The Facts about the Garden Grove Manor Mortgage!
• The 40-year HUD mortgage for GGM is scheduled to be paid off in October 2013. After 37 years of mortgage payments, there are only 34 monthly payments left!
• When the HUD mortgage is paid off, shareholders will have complete control over GGM. One option shareholders will have is to keep GGM as a housing cooperative. One housing cooperative in San Francisco paid off its 40-year HUD mortgage in 2003. Their current carrying charges are around $750 per month. Their 1-bedroom, 2-bedroom and 3-bedroom apartments sell for over $300,000! The carrying charges and sales prices are probably higher in San Francisco than Garden Grove Manor’s would be, but this gives you an idea of what can happen when the mortgage is paid off.
• Condo conversion is another option that shareholders will have when the mortgage is paid off, but only shareholders can make that decision. The Board of Directors cannot turn GGM into condos. Under the GGM bylaws, it takes a majority vote of all shareholders to have condo conversion. These are the facts.
• The only thing standing between shareholders and the mortgage payoff in 2013 is bad Board management. The Board cannot answer simple questions about how much they are spending and how much money is left after all their spending. This year the Board fired its longtime lawyer and hired new lawyers, Matthew D. Berke and Alan D. Ross, who specialize in HUD loans. Why? We asked, but they won’t tell us!
• In 2008, HUD threatened to foreclose on the mortgage because GGM ran out of money in our operating accounts. GGM lost thousands of dollars each month because HUD stopped giving us the monthly Section 8 payments and refused to correct the problem. But we had over $300,000 in the replacement reserve account due to our careful budgeting and that saved GGM from foreclosure, refinancing or being sold.
• Now GGM is losing Section 8 money again and is still in danger of foreclosure. Last week Board members told us that HUD still has not paid the Section 8 money it owes GGM for 2008, 2009 and 2010. When we asked Board members how much money GGM has left, they said they don’t know!
• The GGM mortgage payment is more than $12,000 per month. When the mortgage is paid off, that money can be used to improve shareholders’ units, the buildings, the grounds and all other GGM facilities.
• The power HUD has to sell GGM or raise the carrying charges will go away when the HUD mortgage goes away. In January 2010, HUD increased market carrying charges more than 30%! That increase violated California law. If the Board and management paid attention to the laws they are required to follow, they could have stopped HUD from imposing that enormous carrying charge increase.
• The HUD REAC inspections go away when the mortgage goes away. Every time there is a HUD REAC inspection, GGM spends thousands and thousands of dollars to prepare for the inspection. The REAC inspectors can be very picky and give GGM a long list of corrections that have to be made, which costs thousands and thousands of more dollars. In 2009, the Board of Directors and management spent more than $100,000 in labor and materials to prepare for a REAC inspection that never happened.
• The power HUD has to dictate how GGM spends money will go away when the HUD mortgage goes away. The GGM Board and its shareholders will decide what the budget priorities should be.
• Even when the HUD mortgage goes away, GGM can ask HUD to keep the Section 8 contract to provide monthly assistance payments for shareholders who qualify.
Will the Mortgage Be Paid Off on Time? The Choice Is Yours!
For the past year, we tried to get the facts and share them with you. The Board of Directors tried to stop the recall election and deceive you about the candidates running against them. Our truth is simple. We want to pay off the mortgage on time. Fix things when they break. Discuss our common interests together in open meetings. Make decisions with our neighbors about our community. Have employees that respect us and work with us. Let you and your family live in peace. If you agree:
Vote YES to Recall the Board of Directors! Bring your ballot to the December 16 meeting.
Vote for Nelson Cuervo, Milina Kasalian, Keith Campbell, Alicia Boatman, and Tom DePalma!
Monday, December 13, 2010
Letter from a Former Director of GGM
Dear Shareholder:
I was on the Board of Directors from 1993 to 2008, when I had to resign for health reasons. I became involved here again when shareholders called me for my GGM Board records and advice in 2009. The manager threatened them with eviction for no legitimate reason and 3 current directors, who have the same records I do, refused to help those poor, frightened shareholders. When I served on the Board with these 3 directors, I always insisted that we manage GGM legally and properly. After I was diagnosed with cancer in 2003, I spent the next 5 years training the other directors so GGM would not fall apart when I left. Quite frankly, I stayed on the Board as long as I could because I did 99% of the work and the others showed up at meetings. Now they operate in deliberate violation of the GGM bylaws, California laws, and good business practices. They know better and you deserve better.
GGM is a small HUD low income, affordable housing cooperative, but there are more employees working here today than in its 37 year history. They also get paid a lot more than any employee I ever worked with in all my years on the Board, but what are they doing to justify taking so much of your money? In my 21 year relationship with GGM, I have never seen worse management than you are getting from this Board and their employees – and Garden Grove Manor has had some terrible management companies! This Board gives their employees too much power and not enough supervision. Employees do not have the same investment in GGM that shareholders have. When the HUD mortgage is paid off in 2013, GGM will not need HUD management any more. GGM will need a company certified in California to manage community associations. The current employees do not qualify, so you could say it is in their best interest to keep Garden Grove Manor a HUD property as long as possible.
In 2008 HUD threatened to foreclose on your mortgage when HUD owed GGM nearly 4 years of Section 8 payments. HUD has the power to sell GGM to a buyer who would turn it into more expensive rental apartments. Or HUD could force GGM to refinance the mortgage, giving shareholders hundreds of thousands of dollars in new debt to pay and adding 30 years or more to the existing HUD loan. But that didn’t happen because GGM had over $300,000 in reserve due to our good financial management. Today GGM is short of money again and in worse financial danger than we were in 2008. Why has the Board hired new lawyers who are experts in HUD loans?
If you recall the Board of Directors, 5 Board members will be elected this month and each director will serve for 3 years. The mortgage is scheduled to be paid off in October 2013 during their 3-year terms, but that will depend on how you vote and how GGM is managed after the recall election. If you want the mortgage to be paid off in 2013, you must elect 5 Board members who will manage GGM properly, stop unnecessary spending, follow the GGM bylaws and California law, operate openly, and follow good business practices. The current Board is not doing any of these things.
You have a clear choice in the recall election. In the past year, your neighbors have been trying to uncover what is really going on here. They hired an independent Inspector of Election so this month you will have your first election in 4 years. They successfully sued the Board to keep them from interfering in the recall election and to get the GGM records that all shareholders are entitled to see. They spent the last year studying the problems facing GGM to find solutions before it’s too late. Five of them are candidates for the Board of Directors. With your votes, they will work hard to protect all shareholders’ rights, protect your investment in your family’s home, bring legal and financial stability back to GGM, and make sure the HUD mortgage gets paid off on schedule in October 2013 so you receive the benefits of your investment. I urge you to vote YES to recall the Board of Directors and then vote for Nelson Cuervo, Milina Kasalian, Keith Campbell, Alicia Boatman and Tom DePalma.
Sincerely,
Terrie Rosas
Terrie Rosas is a former resident of Garden Grove Manor and served on the Board of Directors from 1993 to 2008.
