Lost lake in Pocono Summit

Aug. 01--Waves on Pocono Summit Lake lapped against the shore, where lifeguards once stood watch over children playing in mounds of sand.

On a blustery day in early June, two men, both named Jim, stood looking out over the blue waters of the lake that has been the anchor of their community -- the Pocono Summit Lake Property Owners Association.

Now after legal and tax rulings, the association is defunct, and the lake is set to be sold to the highest bidder.

Jim Wilson, once president of the association, continues to cut the grass by the lake shore and clubhouse as he has every summer for about 10 years without asking for money.

Wilson also chipped in an extra $100 donation this year to help keep the lights on and toilets flushing inside the clubhouse at the beach.

But the sand disappeared from the beach a few years ago. The association once trucked in sand at a cost of $1,000 each summer, but now can't afford it.

Most difficult for Wilson and Jim Kinsley, another longtime resident who served on the board, was a court decision two years ago that the property owners association does not actually qualify as one.

Questions about identity

Wilson sat in the small clubhouse and flipped through pages of notes and records covering six decades, a large American flag behind him.

He said the property owners formed the association in 1959, later buying the lake itself.

The lake and small neighborhood are just off Route 940 in Coolbaugh Township'sPocono Summit. Noise from the highway fades just blocks away, where a road through the community leads to the lake's edge.

On the deeds of about 200 home and property owners, each is given access to the lake, though the wording is not for exclusive access.

In 2008, the board decided to double annual association dues to $50 for property owners and to $100 for homeowners, Wilson said.

The plan was to build a reserve to help pay to fix a dam on the lake the board believes is in need of repair, though ownership of the dam is also in dispute.

But one resident protested the dues hike and challenged it in court along with other residents, arguing that the board cannot compel residents to pay any dues because the property owners association is a private club, not a bona fide homeowners group.

Liability concerns

In 2012, the Commonwealth Court upheld a lower court ruling that the association does not fit the definition for a "planned community" in the Uniformed Planned Communities Act passed in 1996, decades after the association's start. The court found membership in the association was voluntary for years, and members sometimes blocked nonmembers from accessing the lake. But Wilson said any attempts to block access over the years came from frustration among residents who paid dues while others were delinquent; it was not an official policy.

"You rely on the courts to do the right thing, and it just proves that the good guys don't always win," Wilson said of the decision.

Another issue is liability insurance, which the association has not been able to fund for several years.

When a man was rescued after falling through the icy lake in the winter of 2006, the board investigated whether it would be liable if someone sued after an incident at the lake or clubhouse, and eventually began paying about $6,000 in annual liability insurance, Wilson said.

The insurance payments lapsed while the association fought an expensive battle in court for its status. That could leave property owners who have deeded access to the lake liable if something goes wrong, Wilson said based on legal advice he has received.

But some residents believe that by not paying dues, they would avoid any liability.

'Kind of lost'

A resident involved in the lawsuit also successfully challenged the association's tax-exempt status, which leaves the defunct group on the hook for about $6,000 in property taxes per year.

The association did not pay taxes in 2013, and the lake will be up for a public auction tax sale next year.

Wilson said he still hopes to challenge the tax decision. In the meantime, he has also approached Coolbaugh Township supervisors about possible options.

"We're kind of lost right now," Kinsley said.

The state Supreme Court turned down hearing another appeal of the association's status.

About 25 owners have voluntarily paid a collective total of $2,500 in dues, and the board has agreed to keep maintaining the clubhouse and grounds for now. The alternative is to "let it go to hell," Wilson said.

Meanwhile, Wilson said the lake has no owner.

"So who is the Tax Bureau going to send the bill to?" Wilson asked. "An association that doesn't exist?"

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