By Tom Blakeman, October 17, 2021
What Went Wrong in Hot Springs Village?
The basic problem here lies in how our governing system is set up. It was based on a developer-controlled board for the developer’s benefit. Keep in mind this is NOT saying the developer is/was bad. That’s how it is always done and we need to all thank Cooper Communities for the legacy they created. But, the developer is mostly gone other than the land they still own which comes with extra votes.
Much worse is the structure set up in our declarations. It is similar to all large developments set up by developers’ lawyers for their benefit. Many, in fact, most, similar developments have changed their inherited developer structure once the developer is gone, to fix this problem. HSV has not. One example is that some 15,000 non-residents get an equal vote compared to some 9,000 residents (who have much, much more invested and actually live here). This is even though, through misguided past leadership, currently residents pay twice as much – just 6 years ago. And thru mismanagement, that infamous “Two Tier” windfall is mostly long gone. Keep in mind there are some 36,000 total lots and some 10,000 or so are in default (not paying) or are owned by the POA.
Another example is that the board is only 7 members, and we currently have only 6. Good decisions derive from multiple inputs and thinking. Why not 11 members? Or 15? Why not even 7? (It is because rules – changeable by only the BOD by the way – don’t require the BOD to make it so).
And why don’t we pay those BOD members a stipend to help acquire the best and brightest and most qualified? Nobody knows.
Another is the “hear no evil, speak no evil, see no evil” bylaws which prohibits any board member from voicing any contrary opinion to a board vote once done. This enables unanimous voting and a lack of debate both before and after the fact.
Then there is the blatant non-Democratic issue that we have no diversity of representation. All parts of this Village are different with widely differing property values, lifestyles, and economic wherewithal. The only requirement to be a board member is they be a property owner. Who do you think generally gets on the BOD? And what about these elections to raise assessments? The homeowner living in a million+ dollar home on Balboa, gets the same vote as the widow on social security living in an $80K townhome, as does a $500 (or worthless) lot owner who lives in Timbuktu. Who do you think gets on the board and who gets the best representation? Who puts up the Vote Yes signs? But, guess who pays more in assessments? Actually, the poor widow does because she has to pay a mandatory additional assessment for basic necessities such as getting her trash hauled and grass cut. Obviously fair, right?
And then there is the issue of parity in amenity fees. What we have here is something like 80% of the total property owners carrying the load (through ‘subsidies’) for the 20% who actually benefit from all the amenities such as golf and lakes. How much does POA lose on golf every year? How much does POA spend on dredging every year? How much have we lost on (and continue to lose) on restaurants which cater to those with extra coin in their pockets? Who does it really benefit? Go figure. And Vote NO!
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Steve Bender
10/17/2021 — 1:37 pm
I could not agree with you more Tom. Isn’t there a attorney in the village that would be willing to help change the developer structure?
Brian Castleman
10/17/2021 — 1:48 pm
Thanks Tom, lately I have been having similar thoughts about the HSV POA governance structure. There is no required accountability by the board to the property owners. There is unbalanced representation geographically. We the property owners seem to have no recourse for any violation of fiduciary responsibilities, breach of trust by members of the BOD. There isn’t a recall provision.
Without significant change in our governance structure even if we have board members with good intentions there is huge potential for the POA to continue repeating the mistakes of the past with property owners continuing to be asked to pay the bill / pick up the shortfall. In summary I can see no incentive built into the bylaws for the BOD to meet property owners expectations on how assessments are to be spent.
J E Jackson
10/17/2021 — 1:54 pm
The BOD should not be involved in recruiting or hiring a General Manager. That relationship should always be arms length, the general manager in my opinion should be responsible to the members and simply relate to the board. Much like a city, our board should represent all districts in the village and their constituency should be those who live in those districts. We should use volunteers in every area feasible, not only does this save money, it promotes a sense of involvement and fellowship. Marketing must be a priority, this is a retail business and we must have foot traffic, offer free golf and lodging, use volunteers as sales reps. Get mangers who are qualified by training and education, not by attrition. Before the developer left there was a feeling of togethers in the village, things didn’t always get political to the point of taking sides. and together we could do everything
Melinda Alvord
10/17/2021 — 9:45 pm
Who should recruit and hire the general manager? The HR department? A select committee of villagers? The Board has one employee, the general manager.
J E Jackson
10/18/2021 — 5:30 pm
Should be recruited by HR, this is an easy fill through trade originations. Select committee could vet and recommend to membership. Lots of city managers with civil engineering, and marketing background who would love this job. Especially the big salary.
Dan Hitch
10/17/2021 — 9:18 pm
Doesn’t CCI own all the easements aroun each home and road I the Village?
