Management

Started by RonniE • 21 replies • 1378 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

RonniE (California)
Posts: 9

Posted:

I have been an HOA member since 2004. Management has no board of directors and has not held a meeting since I purchased my condo. In 2009, management requested a $50.00 monthly increase in dues. Dues are now $175.00 per month for 8 units located in CA. Ballots sent by mail and the increase was approved by 4 votes according to ********** Realty Services(management).

Letter from CPA September 12, 2008:

We have complied the accompanying balance sheets of ******* Townhouse Homowners' Association Phase C as of December 31, 2007 and 2006.

A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and,accordingly, do not express an opinion or any other form of assurance on them.

Management has elected to omit substantially all of the disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the HOA's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

The American Institute of CPA's has determined that supplementary information about future major repairs and replacements of common property is required to supplement but not required to be a part of the basic financial statements. The HOA has not presented this supplementary information.

Help. Am I in trouble because the management company is not in compliance?

JosephW (Michigan)
Posts: 882

Posted:

It's not the management company that's not in compliance, but your association, and yes, it sounds like you have some problems. First, management cannot really function without a board of directors. If you can't elect one, a court-appointed receiver should be appointed (expensive) to make the decisions that management, as either your agent, or as an independent contractor, can't make regarding association matters. It sounds like management is only doing the basics necessary to keep your association alive, and I doubt they had the authority to raise the assesment or even adopt a budget.

It's time to go door-to-door and set up a general meeting to elect a board and re-gain control of the association. Two good sites to find out about meetings and other CA issues are:

www.californiacondoguru.com

www.davis-stirling.com

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal

SusanW1 (Michigan)
Posts: 5,202

Posted:

How did an assessment increase pass by 50%? (4 out of 8)

Your HOA is very small. A compilation is bare bones info.
That basically is what that CPA report is saying.

RonniE (California)
Posts: 9

Posted:

Thanks for your response, Sam.

When I purchased this condo, there was no "association." I failed to do my homework about HOA's. Also, the occupants are mostly renters so I must find another way to locate owners.

I visited one of the sites you kindly recommended. Mind-boggling, Sam! If one can't afford legal expertise, it's certainly a challenge to me to maneuver through
HOA rules and regulations. I know, Sam, "begin with the owners."

Thanks, for your response.

RonniE (California)
Posts: 9

Posted:

"Say it ain't so, Joe!"

Sorry about my use of "Sam" instead of "Joseph." Now you can better understand my confusion.

Ronni

RonniE (California)
Posts: 9

Posted:

Susan,

According to letter from management:
"I cannot stress enough the importance of your returning this propsal regarding an increase in the monthly fees starting in January 2009. The choice that receives the most votes will be the one used for the Association fees next year. Your C.C. & R.s reauire at least 5 of the 8 members to respond on any item proposed. Please do not leave it up to someone else to make this work."

6 owners submitted votes. 4 yea 2 nay. It's my understanding that 3 units are owned by one person if that makes any difference. What does C.C.& R mean?

Thanks, Susan

MicheleD (Kentucky)
Posts: 4,491

Posted:

CC&R generally means your governing documents in regards to deed restrictions:

Deed Conditions, Covenants, and Restrictions.

DwightT (Idaho)
Posts: 664

Posted:

Quote:

Posted By RonniE on 02/03/2009 7:50 PM
Susan,

6 owners submitted votes. 4 yea 2 nay. It's my understanding that 3 units are owned by one person if that makes any difference. What does C.C.& R mean?
Thanks, Susan

RE: 3 units owned by one person - yes, it does make a difference. It means that person has 3 votes. So it sounds like while there are 8 units, there are only 6 owners, so you had 100% voter participation. How did that one person vote? He can probably determine the outcome of just about any election.

CC&Rs are your "Codes, Covenants, and Restrictions". There are essentially the "contract" for behavior that all homeowners in a deed-restricted community agree to live by.

GeorgerwilliamsW (Indiana)
Posts: 975

Posted:

This is why it is not a good idea to use abbreviations:

Also,

"POA is Power of Attorney"
"POA is Property Owners Associaton"

MicheleD (Kentucky)
Posts: 4,491

Posted:

Quote:

Posted By GeorgerwilliamsW on 02/04/2009 6:50 AM
This is why it is not a good idea to use abbreviations:

Also,

"POA is Power of Attorney"
"POA is Property Owners Associaton"

And your point being???

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By RonniE on 02/03/2009 2:47 PM
I have been an HOA member since 2004. Management has no board of directors and has not held a meeting since I purchased my condo. In 2009, management requested a $50.00 monthly increase in dues. Dues are now $175.00 per month for 8 units located in CA. Ballots sent by mail and the increase was approved by 4 votes according to ****** Realty Services(management).

Letter from CPA September 12, 2008:

We have complied the accompanying balance sheets of ******* Townhouse Homowners' Association Phase C as of December 31, 2007 and 2006.

A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and,accordingly, do not express an opinion or any other form of assurance on them.

