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Originally Posted by Advogado

I agree 100% with your concerns.

It particularly irritates me that the VCCDD is paying the legal-defense costs out of the amenity fees, and I wish that the POA had spoken out more forcefully on that issue. However, in fairness to the Developer and the VCCDD, their contractual obligation is to continue to furnish the amenities at the pre-existing levels, and I have not noticed a degradation as a result of the drain on amenity-fee revenue from paying the legal-defense costs.

In other words, the problem is that AT THIS POINT, it seems awfully hard to figure out what legal action the POA or anybody else can take. Also, where would the money for attorney fees come from? (You refer to the POA's attorney, but there is no such person on retainer.) I think, that by:
1. informing residents of the facts of the IRS investigation, at meetings and through the POA Bulletin;
2. starting a legal defense fund; and
3. writing the IRS and asking that the IRS be sensitive to the impact of its actions on Village residents
the POA has done about all it can for the time being.

It is unfortunate (or perhaps deviousness on the Developer's part) that the Developer structured The Villages so that we do not have a regular home owners' association-- with mandatory membership, dues, and the legal power to represent us. Then, when the POA became a nuisance to him, the Developer supported and subsidized a rival organization, the VHA in order to weaken the POA.

I have personally expressed my concerns about the IRS investigation to the POA officers and board members. I am personally convinced that they are both aware of, and concerned about, the situation. Let's also remember that these folks are all volunteers, and the ultimate responsibility for protecting our interests rests with us, not with them. Do I always agree with the POA? No. But in this kind of situation, it's the only organization we have.

I would suggest you attend the next POA meeting (I will be out of town, myself or I would be there) and ask the kind of questions that you raise here. They are good ones and thought-provoking, but I think that we all need to be aware to keep in mind that this Forum is a good way to exchange thoughts and information, especially in the absence of a genuine newspaper in The Villages. But posting, in and of itself, doesn't get anything done. If the IRS investigation does "go south", we are all going to have to get off behinds and away from our keyboards and take some kind of action ourselves.

Oh ye of little faith... If you are upset concerning the use of amenity fees being used to defend this IRS action then you and EdVinMass might consider this. While the POA does not have an attorney on retainer they do consult with one or two. Secondly it was stated that the Developer is not a party to this IRS investigation and I can't think of a faster and better way than to bring an action that protects the interests of the residents from negligence of the District, its officers, superviusors, etc for any mistakes they may have made when purchasing bonds and also any responsibility that the Developer had during these business transactions and by naming the Developere they are not a part of the action. If the insurance company accepts defending this matter they do so with defense being paid from the district's liability policy. this suggestion is no different than your being in an auto accident getting injured and suing the driver of the car you occupied. that driver may be your neighbor but if you are injured and facing loss of wages, serious and lastly injuries you would sue. why because you are really suing the driver's insurance company and that's why he bought car insurance in the first place. The same applies to people who run governments or corporation and get insurance to protect them if they do something wrong.
From a strategic point by filing an acton residents are saying to the Developer and/or the district if you did something wrong know we are coming after you to pay the bill. If the insurance company accepts the claim then it will come out of their pockets. One point here if the district did not contact their insurance company about this they may have problems. finally by filing the action may great a motive for the Developer to come forward and make this situation right. the Developer surely will not volunteer