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 magazineSome 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 ToldFinancial 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’sBoard – *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 2014-19Committees – *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 obfuscationsDues – *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 2001Rentals – *Represent about 15% of properties *Uncontrolled (number, location, condition) *24 BnB’sEnvironmental Control – *Never done evenly, consistently, effectively *Many properties out-of-compliance for yearsAmenity/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 condemnedMisanagement – *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 - 2015Corruption – *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 membersIf 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?
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 magazineSome 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 ToldFinancial 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’sBoard – *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 2014-19Committees – *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 obfuscationsDues – *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 2001Rentals – *Represent about 15% of properties *Uncontrolled (number, location, condition) *24 BnB’sEnvironmental Control – *Never done evenly, consistently, effectively *Many properties out-of-compliance for yearsAmenity/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 condemnedMisanagement – *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 - 2015Corruption – *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 membersIf 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?