I was on the Board of Directors from 1993 to 2008, when I had to resign for health reasons. I became involved here again when shareholders called me for my GGM Board records and advice in 2009. The manager threatened them with eviction for no legitimate reason and 3 current directors, who have the same records I do, refused to help those poor, frightened shareholders. When I served on the Board with these 3 directors, I always insisted that we manage GGM legally and properly. After I was diagnosed with cancer in 2003, I spent the next 5 years training the other directors so GGM would not fall apart when I left. Quite frankly, I stayed on the Board as long as I could because I did 99% of the work and the others showed up at meetings. Now they operate in deliberate violation of the GGM bylaws, California laws, and good business practices. They know better and you deserve better.
GGM is a small HUD low income, affordable housing cooperative, but there are more employees working here today than in its 37 year history. They also get paid a lot more than any employee I ever worked with in all my years on the Board, but what are they doing to justify taking so much of your money? In my 21 year relationship with GGM, I have never seen worse management than you are getting from this Board and their employees – and Garden Grove Manor has had some terrible management companies! This Board gives their employees too much power and not enough supervision. Employees do not have the same investment in GGM that shareholders have. When the HUD mortgage is paid off in 2013, GGM will not need HUD management any more. GGM will need a company certified in California to manage community associations. The current employees do not qualify, so you could say it is in their best interest to keep Garden Grove Manor a HUD property as long as possible.
In 2008 HUD threatened to foreclose on your mortgage when HUD owed GGM nearly 4 years of Section 8 payments. HUD has the power to sell GGM to a buyer who would turn it into more expensive rental apartments. Or HUD could force GGM to refinance the mortgage, giving shareholders hundreds of thousands of dollars in new debt to pay and adding 30 years or more to the existing HUD loan. But that didn’t happen because GGM had over $300,000 in reserve due to our good financial management. Today GGM is short of money again and in worse financial danger than we were in 2008. Why has the Board hired new lawyers who are experts in HUD loans?
If you recall the Board of Directors, 5 Board members will be elected this month and each director will serve for 3 years. The mortgage is scheduled to be paid off in October 2013 during their 3-year terms, but that will depend on how you vote and how GGM is managed after the recall election. If you want the mortgage to be paid off in 2013, you must elect 5 Board members who will manage GGM properly, stop unnecessary spending, follow the GGM bylaws and California law, operate openly, and follow good business practices. The current Board is not doing any of these things.
You have a clear choice in the recall election. In the past year, your neighbors have been trying to uncover what is really going on here. They hired an independent Inspector of Election so this month you will have your first election in 4 years. They successfully sued the Board to keep them from interfering in the recall election and to get the GGM records that all shareholders are entitled to see. They spent the last year studying the problems facing GGM to find solutions before it’s too late. Five of them are candidates for the Board of Directors. With your votes, they will work hard to protect all shareholders’ rights, protect your investment in your family’s home, bring legal and financial stability back to GGM, and make sure the HUD mortgage gets paid off on schedule in October 2013 so you receive the benefits of your investment. I urge you to vote YES to recall the Board of Directors and then vote for Nelson Cuervo, Milina Kasalian, Keith Campbell, Alicia Boatman and Tom DePalma.
Sincerely,
Terrie Rosas
Terrie Rosas is a former resident of Garden Grove Manor and served on the Board of Directors from 1993 to 2008.
Wednesday, December 1, 2010
The Truth about the Shareholders' Court Victory!
You deserve to know the truth about the lawsuit we won against the Board of Directors and the Board is not telling you the truth. We promise this will be the last letter we send about the lawsuit if the Board stops their illegal behavior. I have a complete set of court documents, but I have given all shareholders the 4 essential court documents that tell the real story of the court dates and actions by both sides that resulted in my court victory on November 15, 2010. A 1-page guide to explain the court documents in sequence is attached. I am happy to show you my other court documents if interested.
After being advised by attorneys that superior court would cost shareholders $10,000 to $20,000 in legal fees spent by the Board of Directors and take years to go to trial due to Board delay tactics, I decided to file in small claims court to keep shareholders’ costs very low and get justice as quickly as possible. I feel like I won the lawsuit for all of us! I know I handled everything properly in the court case. I believe the court handled everything properly, too. The Board did not handle everything properly and now they are blaming the court for losing the trial.
On Sunday, November 28, the Board passed out a deceptive letter to make you think the final court case that we won was dismissed. The very next day, Monday, November 29, they filed a motion in court to get our winning lawsuit thrown out after trying to convince you less than 24 hours earlier that the case was already dismissed. This proves that they deliberately tried to deceive you. We all know this is about the Board stopping the recall election again in a desperate attempt to stay in power without your consent. But now we have a court order from Judge Stacy Campuzano that protects your right to vote in the December 16, 2010 recall election and that has not changed.
When you vote in the December 16, 2010 recall election, it is a secret ballot and nobody will know how you vote unless you tell them. You can give your secret ballot to the Inspector of Election at the recall meeting or put it in the mail to his office in Mission Viejo by December 10th. The Inspector of Election certifies the final election results in a signed Affidavit of Findings, which is a legal document. The next court hearing will be held after the recall election is completed and after shareholders elect a new Board of Directors for the first time in 4 years. Your vote to recall this Board of Directors will restore our rights as shareholders.
No matter what the Board claims, the recall election has not been cancelled and the case has not been dismissed. We won the case fairly because we have the facts, the law and the evidence on our side. We proved to the judge that the Board violated our rights as shareholders to vote and our rights to have copies of GGM records, including financial, legal, tax, insurance, contract, and meeting records. The Board continues to violate our rights as shareholders and we believe they violated the court order. Since they lost in court, they are making their own case worse, not better.
Please read the attached court documents and remember to vote in the December 16, 2010 election. You are welcome to call me at (714) 794-2295 if you have any questions. Thank you very much!
Sincerely,
Darlene Cirillo
COURT DOCUMENTS ATTACHED
Cirillo vs. Garden Grove Manor, Inc.
Case No: 30-2010-00413188-SC-SC-WJC
1. The Notice of Continuance Dated October 22, 2010
• I filed the lawsuit on September 30, 2010 and the trial date was scheduled for November 1, 2010.
• Ann Marie McCartan and Dyan Gibbs requested a postponement to November 15, 2010.
• They filed the paperwork with the court claiming that the Board and the Manager could not appear on November 1st, paid the fee to postpone the trial date to November 15, 2010, and their request was granted.
• This is my copy of the court notice and the same notice was sent to the Board.
2. The Minute Order Dated November 4, 2010
• After successfully getting the court to change the trial date to November 15, 2010 because they told the court they could not appear on November 1st, Ann Marie McCartan and Dyan Gibbs showed up in court on November 1, 2010, anyway!
• I did not go to court on November 1st because the court already notified me that the Board got the date changed to November 15th. The court did not take any testimony or evidence from Ann Marie or Dyan.
• The court “inadvertently dismissed” the case because I did not show up on November 1st and corrected their error on November 4, 2010. They sent a notice to me and to Garden Grove Manor that the trial was still scheduled for November 15, 2010. They also left telephone messages for us.
