HOA’s Harm “I HAD NO IDEA”
What Buyers/Owners Are Not Told
First, it is important to note what new owners ARE told. New owners are usually given a copy the CC&R’s (from RE agent). BUT, beyond that it gets dicey. Some owners get the following and some do not - Copy of Association Rules, Regulations and Fines Information on HOA website and/or FB site If they’re told about the Admin. Office, they have more access to information Copy of association newsletter or magazine Some HOA’s have an “Owner’s Manual” and/or a welcoming-group. The one we lived at had both back in the early-to-mid 2000’s. They only lasted for a few years, then died out. A Sampling of Things New Owners Were NOT Told Financial Issues - *Accounting practices not standardized until 2014 *Assn. financial health falsified prior to 2014 - “in good shape” *Contracting practices unethical prior to 2015; maybe still? *Full audits NEVER done; only “reviews” *Independent reserve studies not done until 2014 *Reserves dipped to 19% by 2019 *Golf Ops. lost an average of $500,000 per year since 2001 *Receivership, late 1980’s Board *Trainings NEVER done prior to 2015 *Proper Long-Term (Strategic)Planning NEVER done *Tends to disregard/dismiss practical, valid member input *Ignored several member surveys; even one professional *Meetings are minimally accessible to working members, e.g., no video, no Saturdays, no detailed minutes. *Directors often overwhelmed; minimal clerical support *Often used legal counsel to render legal intrepretations disadvantageous to members *14 Directors resigned or recalled 2014-19 Committees *Serve “at the pleasure of the Board” *History of Committee recommendations selectively ignored *Lake De-Siltation NEVER done in 50+ life-of-lake due to Board obfuscations Dues *Have not increased commensurate with assn. needs *Multiple irregularities in collections since the early 1990’s; NEVER fully audited! Golf Ops. *Two professional consults in 2015 - BUT, recommendations mostly ignored *NO “Business Plan” EVER developed - per consultants *Annual losses of $500K covered by ALL owner dues since 2001 Rentals *Represent about 15% of properties *Uncontrolled (number, location, condition) *24 BnB’s Environmental Control *Never done evenly, consistently, effectively *Many properties out-of-compliance for years Amenity/Service Development *Recreation Plan of 2012 only 15% implemented *Senior/Disabled largely ignored *Development of new amenities/services neglected; esp. for Families w/kids *RV parking plan NEVER implemented *Welcome Services once existed *Board-Member communication chronically POOR *Website still NOT User-Friendly despite outside help *Assn. magazine “promotional”; representative of only small sub-group of members (5-10%) *Existing Non-Golf amenities consistently neglected; one to the point of being condemned Misanagement *First professional GM hired 1992 *14 GM’s since 1992 *10 Food/Bev. Managers since 2002 *No “Standards” for accounting, personnel or management until 2015-16 *Fire/Flood protection plans are still not adequately developed *IT System deemed antiquated & dysfunctional - 2015 Corruption
HOA’s Harm “I HAD NO IDEA”
What Buyers/Owners Are Not Told
First, it is important to note what new owners ARE told. New owners are usually given a copy the CC&R’s (from RE agent). BUT, beyond that it gets dicey. Some owners get the following and some do not - Copy of Association Rules, Regulations and Fines Information on HOA website and/or FB site If they’re told about the Admin. Office, they have more access to information Copy of association newsletter or magazine Some HOA’s have an “Owner’s Manual” and/or a welcoming-group. The one we lived at had both back in the early-to-mid 2000’s. They only lasted for a few years, then died out. A Sampling of Things New Owners Were NOT Told Financial Issues - *Accounting practices not standardized until 2014 *Assn. financial health falsified prior to 2014 - “in good shape” *Contracting practices unethical prior to 2015; maybe still? *Full audits NEVER done; only “reviews” *Independent reserve studies not done until 2014 *Reserves dipped to 19% by 2019 *Golf Ops. lost an average of $500,000 per year since 2001 *Receivership, late 1980’s Board *Trainings NEVER done prior to 2015 *Proper Long-Term (Strategic)Planning NEVER done *Tends to disregard/dismiss practical, valid member input *Ignored several member surveys; even one professional *Meetings are minimally accessible to working members, e.g., no video, no Saturdays, no detailed minutes. *Directors often overwhelmed; minimal clerical support *Often used legal counsel to render legal intrepretations disadvantageous to members *14 Directors resigned or recalled 2014-19 Committees *Serve “at the pleasure of the Board” *History of Committee recommendations selectively ignored *Lake De-Siltation NEVER done in 50+ life-of-lake due to Board obfuscations Dues *Have not increased commensurate with assn. needs *Multiple irregularities in collections since the early 1990’s; NEVER fully audited! Golf Ops. *Two professional consults in 2015 - BUT, recommendations mostly ignored *NO “Business Plan” EVER developed - per consultants *Annual losses of $500K covered by ALL owner dues since 2001 Rentals *Represent about 15% of properties *Uncontrolled (number, location, condition) *24 BnB’s Environmental Control *Never done evenly, consistently, effectively *Many properties out-of-compliance for years Amenity/Service Development *Recreation Plan of 2012 only 15% implemented *Senior/Disabled largely ignored *Development of new amenities/services neglected; esp. for Families w/kids *RV parking plan NEVER implemented *Welcome Services once existed *Board-Member communication chronically POOR *Website still NOT User-Friendly despite outside help *Assn. magazine “promotional”; representative of only small sub-group of members (5-10%) *Existing Non-Golf amenities consistently neglected; one to the point of being condemned Misanagement *First professional GM hired 1992 *14 GM’s since 1992 *10 Food/Bev. Managers since 2002 *No “Standards” for accounting, personnel or management until 2015-16 *Fire/Flood protection plans are still not adequately developed *IT System deemed antiquated & dysfunctional - 2015 Corruption *Election fraud - documented by Committee Reviews *Fiscal condition falsified for 20 years - “good shape” *Bullying/mobbing used to maintain status quo *Contracting fraud *Forensic audit of delinquent accounts “advised” by consultant NEVER done *Theft - cash, equipment, credit card abuse *Perpetrators of past problems still involved & highly influential in governance *Past problems still being concealed from members If you were considering purchase of a home in an HOA, wouldn’t you want to know about such things in order to make an informed decision?