RogerJ1 (Texas)
Posts: 550
Posts: 550
Posted:
Situation:
Small Texas POA that is ~40 years old and was always self managed until March of this year when a management company started working for this Association. That management company is accredited by the Community Associations Institute.
On June 1st, 3 months after starting, the management company resigned. The management company sent an email to all members. It read: "It is with deep regret that XXXXXX is submitting our resignation effective July 1, 2022. We have been unable to be effective in helping the board resolve any of the issues that was discussed when our contract was signed March 1,22. We wish you much success in the future endeavors of XXXXXXXXXXX and will make this a smooth transition back to the board."
Two Board members also resigned at the same time. Behinds the scenes the rumor was that the Board bombarded the management company with silly question after silly question and the management was having to waste too much time. One of the remaining board members begged the management company to stay, and before the July 1st resignation date, that Board person sent out an email stating the management company has agreed to stay.
At the last Board meeting, held in mid August 2022, it was announced the management company had resigned again, effective September 30th/October 1st. Unlike the first resignation, neither the Board nor Management Company has sent out any announcement directly to the membership.
Current rumor is that the management company has been talked into staying for just an accounting function.
The Association has no community property nor facilities of any kind. Its only expenses are occasional mailings, charges for grass cutting of public ditches abutting the subdivision, and electricity charges for some public street lights the power company runs but charges the cost to the Association. There are ~50 members. Talking with ex-treasurers of the Association there are in total for an entire year, 120 bookkeeping entries, with ~50 of those being membership assessment billings and collections, leaving around 70, or ~6 per month.
With multiple resignations, not fully communicating the second, and staying for accounting that is very simple, I am wondering if that management company is violating its accredited code of ethics, specifically the three listed below:
The management company's accredited ethics and why I think they were violated:
"3. Act in the best interests of the Client; refrain from making inaccurate or misleading
representations or statements; not knowingly misrepresent facts to benefit the Manager."
I think resigning multiple times in less than six months, not directly communicating the second resignation, and then taking a simple accounting job for any payment much less the rumored $400 a month charge to enter 6 transactions a month, violates #3.
"4. Undertake only those engagements that the Manager can reasonably expect to perform with
professional competence. "
I do not think resigning twice in six months and then remaining a third time in lesser capacity are acts of professional competency.
"8. Ensure that Client homeowners receive timely communication and response as required by state
statutes or legal documents and protect their right of appeal."
While perhaps not a state law, I think not directly informing the homeowners about the second resignation violates the heart of #8.
Small Texas POA that is ~40 years old and was always self managed until March of this year when a management company started working for this Association. That management company is accredited by the Community Associations Institute.
On June 1st, 3 months after starting, the management company resigned. The management company sent an email to all members. It read: "It is with deep regret that XXXXXX is submitting our resignation effective July 1, 2022. We have been unable to be effective in helping the board resolve any of the issues that was discussed when our contract was signed March 1,22. We wish you much success in the future endeavors of XXXXXXXXXXX and will make this a smooth transition back to the board."
Two Board members also resigned at the same time. Behinds the scenes the rumor was that the Board bombarded the management company with silly question after silly question and the management was having to waste too much time. One of the remaining board members begged the management company to stay, and before the July 1st resignation date, that Board person sent out an email stating the management company has agreed to stay.
At the last Board meeting, held in mid August 2022, it was announced the management company had resigned again, effective September 30th/October 1st. Unlike the first resignation, neither the Board nor Management Company has sent out any announcement directly to the membership.
Current rumor is that the management company has been talked into staying for just an accounting function.
The Association has no community property nor facilities of any kind. Its only expenses are occasional mailings, charges for grass cutting of public ditches abutting the subdivision, and electricity charges for some public street lights the power company runs but charges the cost to the Association. There are ~50 members. Talking with ex-treasurers of the Association there are in total for an entire year, 120 bookkeeping entries, with ~50 of those being membership assessment billings and collections, leaving around 70, or ~6 per month.
With multiple resignations, not fully communicating the second, and staying for accounting that is very simple, I am wondering if that management company is violating its accredited code of ethics, specifically the three listed below:
The management company's accredited ethics and why I think they were violated:
"3. Act in the best interests of the Client; refrain from making inaccurate or misleading
representations or statements; not knowingly misrepresent facts to benefit the Manager."
I think resigning multiple times in less than six months, not directly communicating the second resignation, and then taking a simple accounting job for any payment much less the rumored $400 a month charge to enter 6 transactions a month, violates #3.
"4. Undertake only those engagements that the Manager can reasonably expect to perform with
professional competence. "
I do not think resigning twice in six months and then remaining a third time in lesser capacity are acts of professional competency.
"8. Ensure that Client homeowners receive timely communication and response as required by state
statutes or legal documents and protect their right of appeal."
While perhaps not a state law, I think not directly informing the homeowners about the second resignation violates the heart of #8.