• Please note the last line at the bottom of the Minute Order: “Court orders Clerk’s Office to give notice.” That is the judge’s standard instruction for the court to mail the notice to both sides in the case. This is the copy of the court notice that I received in the mail and the court sends notices to both sides at the same time.
3. The Minute Order Dated November 15, 2010
• I appeared in court for the trial on November 15, 2010. The Board of Directors and the Manager of GGM did not appear in court even though they received proper notification. But the judge did not dismiss the case due to their absence.
• The judge received testimony and documents from our side. She made her decision the same day and I won on both counts. The court ordered Garden Grove Manor to give me the records I have requested for over a year. The court also ordered Garden Grove Manor to not interfere with our recall election or other future elections in any way.
• Please note the last line at the bottom of the Minute Order: “Court orders Clerk’s Office to give notice.” That is the judge’s standard instruction for the court to mail the notice to both sides in the case. This is the copy of the court notice that I received in the mail and the court sends notice to both sides at the same time.
4. The Notice of Hearing Dated November 29, 2010
• The Board of Directors filed a motion to vacate Judge Campuzano’s court order on Monday, November 29, 2010 and the court hearing is scheduled for December 29, 2010.
• The Board claims they did not receive any notices about their successful postponement or my court victory, even though I received all notices and the court records show that both sides received the same notices. The Board will have to prove their case in court.
• We will appear in court to present our evidence and testimony regarding the Board’s violations of the judge’s court order. Court hearings are public and shareholders are welcome to attend the December 29, 2010 hearing.
After being advised by attorneys that superior court would cost shareholders $10,000 to $20,000 in legal fees spent by the Board of Directors and take years to go to trial due to Board delay tactics, I decided to file in small claims court to keep shareholders’ costs very low and get justice as quickly as possible. I feel like I won the lawsuit for all of us! I know I handled everything properly in the court case. I believe the court handled everything properly, too. The Board did not handle everything properly and now they are blaming the court for losing the trial.
On Sunday, November 28, the Board passed out a deceptive letter to make you think the final court case that we won was dismissed. The very next day, Monday, November 29, they filed a motion in court to get our winning lawsuit thrown out after trying to convince you less than 24 hours earlier that the case was already dismissed. This proves that they deliberately tried to deceive you. We all know this is about the Board stopping the recall election again in a desperate attempt to stay in power without your consent. But now we have a court order from Judge Stacy Campuzano that protects your right to vote in the December 16, 2010 recall election and that has not changed.
When you vote in the December 16, 2010 recall election, it is a secret ballot and nobody will know how you vote unless you tell them. You can give your secret ballot to the Inspector of Election at the recall meeting or put it in the mail to his office in Mission Viejo by December 10th. The Inspector of Election certifies the final election results in a signed Affidavit of Findings, which is a legal document. The next court hearing will be held after the recall election is completed and after shareholders elect a new Board of Directors for the first time in 4 years. Your vote to recall this Board of Directors will restore our rights as shareholders.
No matter what the Board claims, the recall election has not been cancelled and the case has not been dismissed. We won the case fairly because we have the facts, the law and the evidence on our side. We proved to the judge that the Board violated our rights as shareholders to vote and our rights to have copies of GGM records, including financial, legal, tax, insurance, contract, and meeting records. The Board continues to violate our rights as shareholders and we believe they violated the court order. Since they lost in court, they are making their own case worse, not better.
Please read the attached court documents and remember to vote in the December 16, 2010 election. You are welcome to call me at (714) 794-2295 if you have any questions. Thank you very much!
Sincerely,
Darlene Cirillo
COURT DOCUMENTS ATTACHED
Cirillo vs. Garden Grove Manor, Inc.
Case No: 30-2010-00413188-SC-SC-WJC
1. The Notice of Continuance Dated October 22, 2010
• I filed the lawsuit on September 30, 2010 and the trial date was scheduled for November 1, 2010.
• Ann Marie McCartan and Dyan Gibbs requested a postponement to November 15, 2010.
• They filed the paperwork with the court claiming that the Board and the Manager could not appear on November 1st, paid the fee to postpone the trial date to November 15, 2010, and their request was granted.
• This is my copy of the court notice and the same notice was sent to the Board.
2. The Minute Order Dated November 4, 2010
• After successfully getting the court to change the trial date to November 15, 2010 because they told the court they could not appear on November 1st, Ann Marie McCartan and Dyan Gibbs showed up in court on November 1, 2010, anyway!
• I did not go to court on November 1st because the court already notified me that the Board got the date changed to November 15th. The court did not take any testimony or evidence from Ann Marie or Dyan.
• The court “inadvertently dismissed” the case because I did not show up on November 1st and corrected their error on November 4, 2010. They sent a notice to me and to Garden Grove Manor that the trial was still scheduled for November 15, 2010. They also left telephone messages for us.
• Please note the last line at the bottom of the Minute Order: “Court orders Clerk’s Office to give notice.” That is the judge’s standard instruction for the court to mail the notice to both sides in the case. This is the copy of the court notice that I received in the mail and the court sends notices to both sides at the same time.
3. The Minute Order Dated November 15, 2010
• I appeared in court for the trial on November 15, 2010. The Board of Directors and the Manager of GGM did not appear in court even though they received proper notification. But the judge did not dismiss the case due to their absence.
• The judge received testimony and documents from our side. She made her decision the same day and I won on both counts. The court ordered Garden Grove Manor to give me the records I have requested for over a year. The court also ordered Garden Grove Manor to not interfere with our recall election or other future elections in any way.
• Please note the last line at the bottom of the Minute Order: “Court orders Clerk’s Office to give notice.” That is the judge’s standard instruction for the court to mail the notice to both sides in the case. This is the copy of the court notice that I received in the mail and the court sends notice to both sides at the same time.
4. The Notice of Hearing Dated November 29, 2010
• The Board of Directors filed a motion to vacate Judge Campuzano’s court order on Monday, November 29, 2010 and the court hearing is scheduled for December 29, 2010.
• The Board claims they did not receive any notices about their successful postponement or my court victory, even though I received all notices and the court records show that both sides received the same notices. The Board will have to prove their case in court.
• We will appear in court to present our evidence and testimony regarding the Board’s violations of the judge’s court order. Court hearings are public and shareholders are welcome to attend the December 29, 2010 hearing.
Friday, November 26, 2010
Next Information Meeting Sunday, November 28, @ 3:00pm
The next information meeting of concerned shareholders will be held on Sunday, November 28, 2010, at 3:00pm in the Garden Grove Manor Recreation Room.
