Tuesday, July 27, 2010
The lights are on, Miss Management
Positively Palermo awoke to be greeted by a bevy of e-mails this morning about Monday evening's homeowners association meeting. Those three fellows on the HOA board certainly have their hands full after the resignations of the two board members who represented the Enterprise development company. The company only gave a rather cryptic reason for the resignations. One resident sent in an e-mail last night that said we all are still in the dark about whether Enterprise really is going into foreclosure. But the e-mail noted that foreclosure might not mean Enterprise here is history. The e-mail added that other developers in the valley have gone into foreclosure only to buy back their properties for pennies on the dollar at auction, according to what was said Monday night. But is Enterprise's future here the biggest concern for our desert resort, or is it the continuing but solvable management problems? Here's what a late-night e-mail had to say: "Pen, the mismanagement is just too much. They are considering raising HOA fees by $100. Yet the management company for months hasn't started the collections process on 15 grand of unpaid HOA fees. Instead, we just get talk. The financial report included big spikes in the maintenance account, sending up all kinds of alarms. But it took pulling teeth to find out from our 'professional' paid management company that some of this increase was from one-time expenses, such as putting in security cameras and fire extinguishers, that won't happen again. The electricity and gas accounts also are out of hand, but as the board discussed this situation it was daylight out and the landscaping lighting already was on outside!!! It's been like this for months and nothing has been done by the management company to correct it, nada. Maybe you can start a count down here on the days it will take to fix this. People also are turning up the pool and spa heaters because the equipment isn't always locked despite the management company knowing about this situation. Help! Help!" We must all come together to help and problem-solve. But first let's all raise a glass of cognac, as Miss Penny Lane says a sarcastic toast to our Desert Resort: Miss Management, cheers!
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28 comments:
I found it odd that DRM offered 3rd party consulting to assist us with lowering our costs. It sounded like a Sales Pitch and a whole lotta Wag The Dog talk...Aren't we paying them to know about efficient garbage pick up, light timers, collecting unpaid Dues, etc? Aren't they "Property Management" or is that an oxymoron?
And, please don't let them freeze us out of a heated pool. We are already living without things that were promised.
Desert Resort Management is part of a HUGE consortium of property management companies called Associa. Associa is the parent of scores of local property management companies all over. Trying to find a new management company isn't easy and finding one that isn't an Associa affiliate is even harder. HOWEVER, you should work with DRM to resolve issues before seeking to oust them. If just one of the HOA Bd members can work as the "oversight" person and work with DRM's person--Brandi Scott, you may get answers to questions. Often, HOA boards and members are very apathetic, and property management companies get frustrated and just do what THEY think is best. It doesn't sound like Palermo owners are apathetic...at all. However, it will take real involvement of members working with DRM to get the services they are paying for. As a former treasurer of an HOA Board of Directors in San Diego, I spent hours...HOURS...pouring over financial statements, working with vendors and the management company to ensure the homeowners were getting value for their money. Once the property management company understood and knew that owners (me), were truly interested in the operations, they snapped-to and listened. The board held the line on assessments with no increases, but that's because the association had a very healthy reserve over and above the reserves set aside for big ticket maintenance items like fencing, landscaping, painting, repairs, etc. The bottomline is: Homeowners must pay attention and someone (or two persons) must be willing to work with the management company--it will be like a second job for some generous, concerned homeowner. Any takers ??
DRM must go. Period. What they said last night we've heard before. I don't know if I can go to another board meeting if this is what we have to put up with and endure. The board must realize that DRM isn't just doing sub-par management but also turning people off from being involved because it is so frustrating. It's easier just to close your door and curtains and not deal with the outside. I too would like a better company to help us through these uncertain times.
Owner deliquencies are a real headache, especially if former owner has already been foreclosed on by the bank. One action the HOA can take is to place a judicial foreclosure on the property--similar to a lien; so that when the property sells, the HOA would be one of the creditors in line to get paid, but this action usually yields little result as the bank is first in line to get paid and if the property is in foreclosure, it will sell for a lot less than it originally sold, and the bank will get all of the proceeds.
The other action the HOA can take is turning over delinquencies to a collections agency-- sometimes a law firm with a division that performs this service for a fee, usually a percentage of the collection--if the agency doesn't collect from the delinquent former owner, there is no fee. Roma, Murphy, Horowitz was the company the HOA Bd I served on was considering to use for this problem. http://www.romacollectionagency.com/html/index.html
Another issues they discussed was filling the two board seats, by appointment. I think they need to get some full-time owners on board. I had no idea that in addition to the 2 Enterprise guys in Chicago, one homeowner board member is from Chicago and is never here.
I get it. Cognac is a type of brandy? Clever girl.
All cognac is brandy, but not all brandy is cognac.
RE: Bd Member replacement--what do the HOA Bylaws say? The State of California regulates HOAs and it is important for HOAs to adhere to their own bylaws. Homeowners are going to have to step-up and serve. If Homeowners do not step-up and serve, the management company will--by default--take over. Homeowners should be concerned. Door-to-door communication on this matter is needed with homeowners so they know what is at stake.
I wish we had cognac not Brandy.
What's up with this Jim Moser on the board? Doesn't live here and defending illegal parking.
