HOA RESPOCES TO LETTERS

HOA BOARD'S ANSWERS IN BLUE

Dear Caley’s Mill Board of Directors,

I am writing regarding the September 19, 2026 meeting at which the Board has proposed voting on annual assessment increases and special assessments.
I have reviewed the August 15, 2026 notice, the Association Bylaws, and the recorded Declaration of Covenants, Restrictions and Easements. I am requesting clarification and supporting documentation concerning the authority, quorum, and voting procedures that will be used at the September 19 meeting.

In particular, Declaration §4.06(b) specifically provides that, for a meeting at which the Board proposes action pursuant to §4.04(c) or §4.05, the presence of Members or proxies entitled to cast sixty percent (60%) of the total votes outstanding constitutes a quorum. It further provides that, if the required quorum is not present, a second meeting may be called, with a required quorum of thirty percent (30%) of the total votes outstanding.

I understand that the Board has amended Bylaw §2.9 to reduce the general membership- meeting quorum requirement to ten percent (10%). Because §4.06(b) specifically establishes the quorum applicable to meetings concerning action under §§4.04(c) and 4.05, I respectfully

request clarification regarding the basis for applying the amended 10% Bylaw quorum to the assessment matters scheduled for September 19.
Please provide the following before the meeting:

Any questions on the original Article IV are not valid, as it was deleted and a substitution was added. The third amendment filed with the Clerk of Superior Court in Cobb County on Jun 14th, 2005 removed Article IV. The 3rd amendment contains what Article IV was replaced with. Pursuant to Section 4.06 of the Covenants as amended, any proposed special assessment must be approved by at least two-thirds (2/3rds) of those owners present in person or by proxy, after having established a quorum of at least ten percent (10%) of all eligible voting members. See Section 2.9 of the Bylaws as amended.

Pursuant to Section 4.05 of the Covenants as amended, any proposed increase greater than five percent (5%) must be approved by at least two-thirds (2/3rds) of those owners present in person or by proxy, after having established a quorum of at least ten percent (10%) of all eligible voting members (those who have not had their voting privileges suspended).

See Section 2.9 of the Bylaws as amended.

1. Please identify the specific provision of the Declaration that authorizes the Board, pursuant to Bylaw §8.2, to amend or supersede the quorum requirements specifically established in Declaration §4.06(b).

The Quoted Article IV is not valid, as it was deleted and a substitution was added. The third amendment filed with the Clerk of Superior Court in Cobb County on Jun 14th, 2005 removed Article IV. The 3rd Amendment contains what Article IV was replaced with. Please review the 3rd Amendment.

Please confirm whether the Board intends to apply the 10% quorum in amended Bylaw §2.9 or the 60% first-meeting / 30% second-meeting quorum specifically established in Declaration §4.06(b) to the proposed actions under §§4.04(c) and 4.05.
The Quoted Article IV is not valid, as it was deleted and a substitution was added. The third amendment filed with the Clerk of Superior Court in Cobb County on Jun 14th, 2005 removed the original Article IV and replaced it in its entirety. The 3rd Amendment contains what Article IV was replaced with. Please review the 3rd Amendment.

Please confirm the total number of votes currently outstanding in the Association. I understand there are 139 Lots.
Determined before a vote based on eligibility as outlined in our governing documents.
Based on 139 Lots, please confirm the number of votes required for quorum under the procedure the Board intends to use.

Determined before the meeting based upon violations or overdue balances.

For the proposed annual assessment increases under §4.04(c), please confirm that the required approval is a two-thirds (2/3) vote of the Members present in person or by proxy and voting. The quoted Article IV is not valid, as it was deleted and a substitution was added. The third amendment filed with the Clerk of Superior Court in Cobb County on Jun 14th, 2005 removed the original Article IV and replaced it in its entirety. The 3rd Amendment contains what Article IV was replaced with. Please review the 3rd Amendment.

Please explain exactly how the two-thirds requirement under §4.04(c) will be calculated, including whether the denominator will consist of:

o Members present in person and voting;
o Members represented by proxy and voting; o allMembersrepresentedatthemeeting;or o all 139 Members.

The Quoted Article IV is not valid, as it was deleted and a substitution was added. The third amendment filed with the Clerk of Superior Court in Cobb County on Jun 14th, 2005 removed the original

Article IV and replaced it in its entirety. The 3rd Amendment contains what Article IV was replaced with. Please review the 3rd Amendment.