We will share news and answer your questions regarding:
We will share news and answer your questions regarding:
- The recall of the Board of Directors at the election meeting on December 16, 2010
- The election of a new Board of Directors
- Ballot instructions and how to mail your ballots
- Who is eligible to vote
- Checking the accuracy of your name on the membership list
- The court victory against the Board of Directors
- The facts about GGM stock certificates
- Any and all GGM issues that concern you
Sunday, November 21, 2010
Recall the Board of Directors (YES) ! __X__
November 2010
Dear Shareholder of Garden Grove Manor, Inc.,
Since the Board of Directors canceled the recall election for the second time in May 2010, a group of concerned shareholders continued to consult attorneys and other experts in the California laws that govern Garden Grove Manor. We will hold a meeting to share the information we collected and answer your questions in the near future. Until our next meeting, here are some quick facts about the rescheduled recall and election meeting:
· The recall/election meeting will be held on Thursday, December 16, 2010, at 6:30pm. You can bring your ballot to the election meeting or you can mail your ballot to the Inspector of Election. The Inspector of Election must receive all mailed ballots before December 15, so please mail your ballot no later than Friday, December 10, 2010.
· Your ballot will be a secret ballot just exactly as it is when you vote for Governor and vote in all other official elections. No one will know how you vote unless you tell them. The ballot has the same candidate names that appeared on the ballot you received in May 2010 from Stanley Feldsott. These are the same candidates nominated by shareholders on the nomination form Mr. Feldsott mailed to you in March. You may remember that Mr. Feldsott was GGM's attorney and acting as the Inspector of Election at that time.
· The Board of Directors of GGM will not run the election meeting and they cannot cancel it as they canceled the last two recall elections.
· The recall/election meeting will be run by the independent Inspector of Election. The Inspector of Election is appointed and commissioned by the California Secretary of State to run our election. He is fully qualified and experienced in running elections just like ours. The Inspector of Election cannot and will not take sides in the election. He has no pre-existing relationship with anyone who lives at GGM. His job is to make sure the election is fair and legal.
· The Board of Directors canceled the recall election two times in 2010, suspending the voting rights of all shareholders. Under the GGM bylaws and California law, the Board of Directors cannot suspend your right to vote or any of your other rights you have as a shareholder. There is absolutely nothing in the GGM governing documents or California law that allows the Board of Directors to cancel or postpone elections because a copy of your stock certificate is allegedly missing from their files. If your stock certificate is lost or damaged, the Board of Directors is required to replace it for you under the GGM bylaws.
· Under the GGM bylaws and California laws, shareholders have the right to vote in the recall election or any other GGM election if they are current in their monthly carrying charges. If you have a receipt for your November 2010 carrying charges, check the receipt to see if it shows a $0.00 balance. When you pay your December 2010 carrying charges, make sure you get a receipt that shows if you owe any balance. This receipt is not required in any way to vote and is for your records only to protect your right to vote. If you owe any balance on your carrying charges, let us know, as you might still be able to vote.
· Shareholders have invited the HUD Los Angeles staff to attend the December 16, 2010 recall/election meeting.
· The GGM bylaws allow shareholders to remove directors from the Board at any special or regular meeting.
We wish you and your family a wonderful Thanksgiving. Thank you very much.
Concerned Shareholders of Garden Grove Manor, Inc.
Dear Shareholder of Garden Grove Manor, Inc.,
Since the Board of Directors canceled the recall election for the second time in May 2010, a group of concerned shareholders continued to consult attorneys and other experts in the California laws that govern Garden Grove Manor. We will hold a meeting to share the information we collected and answer your questions in the near future. Until our next meeting, here are some quick facts about the rescheduled recall and election meeting:
· The recall/election meeting will be held on Thursday, December 16, 2010, at 6:30pm. You can bring your ballot to the election meeting or you can mail your ballot to the Inspector of Election. The Inspector of Election must receive all mailed ballots before December 15, so please mail your ballot no later than Friday, December 10, 2010.
· Your ballot will be a secret ballot just exactly as it is when you vote for Governor and vote in all other official elections. No one will know how you vote unless you tell them. The ballot has the same candidate names that appeared on the ballot you received in May 2010 from Stanley Feldsott. These are the same candidates nominated by shareholders on the nomination form Mr. Feldsott mailed to you in March. You may remember that Mr. Feldsott was GGM's attorney and acting as the Inspector of Election at that time.
· The Board of Directors of GGM will not run the election meeting and they cannot cancel it as they canceled the last two recall elections.
· The recall/election meeting will be run by the independent Inspector of Election. The Inspector of Election is appointed and commissioned by the California Secretary of State to run our election. He is fully qualified and experienced in running elections just like ours. The Inspector of Election cannot and will not take sides in the election. He has no pre-existing relationship with anyone who lives at GGM. His job is to make sure the election is fair and legal.
· The Board of Directors canceled the recall election two times in 2010, suspending the voting rights of all shareholders. Under the GGM bylaws and California law, the Board of Directors cannot suspend your right to vote or any of your other rights you have as a shareholder. There is absolutely nothing in the GGM governing documents or California law that allows the Board of Directors to cancel or postpone elections because a copy of your stock certificate is allegedly missing from their files. If your stock certificate is lost or damaged, the Board of Directors is required to replace it for you under the GGM bylaws.
· Under the GGM bylaws and California laws, shareholders have the right to vote in the recall election or any other GGM election if they are current in their monthly carrying charges. If you have a receipt for your November 2010 carrying charges, check the receipt to see if it shows a $0.00 balance. When you pay your December 2010 carrying charges, make sure you get a receipt that shows if you owe any balance. This receipt is not required in any way to vote and is for your records only to protect your right to vote. If you owe any balance on your carrying charges, let us know, as you might still be able to vote.
· Shareholders have invited the HUD Los Angeles staff to attend the December 16, 2010 recall/election meeting.
· The GGM bylaws allow shareholders to remove directors from the Board at any special or regular meeting.
We wish you and your family a wonderful Thanksgiving. Thank you very much.
Concerned Shareholders of Garden Grove Manor, Inc.
Thursday, May 6, 2010
Meet the Candidates Tonight at 7pm in the Recreation Room!
Vote YES to recall the Board of Directors.
Vote for 5 candidates who will serve your best interests:
Nelson Cuervo
Milina Kasalian
Keith Campbell
Alicia Boatman
Tom DePalma (listed as Tom Del Alma on the ballot)
Come meet all 5 candidates
Thursday, May 6th @ 7 p.m.
in the GGM Recreation Room!
This is not a Board meeting! Current Board members are not invited.
The Board and employees keep making false promises and false statements. Are you confused about the recall ballot and tired of empty talk with no results? Bring us your questions, concerns, hopes and priorities for Garden Grove Manor!
We will provide facts in writing and explain:
How to fill out and mail the recall ballots.
Why the current Board must be recalled.
How we will correct their mismanagement.
What we will do to earn and keep your trust.
Vote for 5 candidates who will serve your best interests:
Nelson Cuervo
Milina Kasalian
Keith Campbell
Alicia Boatman
Tom DePalma (listed as Tom Del Alma on the ballot)
Come meet all 5 candidates
Thursday, May 6th @ 7 p.m.
in the GGM Recreation Room!
This is not a Board meeting! Current Board members are not invited.
The Board and employees keep making false promises and false statements. Are you confused about the recall ballot and tired of empty talk with no results? Bring us your questions, concerns, hopes and priorities for Garden Grove Manor!
