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ScottK1 (South Carolina)
Posts: 32
Posted:
I am on the board (Treasure /Secretary) of a small (97) HOA of single family homes. Right now we have a Management Company that we pay $300.00 a month to pay three bills; the HOA has no common area or anything at all. They also charge for every late notice, or violation letter they send. They do no collections, but for an extra fee the can have their legal dept. do it. I figured out the budget for the rest of the year and at current spending we would have under $100.00 at years end. When I asked if the board knew that they said they thought it would be close, we have no reserve at all. I have posted about be frustrated about no one else on the board doing anything.
The board wanted to get more homeowner to come to the semiannual meeting, so with the President’s approval I sent out and email to the homes we had email addresses for and the President was supposed to send a letter via mail to the other a few weeks ago. I found out that the letter were not sent out till just a few days before the meeting, which is not what our CCRs says you must give 14 day notice for meeting. In the letter I wrote I told the homeowners that we needed input on setting up a fine schedule to get violators to comply with the CC&Rs and bylaws. I figure one way to get people to the meeting was to talk about costing them money, it worked we had 30 plus members there. Right now they have the MC send out violation letter but don't follow through or have any way to enforce the CC&Rs or Bylaws.
So at our meeting the President shows up late with one of her kids with her, she has the kid sit at the boards table and lets her draw on the boards paperwork. She starts the meeting and it had no structure at all, at one point she says that she can have some minutes typed up and sent to the members that are not there. The problem there was no one taking minutes at the meeting or at any of the meeting I have been to in the last few years that I have seen. She was telling the members incorrect info on everything she said since I am the one that has done all the work and I kept her informed on everything I did, but I can see she must not have read any of it or just let her kids draw on it till she couldn't read it. I brought up the point on filing liens on the past due accounts, which I spent my time researching and typing up the docs and getting all the fees and info. She then asked one of the former board members from a few years ago what she should do. He says wait till they are three or four year behind to make it worth it to file the lien. I said if they can't pay their $165.00 a year now that tells me they are having financial problems now and they could be close to being foreclosed on from their lender if we wait we wont recover the dues. The former board member says that's ok the person that buys the home out of forecloser will have to pay all back dues. I couldn't believe it; he thinks that the new owner is going to pay someone else back dues with fines and interest. He must be the problem the HOA has no structure or money. I kept telling the President that we were running out of time since the Library that we were having the meeting was closing and we need to talk about the finical state of the HOA and let the people know we have no money and if we keep the MC we would have to raise the dues for next year which most if not all think it’s to high now for not have a pool or any common areas or any benefits for living there. I have spent several hours researching and making documents, creating a Facebook page, an email address with a contact list that we didn’t have plus all the delinquency policies, and collection policy and a fine schedule. So after an hour and a half and several cart wheels done by her daughter in between the boards table and the members seating area, she says we will figure things out and email everyone. A few days before the meeting she asked to figure the costs to set up checking accounts, PO Box since she agreed that we can’t afford the MC. Then at the end of the meeting she says it’s a mistake to get rid of the MC. That was how the meeting ended with no mention of anything formal about the HOA and no mention of next year’s dues amount or that the HOA has no money. So since she has no spine at all I think it’s time to resign from this group they call a board.
Sorry for the long post
Scott
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Scott

According to your numbers, you have 97 homes paying $165 per year thus $15,675 income and $300 per month or $3,600 per year going out to the MC thus leaving about $12,075. Do I have the basic numbers correct regardless of the cartwheels?

TimB4 (Tennessee)
Posts: 21,059
Posted:
Scott,

If you don't have membership participation to do the work, you do need to hire someone to do it for you (aka a management company, a property manager or an independent contractor to perform xyz). Based on your post, I agree you have the wrong person as president. Perhaps you should make a motion to remove her from office and put someone else in as president (perhaps you).

I understand the frustration. I really do. However, if you resign, you have zero say when the actual decisions are being made. From the sound of it, you have been making some progress. Perhaps you just need to start talking to neighbors who think like you do and encourage them to serve on the board with you. This way, changes can be made more easily.