Please also explain how abstentions and Members who are present but decline to vote will be treated.

Abstaining will count as a no.

2. 
   Please confirm that if neither proposed annual assessment increase receives the required two-thirds approval under §4.04(c), neither proposed increase will be approved.
   
   The Quoted Article IV is not valid, as it was deleted and a substitution was added. The third amendment filed with the Clerk of Superior Court in Cobb County on Jun 14th, 2005 removed Article IV. The 3rd Amendment contains what Article IV was replaced with. Please review the 3rd Amendment. However, the amendment does state that a (2/3) vote of the Members of the Association who are present in person or by proxy is needed for the votes to pass.
   

3. 
   For the proposed CAPEX special assessments, please identify the specific provision of the Declaration authorizing each proposed assessment and confirm whether the Board considers these assessments to fall under §4.05.
   
   The Quoted Article IV is not valid, as it was deleted and a substitution was added. The third amendment filed with the Clerk of Superior Court in Cobb County on Jun 14th, 2005 removed Article IV. The 3rd Amendment contains what Article IV was replaced with. Please review the 3rd Amendment. The Third Amendment allows for “The Board may prepare an annual or multi-year capital budget which shall take into account the number and nature of replaceable assets, the expected life of each asset, and the expected repair or replacement cost”
   

4. 
   Please provide an itemized breakdown of the $40,000 amount proposed under Option 1a and the $13,622 amount proposed under Option 1b, including the amount attributable to
   

the currently required detention-pond work and the amount, if any, intended for future or unspecified capital expenditures.
This is no longer valid since the options have been done away with, and it is now one special assessment for 3 purposes. See document packets that will be provided at the 9.19.26 meeting. They will also be available on PayHOA by or before 9.23.26.

City Ordinance 11-203 (c): The City of Powder Springs does have an ordinance on the subject at Section 11-203 (c). See below. It provides in part that if the Association does not own the detention pond and the private Lot owners have not properly maintained or repaired the pond, the city has the option to go forward with the necessary maintenance or repair, and the costs will be shared by all owners in the subdivision equally.

Per our Attorney,

“Board Policy Interpreting Covenants. Since the covenants do not expressly state the Association is responsible for the maintenance of the detention ponds, it is a matter of interpretation that, due to the detention easements, the Association has the option to adopt a policy that the Association shall be responsible for the detention ponds as a common expense to be shared equally by all owners. Even though it is a matter of interpretation, in my opinion, the Association has a very strong argument that it has the authority to do so.
If the other owners take the position that the Board does not have the authority to use Association funds for the maintenance and repair of the detention pond, Section 4.01 about the Purpose of Assessments states in part that the assessments for common expenses provided for herein shall be used for the general purposes of promoting the recreation,
health, safety, welfare, common benefit, and enjoyment of the Owners and occupants of Lots, as may be authorized by the Board.
The most viable, and probably most fair, approach would be for the Board to adopt regulations or a policy that the Board is interpreting the covenants as declaring the detention easement as a type of Common Property that should be maintained by the Association for the good and benefit of all the owners.”

Regarding the proposed collection-cost assessments under Options 2a and 2b, please identify the specific provision of the Declaration or Bylaws that requires a special assessment before the Association may send delinquent accounts to collections.

Special Assessments are to fund needed items not in the budget. Funds are lacking to send people to collections. Initial up-front costs to send an owner to collections starting 1.1.27 are:

$45.00 File Review & Setup $300.00 Title Search Deed Records

$140.00 Draft & Send Lien Warning.
The HOA does not have enough reserve funds to pay upfront for collection fees, so an

assessment needs to be charged.

Please provide the calculation supporting the proposed $34,000 assessment under Option 2a and the $15,000 assessment under Option 2b, including the number of delinquent accounts assumed and the cost per account used in each calculation.

$1500 x 10

$1000 x 34
This is no longer valid since the options have been done away with, and it is now one special assessment for 3 purposes.

Please confirm whether Options 1a and 1b are mutually exclusive, and whether Options 2a and 2b are mutually exclusive.

This is no longer valid since the options have been done away with, and it is now one special assessment for 3 purposes.

5. 
   Please confirm whether the Association intends to conduct a separate vote on each assessment proposal and each proposed annual assessment increase, rather than combining multiple proposals into a single vote.
   