We will provide facts in writing and explain:
How to fill out and mail the recall ballots.
Why the current Board must be recalled.
How we will correct their mismanagement.
What we will do to earn and keep your trust.
Tuesday, May 4, 2010
Letter from the GGM Board Nominees
To All Shareholders of Garden Grove Manor:
Your home is an investment that also gives you special rights as a shareholder in the Garden Grove Manor corporation. In the weeks ahead, we will show how the current management and Board of Directors ignore your rights and put your investment in danger. After the current Board of Directors is removed in the June 2010 recall election, we need to elect new leadership that will restore financial stability and keep shareholders in control of Garden Grove Manor until the mortgage is paid off in October 2013 and for all the years that follow.
The current Board and management are making expensive promises with your money to buy your votes, but they can’t keep their election promises without raising your carrying charges again or taking out another loan. We put our promises to you in writing. If you elect us as your new Board, we will make the following improvements:
· Remember that the Board of Directors, all employees and all contractors work for the shareholders.
· Perform all our Board duties with honesty, fairness, and respect for your rights and your investment.
· Be available to shareholders to exchange information, answer questions, listen to your concerns.
· Bring openness and transparency back to Board meetings, financial affairs, all areas of management.
· Pay off the 40-year mortgage on schedule in October 2013.
· Keep the monthly carrying charges as low as possible.
· Stop all unnecessary spending and get the best prices for all services, purchases and contracts.
· Review all current jobs, services, contracts and all other expenses to eliminate waste.
· Fill empty units as quickly as possible to keep money coming in to Garden Grove Manor.
· Keep the office open on a regular schedule and post the office hours on the office doors.
· Supervise all employees to make sure they are doing their jobs correctly, respectfully and competently.
· Make sure shareholders know the names of all employees and what their exact job is.
· Make sure all employees treat shareholders and their rights with respect, honesty and fairness.
· Make sure all contractors have the proper licenses, insurance and qualifications.
· Supervise the move-in waiting lists to make sure they are accurate and updated regularly.
· Make sure the HUD Section 8 and Basic certifications are completed accurately and on schedule.
· Bring back the waiting lists for replacements and repairs based on need and fairness.
· Have a Maintenance Technician live on site at GGM if that is what shareholders want.
· Perform necessary maintenance to keep GGM a safe, comfortable and clean place to live.
· Consider hiring a management company with experience in Section 236 cooperatives like GGM.
· Follow the Garden Grove Manor by-laws and California law as we are required to do.
· Hold annual election meetings on schedule.
· Hold the annual budget meeting on schedule and give shareholders a copy of the budget.
· Hold regular open meetings so shareholders can watch the new Board in action.
· Make the meeting minutes available to all shareholders so they know what is happening.
· Post the meeting agendas and other documents by the office so shareholders can read them.
We look forward to talking with you about your priorities for Garden Grove Manor. Thank you very much.
Cooperatively yours,
Nelson Cuervo, Nominee for the Board of Directors of Garden Grove Manor
Milina Kasalian, Nominee for the Board of Directors of Garden Grove Manor
Tom DePalma, Nominee for the Board of Directors of Garden Grove Manor
Alicia Boatman, Nominee for the Board of Directors of Garden Grove Manor
Keith Campbell, Nominee for the Board of Directors of Garden Grove Manor
Your home is an investment that also gives you special rights as a shareholder in the Garden Grove Manor corporation. In the weeks ahead, we will show how the current management and Board of Directors ignore your rights and put your investment in danger. After the current Board of Directors is removed in the June 2010 recall election, we need to elect new leadership that will restore financial stability and keep shareholders in control of Garden Grove Manor until the mortgage is paid off in October 2013 and for all the years that follow.
The current Board and management are making expensive promises with your money to buy your votes, but they can’t keep their election promises without raising your carrying charges again or taking out another loan. We put our promises to you in writing. If you elect us as your new Board, we will make the following improvements:
· Remember that the Board of Directors, all employees and all contractors work for the shareholders.
· Perform all our Board duties with honesty, fairness, and respect for your rights and your investment.
· Be available to shareholders to exchange information, answer questions, listen to your concerns.
· Bring openness and transparency back to Board meetings, financial affairs, all areas of management.
· Pay off the 40-year mortgage on schedule in October 2013.
· Keep the monthly carrying charges as low as possible.
· Stop all unnecessary spending and get the best prices for all services, purchases and contracts.
· Review all current jobs, services, contracts and all other expenses to eliminate waste.
· Fill empty units as quickly as possible to keep money coming in to Garden Grove Manor.
· Keep the office open on a regular schedule and post the office hours on the office doors.
· Supervise all employees to make sure they are doing their jobs correctly, respectfully and competently.
· Make sure shareholders know the names of all employees and what their exact job is.
· Make sure all employees treat shareholders and their rights with respect, honesty and fairness.
· Make sure all contractors have the proper licenses, insurance and qualifications.
· Supervise the move-in waiting lists to make sure they are accurate and updated regularly.
· Make sure the HUD Section 8 and Basic certifications are completed accurately and on schedule.
· Bring back the waiting lists for replacements and repairs based on need and fairness.
· Have a Maintenance Technician live on site at GGM if that is what shareholders want.
· Perform necessary maintenance to keep GGM a safe, comfortable and clean place to live.
· Consider hiring a management company with experience in Section 236 cooperatives like GGM.
· Follow the Garden Grove Manor by-laws and California law as we are required to do.
· Hold annual election meetings on schedule.
· Hold the annual budget meeting on schedule and give shareholders a copy of the budget.
· Hold regular open meetings so shareholders can watch the new Board in action.
· Make the meeting minutes available to all shareholders so they know what is happening.
· Post the meeting agendas and other documents by the office so shareholders can read them.
We look forward to talking with you about your priorities for Garden Grove Manor. Thank you very much.
Cooperatively yours,
Nelson Cuervo, Nominee for the Board of Directors of Garden Grove Manor
Milina Kasalian, Nominee for the Board of Directors of Garden Grove Manor
Tom DePalma, Nominee for the Board of Directors of Garden Grove Manor
Alicia Boatman, Nominee for the Board of Directors of Garden Grove Manor
Keith Campbell, Nominee for the Board of Directors of Garden Grove Manor
Friday, April 9, 2010
Our Nominees for the Board of Directors of GGM
Last Monday we held a community meeting to determine which candidates for the Board of Directors in the June 2010 recall election will best represent the interests of Garden Grove Manor and its shareholders. We thank everyone for coming out on a chilly evening to volunteer for the Board or express their support for the recall.
These are the candidates we support and we urge you to vote for them when you receive your recall election ballot:
- Nelson Cuervo
- Milina Kasalian
- Tom DePalma
- Alicia Boatman
- Keith Campbell
Some members say they did not receive a mailed nomination form. Members should be able to call the GGM attorney, Stanley Feldsott, to ask about missing nomination forms and to make sure everyone receives a recall ballot.
Sunday, April 4, 2010
Who Is Paying for the Garden Grove Gazette?
