A class-action complaint filed Tuesday afternoon in Saline County Circuit Court alleges that the Hot Springs Village Property Owners’ Association has violated the Declaration in real-estate matters.

The suit, Jeffery Atkins et al v. Hot Springs Village POA, is case 63CV-24-477.  In an emailed statement, the plaintiffs said: "It is our opinion that the POA Board and Management has lost its way and we intend to fix it. We've taken this action to protect the interest of all property owners and ask the Courts to preserve the integrity of the governing documents."

During the March POA Board of Directors meeting, director Larry Siener suggested that a property owner who was discussing the new rental fee during public comments that a lawsuit could be filed to learn the fee's validity.

Plaintiffs Jeffery Atkins, a former board director, and property owner Dennis Simpson allege in the suit that the HSVPOA has failed in its fiduciary duty to follow Hot Springs Village governing documents. And although the POA has lost court cases in past years, it continues to operate in “a pattern of intentional misconduct.”

Among alleged violations – "Implementation of special assessments without a vote of members."

• “Buy-in” fee – $250 for unimproved lots and $1,500 for improved lots, defined as one with a water meter.

• “Public works” fee of $1,560 for each new home

• “Deed transfer” fee

• “Membership assignment” fee

• “Tree cutting permit” fee enforcing different rules for lot owners and homeowners

• Charging new owners with assessments before receipt of deeds and also making them immediately responsible for the full year of assessments.

• A $50 “rental registration” fee to register a rental and that provides the owner’s contact information for HSVPOA personnel or police. The suit alleges this fee is to “help the POA increase income and potentially provide bonuses to management. The POA has said during board meetings that the rental fee only covers expenses.

"Breaching fiduciary duty by competing with POA members."

• Plaintiffs contend that the HSVPOA has breached its fiduciary duty and potentially antitrust laws by using assessment dollars to compete for lot sales by offering a 50% commission to Realtors on POA-owned unimproved lots, undercutting other lot owners.

"Unfair enforcement of protective covenants."

• Plaintiffs allege that the HSVPOA operated under a complaint basis for protective covenant enforcement, but failed to enforce rules on a regular basis, and that “enforcement is arbitrary and unfair and can depend on who makes the complaint. Specifically, the board fined the plaintiff for cutting a tree without a permit, but his neighbor did the same without recourse.”

The Hot Springs Village Voice emailed POA staff Wednesday morning seeking a statement on the lawsuit.