Take a look at the article below and let us know your thoughts....
http://www.ahrc.com/new/index.php/src/news/sub/article/action/ShowMedia/id/2284
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2 comments:
From my experience there should be good checks and balances in place:
1. A good CPA
2. Audit
3. At Least 5 board members - more eyes will help spot discrepancies
4. Competent Management Firm - one that will even have the courage to tell you what you don't what to hear...your rates are going up!
5. Open invitation to community members for Open Items
6. Business like meetings to keep things as short as possible so you do not discourage community members from attending
7. Walking the community so you meet and talk to members to find out what is really going on.
-Note...both internal and external knowledge is extremely helpful in finding out what is going on in a community....there may be alliances or motivations you are unaware of...SKG - 4 yr Past Board Member / MBA
Having belonged to an HOA for over 5 years and as having my husband serve as a Director for two of those years, I can agree with this article. Even he questioned some of the goings on behind the scenes. The company that was hired by the HOA to run the business kept everything very close to the vest. The HOA wound up hiring and firing several property management groups before settling on the one we currently have. This current company runs so many HOA's that I fear we're just one of many who's books have been neglected or cooked.
I see the difference in the maintenance of our neighborhood. The private security group is gone, the rules have gone unenforced, there's no communication between the HOA and residents, but yet our dues continue to rise. Something stinks but no one will step up to question it.
The homeowners need to band together and ask the questions. Unfortunately, many of them consider themselves just too busy to bother. Meanwhile, our dues are going who knows where for who knows what. One voice isn't enough - should there be some type of HOA regulatory group imposed?
Even though I hate the idea of so much oversite, maybe that's what's needed. Look what happened to the real estate market when the Mortgage Bankers were allowed to make their own rules. Maybe HOA's need their own branch of the Department of Corporations. One that will perform random audits (much like the mortgage bankers have to face now), require continuing education and communication with the residents. It's not a perfect solution, but it's definitely a serious problem that all HOA residents are facing.
Board members and Directors are appointed by a select group of members, much like what happens with the school PTA. One big clique that hangs on to their own. It should be a rotating schedule, almost a jury pool, if you will, of the residents. There must be rotation. Some residents will balk at this, sure, but I bet you'd find most have more than a passing interest in where their dues are going.
Something needs to change, that's for sure.
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