Dateline – Portland, OR: In another display of blatant disregard for state law a local condominium association has admitted that it has not completed the annual CPA review of its 2014 financial statement as required by ORS 100.480.
After a prospective buyer wisely purchased a CRC REPORT®, which led to a request for the CPA reviewed financial statement, the Association’s management company admitted that the report was still in draft form and wasn’t likely to be approved for distribution to the owners until the next Board meeting, which is scheduled for the second week of December.
When informed of the generous statutory deadline, which allows 180 days after the end of the fiscal year to complete the review, the buyer expressed dismay. Upon learning that the CPA reviewed financial statement would not be available until almost six months after the June 30th deadline, the buyer expressed their frustration by suggesting that everyone involved in the transaction contact the management company to lodge a complaint.
When the buyer inquired as to whether there was any recourse available through regulatory channels they were equally astonished to learn that compliance with the statute is strictly voluntary and that ORS 100 contains no provision for actually enforcing any of the provisions of the law!
Dateline – Washington State: It was reported last week that the Board of Directors of a large, master-planned resort community in the northern Puget Sound area still hasn’t replaced the roof on one of the Association’s largest community buildings even though it was advised three years ago by a consulting architect that the roof needed to be replaced immediately if The Association wanted to save the building.
Around the same time the neglected roof was first discovered, the Association’s treasurer announced that he believed the Association was perhaps in the top 5% of all HOAs in the country as far as its reserve funding was concerned and it was therefore assumed that the replacement of the roof would be attended to promptly. Meanwhile, confidential sources have informed the HOA Detective that the Association did recently complete a $200,000 renovation of one of its swimming pools!
Dateline Phoenix, AZ: In another example of shooting fish in a barrel (a popular past-time among many community management companies) it was recently announced that one of the Grand Canyon state’s largest HOA management companies is also the largest pool maintenance company in the state.
Perhaps not too surprising considering that the company’s client list consists of well over 400 HOAs, including many of the largest single-family home developments in a state where a backyard swimming pool is almost as common as a a shiny new BBQ grill.
While exact statistics were not made available the 400-plus HOAs managed by the company are estimated to contain perhaps 20,000 private swimming pools, all of which can easily be serviced by the same crews that maintain the HOA-owned pools within the communities; the majority of which are in fact, maintained by the management company’s pool service department.
When asked whether the company’s pool maintenance contracts had been subjected to a transparent, competitive bid process among competing vendors, the company had no comment.