Why would the Board of Directors of Eastside at Crotched Mountain Condominium Association present the budget in this manner?
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| 2017 Annual Budget Explained |
Why would the BOD lie about how much our Condo fees really are?
There are several reasons why ... we do not know the true reason unless we ask them ... if asked ... will they tell the truth?
- Lower published fees will help owners sell their units.
- The Board believes that a $400.00/mo/unit fee and a Special Assessment of $2,437.00 per unit is an easier pill for members to swallow.
- It is not directly apparent to anyone that sees a $400.00/mo/unit fee to see the trouble the Association is in.
- The board has calculated that $400.00/mo/unit is easier to collect and is banking on collecting most of the special assessment ... How many units: will balk at $714.00/mo/unit ... How many units will start asking questions ... file lawsuits ... refuse this egregious request ... stop paying the fees?
So, let's ask questions:
- Is this subversive action fair to potential buyers?
- Is this subversive action in the best interest of the organization's financial health?
- Is this subversive action in the best interest of the members?
OR ....
Is it possible that the Board of Directors want you to believe for the next three weeks that condo fees are going thru the roof so when they make adjustments after everyone gets upset ... that $400.00/mo -$450.00/mo looks good to you?
Here are some interesting oddities in the budget as presented by the Board of Directors(some relevant and some not so much, but worth pointing out):
and current liens total $15,814.24. Yup, they are watching your backs .... and they spent over $16,000.00 on legal fees! So even if the 3 Owners, that they have liens on and are taking to Court, did not pay roof SA, condominium fees for the rest of the year (we have seen proof that 1 has paid all condo fees) ... the most that, combined they would owe the Association is no more than $40,000.00 ...
yet the Association is owed over $80,000 ... who is 'special'? this looks like personal vendettas! Proof in the numbers they provide to all of us! See you have more deadbeat neighbors than you think!
It appears from the October Caliber Financials (the only month that shows net income for the reserves) that approximately 11 of the 24 unit owners had paid the roof SA as of 10/31/2016 ... less than 1/2 of the Association ... yet they did 18 roofs ... 6 more than the plan of doing 12 units in 2017, presented in January 2016 ... so now those 11 owners not only paid into the Special Assessment Roof Replacement Fund but also paid into the Replacement Reserve Fund that paid for the other 7 roofs and you are now telling them that they have to pay for the remaining 6 roofs? WOW! A lot of balls on that BOD and no show of faith via liens or gratitude via relieving the pressure on the 'the haves' vs. 'the have nots'. But let us all remember ... everyone paid for these roofs many times over over the years ... the replacement/capital reserves disappeared ...
FINAL THOUGHTS ...
While many of you gave to charity this holiday season, served meals at the local shelter, wrapped and delivered gifts to those less fortunate, donated for your church's less fortunate drive, or simply lent a hand to someone in need ... you overlooked some of your neighbors. We do have a portion of our Association that is less fortunate ... the circumstances surrounding our association are more than 'unfortunate' ... they are downright wrong! While it can be understood that the 'haves' are also stretched to their financial limits, and are trying to keep their heads above water and cannot possibly bear to carry others financial burdens ... they can stand up for "the side of right"!
If the 'haves' do not try to understand the truths of this 'wrongful situation' and get to know their neighbors, understand the reasons they have not paid what the association has demanded and tried to find a way to fix this mess ... it will only multiply going forward ... more suits, more bankruptcies and more foreclosures ... how will that impact your investments? Your neighbors are not the source of evil. The next Post will prove this!
What one person receives without paying for ... another person must pay for without receiving.
The Association cannot give anything to anybody that the Association does not first take from someone else.
You cannot multiply wealth by dividing it.
If people pay what they are assessed for and do not get what they are promised then they will refuse to pay twice for something they have already paid for but not received.
When half of the members get the idea that they do not have to pay because the other half is going to take care of them then the other half gets the idea that it does no good to pay because somebody else is going to get what they pay for.
When few in the association are chastised for standing up to the abuses of power of those who lie, cheat and steal all while not doing their fiduciary duties because they are too busy covering up their own misdeeds, by those who are ignorant of wrongdoing or ambivalent, then, they too are complicit and therefore liars, cheaters and thieves.
