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Subject: HOA not providing financial documents.
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AnyaR
(Georgia)

Posts:14


10/16/2020 1:16 PM  
I need advice about my HOA in 15 years our HOA has never given us “homeowners” a bank statement or even have “balance sheets” which is required by law.

“Under Georgia Code Section 14-3-1602; and financial statements furnished for the past three years under Code Section 14-3-1620;”

I have repeatedly send emails requesting for three years of financial documents. He has not done anything besides bullying homeowners “building number two and three” by calling us stupid and delusional is there anything that I can do? The financial sheet that he prints out that he makes himself does not add up it seems like there’s a lot of money missing.
We have three condo buildings with 7 to 8 units in each building, building number one is very active with HOA the “HOA which is the manager plus a treasure holder” gets a month ahead votes before the meeting from everybody from building number one so by the time the meeting comes he already knows what is going to be, he is very friendly with them by goes and drinks with them & dose a lot of socializing. Building number two and three are not active with the HOA they just go along from what building number one does.
ChrisE8
(New York)

Posts:134


10/16/2020 2:31 PM  
I'm having the same issue with a HOA where I own a rental property (for now).

Step 1: send a formal letter demanding the financial documents that your HOA governing documents allow you to have. (Your bylaws and maybe CC&Rs should specify this.)

If the HOA doesn't respond, then:

Step 2: you can file a lawsuit for breach of contract.

However, it's easier to just replace the board.

Your state MIGHT have an ombudsman who can step in, or a state office where you can file a complaint--maybe.
JohnC46
(South Carolina)

Posts:10017


10/16/2020 3:04 PM  
Anya

Typically a "open ended" request like 3 years of financial docs will get ignored as a "witch hunt". I suggest you ask for something specific such as a P&L Statement, Year End Summary, etc. You are more likely to get them.

As an example, our monthly financial docs are over 30 pages long and contain information that is none of your business.
AnyaR
(Georgia)

Posts:14


10/16/2020 3:28 PM  
OK I will ask him for a yearly statement since he does not provide monthly statement at all. I feel like it is my business as a homeowner if I’m paying HOA $1,600 a year, I would like to know how our money being spent the property has not been maintain, homeowners ceilings are being damaged from the roof & the only thing has been maintain is landscaping which we do not even have grass. HOA has homeowner a elderly lady to volunteer to put flowers in the front of the community. Thank you for the advice.
AnyaR
(Georgia)

Posts:14


10/16/2020 3:31 PM  
HOA has provided two months at one time and that was half of a page or less so why is it 30 pages?
JohnC46
(South Carolina)

Posts:10017


10/16/2020 4:03 PM  
Posted By AnyaR on 10/16/2020 3:31 PM
HOA has provided two months at one time and that was half of a page or less so why is it 30 pages?



It shows every penny taken in and when, plus every penny spent when and on what.
AnyaR
(Georgia)

Posts:14


10/16/2020 4:21 PM  
The bank statement shows all of that as well just in one page & that’s two months. I’m guessing you live in bigger community, we only have 3 buildings with 23 units.
GenoS
(Florida)

Posts:4133


10/17/2020 11:38 AM  
I would like to be a treasure holder some day.
JohnC46
(South Carolina)

Posts:10017


10/17/2020 11:49 AM  
We are 112 standalone patio homes with a budget of about $90K. The reports are from our MC who handles all our money. I believe they use an industry standard reporting program but I cannot remember the name. Hence the 30 page monthly reports.
ChrisE8
(New York)

Posts:134


10/17/2020 12:14 PM  
I haven't seen HOAs provide anything to owners generally other than annual financial reports, which don't necessarily give a lot of detail. I've seen board members, but nobody else, get monthly reports.
TimB4
(Virginia)

Posts:17008


10/17/2020 12:24 PM  
Hi Anya,

Typically, you have a right to review the financials (minus lot payment for lots other then your own).
You typically do not have a right to have copies provided to you.

