Dear Key Allegro Homeowner,

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The purpose of this website is to ask for your help in compelling the Key Allegro Canal and Property Owners Association (KACPOA) to behave within the legal boundaries set forth by our Governing Documents. Dozens of homeowners have financially supported this cause. We greatly appreciate the outpouring of support so far, but we all still need your help.

A little background: my wife and I bought our first home on Key Allegro in 1999. We’ve owned several homes throughout the decades, and we seem to find a way to get down to Key Allegro as much as possible. We just love Rockport, and we look forward to making Key Allegro our permanent home in the coming decade! For years, we enjoyed that the KACPOA operated within their reasonable bounds. However, this changed over the past 6 years. My hope is that this letter will inform you of the legal challenges we have undergone in the past 2.5 years.

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There are approximately 716 single-resident lots on Key Allegro Island:

• ~572 canal front lots

• ~82 bayfront lots

• ~62 interior lots (no waterfront)

• Also ~175 condominiums

• Note: at least two properties on Key Allegro Island, on Jamaica, are a separate subdivision from the Key Allegro subdivision.

When it comes to voting rights within the KACPOA, single lot homeowners hold 1 full vote, while condominiums hold ½ of a vote. It is my understanding that ONLY 14% of property owners live on Key Allegro Island full time, and it’s been my witness that the lion’s share of KACPOA Board members in recent decades have been homeowners that live on the island full time. The concern is that the KACPOA is TRYING to give themselves an overreach of power beyond what was intended by the founders. This is not what we all signed up for when purchasing our homes here in Key Allegro and was not the original intention of the developer Carl Krueger Jr. 

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As a homeowner of a 2nd home/vacation home (which makes up the majority of the owners on Key Allegro Island) it’s easy to be disengaged with legal processes like this one. The goal of this letter is to  shed light on the proceedings that impact all of our interests. I never thought that the first meeting with the Board and my attorney (2.5 years ago) would take us to the Texas Supreme Court, but it has.

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Here are some facts about the legal issues at hand:

• There are 5 subdivisions on Key Allegro Island, which are part of Key Allegro subdivision, called “units” that were all created in the 1960s and 1970s. Each Deed Restriction, for each unit, is slightly different. There is a 6th subdivision, on Jamaica Drive, that is not part of the Key Allegro subdivision.

• When you purchase property in Texas, your Deed Restrictions convey as legal guidelines for the use of the property and how an HOA (if applicable) can govern your property. There is a high threshold in changing Deed Restrictions: usually 2/3rd majority of all homeowners is required.

• In the original Deed Restrictions, the primary mandate was to keep the canals maintained at 6 ft by the mandatory homeowner’s association for CANAL LOT OWNERS ONLY.

• There were no requirements to be part of a mandatory homeowner’s association for non-canal owners, which includes Aransas Bay/Little Bay waterfronts and non-waterfront owners.

• However, the Board has been treating all of the homeowners on Key Allegro as mandatory members of the Key Allegro association without proper legal authority to do so (this hasn’t been an issue for decades because the past Boards have not overreached their authority).

• On July 10th, 2017, everything changed. The Association’s Board (without a vote of the owners) adopted and recorded an instrument for each of the five units entitled “Amended and Restated Deed Restrictions, Covenants, and Conditions.” It cited that the Board had “satisfied all requirements of law for amending the original restrictions”.  It then interwove portions of the original restrictive covenants with completely new restrictions. Among the new restrictions were provisions which morphed a narrow entity responsible for primarily canal-adjacent repair, into a full-fledged, mandatory homeowners’ association over all five units and lot/condo owners. The Association declared itself “the lawful homeowners association” for all units. It declared that the “intent” of the new restrictions was that they “be managed and enforced uniformly by the Association with the other Units in the Association.” Finally, the Association gave itself broad assessment power unrestricted by subject matter, along with the power to foreclose on homes for nonpayment of fines and penalties as the KACPOA mandates AND allow Board members, as they see fit, to come on and into your property for inspection. THIS IS A HUGE OVERREACH.

• Deed changes of this magnitude, per state law, require a 2/3 majority agreement of all members in the KACPOA and NOT just those who attend a meeting. The Texas Supreme Court has rectified this.

• The ultimate goal of this lawsuit is for the Board to repeal the 2017 instrument entitled: “Amended and Restated Deed Restrictions, Covenants, and Conditions.” We decided the best pathway to repeal the 2017 amendment is to sue based on there being no authority to require me to be part of the association. This will unravel: Amended and Restated Deed Restrictions, Covenants, and Conditions at which time we are very supported in the legal and proper process of requiring each unit with a 2/3rd majority vote or more to make any updates to Deed Restrictions. We simply propose that the KACPOA return to how it used to be (an association with limited powers), and not an association with the overwhelming powers they are pursuing.

