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RichardL7 (Colorado)
Posts: 105
Posted:
Hello again.
It has been some time sense I have request help from this web sight and
related to A Management Co. As such one member stated that when
you tackle a major problem of that size it’s like eating an elephant, you
do so one bite at a time and he/she was correct. Our M.C. has been
replace and it was no easy job, that is to say retrieving all the
information from the M.C. Changing the Board members and starting
the process of restructuring. In short my friends it was a major
achievement but a very sad one. It’s a long story, but in short we were
deceived, lied too and the financial situation was just horrendous. The
treachery, ( M.C. ) and I do mean treachery was such that it even
shocked me and that not easy to do. When all was checked out we were
$70,000.00. In the hole and no accountability of why. We have started
proceedings and the out come is still in process. WE have a forensic
C.P.A and it has also been turned over to the police Department. We
are holding for the outcome, but the F.C.P A. found more then ample
reasons to proceed with legal Action. We have only 60+ units.

What I wish to say is, a big thanks for the help I have received and
remind each and every one who is involved with a Association, don’t
take anything for granted but verify, Verify and Verify, and do so with
all related records and invoices, as they say trust but verify all accounts.
My sincere thanks for all the help I have received, your just great.
Rich.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Good for you! Many of us have been there and understand the hard work it takes. Just remember this: A Management company is a SUBCONTRACTOR to the HOA. It is the HOA BOARD that is to make the decisions and have the MC follow through. Each MC contract is different for every body. So when you hire an MC understand what role they need to play. Do you want them to notify violations? Do you want them to just habdle the money and taxes? Do you want them involved in operations? The level of MC involvement lies with the HOA. It is NOT the other way around. Many do not understand that relationship on BOTH sides and thus issues like this arise.

Good luck and keep us informed. We like follow up and reports of members doing the actual work!

Former HOA President
TimB4 (Tennessee)
Posts: 21,061
Posted:
Richard,

Thank you for the update. I'm sorry to hear that it was worse than you thought.
Keep the membership informed so they aren't surprised by things that may need to happen in the future (raise in assessments, special assessment, cutback on services.) while the new Board goes about the task of straightening things out.

As you have said, the good news is that the issue that got your Association into this mess has stopped and the recovery is beginning.

Best of luck.

Tim

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