This week Garden Grove Manor shareholders received Volume 3, Issue 1 of the Garden Grove Gazette dated March 29, 2010. The Gazette is a publication written by GGM employees from the point of view of the Board of Directors of Garden Grove Manor, Inc.
As unintentionally hilarious as this newsletter is, spending the membership’s money to produce one-sided political propaganda is no laughing matter. California Civil Code §1363.03(a) states the following:
In other words, when the Garden Grove Gazette publishes an article, editorial or comment of any candidate or member related to the recall election, the Garden Grove Gazette must publish the articles, editorials or comments of all other candidates and members who request to be published. Furthermore, the Gazette cannot edit or remove any part of the candidates’ or members’ content.
Page 1 of the Gazette carries a promise that written contributions from readers will be published in the next issue. Page 2 includes a comment that is related to the campaign to recall the Board of Directors from an alleged shareholder. In the interest of equal access under California law, we expect the Board of Directors to notify all GGM members of the deadline for the next issue of the Gazette so all candidates and members have the opportunity to submit their articles, editorials or comments related to the recall election. Furthermore, in the interest of equal access under California law, we expect the Board of Directors to publish the next issue of the Gazette before members cast their votes in the June 2010 recall election.
Below is the exact text of the comment published on the bottom of page 2 of the March 29, 2010 issue of the Gazette. We have not edited the item in any way or removed any part of its content:
Reading this item in the Gazette, we at the GGM Watchdog were overcome with a sense of déjà vu. On the evening of March 18, 2010, before our rally even finished, we received a comment from an anonymous reader of our blog. This is exactly how it arrived in our inbox:
Please note how similar both comments are. They appear to be written by the same person or persons. Please note also that both comments are written to make readers believe that the person is a shareholder who supports the Board and the Manager – not a shareholder who is on the Board or an employee of Garden Grove Manor.
We at the GGM Watchdog respect and will defend the right of every shareholder, include Board members, to express their opinions. But we are curious about the identity of the author(s) for a perfectly legitimate reason. We received the blog comment above at 8:06pm on March 18, 2010. Our rally started shortly after 7:00pm and ended after 8:30pm on March 18, 2010. At approximately 7:10pm, a Board member – Ann Marie McCartan – and the Assistant Manager Jennifer joined the rally. Ann Marie and Jennifer were the only people who left the rally before 8:06pm, the time when we received the blog comment above. Ann Marie McCartan is the only shareholder who left the rally before 8:06pm.
If the "annomnomous shareholder" is telling the truth about being at the March 18th rally, there are two possibilities about his or her identity:
1) Either the comments were written by Ann Marie McCartan and were a deliberate deception to make readers believe that the person who wrote the comments was not a Board member.
2) Or the comment is a deliberate deception that was written by someone who is not a shareholder or was not at the rally.
On behalf of all shareholders, we demand answers to the following questions from the publishers of the Garden Grove Gazette:
Are membership funds used to write, publish, print and mail the newsletter? If not, please provide GGM members with a copy of all receipts and any other applicable documents showing who paid for all costs associated with the newsletter.
How exactly did the “annomnomous” comment get published in the Garden Grove Gazette? Members did not receive notification that the March 29th issue of the Gazette was going to be published. How did the “annomnomous shareholder” know that he or she should submit a comment for this issue of the newsletter?
If the “annomnomous shareholder” was given advance information about the Gazette, why weren’t all members and candidates given equal access to comment in the Gazette as required under California law?
Our blog, the GGM Watchdog, will not knowingly publish false information or lies in our posts or in our comments. This is our own private blog and it doesn’t cost members of Garden Grove Manor one cent, but we are holding ourselves accountable for being 100% truthful to members because their homes and investments are at stake. Like all bloggers, we reserve the right to publish or reject any comments that we receive. We chose to reject this comment because it is full of false information and lies.
Talk is cheap, but putting lies and deliberate falsehoods in print can be very costly. We call upon the Board of Directors and the Manager to answer our questions about how this comment, which appears to be a blatant deception, came to be published in an official newsletter paid for by the members of Garden Grove Manor.
As unintentionally hilarious as this newsletter is, spending the membership’s money to produce one-sided political propaganda is no laughing matter. California Civil Code §1363.03(a) states the following:
1363.03. (a) An association shall adopt rules, in accordance with the procedures prescribed by Article 4 (commencing with Section 1357.100) of Chapter 2, that do all of the following:
(1) Ensure that if any candidate or member advocating a point of view is provided access to association media, newsletters, or Internet Web sites during a campaign, for purposes that are reasonably related to that election, equal access shall be provided to all candidates and members advocating a point of view, including those not endorsed by the board, for purposes that are reasonably related to the election. The association shall not edit or redact any content from these communications, but may include a statement specifying that the candidate or member, and not the association, is responsible for that content.
In other words, when the Garden Grove Gazette publishes an article, editorial or comment of any candidate or member related to the recall election, the Garden Grove Gazette must publish the articles, editorials or comments of all other candidates and members who request to be published. Furthermore, the Gazette cannot edit or remove any part of the candidates’ or members’ content.
Page 1 of the Gazette carries a promise that written contributions from readers will be published in the next issue. Page 2 includes a comment that is related to the campaign to recall the Board of Directors from an alleged shareholder. In the interest of equal access under California law, we expect the Board of Directors to notify all GGM members of the deadline for the next issue of the Gazette so all candidates and members have the opportunity to submit their articles, editorials or comments related to the recall election. Furthermore, in the interest of equal access under California law, we expect the Board of Directors to publish the next issue of the Gazette before members cast their votes in the June 2010 recall election.
Below is the exact text of the comment published on the bottom of page 2 of the March 29, 2010 issue of the Gazette. We have not edited the item in any way or removed any part of its content:
FROM AN ANNOMNOMOUS SHAREHOLDER
After reading the “Watchdog’s”Blog and going to their Rally of Lies, it saddens me to know that our Shareholders are listening to such lies, much less believing them. Most people that at-tended this Rally were either shareholders who don’t live in their units or others that are not even Shareholders. To me it is blatantly obvious that anyone who would listen to Teri and her lies, yet turn their heads to the truth are very ignorant indeed. Resi-dents who were standing up for the truth and were trying to state the truth were shot down by more and more lies. For the residents who are bullied into agreeing with these lies, I feel for them, for if we loose our manager and Board of Directors then we WILL all loose and suffer for it. For so MANY years, I did not know the truth, and fi-nally I see our community coming together and getting things done and the Board and Manager working hard for that purpose. So if you are like me and appreciate what is getting done. Please write the Board and let them know!!!!