   There will be a vote for the dues increase and a vote for the special assessment.
   

6. 
   Please confirm that the meeting minutes will record:
   

   • 
     the number of Members present in person;
     

   • 
     the number of valid proxies represented;
     

   • 
     the total votes represented;
     

   • 
     the quorum calculation and the quorum provision relied upon;
     

   • 
     the number of votes cast for and against each proposal;
     

   • 
     abstentions or non-votes; and
     

   • 
     any formal objections raised concerning quorum, voting procedures, or the authority for
     
     a proposed assessment.
     

12. Minutes will be kept and posted as all public meetings are.

14. I am making these requests so that homeowners can understand the governing-document requirements and the basis for the proposed assessments before the September 19 vote.

16. I would appreciate receiving the Board's written response 3 days prior and any supporting documentation before the meeting so that the membership has an opportunity to review the information in advance.

18. Thank you for your attention to these questions. Sincerely,

20. Scott Sawyer
    Caley's Mill Homeowner

____________________________________________________________________________________

____________________________________________________________________________________

Dear Caley’s Mill Homeowners Association Board of Directors,

I am writing specifically regarding the proposed special assessment to collect money from all homeowners to fund the Association’s legal collection costs for delinquent accounts.
The August 15, 2026 notice proposes either a $34,000 assessment, approximately $244.60 per Lot, or a $15,000 assessment, approximately $107.91 per Lot. The notice states that this money is needed because, beginning January 1, 2027, the Association will have to pay legal collection costs upfront.

I understand the need for the Association to pursue delinquent accounts and to recover legitimate costs associated with collecting unpaid assessments. However, I have several questions about requiring all homeowners to provide the money upfront and what happens when those costs are subsequently recovered from the delinquent homeowners.

I respectfully request written answers to the following questions.

1. Why is a special assessment necessary?

The Declaration already contains provisions concerning unpaid assessments, collection costs, interest, liens, enforcement, and attorney fees, including §§4.09, 8.02, and 8.04.
Please identify the specific provision of the Declaration or Bylaws that requires or authorizes the Association to impose a special assessment on all homeowners specifically for the purpose of pre-funding legal collection costs associated with delinquent accounts.

Please also explain why the Association cannot pay these expenses as Association expenses and then recover the legally recoverable costs from the delinquent homeowner.

The Quoted Article IV is not valid, as it was deleted and a substitution was added. The third amendment filed with the Clerk of Superior Court in Cobb County on Jun 14th, 2005 removed Article IV. The 3rd Amendment contains what Article IV was replaced with. Please review the 3rd Amendment.

Pursuant to Section 4.06 of the Covenants as amended, any proposed special assessment must be approved by at least two-thirds (2/3rds) of those owners present in person or by proxy, after having established a quorum of at least ten percent (10%) of all eligible voting members. See Section 2.9 of the Bylaws as amended.

The third amendment allows for “The Board may prepare an annual or multi-year capital budget which shall take into account the number and nature of replaceable assets, the expected life of each asset, and the expected repair or replacement cost”

The contract with our lawyer prevents us from pursuing any legal actions for the purpose of collections. Breach would require us to pay all deferred fees immediately, currently amounting close to $12,000. So while our governing documents allow us to pursue liens, the contract we are in prevents it.

2. What specifically changed on January 1, 2027?

The notice states that beginning January 1, 2027, the Association must pay legal collection costs upfront.

Please identify the specific Georgia statute or other legal authority that creates this requirement.

Please provide the citation to the law and explain exactly what obligation changes on January 1, 2027.

If this conclusion comes from an attorney advising the Association, please provide the written legal authority or opinion supporting that conclusion.

Senate Bill 406 (the Georgia Property Owners' Bill of Rights Act)

Our attorney deferred fees and directly collected them from the owner after judgment. We now have to pay all fees upfront for them to continue with a collections case. An attorney has every right to collect fees and a retainer upfront. Our lawyer had only required a small retainer that is changing, and the costs need to be funded.

$45.00 File Review & Setup: $300.00 Title Search Deed Records; $140.00 Draft & Send Lien Warning.

3. What will the homeowners actually be funding?

Please clarify exactly what expenses the proposed $15,000 and $34,000 assessments are intended to cover.