Management has elected to omit substantially all of the disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the HOA's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

The American Institute of CPA's has determined that supplementary information about future major repairs and replacements of common property is required to supplement but not required to be a part of the basic financial statements. The HOA has not presented this supplementary information.

Help. Am I in trouble because the management company is not in compliance?

Roni,

First of all, the letter accompanying the compilation is standard verbiage in all compilation letters. That is, except for the last sentence: "The HOA has not presented this supplementary information." IMO, this means the assn does not have a reserve study. I would think if they had one the CPA would have asked to see it and that last sentence would not have been added. This does NOT mean you, or any other member of the assn is in "trouble". However, it does mean the assn should take steps to correct this insufficiency. If the cause is a lack of a reserve study then one needs to be accomplished now. If it's something else, then that "something else" needs to be taken care of.

Secondly, management does not have to have a board of directors, the assn does. Are you saying there are no members of the assn serving on a board of directors? Who is conducting the business of the assn? If there is a PM (management) they must be directed by someone, usually a board of directors. Are you saying the members have not had a meeting in 4 years, even to elect a BOD? This is very confusing; perhaps you can shed more light.

RonniE (California)
Posts: 9

Posted:

Hi Mary,

I'll try to shed some light for you....

As an owner since 2004, no meetings have been held. There are no members serving on the board of directors. Obviously, we have no board existing. The PM is conducting all business. Confusing? YES! Obviously, a phantom HOA.

I must do something because the PM has all the power. I have not met this manager nor will he return my calls. How do I find the names of property owners? Of the eight units, 5 are rented.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Quote:

Posted By RonniE on 02/04/2009 5:23 PM

Hi Mary,

I'll try to shed some light for you....

As an owner since 2004, no meetings have been held. There are no members serving on the board of directors. Obviously, we have no board existing. The PM is conducting all business. Confusing? YES! Obviously, a phantom HOA.

I must do something because the PM has all the power. I have not met this manager nor will he return my calls. How do I find the names of property owners? Of the eight units, 5 are rented.

What entity, then, is "approving" the Project Management contract and payments?

WHO is in charge of the bank account?

Very odd.

NancyL4 (California)
Posts: 60

Posted:

RonnieE

I have attached a document that shows all the items you should receive every year from your association. You have a right to the membership list of the names and addresses of the property owners. I use the checklist to make sure we get all the required items to our members.

📎 Attachments (1):

⏸ Downloads temporarily unavailable

📄12412573271.pdf(43 KB)

RonniE (California)
Posts: 9

Posted:

********* Realty Service (PM) is in charge of everthing.

RonniE (California)
Posts: 9

Posted:

Hi Dwight,

That "one person", I'm assuming, voted for the increase. The names of the voters and how they voted not given. Is it my right to have that info?

MicheleD (Kentucky)
Posts: 4,491

Posted:

Ronnie, that still doesn't really answer the question.

Who hired the company?

Who approved their contract?

Who pays their checks?

It's not making any sense at all.

A company can't just come in and say, "We run your HOA."

NancyL4 (California)
Posts: 60

Posted:

RonniE

You have a right to inspect the ballots, but the ballots will not have the names of the owners. Everything that gets voted on by the members has to be by secret written ballot.

RonniE (California)
Posts: 9

Posted:

Thank you, Nancy. I will request this info from the property manager because The Association does not seem to exist.

RonniE (California)
Posts: 9

Posted:

Michele,

I do not have answers to your questions. I will try to get this info from the PM as soon as possible.

Ronni

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Ronnie,
How are you listed at your County Courthouse. Who is registered Agent, should have name and telephone # and/or address. How is this PM co listed at the Courthouse?. etc.
Someone is doing business, the state or county or city would know that. Check with BBB. It would appear, as posted above, there has to be an official record somewhere and the Courthouse is a good place to start.

MaryA1 (Arizona)
Posts: 7,043

Posted:

RonniE,

If your Co. Recorder has a website, you should be able to access tax records of all the properties in your assn. Here's what I did to find this info in my s/d. Every property has a parcel number, i.e. 123-45-678 -- the last three digits being the lot number. All I had to do was change the last three digits to find out my neighbor's name, i.e. if my last three digits are "578", perhaps my neighbor's is "579". This worked for me, but of course it will depend upon whether or not any part of your parcel number is your lot number. While you're on the website you may also be able to look up copies of your CCRs. In the search area there should be a section that tells you what type documents are recorded and the document code. Type in the name of your HOA, then look for documents with the appropriate document code for HOA properties. If I search my co. recorders website, I look for the document code "prop rstr" which means "property restrictions for condo/subdiv". Of course, yours may be different. You can always give them a call for info on how you can find a copy of the CCRs.

Since your are in CA, you should be aware of the Davis-Stirling Act which regulates HOAs. I believe it may be a requirement of the BOD to provide you with any records of the assn. I would ask the manager to see a copy of her contract and also ask for copies of the financial statements. But, first I would flat out ask her who she was hired by if there is no BOD.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here