 

Here are the legal actions we have taken:

1. During the summer of 2020, with the presence of legal counsel and myself, we met with the KACPOA Board to inform them of the illegal activities and the improper method the 2017 Board used to amend OUR Deed Restrictions. We reminded them it required a 2/3rd majority vote of each unit, not just a vote of only Board members.

2. Despite several attempted communications and letters from our attorney, the KACPOA chose not to respond.

3. Out of concern that the Statute of Limitations could expire, a lawsuit was initiated on 12-31-20.

4. The Board, hoping to test our resolution, did a Procedure Tactic, insisting we must sue ALL +/- 716 single residential lot owners and +/- 175 condo owners for the actions of the Board! Interestingly enough, the Board again chose this course of action without proper vote from the very defendants that would be named in such a case.  We would have to sue the entire membership on the island! (My friends and neighbors). Their basis for this procedure change was based on an oil and gas law. THIS IS CRAZY! My intent was never to sue my neighbors, but to address the illegal activities which the Board took in an overreach of power and quest for control.

5. Our case then went through the judicial system.​

   1. The Appeals Court in Corpus Christi also agreed with the Board that we needed to sue all members in November of 2021.

   2. During December 2021, we requested that the Texas Supreme Court step in.

   3. On March 11th, 2022, The Texas Supreme Court deemed this case to be sufficiently important that they agreed to hear our case.

   4. On December 1st, 2022, The Texas Supreme Court heard arguments whether HOA Boards can require a member to sue all other members of the association if they bring litigation against an HOA Board.

      1. This was a very interesting experience and was simply an honor that the Texas Supreme Court chose our case to hear. To see this fifty-minute hearing, go to https://www.youtube.com/watch?v=e3EI7zqOnXw

6. The local District Judge agreed with the Board that we had to sue all homeowners in September of 2021.  

7. We anticipate a ruling from the Texas Supreme Court in February or March of 2023.

 

If the Texas Supreme Court rules in our favor, what does that mean? We simply revert to the merits of the original lawsuit that says: because my property is not on the canal, I am not required to be a part of this homeowner’s association AND should encourage this Board and any future Boards not to overstep their power and authority by updating Deed Restrictions unless they go through the proper legal process of receiving 2/3+ majority of all members from each unit.

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We have invested $28,000 ($16,000 of which has been donated) to support OUR RIGHTS as property owners on the island. Keeping the Board in their legal lane is important to all property owners, whether you’re on the canal or not on the canal. Our efforts with this lawsuit are to protect all of our property rights and prevent overreach of governing bodies. We also want to prevent future Boards for Key Allegro from going rogue and simply changing important documents (like our Deed Restrictions) without going through proper legal notices in holding elections and getting all homeowners involved.

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Dozens of contributors have helped support this effort already. We understand AND EXPECT that the Board will continue to challenge our position. For this reason, we will continue to fight for Key Allegro Homeowners. If you choose to support our efforts, we would greatly appreciate it. We feel we are in great standing to prevail, but we need your financial support and anticipate future challenges! Up to this point, we have received several donations between $500-$3,000. If and when we arrive at a resolution where the KACPOA should be required to reimburse all legal fees, we will rebate/refund your contributions accordingly. If any member is interested in knowing the details and expenditures of donations, we are happy to share on a 1-1 basis. We want to be very transparent throughout this process.

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To help, please either:

1. Donate online by CLICKING HERE

OR

1. Mail Check to:

   1. Key Allegro Legal Fund (make the check in this name, which is a non-profit)

1011 Westlake Dr.

Austin, TX 78746

 

This is a complicated legal battle. I have learned that sometimes the legal process can be more complicated than it needs to be to go through the court system. If you are a new homeowner within the last few years, this may all be a complete surprise because this has not been disclosed by the Key Allegro Canal and Property Owners Association in recent closing documents.

Someone asked me, “What is the simple choice?” I replied, “If you support 7-9 Board members deciding the fate of your investment and changing the Deed Restrictions when they choose… you may want to support the Board’s actions.”

 

“However, if you are concerned with a small, governing body dictating our future without following the proper legal process of changing Deed Restrictions, then you may want to consider supporting our efforts.”

 

Thanks in advance for your consideration and support!

I’m available to answer any questions. Please text 512-426-1937 to schedule a phone call with me.

 

Sincerely,

Chris S. Kappmeyer

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*Important*: You may be aware that the next general KACPOA meeting is Saturday February 25th, 2023 at 10 AM at the Allegro house, 29 Mazatlan. We were surprised that the agenda does not include anything pertaining to this case nor the Texas Supreme Court hearing. I will be present at this meeting and welcome anyone receiving this letter for an open discussion.