This is the beginning of the end!
Is it possible that the Board of Directors want you to believe for the next three weeks that condo fees are going thru the roof so when they make adjustments after everyone gets upset ... that $400.00/mo -$450.00/mo looks good to you?
Here are some interesting oddities in the budget as presented by the Board of Directors(some relevant and some not so much, but worth pointing out):
- Annual Budget for 2017 $115,200.00 "Translates to $400 per month for 2017 ... really? ... because the budget clearly shows $176,700.00 in expenses listed.
- Insurance Claim "Unit 2 water pipe burst, basement - 3rd in 4 years (#8 and #11) - so, from 2012 to 2016, there have been 4 water pipe bursts, 3 out of 4 times the units were unoccupied .... did the owners not have heat on? Why do the association members pay the piper if it was the unit owners fault?
- Roof Replacement Reserve - Thanks to an association member's diligence roof assessment was decreased ... how much were the roofs? ... The quote the member got was $3,100.00/roof/unit, August Caliber Financials show $43,200.00 and at the time 12 units were done or $3,600.00/roof/unit. September and October Caliber Financials show $36,250.00 spent and 6 roofs were done in that time @ $6041.66/roof/unit ... Total spent $78,450.00 or $4,358.33/roof/unit ... which explains the $27,000.00 charge for roofs in the budget line item ... would anyone like to see the invoices? ... especially since many owners are experiencing problems with the new roofs ... a quote of $3100.00 plus a reasonable 10%-15% overage would bring the cost per roof in-line with what appears to be the original cost of the first twelve roofs @ $3,600.00 ea. ... why do members have to pay this again ... see below!(Why is the BOD assessing ...)
- Administration ... "Interface with Harvard, mixed records from association and Harvard" ... is this a fee from Harvard or Accountants? ... why is this not included in management fees or Accounting? ... does this mean that the accountants had to chase down the records for an audit because the BOD could not gather what they needed ... that's what this flimsy explanation sounds like ... WHERE IS THE 2015 AUDIT? When do we get the 2016 Audit we paid for in 2016?
- "Walkway night lighting replacement /repair" ... So this is Electric? ... It may be electrical in nature but sounds like this expense belongs in Maintenance and Repairs ... is this note for 2016 or 2017?
- "Increased legal coverage ...", Insurance, sounds like a great idea!
- "Tripp resigned, hired Hatfield @ $500.00/mo. increase" ... why are we paying for landscaping services by the month? ... It's not like we have received regular services like mowing, blowing, fertilizing, bark mulch, bush trimming, and weeding on a regular basis.
- Legal - "Collections #4, #11, #12, 15, bankruptcies #6, foreclosure #12, suit #14, RSA impact assessment" ... So, the BOD spent 2X the budget for the fees mentioned in the notes ... if indeed the BOD used the association's lawyer and money for anything to do with #14 lawsuit that was against individuals not the BOD, not the Association, then the Association owes you all a refund ( the suit concluded in May ... did the BOD use Association funds for this in 2014-2015?). The individuals chose to use the association's insurance as they had a right to, because the suit was against them personally for actions they committed as BOD ... they did not have the right to use any of the associations money for attorneys. Look at the very specific number budgeted for 2017 ... $17,132.00 ... it leads one to believe that possibly some legal bills from last year are being carried over (delayed billing) to 2017, so members won't see what they really spent 'over budget' or they just wanted to end up with rounded numbers (too bad they didn't spend as much effort on balancing the budget as they did to round off the numbers!) ... RSA impact assessment looks like they were advised of the new RSA changes to take effect as of August 1, 2016 ... and they still have not published BOD Meeting Minutes since January of last year nor have they noticed all owners of BOD meetings ... Association members... don't pay for a refresher course ... too expensive!
- "Francestown S&G raised rates for first time in five years ... see 'Let it Snow' post!
Why is the Board of Directors assessing us $27,000.00 for roofs in 2017 as a budget line item?