Good writing Tom, being going on a long time
Lloyd Sherman
10/18/2021 — 10:54 am
Our governance structure is truly broken. I support many of the issues addressed by Tom Blakeman. Additionally, I would like to expand on his comment on the board composition. Not sure if trying to have an area (district if you will) representative is manageable, although it is not a bad idea. However, the Board has one employee. The GM. It is not manageable to think that the property owners could agree on who or how to hire a GM. That decision needs to be left to the Board. However, beyond being a “property owner in good standing”, what qualifications do you need to be on our board. Answer: NONE. If you have a majority of board members that couldn’t even perform in the capacity of a GM, how can you realistically expect them to manage this resource? So Tom is right, our system is in need of a serious makeover.
Expanding the board to at least 9 is a good idea. Paying a stipend might well encourage a better mix of candidates with qualifications. But speaking of qualifications, there needs to be a minimum set of qualifications to be a board member.
Kirk Denger
10/18/2021 — 1:34 pm
The property owners vote on board members the same way that citizens vote on the President of the United States or any other office. There are few minimum standards, The property owners decide with their vote.
Susan Posner
10/18/2021 — 9:48 pm
Knowledge doesn’t guarantee common sense, nor does it enure honesty
mark oliver
10/19/2021 — 7:13 am
Agreed. Wonder if the signs tugging at your emotions by stating “This is your home”, were created by people that are much more interested in their profits. Is it truly a desire to maintain the community or just to increase their personal revenue?
John M Szczepaniak
10/19/2021 — 2:59 pm
What will it take to change the governing model?
So far I think the only option mentioned was becoming a municipality and few seem to be in favor of that. So far I have not read of an alternative model being proposed.
Lloyd Sherman
10/20/2021 — 11:01 am
John,
There are several suggestions in this very document. Also, much has been written that I am aware of that addressed fixing our governance model. All becoming a municipality does is layer in another bureaucracy. The only positive thing about a municipality that I can think of is that we would gain some access to the taxes we pay in, but if you don’t think that would create an issue with the current county governments, then I have a bridge I’d like to sell you. Essentially becoming a municipality converts HSV into another rural city in Arkansas run by a government entity instead of the property owners.
John Szczepaniak
10/21/2021 — 12:03 am
LLoyd, I was in no way recommending the municipality model. It is beyond me what we should do other then recognize that the existing model needs to be questioned, examined and changed but from what I see there is a clear lack of consensus among the owners on what to do about making it better. My understanding is that no major changes can be made for several more years but with the constant harping of suspicion and distrust how can we ever get a consensus? How can we find some middle ground and have some peace in our few remaining years is the big question. There does not seem to be a person or group with the stature anywhere close to the original developer. It almost seems like a game. Every time there is a money issue the game players up the ante and nothing really good gets done. Should that be our legacy?
Leon Barbee
01/16/2022 — 6:20 am
The statement “things seemed better when the developer ran things” is misleading. Cooper ran things and that was that. There were no arguments because Cooper was boss. What Cooper said was the law and homeowners really had no say… they could make suggestions, but there wasn’t a way for the homeowners to overturn Cooper. The reason the lots counted the same when Cooper was here was because that was the way it was set up. Cooper didn’t allow any bonus points for those living here, and that really hasn’t changed. But, on the other hand, those lot owners paid for activities through the monthly payment that they gained no benefit. The two-way assessment is at least a bit more fair for those who have a lot, but don’t live here. The reason the Village has so “many lots” is because a lot of the property owners didn’t think it was fair they had to pay the same amount as those living here and had the advantages without paying any extra, so they quit paying the monthly fee, basically giving the lot back. There is, without any doubt, we have a system in place that is not really working because Cooper just left without giving the “Board” a chance to figure out a good way to run this place. The Board during Coopers presence was a “rubber stamp” and then all of a sudden, they had to “make the rules” without much thought being put into a decent system. HSV has been limping along since Cooper left because no one was willing to take a stand to say “let’s make a workable system” but rather took the director position more for prestige than for really governing.
HSVP C
01/19/2022 — 3:59 pm
It is the policy of this website to only approve comments made using a first and last name. Thank you for understanding.
Bonnie Roth
01/29/2022 — 1:52 pm
Hello, I am looking into relocating to Arkansas. A realtor told me about Hot Springs Village. Would you recommend living in this community? Are there any assessments for lake maintenance and golf course maintenance? Is this community a good investment to purchase a home in? I am a single woman looking to retire from another state. Would you recommend moving to Hot Springs Village? I have also been told that Bentonville is a good place to live.
I would appreciate any advice or insights you may have.
Thank you,
Bonnie
LLOYD SHERMAN
01/29/2022 — 4:26 pm
Bonnie – I am a Realtor here in the Village and might be a little prejudice, but this is a great place to live. We have been here 7+ years now and can’t think of anywhere else we would want to be. It is our little slice of heaven. I have never lived in Bella Vista but visits there convinced me that I much prefer HSV over anywhere else. We do have a $90/month assessment fee and then activities are on a pay as you play basis. Our fee covers all common areas, upkeep of roads, etc. We have our own sewer, water, police, fire and are not a municipality like Bella Vista. You can PM me and I will give you all the guidance you need to help you make a decision.
