounting and legal exposure.
- Prevent Broadlands from validating account histories.
- Potentially subject Broadlands to future disputes from homeowners.
3. Outstanding Delinquencies and Liens
SWHOA has reported approximately $40,000 in delinquent assessments, including accounts currently in collections with liens recorded.
SWHOA has proposed assigning these liens to Broadlands. However:
- These debts are legally owed to SWHOA, and not to Broadlands.
- Broadlands does not have a valid legal basis to enforce or assume collection authority for obligations it did not impose.
- Assignment of these accounts could expose Broadlands to legal risk, administrative burden, and potential litigation costs, including lien releases or write-offs.
It is therefore both appropriate and necessary that SWHOA fully resolve all delinquent accounts, including collection efforts or write-offs, prior to dissolution.
4. Tax, Audit, and Corporate Obligations
As a separate legal and corporate entity, SWHOA is independently responsible for meeting all tax and audit obligations. This includes filing its own annual federal and state tax returns, regardless of dissolution timing. These obligations should not transfer to Broadlands. At this time, no clear plan has been provided addressing:
- Filing of 2026 tax returns.
- Responsibility for completion of audits, including any outstanding audit work.
- Payment of any taxes, penalties, or liabilities arising before or after dissolution.
These are legal obligations of SWHOA. Failure to do so could result in compliance violations, financial exposure, and potential disputes after dissolution, and Broadlands should not be exposed to such liabilities.
5. Verizon Claim
SWHOA has disclosed a $56,000 claim from Verizon related to services allegedly provided after expiration of prior agreements. While SWHOA has disputed this claim, no status update or resolution strategy has been provided. This represents a material contingent liability that must be resolved prior to dissolution to prevent future claims from impacting Broadlands or its members.
FIDUCIARY RESPONSIBILITY AND CONCLUSION
The Broadlands Board has a fiduciary duty to protect the interests of the entire Association. Accepting unresolved liabilities, uncertain costs, or incomplete financial and legal matters is inconsistent with that duty.
The Board’s position is not intended to obstruct dissolution, but rather to ensure that it is conducted properly and in accordance with:
- Sound financial governance
- Established legal principles
- Fair allocation of responsibility
Broadlands remains open to continued dialogue and cooperation with SWHOA to achieve an orderly and responsible resolution. However, dissolution cannot proceed in a manner that effectively transfers risk, liability, and unresolved obligations to the broader Broadlands community. We respectfully urge SWHOA members to insist that their leadership address these outstanding matters fully prior to dissolution, in keeping with their own fiduciary obligations to their membership.
The 2025-2026 Board of Directors of Broadlands Association, Inc.
Examples of Abandoned Equipment
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