Tim
ScottK1 (South Carolina)
Posts: 32
Posted:
We have 52% of budget goes to street lights. then we have a few foreclosed homes that owe dues and have three that still have not paid dues that was due in January 2012. I want to make a personal face to face with two board members to see if we can work something out for payment on the past due accounts. No one on the board wants to be the bad guy. Since I sent a demand letter last month saying I would file a lien if not paid, we have had two that have paid. The MC had all their extra charges that no one on the board knew they where charging till I asked for all the financials for 2012 a few months ago, so that's been about six or seven hundred so far this year. Then they charged almost 600.00 just to file the taxes with all there "handling fees". Then the landscaper that was not even doing his job, so we fired him. Then the Insurance for the board and the water bill for the entrance landscaping. Since the board doesn't have a repair fund in the budget, if anything like sprinklers break one if the board members fixes it then charges a fee that's way out of line and the board lets them do it. The same guy wanted to repaint the signs at the entrances. Said he would do it for free, then he did one of the four,even after we decided not to do it this year he went ahead and did one on his own and now want to be paid for it. I offered to paint and repair all the signs that someone has damaged for materials only after it cools off and we had the funds to pay for the paint after the first of the year. Then this guy does it after being told that I was going to do it for free next year and they will pay him too.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Scott

You keep piling on. Cartwheels now unpainted signs. I suggest you slow down some and address/attack one issue at a time.

You say 52% of budget for lighting (so $6K of the $12K). Is this correct?

You say you fired the landscaper well, who is doing such now?

One thing at a time and many might just be able to help you.

Also, please stop the run-on posts. They are hard to read. Learn to hit the ENTER/RETURN key every so often. Me, I use the key to much...LOL

ScottK1 (South Carolina)
Posts: 32
Posted:
Yes $6400.00 yearly
ScottK1 (South Carolina)
Posts: 32
Posted:
One of the homeowners is doing the landscaping at no cost. It is an area about 30'X30 total area mostly mulch and planted area with a few annuals.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Scott

$3,600 per year MC charges on 97 homes with an annual budget of $12K is about a 30% management fee. In their language it is about $3.00 per door (97), per month.

On one hand it sounds expensive on the other hand, maybe not.

They collect all money, pay all invoices, balance the checking account, make financial reports to the BOD, etc. All other things aside, would you personally do the same for $300 per month?

97 owners (payers) must be dealt with regardless of the overall amount collected. Personally you could not get me to do it for $300 per month and if someone would, I expect they would want more for extras like a simple mailing (first class mail to all 97 owners would cost $45 in postage alone) or even wanting more expensive paper for the reports or more copies of the report would cost more.

Often there is an entry level cost to an event and sometimes it is more expensive then one can afford, nevermind wanting the better seats at the event.......LOL

Along these lines, we are getting ready to transition from declarant to owners and we will be facing hiring an MC or going it alone. We are 113 homes that pay $600 per year. While few to no amenities, the $600 does cover all landscaping and exterior maintenance of each home with landscaping be our largest expense.

Hpoe this helps.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
the HOA has no common area or anything at all.


Hmmm......most HOA's have some common area, thats why they have an HOA

Quote:
We have 52% of budget goes to street lights.


So the streetlights are a common expense, basically the same thing as a common area.

Quote:
Then the landscaper that was not even doing his job, so we fired him.


I assume you have a landscaper to mow the common areas?

Quote:
Then the Insurance for the board and the water bill for the entrance landscaping.


This is one common area, but it sounds like you have many.

Quote:
The MC had all their extra charges that no one on the board knew they where charging till I asked for all the financials for 2012 a few months ago, so that's been about six or seven hundred so far this year. Then they charged almost 600.00 just to file the taxes with all there "handling fees".


As a board member, its up to you to work out all these prices "before" they happen. Sounds like your board hasn't been paying much attention what you were elected to do. Which is pay attention. As Treasurer, you should be paying the most attention to these details.

Quote:
We have 52% of budget goes to street lights.


So if you are the Treasurer, where is the rest of the money going?
ScottK1 (South Carolina)
Posts: 32
Posted:
I wasn't even told what board member I was until the president sent an email to MC with a cc coming to me in Mid June listing the officers. There where six people that showed at the January meeting and I said I would be on the board and wasn't told what position at that time.The President said she would contact us.
It not the point about having a MC, it the fact that the current dues doesn't cover cost. You can't balance a budget without either funds or cutting cost and the homeowner don't want to do either and they don't want to help by serving on the board.They also don't want to dissolve the HOA either.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
You just need to spend more time educating yourself about what board members do, what officers do, etc. It will take time, hard work, etc. No one at your HOA seems to know what they are doing. You may be better off getting rid of the expensive management company and going to self managed, simply because you have so few expenses and very little to "manage".

PS. If your running out of money and no one cares, simply shut the street lights off. That will get people's attention.

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