Condo Association Management Blog

I find it hard to believe that the 4 owners never bothered to follow up and ask for financial documentation.  
 
This is your home. You have a responsibility to do YOUR job and manage your money and home.  
 
You need to take responsibility and get a decent manager. Did anyone document your mandate to set up this account? See an attorney and get it right this time.

Hopefully the funds still exist, they are just in the Operating Fund (checking acct). It should just be a matter of creating a Reserve (savings) acct and transferring the funds to the new acct. 
 
$112 x 4 units x 2 yrs = approx $10,752 that should be redesignated as Reserves.  
 
That much extra $ being collected by this small association should have made an obvious difference to the size of the association's financial assets (checking acct) over the last two years.

Which are you a HOA or a Condominium? This distinctuion has to be clearly defined becasue state laws are not the same for both.

Where is your condo developer in all this? He should have created a reserve account before selling units. He also should have provided you with a reserve study outlining the funding requirements for the next 30 years. Were you not provided this document at closing? You also need to update this study annually and have a new one prepared every three years.

I wonder why it took you two years to discover what your hoa manager was doing with YOUR dollars. Please, Please, make sure that you have a copy of ALL monthly bank statements, receipts for expenditures, and invoices from your hoa manager, if you have not already done so. Otherwise you will be on a merrygoround of trying to find out where your money is. 
 
Remember that old saying a watched pot never burns.

How could this have happened? It sounds as if you will need to start over again.Did anyone actually pay the $112 a month? If it was agreed upon it was the responsibility of the owners and HOA manager. It sounds rather odd that no one caught this much earlier.