For example:

• 
  attorney fees;
  

• 
  court costs;
  

• 
  filing fees;
  

• 
  collection letters;
  

• 
  title searches;
  

• 
  lien costs;
  

• 
  foreclosure costs;
  

• 
  other collection expenses; or
  

• 
  some combination of these. All of these
  
  Please identify which expenses are anticipated to be incurred and which are merely possible future expenses.
  
  Bare minimum collection expenses are:
  
  $45.00 File Review & Setup:
  

$300.00 Title Search Deed Records; $140.00 Draft & Send Lien Warning.

Every additional action taken by the attorney will incur additional charges. The most expensive collections case we have open amounts to close to $3,600.

4. How were the two amounts calculated?

The notice states that the $15,000 option is based on approximately 10 currently delinquent homes and that the $34,000 option is based on historical delinquency of approximately 34 homes.
The notice also states that the initial cost is approximately $500 per case and that total costs average approximately $1,500 per case.

Please provide the complete calculation supporting each proposed assessment.
In particular, 10 cases at approximately $1,500 each equals $15,000, which appears to support the $15,000 proposal.
However, 34 cases at approximately $1,500 each equal approximately $51,000, not $34,000. Please explain the calculation used to arrive at $34,000.
This is no longer valid since the options have been done away with, and it is now one special

assessment

5. What happens when the HOA recovers the money from delinquent homeowners?

This is my primary concern.
If all homeowners are required to contribute money through a special assessment to pay the Association's legal collection expenses, and the Association subsequently recovers those same legal expenses from the delinquent homeowners, what happens to the money that was recovered?
For example, if homeowners collectively provide $15,000 through the special assessment and the Association subsequently recovers $15,000 in collection costs from delinquent homeowners, the Association would have received the money from the homeowners who funded the assessment and then recovered the collection costs from the homeowners whose delinquency generated those expenses.
Please explain how the Association will account for that situation.

It goes back into the legal defense fund. We always need a fund on hand for legal issues and funds for the ability to send owners to collections. It is a problem if the HOA does not collect unpaid dues or fines and has the inability to collect monies owed. The collected dues would go back into the operating budget.

6. Will homeowners receive a refund or credit?

If the special assessment is intended to pre-fund expenses that will later be recovered from delinquent homeowners, will the amounts recovered be:

• returned to the homeowners who paid the special assessment;

• 
  credited against future assessments;
  

• 
  placed into a reserve;
  

• 
  applied to the general operating budget; or
  

• 
  retained by the Association for another purpose?
  
  If the Association's position is that the recovered money will simply be retained by the Association as additional budget funds, please identify the specific provision of the Declaration or Bylaws that authorizes that treatment.
  
  Placed into a reserve per section 4.09 of the third amendment. Surplus funds can be added to the association's reserve account.
  
  7. Is the Association seeking reimbursement or additional revenue?
  
  Please clarify whether the Association considers money recovered from delinquent homeowners to be:
  
  A. reimbursement of an expense actually incurred by the Association, or
  
  B. additional Association revenue that can be retained after the expense has already been funded by the homeowners through the special assessment.
  
  These are materially different situations.
  
  If the homeowners have already funded the legal expense through a special assessment, I would like to understand the basis for the Association subsequently retaining the same amount recovered from the delinquent homeowner as additional unrestricted budget money.
  
  Legal fees recovered will go back into the legal defense fund, which will be a separate account. Dues recovered will go into our operating budget account and/or CAPEX.
  
  8. What happens to money that is not needed?
  
  If the Association collects $15,000 or $34,000 but ultimately spends less than that amount on legal collection costs, what happens to the unused money?
  
  Will it be:
  

• 
  refunded or credited to homeowners;
  

• 
  carried forward;
  

• 
  placed into a reserve;
  

• 
  used for other operating expenses; or
  

• 
  used for future legal expenses?
  
  Please identify the governing-document authority for whichever treatment the Board intends to use.
  
  Amendment 3, section 4.06.
  
  The funds will remain in the legal defense fund. We should have a legal fund on hand of at least $15,000. Many mgt companies we speak to suggest $25,000 to $50,000. The HOA has always had legal costs because we have never had a history of the entire neighborhood paying. Collections have been ongoing since the HOA inspection; we have liens that go back all the way to 1990. There are records of the HOA having over $30,000 in uncollected dues in the early 2000s. Surplus funds will be placed into a reserve per section 4.09 of the third amendment. Surplus funds can be added to the association's reserve account.
  