My suggestion, send a written, certified, request to review the financials.
Cite applicable sections of the governing documents and applicable sections of statutes.
A day or two later, send a copy to every board member.

This provides documentation that you properly submitted a request if things have to go further.


Per Article/Section of the Bylaws and Article/Section of [statute]. I am requesting to review the financials of the Association.
I would specifically like to review the following: Bank Statements, check register, etc.
CathyA3
(Ohio)

Posts:1316


10/17/2020 12:37 PM  
Our monthly reports were also around a dozen pages, and included:

* the statement from the bank all activity in the operating account (several pages)
* statements from the two banks holding the reserve accounts (a few pages because there is less activity)
* balance sheet
* budget comparison report (shows yearly and monthly spending totals in all budget line items)
* aging report (late payments and delinquencies, a couple pages)

We uploaded the balance sheet and budget comparison reports to the association website each month.

The annual budget narrative for the coming year (spreadsheet and pie chart) were also uploaded in December.


A smaller community would have fewer pages just because there would typically be less activity in most categories. However, the accounting activities required and variety of reports will be pretty much the same: reconciling bank statements, reviewing the aging report to support collection activities, and monitoring the year's spending.
JohnC46
(South Carolina)

Posts:10017


10/17/2020 1:46 PM  
Now you made me look. Our Monthly Financial is over 40 pages long:

1 page Balance Sheet
3 page Income Statement, Income and Payments compared to Budget.
2 page Delinquency Report, Name and Amounts (withheld from all except BOD Members)
17 page Income Ledger, Owner Name and Amount Paid
7 page Aging Applied
3 page Bank Reconciliation

All above sent Monthly to each BOD Member.

All above except Delinquency Report will be sent, within 24 hours, to any owner requesting such. We kill them with paperwork......LOL

Typically what owners want is Balance Sheet and Income Statement, 4 pages. This is what is handed out and openly discussed at our Annual Meeting.
AnyaR
(Georgia)

Posts:14


10/17/2020 8:19 PM  
Wow we don’t get any of that & that’s way this was my concern especially after I have done my research on what is expected here in Georgia to homeowners. Thank you everybody for your feedback I feel like our HOA doesn’t know how to run business, amazing advice.
SueW6
(Michigan)

Posts:769


10/18/2020 5:11 AM  
Anya

You sound like a very small HOA. Was there an annual budget passed by the board? That would explain where your money is planned to go throughout the year. If there is no plan for “ landscaping services” then no wonder that does not get done and must rely on Volunteers to plant flowers.

There should be no building A, building B, and building C. It is all one plan.

Start with your budget first.
AnyaR
(Georgia)

Posts:14


10/18/2020 6:28 AM  
No we do not have building A, B or C no numbers or letters on the buildings we do have annual budget but it does not have any details just some thing that HOA prints out it only says 9,000 for landscaping and that’s all.
MelissaP1
(Alabama)

Posts:9649


10/18/2020 7:52 AM  
Is the HOA owner owned or is the developer still the owner?

Former HOA President
SueW6
(Michigan)

Posts:769


10/18/2020 8:54 AM  
You can ask your treasurer for a breakout of expenses that lists all of your landscaping costs. The treasurer should be able to tell you how much of the $9000 has been spent so far this year. I suspect a lot of it is just in mowing costs.

So what is it that you want to see happen with this landscape budget?

In your very first posting you talked about buildings 1, 2 and three. What I tried to tell you was that there is no division in the welfare of all three buildings. It is one plan and should be considered is one effort. If the residents in building one are talking to each other a lot, it’s no wonder that they vote the same. Maybe you need to start doing that in your building.
AnyaR
(Georgia)