Reading this item in the Gazette, we at the GGM Watchdog were overcome with a sense of déjà vu. On the evening of March 18, 2010, before our rally even finished, we received a comment from an anonymous reader of our blog. This is exactly how it arrived in our inbox:
Anonymous has left a new comment on your post "Rally at GGM: Thursday, March 18, 2010 at 7:00pm":
After reading this blog and going to this Rally of Lies it saddens me to know that our Shareholders are listening to lies and believing them. Most of the attended in this Rally were either shareholders who don’t live in their units or others that are not even Shareholders. The intelligence of ignorant people was blatantly obvious and people who listen to Terrie and all her lies and wont listen to any Truth. Residents who stand up for the truth and were trying to state the truth were shot down by more and more lies. For other residents who don’t know facts and are bullied into believing the lies I feel for them for if what you lied about is believed and the board and manager are fired then we WILL suffer more. Would it be better to tell the Board and Manager to start lying to us all would that make everyone happy. Because I know after so MANY years of not knowing the truth and what was NOT done, it is nice to finally see our community coming together and getting things done by yes our Board and Manager NOW. So if you are like me and understand that what was said at this Rally was lies please write a letter to our Board and let them know they do have Shareholders who do see that things are getting done.
Sincerely,
GGM AttackDog
Posted by Anonymous to The GGM Watchdog: Recall the Board of Directors! at March 18, 2010 8:06 PM
Please note how similar both comments are. They appear to be written by the same person or persons. Please note also that both comments are written to make readers believe that the person is a shareholder who supports the Board and the Manager – not a shareholder who is on the Board or an employee of Garden Grove Manor.
We at the GGM Watchdog respect and will defend the right of every shareholder, include Board members, to express their opinions. But we are curious about the identity of the author(s) for a perfectly legitimate reason. We received the blog comment above at 8:06pm on March 18, 2010. Our rally started shortly after 7:00pm and ended after 8:30pm on March 18, 2010. At approximately 7:10pm, a Board member – Ann Marie McCartan – and the Assistant Manager Jennifer joined the rally. Ann Marie and Jennifer were the only people who left the rally before 8:06pm, the time when we received the blog comment above. Ann Marie McCartan is the only shareholder who left the rally before 8:06pm.
If the "annomnomous shareholder" is telling the truth about being at the March 18th rally, there are two possibilities about his or her identity:
1) Either the comments were written by Ann Marie McCartan and were a deliberate deception to make readers believe that the person who wrote the comments was not a Board member.
2) Or the comment is a deliberate deception that was written by someone who is not a shareholder or was not at the rally.
On behalf of all shareholders, we demand answers to the following questions from the publishers of the Garden Grove Gazette:
Are membership funds used to write, publish, print and mail the newsletter? If not, please provide GGM members with a copy of all receipts and any other applicable documents showing who paid for all costs associated with the newsletter.
How exactly did the “annomnomous” comment get published in the Garden Grove Gazette? Members did not receive notification that the March 29th issue of the Gazette was going to be published. How did the “annomnomous shareholder” know that he or she should submit a comment for this issue of the newsletter?
If the “annomnomous shareholder” was given advance information about the Gazette, why weren’t all members and candidates given equal access to comment in the Gazette as required under California law?
Our blog, the GGM Watchdog, will not knowingly publish false information or lies in our posts or in our comments. This is our own private blog and it doesn’t cost members of Garden Grove Manor one cent, but we are holding ourselves accountable for being 100% truthful to members because their homes and investments are at stake. Like all bloggers, we reserve the right to publish or reject any comments that we receive. We chose to reject this comment because it is full of false information and lies.
Talk is cheap, but putting lies and deliberate falsehoods in print can be very costly. We call upon the Board of Directors and the Manager to answer our questions about how this comment, which appears to be a blatant deception, came to be published in an official newsletter paid for by the members of Garden Grove Manor.
Friday, April 2, 2010
Meet the Candidates: Monday, April 5, 2010
Are you tired of the Board and the Manager ignoring your concerns?
Do you want to elect a new Board of Directors that will work for you?
Are you confused about the nomination forms and the recall election?
Would you like to talk to some of the candidates for the new Board?
You are cordially invited to join your neighbors and meet the candidates Monday, April 5, 2010 at 6:30 p.m. We will see you at the benches by the laundry room!
Do you want to elect a new Board of Directors that will work for you?
Are you confused about the nomination forms and the recall election?
Would you like to talk to some of the candidates for the new Board?
You are cordially invited to join your neighbors and meet the candidates Monday, April 5, 2010 at 6:30 p.m. We will see you at the benches by the laundry room!
Friday, March 19, 2010
New Petition for GGM Resident Members
We started to collect signatures on the petition we intend to submit to HUD. Here is the text of the petition:
We the undersigned Garden Grove Manor, Inc. resident members respectfully request that you at HUD, who approved the Board of Directors as the managing agent for GGM and as the only agency overseeing their actions, hold them accountable for their violations of our GGM by-laws, which are part of the GGM regulatory agreement with HUD, and for our other concerns listed below, and we request that you compel them to fulfill their fiduciary duties immediately as follows:
* The Board has not held an annual election meeting since April 2007, which was actually the October 2006 delayed annual meeting. Annual meetings are required by the by-laws and California law.
* The 3-year Board terms of Ann Marie McCartan and Margie Alexander expired in 2008 or earlier and they should not continue to act as directors or as managing agents or enjoy any benefits of directors paid for by members, including Directors & Officers insurance, managing agent insurance or legal advice. The Board did not hold the October 2007, October 2008 or October 2009 annual election meetings as required by the by-laws and California law.
* The Board did not hold at least 4 open meetings with members in 2009 as required by the by-laws.
* The Board holds executive sessions to review GGM business that should be reviewed in open meetings with members per the by-laws and California law. The Board does not disclose actions taken in executive session in the open meeting minutes as required by California law.
* The Board held meetings with members in December 2009 and February 2010 that met all the criteria of open meetings, but the Board claimed they were not “real meetings” and they have not provided members with minutes of these meetings within 30 days as required by California law.
* The Board did not hold open meetings with members to review and approve the annual pro forma budget that must be made available to members no later than 30 days before the start of the new fiscal year on December 1st. As of March 2010, the annual budget for 2009-2010 is more than 120 days delinquent per the by-laws and California law.
* The Board did not provide all directors with the same meeting notification or access to meetings as required by the by-laws and California law.
* The Board denies members access to minutes, member lists, financial records and other corporate documents that members are allowed to see as required by the by-laws and California law.
* The Board did not give members a 60 day notice of the recent increase in carrying charges under HUD regulations and California law.
* The Board and its employees used threatening tactics and materials purchased with membership funds to intimidate members during and after signatures were collected on the recall petition in violation of California law.
* The Board failed to respond to the recall petition, schedule the recall meeting and send the meeting notice to members within 20 days as required by California law. Members were forced to schedule the meeting themselves for March 4.
* The Board failed to mail the recall ballots to members 30 days before the March 4, 2010 recall meeting as mandated by California law. The Board delivered illegal recall ballots to selected members’ units less than 24 hours before the meeting in violation of California law. The ballots and envelopes were not in the format required by California law and the Board excluded 33 members. As of March 2010, a new recall meeting has not been scheduled.
* The Board delivered illegal nomination forms with the illegal ballots in violation of California law. When the Board delivered the illegal ballots and nomination forms, they used the time to persuade members to vote against the recall in a political violation of California law. As of March 2010, members still have not received legal ballots.