IF Enterprise is defaulting and VPM is still showing apartments and signing leases, there could be some serious problems. VPM could be in hot water. I wonder what Heath is disclosing to would-be tenants.
If you're client (Enterprise) says it is losing interest in the property in 30 days, then why would the rental company (VPM) still being advertising units? That fishy. Maybe Michael Heath knows that Enterprise plans to buy back at auction.
Do not get distracted, folks. Someone needs to provide some leadership for the homeowners. Is there anyone out there among the Palermo homeowners who has the time, passion, and willingness to organize the homeowners here to work with DRM to get answers to what's going on? You can blog all you want, but you need someone (or two), who will communicate with homeowners and work with DRM--this will not be easy. THere are a few folks blogging, but this is a very small minority of the homeowners. Someone needs to step-up and lead, talk to homeowners, get consensus on what the homeowners what to see happen here and then communicate that to DRM. Again, if the homeowners do not assume responsibility, DRM, by default and by the law in the state of California, will!
Please not DRM. Get someone else good. I don't care if is the board or a new manager, just some competent and who will listen and act.
Communicate to DRM? Please. For example, we have talked about the yard lights for more than a year. That is communiction. But no action. We need a management SERVICE that listens and then acts. No more hollow promises. Our DRM rep squirms her way through the HOA meetings with lame excuses and then does nothing to follow up afterwards. Distrbute minutes to all homeowners and we will all see the complete lack of follow up. And we are paying for it.
Again, this is a matter all homeowners should address. The HOA is homeowners. You can oust DRM if you all are dissatisfied, but someone--a homeowner is going to have to step-up and lead the charge. In order to fire DRM, you should have documentation of their poor performance. Typically, when firing a vendor, they will ask for time to rectify the situation. The HOA can determine a reasonable period for DRM to change. At the end of that period, the HOA should review DRM's performance and if there is still dissatifaction, you can fire them. BUT, in the meantime, the HOA--the Board of Directors--will have to research other property management companies, notify the HOA members that they are doing so, get bids, review potential contracts, interview potential companies, etc. ,etc. This will take time and it will not be easy. I hear a lot of complaining and folks acting like victims, but if you are a homeowner, you are not a victim and DRM does not HAVE to be your management company if you don't want them. Is there a homeowner who is willing to fight for themselves and the rest of the association? Again, this will not be easy, particularly in the midst of the foreclosure proceeding against Enterprise. I would recommend that either you mobilize homeowners to decide what to do about DRM while the foreclosure process works it way through, OR you can wait to see what will happen after the foreclosure proceedings with Enterprise. If no one steps-up--a homeowner, then all the bitchin' is pointless.
fire DRM
Hello everyone. It's Craig here from the HOA Board. First, I just really want to thank everyone personally for their involvement at the HOA meeting in person or on the phone. Believe me your concerns are heard loud and clear. We need to hear your thoughts, ideas and concerns. This has been a big job to be on the HOA and I apologize if I sounded frustrated at the meeting. It's just taken up so much time for me and the other Board members and the Enterprise resignation blind sided us. We will get through this. We need help from everyone. I am so proud to be a part of this community and like everyone want to protect my investment and yours. When I bought in I was so excited to be a part of a "community" of like-minded people but Enterprise and DRM didn't seem to want any of us to know each other for whatever reason. These problems will pass, but I am grateful that we all are truly becoming a community finally to deal with the issues we need to deal with by working together and our destiny is now in our own hands. And finally, to Miss Penny Lane, I can't thank you enough. This is probably the best blog I have ever read and I appreciate your positive attitude. You spend so much time on this site to let everyone know what is happening and I know I speak for everyone when I say how appreciative we all are of your time and information.
Things are getting better. In past the HOA meetings seemed like a game of cat and mouse, like they didn't even want us to know when they were. We are building a better community because of these changes. I so love Palermo.
Craig. thanx for the message. Could we build an email list for updates too????
I want to encourage Craig and the other remaining Board of Directors members to contact the Coachella Valley Chapter of COMMUNITY ASSOCIATIONS INSTITUTE. This national organization provides education, support and training to homeowners charged with governing homeowners associations. Go to:
http://www.coachellavalleycai.org/Community-Associations-Institute-Chapter~101108~13510 or for information about the national association, go to: http://www.caionline.org/Pages/Default.aspx
How long must we suffer through the mismanagement by the property company?
Another sources is calhomelaw.org. We need to determine what happened when Enterprise controlled the board and know about the other facilities promised in the marketing materials.
DRM must go. Will they be of help or get in the way now that we have this Enterprise situation? Also, why has Bruce Bushore done so much to turn people off? I think he is a builder-type and issues in the people skills department. If Enterprise does stay with us, please please get a more people person as the local contact. Just a different skill set.
DRM has been too cozy with Enterprise it seems. We need a fresh start. No baggage. I agree with "sarjane" in that DRM's answer was to sell more services (extra cost) when why isn't that included in what we pay for already.
Why do we still have DRM?
The board has been saying that DRM would be fired, since February. No more excuses.
I think the board is being taken by "suddenly" the DRM higher-ups giving them attention because of the Enterprise sit. I would like the board to look at how much of the financial sit is because of DRM's possible lack of attention to detail. To have them to any kind of review, seems a bit like the fox in the hen house, and the board is putting itself at risk for not getting an independent agency to review this stuff.
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