Feel free to reach out to me at lloydhsv@gmail.com if I can answer any questions for you.
Teresa Rogers
03/01/2022 — 3:04 pm
Hi Bonnie, I live just outside Little Rock and have owned lots in HSV for 25 years. I also moved to Arkansas from out of state. My husband’s parents lived in HSV until recently so I have visited there and Bentonville. Both are great options for your retirement and have very different vibes. Bentonville is booming with new restaurants and the proximity to Fayetteville and the Arkansas Razorbacks. When we visit there, it is mostly to attend sporting events and occasionally for work. Hot Springs Village is a slower paced community truly nestled into scenic beauty. HSV is a little warmer, Bentonville will have an extra snow storm a year. Snow in Arkansas typically means you stay home and off the roads for a day or two. As a realtor, Lloyd probably has you connected with available lots. I do have two if you want to reach out to me. cheftrd36@gmail.com
Dave Scott
04/07/2022 — 3:16 pm
Hi Y’all –
Like Bonnie, my wife and I are also considering HSV for our upcoming retirement. I am familiar with the village from visiting to play golf with my buddies for many years (and owning lots from time to time). However, given all of the negative commentary I am now seeing as I do some deeper research into HSV, I have to say I am very concerned and thinking perhaps this is not the place for us to retire to. What I specifically mean is investing in a home there in the $400k – $500k range. I’m starting to wonder if perhaps retiring elsewhere and then visiting HSV serval time a year is now the right call on this. Any and all thoughts on my thoughts/concerns would be greatly appreciated – thx so much.
HSVP C
04/07/2022 — 3:54 pm
Hi Dave. I am the site owner and I will be honest with you, it was not a great governance situation here a few years ago. Things have changed a whole lot. Not sure if you are watching what I am publishing now, but things have greatly improved and we love it here. You are reading something that a very negative person wrote. There is still a remnant of this negativity left, but for the most part, we are a happy community. We have a great board of directors, great staff, and a wonderful new General Manager. The staff and board are listening to the community and have made many changes for the better. Is it perfect? No, of course not, but I do not know of any place where you can find the quality of life, wonderful people, a great variety of amenities, not bad weather, and a low cost of living that you can find here in the Village. And as far as finding a home here, there are very few for sale. They are snatched up from the market almost as fast as they can be listed. If you would like to talk privately, feel free to drop me an email at hsvgazette@gmail.com and I will be happy to answer any questions that I can. If I don’t know the answer, I can guide you to someone who might.
Randy Waldenville
01/27/2023 — 4:07 pm
HI Cheryl, I’ve read every comment here, and by-in-large, and to varying degrees, it seems that everyone agrees with the original post. Unfortunately, the truth is not always pretty or positive. I don’t (yet???) live there but it seems that 6 people makeing rules and regulations for 24,000’ish people is drastically out of balance with reality.
I have to say that I am leaning in the same direction as Dave. The place sounds like a large piece of Heaven, but unfair and unsound politics can make it feel like Hell.
I had read other reviews just minutes before this/these, but they were from 2016 up to 2019 (as best I recall) so I was looking around for something more current. But honestly it all still sounds the same, maybe just an ever so slightly less version; but all the same issues….and still with virtually Zero actual directed, dedicated, discernable, and actionable efforts to actually attack the problem, just people attacking other people and thier ideas.
No, I’m not commenting on the Village, I do not live there, my comments are about the comments, from those who do live there.
According to Realtor dot com there are 936 homes listed in the Village currently, I had my eye set on two possibilities, but like Dave I am rethinking my position as well.
HSVP C
03/14/2023 — 3:09 pm
Randy, things have changed greatly in the Village since this article was published. Here is a link to our new website: https://hsvgazette.com/ Thanks!
Deborah Bryan
03/20/2023 — 12:36 am
Hi Randy,
I Just read your comments and just wanted to clarify your statement concerning the number of homes on the market. I was a REALTOR in Texas for over 25 years. When I arrived 5 years ago it was a buyers with between 200-300 homes for sale. Today, there are 7 Townhouses, and 25 detached homes actively on the mkt. Homes that are price correctly for their condition are still selling with multiple offers. I have found this to be a great community, the best place I have ever lived. Is it perfect, no. I do believe we are on the right track, though. The internet says city councils range from 5 members to 51 (New York City), but the average is 6. Is the board to small, maybe, but I love the fact that the let the voters choose the rate increase. It may not be for every one, it may not be for you. Best of luck in your search for your home.
B
12/10/2023 — 12:42 am
Cities are broken up into wards… they elect a member of their area to represent them on the council If all board members have the exact same interest and represent same economic status – the board is then only representing a fraction rather than a whole
King James
07/25/2022 — 5:22 pm
Did Greg Jones lease/rent or buy Last Chance?