Apparently, 6 unit owners did not pay the Special Assessment for the Roofs ... how many did pay the Special Assessment for the Roofs? For the BOD to turn around and ask for more money from you 'good paying folk' ... would it not be fair to the 'good paying folk' to know that the BOD has their backs by placing liens on the 'non paying folk'? There are only 3 liens on members at this time and none of those liens contain the Special Roof Assessment ... hmm ... is it possible that more owe the roof assessment than 6 members? The October Caliber Financials shows delinquencies as $80,206.00 ...and current liens total $15,814.24. Yup, they are watching your backs .... and they spent over $16,000.00 on legal fees! So even if the 3 Owners, that they have liens on and are taking to Court, did not pay roof SA, condominium fees for the rest of the year (we have seen proof that 1 has paid all condo fees) ... the most that, combined they would owe the Association is no more than $40,000.00 ...
yet the Association is owed over $80,000 ... who is 'special'? this looks like personal vendettas! Proof in the numbers they provide to all of us! See you have more deadbeat neighbors than you think!
It appears from the October Caliber Financials (the only month that shows net income for the reserves) that approximately 11 of the 24 unit owners had paid the roof SA as of 10/31/2016 ... less than 1/2 of the Association ... yet they did 18 roofs ... 6 more than the plan of doing 12 units in 2017, presented in January 2016 ... so now those 11 owners not only paid into the Special Assessment Roof Replacement Fund but also paid into the Replacement Reserve Fund that paid for the other 7 roofs and you are now telling them that they have to pay for the remaining 6 roofs? WOW! A lot of balls on that BOD and no show of faith via liens or gratitude via relieving the pressure on the 'the haves' vs. 'the have nots'. But let us all remember ... everyone paid for these roofs many times over over the years ... the replacement/capital reserves disappeared ...
FINAL THOUGHTS ...
While many of you gave to charity this holiday season, served meals at the local shelter, wrapped and delivered gifts to those less fortunate, donated for your church's less fortunate drive, or simply lent a hand to someone in need ... you overlooked some of your neighbors. We do have a portion of our Association that is less fortunate ... the circumstances surrounding our association are more than 'unfortunate' ... they are downright wrong! While it can be understood that the 'haves' are also stretched to their financial limits, and are trying to keep their heads above water and cannot possibly bear to carry others financial burdens ... they can stand up for "the side of right"!
If the 'haves' do not try to understand the truths of this 'wrongful situation' and get to know their neighbors, understand the reasons they have not paid what the association has demanded and tried to find a way to fix this mess ... it will only multiply going forward ... more suits, more bankruptcies and more foreclosures ... how will that impact your investments? Your neighbors are not the source of evil. The next Post will prove this!
What one person receives without paying for ... another person must pay for without receiving.
The Association cannot give anything to anybody that the Association does not first take from someone else.
You cannot multiply wealth by dividing it.
If people pay what they are assessed for and do not get what they are promised then they will refuse to pay twice for something they have already paid for but not received.
When half of the members get the idea that they do not have to pay because the other half is going to take care of them then the other half gets the idea that it does no good to pay because somebody else is going to get what they pay for.
When few in the association are chastised for standing up to the abuses of power of those who lie, cheat and steal all while not doing their fiduciary duties because they are too busy covering up their own misdeeds, by those who are ignorant of wrongdoing or ambivalent, then, they too are complicit and therefore liars, cheaters and thieves.
This is the beginning of the end!
Well said��, my feelings to a tee��! Thank you....The stress has been unbearable ��
ReplyDeleteDear Stressed,
ReplyDeleteThe stress is unbearable for most of us here ... $714.00/mo fees, $300.00/mo taxes + mortgage payments, insurance payments, interior repairs/replacements and this place is a dump from the outside! So, yes 2000.00/mo + for a dump is distressing! Trailer Parks look better than our condo association and their values are higher ... go figure! All we can say is VOTE ... Vote for what you believe is right, honest and manageable for this community as a whole. Trying to get this community back on track is a difficult job, an almost impossible balancing act ... but they cannot break the backs of the members in doing so ... that in itself will cause more harm! Think the 'Little Train that Could' ... slow and steady wins the race! This Association did not get this way overnight ... it took 10 years of degradation, 3 years of cover-ups and cannot be fixed overnight. Please vote with common sense ... BUT GO VOTE!