http://www.wral.com/garner-police-investigate-after-hoas-say-money-missing/15918046/ Great. So many of us pay into this, and get so little in return for it.
So happy Waverly Point off of 42/50 does not have an HOA.... people try, but it always gets voted down.
The issue is not always the HOA, it is how it is managed and how the money is spent. Just like taxes...not always a problem with what you pay, but how the politicians spend it. I feel for these people, but to not have some sort of control in place that would prevent a HOA management company from withdrawing money without a resident/board member to authorize it (sign for it at the bank) is kind of silly. It doesn't take a legal genius to make sure a few things are in place to not get ripped off. Let's keep in mind the HOA (or developer) hired a firm to manage their affairs. The firm acted illegally (allegedly). This shouldn't be an indictment on HOA's.
I was not castigating the HOAs. Based on the numerous comments I've heard over the years in different places, they tend to run to the extremes..do nothing or Cary style obsessive, with few in the median.
Clearly you have an issue with HOA's, that's ok, so do I. Which is why I didn't buy a house with one. Problem solved. You can't fuss about them if you buy a house with one. All the rules, fees etc were clearly spelled out before you signed on the dotted line. Don't like it? Move. This issue reported HERE is with shenanigans with the management company, not the actual HOA.
I love HOA's, 'course I don't live near one, but I make several sells a week because of the subdivision monitors.
Why is WRAL the only station with information on this? I haven't seen it on ANY of the other NEWS channels or in the N&O? Has anyone seen any other broadcasts or newspaper listings on it?
It is not like there was no local warnings about HOA financial misconduct in the last few years. http://insurancenewsnet.com/oarticl...t-150K-from-HOA-[The-Herald-Sun-Durh-a-300423 Nov. 18--DURHAM -- Between $150,000 and $200,000 was embezzled from the Parkwood Homeowners Association in the past 2 1/2 years -- some of it apparently used for unauthorized trips to Las Vegas, Miami and other gambling destinations -- and the group, which represents more than 1,000 homes in the southern Durham community, probably won't get its money back. That's according to Michael Brooks, president of the Parkwood association, who said the group's office administrator has been suspended without pay, but no one has yet been charged in the theft. Durham police spokeswoman Kammie Michael confirmed that no charges have been filed and that the case is still being investigated. "At about the same time that our former employee started work, the money started disappearing, and it stopped when he left," Brooks said in an interview this week. He said of the police investigation: "It's going step by step. If the amount of a theft is over$100,000, as it is in this case, it counts as a Class C felony, which is pretty serious" and could bring a prison sentence of five years. In a newsletter to Parkwood residents Thursday, Brooks said that no fraudulent checks were issued, since every check required two signatures, but that "almost all the fraud was committed through the use of a variety of debit cards linked to Parkwood's checking account."
None taken. The reality of HOA Management Companies is that they have no policing government nor are there any qualifying criteria. IE. Contractors have the General Contractors Boards. Realtors(r) have the Real Estate Commission and the Association of Realtors(r). In many ways, MC's are practicing real estate and law when they should not. There are no outside agencies monitoring the MC's bank accounts, actions or management practices. Management Companies have been having these issues throughout the entire country for a well over a decade or two. It is up to the legislators to crack down on requirements and qualifications for these companies.
What about the residents? Do people really think they can hand over operations of their HOA to a management company and just not be involved at all anymore? No one takes responsibility anymore and everyone is lazy as hell. I would think an HOA would still have a resident board that would meet regularly to review account balances, and make decisions. They can have the HOA management company carry out the day to day business at that point like newsletters, paying the landscapers, addressing drainage issues at the end of a cul de sac, etc.
Actually, the financial statements can be faked or the theft could have been recent given the company is now closed.
I'm a Board Member of an HOA that WAS managed by Kornerstone. We switched prior to these issues becoming public but I saw the writing on the wall almost two years ago. We were unable to reach Kornerstone by phone or in person. All of our Board Meetings were cancelled without informing the Board and the tasks that Kornerstone was responsible for was not being done. Thankfully, we had a group that saw these issues and made an effort to change them. But for small subdivisions where their dues are minuscule and the subdivision responsibilities are even less than minuscule it is easy to be dis-involved or out of the loop.
