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| Wednesday, January 07, 2009
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| IHG Insurance (National Insurance Provider) |
| Providing Community Association Insurance for over 25 years: D&O Liability, Crime Products, Umbrella Coverage and Property Manager's Errors & Omissions Liability. |
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| Author |
Messages |
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TomJ
(Arizona)
Posts:42
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| 05/10/2006 11:47 AM |
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For all HOAs that charge a late fee for late assessment payments, who(or whom I can never get that correct) gets this fee, Management Company or HOA?
Our builder gave ours to the Management Company and the Management Company said that was normal. I contaced other HOAs and an attorney and found out it was not so we changed it.
Also how should money that the homeowner pays get back into the HOA funds. For example, we have a fund for CC&R compliance. In that fund they are funds for attorney fees. When a homeowner has to pay attorney fees because of a legal problem such as forclosure, where should the homeowner fees for attorney go? We went around and around about the funds for gate remotes and never got a satisfactory answer. We purchase gate remotes to sell to homeowners at a profit then I have never found where the money the homeowner pays goes but every year we have a budget item for gate remotes.
I have asked our Management Company and they are using smoke and mirrors to explain the procedure. But all audits have been OK but so was Enron's. |
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KevinH
(Texas)
Posts:53
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| 05/10/2006 12:04 PM |
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Has the board considered other Management companies?
At least get some quotes, so that if you decide to change (for whatever final reason you decide on), you'll have an estimate. Look around your area and see which ones other HOAs use and have confidence in.
When I start to feel the management company is not be honest and upfront, big warning flags appear. It happened to us and as a board, we decided to change our MC. It was a good choice, we have since found one for far less cost and better service.
Unless you feel there is still something to salvage with that business relationship, I'd say start looking elsewhere. |
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If you cannot see the forest for the trees, back up and get a better view. Don't start to clear a path while still blind. |
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RogerB
(Colorado)
Posts:3724
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| 05/10/2006 1:06 PM |
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Tom, the answers depend on the Agreement the HOA has with the MC. These problems would not occur if your Board had developed a sound Agreement. Late charges should be paid to the HOA and the MC can charge the HOA a collection fee if it is in the Agreement. With GAAP all funds must be listed in accounting reports which the Board should require monthly. If the MC reports do not identify funds this is a RED FLAG and I would change MC.
And it looks like you are wasting money using this auditor. I have seen so called audit that are meaningless. In fact one company's audit was simply a reproduction of the MC's yearly Income Statement. That statement was wrong. A tax accountant used the same yearly Income Statement and filed an erroneous report showing no interest income. |
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Roger Borcherding
Official HOATalk.com Sponsor
DARCO Property Management (Colorado)
(303) 925-0150 
*See legal notice below (end of page) or go to www.hoatalk.com/legal |
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TomJ
(Arizona)
Posts:42
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| 05/10/2006 8:58 PM |
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I agree with you on changing the MC but none of the other board members want to. The president did not because the MC rep gave him business at her other HOAs since he is an electircal contractor. His term is up in a couple of months so we will see about that.
Arizona law requires an annual audit or at least a review by an auditor so we are locked into that.
Another thing, our CC&Rs require an interest payment on all over due assessments and the MC flatly refuses to charge it. The representative words to me were "It isn't going to happen" but had no reply when I asked why she wasn't enforcing all CC&Rs. She is now gone so I will address it again. |
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JulieS
(Georgia)
Posts:412
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| 05/11/2006 7:45 AM |
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| Our covenants set a specified percentage to be charged 10 days after the assessment is due as a late fee. Our MC charges $10 a month to the delinquent account and it is paid to them per their contract. |
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