Everything's Out of Date!!!

All,

I've been reading a lot of the back messages, but I can't seem to find a situation like mine.

I live in Colorado Springs, Colorado, in a small Townhome subdivision. Turnover from the developer was way back in 1984, so that's not an issue. We only have 19 units, and they're in surprisingly good shape (knock on wood).

I've been the Property Manager (paid by the Association at $6 per unit per month) to do the bookkeeping, receive the dues, and manage the maintenance contracts (lawn, snow, sprinklers, etc). We don't have a community building, pool, streets, or anything like that. Not only am I the Property Manager, but I've also served as the Chair of the Board of Directors for the last few years. Can you say conflict of interest? No one is concered about the conflict but me.

Since I've finally found my footing on the basics, I'm investigating much of our corporate documents, etc. I just filed the first (required) Annual Report with our Secretary of State since 1988 (yes, twenty years between filings). Our Corporation (non-profit) was dissolved by the state years ago, but we've always paid our federal taxes. Our By-Laws, CC&R, etc haven't been updated/amended since 1988. We don't follow our own by-laws (ex - we operate with three directors, when our by-laws were amended in 1988 to operate with four - who knows why an even number???), we need to add some amendments, and we've never activated our required nominating committee (we vote by the "who wants to do it - raise your hand" method). Also, we're required by our documents to have a Board meeting every month, but we only meet yearly. Because we use proxies, we've never had a problem getting a quorum, but we do have problems finding officers/directors.

Let me point out that we're a VERY casual association. We're about 50/50 investor/owner occupied. As far as I know, no one cares if someone puts up a flagpole, we don't care what color your curtains are, etc. About the only thing we concern ourselves with are trees in the backyards (which can hurt the roofing/gutters) and non-licensed vehicles.

Oh, when we were built, each unit had a two car car-port, but sometime in the last 25 years, they were converted to garages. Documents were NOT updated...who's responsible for the garages?

So, our association is completely out of compliance with CCIOA, SB 100, and SB 89, not to mention SB 1359 (?) which was/will be signed soon (all Colorado statutes/laws). I am not an insurance agent, and our documents require our Board to assess the insurance policy yearly...

WHERE DO I BEGIN? We've never had a financial audit, never had a reserve study, need to amend all our documentation, etc???

I've started looking at engineering firms for the reserve study, and I've started contacting law firms that specialize in HOA... Should I look for an accounting firm for the audit? What about taxes?

How on earth does a layperson learn all this??????????

Thanks for listening/reading, and if you have any advice, or can just commiserate with my messiness, I'd love to hear it!

Tracie

"Let me point out that we're a VERY casual association."

Ya think!!!!!!!!

Tracie, how is it to be Queen of your own country?

I'll let the best of the best here guide you.

I know we're casual, and yes, I'm the queen of my own city block! Really, I'm a trustworthy person, so the association isn't getting ripped off, although I easily could. I'm the check signer and the bank balancer, too.

As far as the other members of the BOD...they're not involved at all. I coerce people into holding board positions (because we must have a board), but basically I promise that they don't have to do anything, and they don't do anything. I know, I know...

Maybe a bit of background... The units were built in 1983, developer turnover in 1984. My hubby and I bought our unit in 2002. For a while, we paid our dues, and just moved on with life, but we started to get concerned about the association/property manager at the time in about 2004.

I went to the meeting, got myself on the board, next year became PM and chair of the BOD. For a year or two, I just paid bills and negotiated contracts. When the old property manager and I went to the bank in 2006 to FINALLY get the bank statements sent to me, we realized the State had administratively dissolved us. There weren't any fines or anything, so I contacted a general lawyer to find the statute we were under when we were dissolved.

That's when I started looking further. Found out about the annual report, so I did that. We've been filing our taxes every year, so at least we don't have to worry about back taxes and the owners have paid dues every month. Now, that I look at it, I'm completely overwhelmed by all the legal stuff! It's a HUGE job, and I'm so under prepared for it.

We're not in any "trouble" except for a BIG PILE OF TROUBLE that could come along in the future. If we don't do what we say we're going to do (follow our corporate paperwork), then I think we're very open to litigation.

YES....I'm the ONLY ONE who REALLY cares about this! Our yearly meeting is at the end of next month (a full 6 months after the close of our fiscal year), so I really need to hammer home to the attendees (members/owners) that things must change!!!

Thanks for thinking of me, and while amusing (I laugh and shake my head constantly), I do need some serious help.

It's hard for me to separate the issues that I'm facing, so any advice/suggestions/starting points are greatly appreciated!

By the way...those of you who are PM...HOW did you learn everything you needed to learn!??? Are there courses?

Thanks!

Tracie

Thanks, RobertR1, I really appreciate the honesty and bluntness. I'm a straight-shooter myself, so blunt is GREAT! I also appreciate the little compliment that I'm the only one showing a bit of sense. Sometimes, I feel like I'm taking crazy pills because no one else cares!

Yes, I am being used, but if I don't take care of our (my!) property value, who will?? Not really a question, more exasperation at the situation I find myself in.

Yes, I am being jeopardized personally, and I know this to be true because our BOD insurance policy does NOT cover me in my duties as Property Manager, but it does cover me in my duties as President/Chair of the BOD. This is HIGH on my list of priorities.

I appreciate the three bullet points...those are definitely my three biggest concerns, and I can't believe I couldn't articulate them earlier. I'm very overwhelmed, I guess.

I've got the names of two law firms that specialize in HOA law, and I think I'll contact them.

I appreciate it! Thanks, all!

T

Ann,

Yes, BIG MESS!! Everytime I come back here and read anyone else's post, I realize AGAIN just how big of a mess this is.

Assistance would be greatly appreciated! I know our Board wouldn't go with a management company. They investigated a few years ago, and our dues would have to double. The dues would actually probably have to double anyway because we need to fund a reserve account... I don't understand short-sightedness, although I am guilty of it myself on occasion.

I would love to take you up your offer of assistance. I have an email - [email protected]. I'm also willing to pay whatever is necessary. I'm starting to take a firm hand to the association - they need to wake up and understand the cost of doing business, or go through the procedure to dissolve the association (they'll never do it).

I also appreciate the suggestion of a local person. The firms I have found are both in Denver.

I really look forward to hearing from you.

T

Thanks, Ann! We do have insurance, both a "business owner's" policy, and a BOD liability policy.

I've got the CCIOA requirements for insurance and I'm going through our policy to see what's not covered. I'm going to contact our insurance agency (who I've never met and who just sends me a renewal every year), and I'm also going to solicit bids for identical policy coverage. Our insurance goes up almost 10% every year, and we haven't had a claim in almost 10 years!!!!

I look forward to hearing from you, and if there's any other comments about my abysmal situation, bring 'em on, I can handle them!

Thanks!
T

If you have over $100K in funds move some to different banks. different accounts do not cover you in the same bank for FDIC if the bank fails. If you have a large amoutn in reserves I woudl recommend you contact Gene West at RBC Dain Rauscher in Denver he deals only with HOA accounts and is fabulous with them and not only can get you MM and CD anywhere with the best rates you are in FDIC insured institutions but also insured through RBC Dain Rauscher as well. Just tell him Ann said to call he will know.