Posts:14


10/18/2020 11:55 AM  
HOA “is one person” he is the owner, the president and treasurer. I am thinking I might get a company to come and give me estimate on landscaping because we do not have grass in the front we only have mulch in the front that gets added on every 3 years, in the back small section of grass only behind building 2 the rest is concrete. Now the other thing I noticed we’re paying $11,000 to the insurance know our home association only covers the roof, break of the building and landscaping but on the insurance is states clearly that they cover a lot more including robbery of jewelry and other belongings it’s very detailed on so much they cover that’s not in covenants documents. The roof Has only been replace on building number 1 which where the HOA leaves at, building number 2 and 3 have not had replacement of the roof since the buildings were built in 15 years there are homeowners ceilings falling apart from the roof not being maintain just about a month ago 79 year old lady in building number three her ceiling fell through, he did come personally and repair her ceiling. The HOA told us that he’s going to put the coding over the roof and start saving money up by raising are dues & be replacing it another 10 years.
GeorgeS21
(Florida)

Posts:3279


10/18/2020 1:54 PM  
Anya,

Not sure about the HOA being one person - can you provide more detail? How can an HOA be a person? It is usually constructed as a not for profit corporation.

I'm not following a lot of the other, either.
MelissaP1
(Alabama)

Posts:9649


10/18/2020 1:59 PM  
That is why I asked if they were still owned by the Developer. It sounds like it in the posts. Could be wrong but if they are still not owner owned, then it explains not being able to see the financials. Like Tim said, VIEW is different than being provided copies. You may have to pay for copies.

Former HOA President
AnyaR
(Georgia)

Posts:14


10/18/2020 2:00 PM  
OK the man that runs are HOA and applies for a business license of HOA he is President, treasurer and then his business license it says his CEO and CFO.
GeorgeS21
(Florida)

Posts:3279


10/18/2020 2:03 PM  
Anya,

Not making sense.

Is the development still owned by the developer?
MelissaP1
(Alabama)

Posts:9649


10/18/2020 2:04 PM  
Okay this is important information to know to give you advice. Your basically not in a HOA owned by the owners. So you are still developer controlled. Which means may not be so "open" for viewing of the finances. It's his company at this point. Which doesn't lend itself to prying eyes as readily if you were in an owner owned HOA.

Former HOA President
AnyaR
(Georgia)

Posts:14


10/18/2020 2:05 PM  
On a business license that I found on the government website it says “Domestic Nonprofit Corporation”
MelissaP1
(Alabama)

Posts:9649


10/18/2020 2:08 PM  
Yep and I bet it is under his name and not the HOA's name. Which means that he is the corporation not the HOA. Your still owned by someone. Once they turn over then you will all be managed amongst yourselves.

Former HOA President
AnyaR
(Georgia)

Posts:14


10/18/2020 2:08 PM  
The developer that created this covenants went out of business after two years of development then this man comes along and takes over.
AnyaR
(Georgia)

Posts:14


10/18/2020 2:11 PM  
It goes by it’s business name of R Townhome association but then below it it list him as a CEO and CFO.
MelissaP1
(Alabama)

Posts:9649


10/18/2020 2:15 PM  
Yep. That sounds like your HOA is still developer controlled. Your just a "shareholder" paying dues.

Former HOA President
AnyaR
(Georgia)

Posts:14


10/18/2020 2:34 PM  
Nowhere in the paperwork it says that his HOA president that’s just what he calls him self. I looked up the name development controller and my question was how come we get a chance to vote if he can stay or not? He claims that nobody wants that job and like I say building number one and two do not participate to vote.
AnyaR
(Georgia)

Posts:14


10/18/2020 2:40 PM  
https://share.icloud.com/photos/0dcYDl2AIBYfUtnb-5iMJG0dA#Canton
JohnC46
(South Carolina)

Posts:10017


10/18/2020 3:05 PM  
Anya

You call "him the owner" and I am confused about this. Is he the Declarant as in
your association is not owner controlled?
SueW6
(Michigan)

Posts:769


10/18/2020 6:03 PM  
Look up this corporation by its name under your state’s corporate listings. It will tell you all of the officers of the corporation.
AnyaR
(Georgia)

Posts:14


10/19/2020 5:08 AM  
So is that legal where HOA board association “7 years later” becomes in to HOA develop control?
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