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anc
Member since Nov 2012
12531 posts

Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
Last week it was announced that a new board member (a CPA) discovered over $500k in irregularities in an HOA checking account managed by a local real estate management company that has many upper class HOAs in the Jackson suburbs.

Anyway, word spread, and two more - Dinsmor and Palisades have found significant missing funds.

LINK

Your HOA boards aren't usually equipped to manage a lemonade stand. Demand an independent CPA audit.
This post was edited on 11/10 at 5:51 pm


Jim Rockford
LSU Fan
Member since May 2011
73695 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
That's enough to outfit 3.5 travel ball teams.


Janky
LSU Fan
Team Primo
Member since Jun 2011
29472 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
That is a lot of money for a HOA to keep in the bank.

Someone must have been related to JBE and thinks the surplus is a good idea.
This post was edited on 11/10 at 5:55 pm


Jcorye1
Detroit Mercy Fan
Tom Brady = GoAT
Member since Dec 2007
55896 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
Lol at HOAs


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260
anc
Member since Nov 2012
12531 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
Homeowners are pissed in Palisades. There was an incident at the last HOA meeting where a group of residents wanted to see the GL and they were told to get bent. It got ugly. There is a commenter on the JJ blog that said a fight nearly broke out - I don't think it was that bad, but there was some yelling between people that are "respected professionals."

Now this.

The entire board should resign in shame.


Jcorye1
Detroit Mercy Fan
Tom Brady = GoAT
Member since Dec 2007
55896 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
Wait, a person paying into the hoa and living there wasn't given access to see the GL? I'd throw hands too, that's insane.


teke184
LSU Fan
Zachary, LA
Member since Jan 2007
39328 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
quote:

The entire board should be running for their lives


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100
East Coast Band
Alabama Fan
Member since Nov 2010
40691 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
I always figured HOA dues can easily be mishandled.
Think about it. 200 home subdivision, $300/ year dues. That's $60,000 some one is in charge of. What are you paying for?
Some excon (and/or relative of a hoa board member) will get paid to landscape and mow the common areas all year. How much is that?
Some have to pay for street lights. Power company doesn't charge too much. Maybe $100/year per light. Ok, that could add up. Still maybe $10,000/ year for lights. Still not getting to $60k.


GEAUXmedic
LSU Fan
Premium Member
Member since Nov 2011
35676 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
Threads bitching about HOAs are funny. How about instead of bitching, move somewhere where you don't have to pay other people to enforce rules on you.


Obtuse1
Wofford Fan
The Diversion
Member since Sep 2016
7095 posts
 Online 

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
quote:

That is a lot of money for a HOA to keep in the bank.


It depends on what neighborhood assets the HOA is responsible for. Gated HOAs, for example, have to maintain the roads and with most HOAs you have to build up the funds for larger capital investments. One of our HOAs had to resurface 1/4 of the roads (from the first filing) earlier this year which amounted to about 5000ft of road and cost a little over $250k. The next 1/4 will need to be done in 2-3 years. Without building up a surplus over time we would have had to make a fairly large assessment to cover the roads.


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111
DiamondDog
LSU Fan
Lake Charles
Member since Nov 2019
198 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
Our last HOA president was a CPA. That man would chase you down the street for two nickels if you were behind.


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260
OysterPoBoy
LSU Fan
City of St. George
Member since Jul 2013
16562 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
quote:

I'd throw hands too, that's insane.


That’s not allowed in our HOA.


CroakaBait
Auburn Fan
Gulf Coast of the Land Mass
Member since Nov 2013
3679 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
quote:

Dinsmor

My aunt and uncle live in that neighborhood and it’s downright scary how many people there (on the DL) have some serious pull statewide. I wouldn’t want that group of homeowners coming after me. That management company done fricked up bigly.
This post was edited on 11/21 at 10:57 pm


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71
Jcorye1
Detroit Mercy Fan
Tom Brady = GoAT
Member since Dec 2007
55896 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
quote:

That’s not allowed in our HOA.



Can you at least see financial statements or something?

If I couldn't see detailed financial information and I was expected to pay material amounts, there's zero chance I'd buy there.
This post was edited on 11/10 at 6:30 pm


member12
Marquette Fan
Bob's Country Bunker
Member since May 2008
25380 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
quote:

Dinsmor and Palisades have found significant missing funds.



Those are more middle class in every state but Mississippi.


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22
RogerTheShrubber
LSU Fan
Juneau, AK
Member since Jan 2009
179182 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
quote:

How about instead of bitching, move somewhere where you don't have to pay other people to enforce rules on you.


I did, thanks. It's awesome


OysterPoBoy
LSU Fan
City of St. George
Member since Jul 2013
16562 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
I mean throwing hands isn’t allowed.


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70
baldona
Auburn Fan
Florida
Member since Feb 2016
10866 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
HOA books for most neighborhoods are pretty basic and most management companies should be producing reports at least quarterly for the board to review. They are usually one maybe 2 pages long. But there are plenty of boards full of idiots with terrible management companies.


Jcorye1
Detroit Mercy Fan
Tom Brady = GoAT
Member since Dec 2007
55896 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
quote:

HOA books for most neighborhoods are pretty basic and most management companies should be producing reports at least quarterly for the board to review. They are usually one maybe 2 pages long. But there are plenty of boards full of idiots with terrible management companies.


I'd hope they'd be pretty simple. We aren't talking high end private equity here, it should be basic dues received, expenses, liabilities, and depreciations/amortization.


dallastigers
TX
Member since Dec 2003
826 posts

re: Three upper class Madison/Reservoir subdivision HOAs may have been taken for 7 figures
quote:

I always figured HOA dues can easily be mishandled.
Think about it. 200 home subdivision, $300/ year dues. That's $60,000 some one is in charge of. What are you paying for? Some excon (and/or relative of a hoa board member) will get paid to landscape and mow the common areas all year. How much is that? Some have to pay for street lights. Power company doesn't charge too much. Maybe $100/year per light. Ok, that could add up. Still maybe $10,000/ year for lights. Still not getting to $60k.


Also add in pool (or pools in some cases) maintenance, possibly guards along with life guards during summer pool open hours, and liability insurance for pool. Though i am sure there are kick backs or some benefit to board or management company as our budgeted expense for these and landscaping seem high.

Although when buyers want to use a house as a teen homeless house but not ready to comment to doing this within their own neighborhood or when out of state investor buys house to use as a full time AirBNB extended stay hotel with zero owner presence or full time resident in house HOAs can be helpful. Sending me a warning letter dated following day that my roof shingles were blown off and a section of fence blown down from a storm declared some type of regional emergency with a lot of people in same boat throughout city is not so helpful.
This post was edited on 11/10 at 6:48 pm


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