David Weglinski, Committee Chair

There was no change in the status of our Feb 2019 lot rate increase (“market rate”). The Arbitrator’s decision in favor of the Land Owner is under appeal at Superior Court.  Witnesses presented their testimony for the Arbitration of our Feb 2019 lot rate increase (“market rate”) on September 8 and 9, 2021. On January 10, 2022 CLASI advised the Arbitrator had decided in favor of the Landowner (RHP).  The Home Owners attorneys filed an appeal of this decision to the Delaware Superior Court.  Our opening brief was presented in January 2023.  Answering briefs were provided in February 2023 with reply briefs in March 2023.  Based upon a recent Court decision regarding a Shady Park arbitration, our lawyers are filing a supplemental brief detailing the tactics RHP used to deny us their certified operating statements (“the books”) needed to support our case. 

There was no change in the status of our Feb 2020 lot rate increase (“market rate”). The Arbitrator’s decision in favor of the Home Owners (us) is under appeal at Superior Court.  Witnesses presented their testimony for the Arbitration of our Feb 2020 lot rate increase (“market rate”) on November 2 and 3, 2021.  On January 10, 2022 CLASI advised the Arbitrator had decided in favor of the Home Owners (us!).  RHP’s attorneys have filed an appeal of this decision to the Delaware Superior Court. Their opening brief was due on January 31, 2023. Answering briefs were due on February 28, 2023 with reply briefs due March 17, 2023.  Our lawyers presented oral arguments citing a recent Sandy Acres Court decision that established that increases in one expense category can be offset by decreases in other expenses, negating one of the prerequisite conditions for justifying a rate increase.  In our case, RHP used the expense of replacing carpets in the Clubhouse while ignoring savings in other that resulted in no decline in their reported total operating expense.  

The Superior Court has decided in favor of the Home Owners (us) in the appeal of the Arbitrator’s decision for our Feb 2021 lot rate increase (“capital recovery – parking lot lights”).  The Superior Court decided that the correct capital assessment should have been the total capital cost divided by the entire community (223 households), not just the one-year rate households (58).  RHP decided NOT to exercise their right of final appeal to the Delaware Supreme Court, so credit adjustments to the 58 affected households are in process.

There was NO Arbitration for the Feb 2022 lot rate increase because the landowner accepted the statutory CPI-U rate of 2.452%.

There was NO Arbitration for the Feb 2023 lot rate increase because the landowner accepted one of the statutory rate calculations – 3.5% plus ½ of the 24-month average CPI-U of 6.382% - for an increase of 6.691%.

There was NO Arbitration for the Feb 2024 lot rate increase because the landowner accepted one of the statutory rate calculations – 3.5% plus ½ of the 24-month average CPI-U of 6.034% - for an increase of 6.517%.
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