  9. Is the assessment intended to be a temporary advance or permanent funding source? Please confirm whether this special assessment is intended to be:
  
  1. a temporary advance to provide cash flow while collection cases are pending; 2. a reserve for future collection expenses;
  3. a permanent source of Association revenue; or
  4. some other purpose.
  
  If it is a temporary advance, please explain how and when the Association will reconcile the amounts advanced against the amounts actually spent and recovered.
  This is a one-time special assessment. If we incur more legal costs than we have funded, that would warrant another special assessment. With the proposed dues increase, we hope to be able to budget additional monies to the legal defense fund if needed.
  
  10. Accounting and transparency
  If this assessment is approved, will the Association maintain an accounting showing:
  

• 
  the total amount collected from homeowners;
  

• 
  the amount spent on attorneys and other collection expenses;
  

• 
  the amount recovered from delinquent homeowners;
  

• 
  the amount of unused funds;
  

• 
  the amount carried forward; and
  

• 
  the ultimate disposition of those funds?
  
  Will homeowners be provided with that accounting?
  
  We have provided and are always willing to provide statements of account when asked; fees may apply.
  
  11. Why should homeowners who pay on time fund the collection costs?
  
  Please explain the Board's reasoning for requiring homeowners who are current on their assessments to collectively fund the legal expenses associated with delinquent accounts when the Association's governing documents already provide mechanisms for recovering costs associated with delinquent assessments.
  
  I understand that there may be a legitimate cash-flow issue created by having to pay attorneys before reimbursement is received. If that is the reason for the proposed assessment, please explain why the Association believes a permanent special assessment from all homeowners is the appropriate mechanism rather than another temporary funding or reimbursement arrangement.
  
  We need money to put people into collections. The $15,000 will go into an account, which will then be used to put people into collections or perform other legal tasks. If we refunded the money after collecting, then we would go back to lacking the needed funds, necessitating another special assessment the next time we need to put someone into collections. So instead of charging a special assessment every year when people fail to pay their dues, we will keep a standing fund. Section 4.09 of the third amendment states that any surplus funds can be added to the Association's reserve account. Also, the board can not place liens on owners’ homes while we are contracted with our attorney. Breach of contract results in all our current deferred legal fees becoming immediately due. Termination or non-renewal of the contract also requires the immediate payment of all deferred fees. At the time of renewal in 2025, the amount of deferred fees was $15,212.28
  

12. Avoiding duplicate recovery

Please confirm whether the Board intends to ensure that the Association does not receive a duplicate recovery for the same expense.

For example, if a $1,500 legal collection expense is funded through the special assessment paid by the membership and the Association later recovers $1,500 from the delinquent homeowner for that same expense, how will that $1,500 recovery be treated?

Please provide the Association's written position on this specific example.

Request for Clarification Regarding Proposed Special Assessment for Legal Collection Costs

This is a non-issue. Legal fees recovered will go back into the legal defense fund, which will be a separate account. Dues recovered will go into our operating budget account and/or capex.

13. Board's legal authority:

Finally, please identify the specific Declaration, Bylaw, or Georgia law that the Board is relying upon for all of the following:

1. 
   imposing the special assessment on all homeowners to pre-fund legal collection costs;
   

2. 
   determining the amount of the assessment;
   

3. 
   retaining money recovered from delinquent homeowners after those costs have already
   
   been funded through the special assessment; and
   

4. 
   using any excess or recovered funds for purposes other than the collection expenses for
   
   which the assessment was originally imposed.
   

I am not questioning the Association's right to collect delinquent assessments or to pursue delinquent homeowners. My concern is specifically with requiring all homeowners to provide the money upfront and then potentially allowing the Association to retain the money recovered from delinquent homeowners as additional budget funds.

Before homeowners vote on this assessment, I believe they should understand exactly where their money is going, what happens when the Association recovers the money from delinquent owners, and what authority the Board has to retain those recovered funds.

I respectfully request that these questions and the Board's answers be provided to the membership before the September 19, 2026 meeting and that the Association's final position be reflected in the meeting minutes.

Please see the 3rd amendment. Particularly 4.02, 4.06, and 4.07

Thank you,

Scott Sawyer
Caley’s Mill Homeowner

Responces to the letters will be shared below when the HOA responds to the 2 letters sent via PayHOA

The letters have been requested to be added to the minutes and hard copies will be handed to the HOA Secretary on 9-19-2026