* The Board allowed the On-Site Manager to send letters to 33 members notifying them that they are not allowed to vote in the recall election as copies of the stock certificates for these members are not in the GGM residential files, which members do not access. Only past and current managers are responsible for these files. This is false information as nothing in the GGM by-laws or California law requires stock certificates to be in the files before members can vote. This appears to be a civil rights violation known as vote suppression and may be punishable as a crime.
* The Board is discussing taking out a new loan without getting the prior approval of members, as required by the GGM by-laws and California law.
* The Board gave On-Site Manager Dyan Gibbs an unprecedented payment in the amount of $4,400 for auto damages sustained on GGM property, which was a violation of GGM policy.
* When several residents reported flooding in their units, Dyan Gibbs told them to have their husbands fix the flooding and damages in violation of the GGM by-laws and California law.
* A majority of residents attended a meeting with the Board on December 10, 2009 to demand that the Board fire Dyan Gibbs immediately.
Wednesday, March 17, 2010
Rally at GGM: Thursday, March 18, 2010 at 7:00pm
We are holding a rally on Thursday, March 18, 2010, at 7:00pm by the Laundry Room to share information regarding the Board of Directors, HUD and the recall process. We will also have a new HUD petition to sign to stop the Board from taking out any new loans without the approval of shareholders. Be sure to visit our new website for regular updates and information.
As shareholders know, the March 4, 2010 recall meeting was canceled by the attorney for Garden Grove Manor because the Board of Directors failed to fulfill their duties and tried to hold a recall election in violation of the GGM by-laws and California law. The Board delivered ballots the night before the meeting to selected shareholders only and tried to prevent 33 of 76 shareholders from voting in the recall election under false pretenses. On-Site Manager Dyan Gibbs sent those 33 shareholders a misleading letter claiming that they could not vote in the recall election because copies of their stock certificates were missing from the office files. There is absolutely nothing in the GGM by-laws that prevents shareholders from voting in any GGM election due to missing copies of their stock certificates. All shareholders in good standing are allowed to vote and “good standing” has always been defined as shareholders who are current in their carrying charges.
Shareholders have their own attorney and he is helping those who signed the petition to recall the Board and who received the misleading letter from Dyan. Our attorney shared information about what the Board has been doing with the GGM attorney, which stopped the Board from holding the phony recall meeting. Our attorney continues to work for us to protect the rights of GGM members and preserve the integrity of the recall election process, as well as to hold the Board of Directors accountable to shareholders for their improper actions or lack of appropriate action. He is also communicating the concerns of shareholders directly to the GGM attorney.
At this time we are compiling a list of all shareholders who received the letter from Dyan Gibbs. The list will be shared with the GGM attorney. If you received the letter about missing stock certificates, please sign the list at the March 18th rally and keep your letter in a safe place for future reference. We look forward to seeing you at the rally! If you can’t make it to the rally, see Darlene about the stock certificate letter and petition (10692 #7).
As shareholders know, the March 4, 2010 recall meeting was canceled by the attorney for Garden Grove Manor because the Board of Directors failed to fulfill their duties and tried to hold a recall election in violation of the GGM by-laws and California law. The Board delivered ballots the night before the meeting to selected shareholders only and tried to prevent 33 of 76 shareholders from voting in the recall election under false pretenses. On-Site Manager Dyan Gibbs sent those 33 shareholders a misleading letter claiming that they could not vote in the recall election because copies of their stock certificates were missing from the office files. There is absolutely nothing in the GGM by-laws that prevents shareholders from voting in any GGM election due to missing copies of their stock certificates. All shareholders in good standing are allowed to vote and “good standing” has always been defined as shareholders who are current in their carrying charges.
Shareholders have their own attorney and he is helping those who signed the petition to recall the Board and who received the misleading letter from Dyan. Our attorney shared information about what the Board has been doing with the GGM attorney, which stopped the Board from holding the phony recall meeting. Our attorney continues to work for us to protect the rights of GGM members and preserve the integrity of the recall election process, as well as to hold the Board of Directors accountable to shareholders for their improper actions or lack of appropriate action. He is also communicating the concerns of shareholders directly to the GGM attorney.
At this time we are compiling a list of all shareholders who received the letter from Dyan Gibbs. The list will be shared with the GGM attorney. If you received the letter about missing stock certificates, please sign the list at the March 18th rally and keep your letter in a safe place for future reference. We look forward to seeing you at the rally! If you can’t make it to the rally, see Darlene about the stock certificate letter and petition (10692 #7).
Tuesday, March 2, 2010
Welcome to the Garden Grove Manor Watchdog!
Have you ever wondered who you would be if you had different parents? No matter how frustrating they may be, you wouldn’t exist without either one of them. In a way, Garden Grove Manor was “born” with two bossy, controlling “parents” and owes its existence to both of them. One “parent” is HUD, the Department of Housing and Urban Development, and the other “parent” is the State of California.
In 1971, Garden Grove Manor (or GGM, as we like to call it) began the process to become a non-profit stock share cooperative under the HUD Section 236 Program and a corporation under the State of California. The building of GGM was completed with a subsidized loan from the federal government. In return GGM agreed to offer affordable housing to applicants who qualify under HUD’s income guidelines. In 1994, GGM signed a contract with HUD to offer Section 8 housing assistance payments to shareholders who qualify. HUD rules govern our waiting lists, income certifications, financial statements, and carrying charges (i.e., the monthly assessment shareholders pay for their housing unit plus their portion of the corporation's expenses). Shareholders purchase a stock share in the corporation that earns limited equity, which accrues monthly.
Garden Grove Manor is also a common interest development subject to civil and corporation codes including the Davis-Stirling Act. Each year the State of California passes laws that affect Garden Grove Manor. These laws govern the rights of GGM shareholders and the responsibilities of the Board of Directors. The Board has a fiduciary duty to act in the best interests of the GGM shareholders in accordance with the governing documents of Garden Grove Manor and the laws of California.
In 1971, Garden Grove Manor (or GGM, as we like to call it) began the process to become a non-profit stock share cooperative under the HUD Section 236 Program and a corporation under the State of California. The building of GGM was completed with a subsidized loan from the federal government. In return GGM agreed to offer affordable housing to applicants who qualify under HUD’s income guidelines. In 1994, GGM signed a contract with HUD to offer Section 8 housing assistance payments to shareholders who qualify. HUD rules govern our waiting lists, income certifications, financial statements, and carrying charges (i.e., the monthly assessment shareholders pay for their housing unit plus their portion of the corporation's expenses). Shareholders purchase a stock share in the corporation that earns limited equity, which accrues monthly.
Garden Grove Manor is also a common interest development subject to civil and corporation codes including the Davis-Stirling Act. Each year the State of California passes laws that affect Garden Grove Manor. These laws govern the rights of GGM shareholders and the responsibilities of the Board of Directors. The Board has a fiduciary duty to act in the best interests of the GGM shareholders in accordance with the governing documents of Garden Grove Manor and the laws of California.
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