John
Mary,
Thanks so much for the quick response. It is at least reassuring that you are aware and also frustrated by the status.
I must have missed your call for a meeting – sorry to hear that only one other responded. I will try to do better. Please do not leave me off any announcements and please send more than one so it does not get shuffled off by the junk mail filter.
What can we do to get a more pro-active board? I have tried to directly contact every one of the G-8 board members and never gotten a response. They apparently thought they were in for some easy money and are now not good enough at financial management to see that they might have to invest some additional funds to bring things up before trying to flip them. Are they paying their monthly dues? Are those dues being used on HOA items or on their private units? How can we tell? Is there an independent audit requirement?
As for the lack of fund transfers, why did the board not insist on an audit trail of the funds? Had they pocketed the funds or applied them to their own units so there were not left. When the HOA started, we were all required to pay $300/month for several months with the understanding that it was building a reserve.
I still do not have any trouble renting my units for slightly more than G-8. I am certain it is due to my pro-active management and to having fixed up the units so they are not constant trouble. It was upfront money and work that saves headaches now. I am very concerned that G-8 will drag us all down to a loss due to their negligence.
Please keep me posted if anything changes. My renters are beginning to call about the lawn. I will have to go over and run the sprinkler system manually and may have to mow. Do I send the mowing bill to the HOA?
As an owner, I offered to remove the dumpster enclosure doors for very little cost. I am concerned one will fall on a person and create a huge HOA liability. They would be quite easy to remove. Also, I fell timber in Wyoming and Montana for many years so cutting a few dead trees is quite simple. As an owner do I need additional liability coverage for this work? I am worried about losing what was to be a significant part of my retirement income due to G-8 mismanagement.
Thanks,
John
From: Mary Keshishian [mailto:mkesh...@themichaelsorg.com]
Sent: Sunday, May 18, 2014 8:32 PM
To: John
Cc: Alice McGrath; aron.a...@gmail.com
Subject: Re: Progress(?) report
Hi John: Thank you very much for your email.
Please note that all of the concerns we discussed during our last meeting (that which are included in your email as well) were brought to the attention of G8. I've asked a few times to schedule the next board meeting with the directors and still have not had success. I personally scheduled one for owners to join....and only one person joined my call. I'm really trying....
Regarding the reserve account. There is no reserve account. Nothing was transferred when we took over management.
I'm at a standstill on obtaining bids for capital needs items around the community until we can have a board meeting/call. As you can imagine, once bids are collected, the time clock starts as bids expire in 30/60 days. I'm afraid to get this going without everyone on board.
The landscaping company previously servicing the community ran into some legal trouble and is no longer with. We're currently going through the contract process to obtain a new servicer....that which should be in place by month end. Unfortunately one of our staff members allowed for a company to begin servicing the site without the proper documentation. I had to put an end to that for liability purposes...I'm sure you would understand.
I won't expect to see any change until the next board meeting is scheduled. It would not be an efficient or effective use of our time otherwise.
Again, I appreciate your email and understand the depth of concern here. Know that we are fully aware and acknowledge the concerns and will work diligently to show improvements.
Thank you,
Mary Keshishian, CPM/Broker
The Michaels Organization
Interstate Realty Management Company
2020 Kettleman Lane
Lodi, CA 95242
818-679-8154 (direct)
323-463-2388 (fax)
On Sun, May 18, 2014 at 8:01 PM, John <jfe...@mchsi.com> wrote:
Mary,
I drove through La Mirage today and I did not see any sign of improvements. In fact, it looked worse.
The dumpsters are still parked in the street with the few remaining doors hanging partially on.
The road that had caved in was flooded with irrigation runoff.
The “club house” roof is still missing shingles.
There are units visible from the entrance road with their roof covering blown off and plywood exposed.
There are still dead trees throughout the place.
The lawn was past due for mowing were it had been watered, but many places are not getting water and have gone to dirt or dead grass.
There are a large number of “trashy” units with blown down fences and junk sitting out up front.
Many empty and abandoned looking units.
Paint and trim wood looking very sad.
Several units with the front screens sliced off after an attempted break-in.
A few vehicles that have been up on blocks for months.
Overall it is looking pretty bad.
I would like to know how the HOA fees are split between G-8 and the HOA. I see the same crews working unsuccessfully on the sprinklers as I see remodeling the empty G-8 units. How are the funds segregated and payments for HOA services tracked?
If G-8 is trying to drive out the private owners, they are not going to succeed since the units cannot be sold for even $40K. There are no buyers interested given the current state of the development. I understand the banks won’t lend unless there is an adequate reserve. What is the status of the reserve?
Please send me the list of scheduled improvements and when we should expect to see any changes.
Sincerely,
John Ellis
This email is free from viruses and malware because avast! Antivirus protection is active.
--
Mary Keshishian, CPM/Broker
The Michaels Organization
Interstate Realty Management Company
2020 Kettleman Lane
Lodi, CA 95242
818-679-8154 (direct)
323-463-2388 (fax)
|
This email is free from viruses and malware because avast! Antivirus protection is active. |
John
Hi Mary,
I just realized you mentioned a board meeting on the 12th. Is it a dial-in meeting or will it be held in the management office?
Thanks,
John
From: Mary Keshishian [mailto:mkesh...@themichaelsorg.com]
Sent: Wednesday, May 21, 2014 4:21 PM
To: John
Cc: Alice McGrath; Aron Alarcon; la-mir...@googlegroups.com; La Mirage 2
Subject: Re:
Hi John: Thanks for your email.
It would be prudent for me to take the time out to address your email with a little more detail than our last exchange. I realize that emails can paint a picture or create a perception that may not be accurate.
There's no surprise that La Mirage has had its fair share of challenges. And yes, situations can get frustrating at times. However I'd like to make it clear that in no way has G8 or any of their board members been negligent or have mis-managed the needs of the community. G8 complies with paying the required HOA dues every month and the monies go towards HOA operating expenses as do all other HOA payments. We track this internally through our accounting database as each unit is set up with its separate ledger. G8 does not have access to these funds and are certainly not using these funds for their own private units. All monies go directly through management and all monies are thoroughly accounted for. I am not aware of an independent audit requirement , however we (IRM) internally audits payment ledgers and delinquency consistently.
My previous statement regarding the reserve account and lack of funds may have been misread. So that we are clear moving forward, a transfer of funds did not take place because there wasn't anything to transfer. In reference to the $300 a month fee implemented in past years…it is my understanding that those monies were used to pay operating shortfalls at that time in addition to renovating the clubhouse and repairing other common areas. If you review the HOA financials during that time you will find the complete break down of these funds. For the record, it is also my understanding that the HOA received strong push back on the increase to $300/month which is why it was eventually lowered. The HOA board felt the increase was necessary and suggested that it continue to establish reserves. As you know, the financials of the HOA are provided to all owners which detail exactly where the HOA dues go and it is no secret that the current dues operate at a break even with the current expenses and does not provide for reserves for capital expenditures.
I'm glad to hear that you are getting higher rents for your units. And I've heard that you do a great job on turning them. I'm confident that your investment will pay off as you're adding future value.
Note that the water district has now visited the community a few times and asked that the landscaping not run between the hours of 8am and 8pm. We will all see changes to the grass. In addition, our landscapers will be starting up again the first week of June as we are in the final stage of contract approval.
The dumpster issue will be addressed globally throughout the community. On cutting trees....if you're on your own property and are doing the work yourself, feel free to proceed. No need for insurance.
A board of directors meeting/call has been scheduled for June 12th at 9am to address all operating matters at La Mirage. Know that all parties involved are acting diligently, there's no misrepresentation, negligence and/or mismanagement and that everyone continues to work towards maintaining the physical, fiscal and managerial responsibilities of the community.
Again, I appreciate your continued attention and look forward to a positive working relationship.
Mary Keshishian, CPM/Broker
The Michaels Organization
Interstate Realty Management Company
2020 Kettleman Lane
Lodi, CA 95242
818-679-8154 (direct)
323-463-2388 (fax)