Background and Challenge: This case involves a garden style condominium HOA that was built in the 1970's. Before WRMC was hired in the late 2000's, the HOA was self-managed. We are often hired by previously self-managed HOA boards that want to make a change in order to utilize the professional expertise of a management company. In this case, we were brought on after their previous manager skipped town, leaving behind questions of missing funds, disconnect notices from the utility companies and a property that was in great need of repairs and building improvements. WRMC recognized that our first challenge would involve restoring the financial health of the HOA not only to fund the day-to-day operations of the property but also to fund the general maintenance repairs and capital improvement projects. Our second challenge would involve guiding the HOA through the long and tedious process of major construction projects on the property.
Action and Outcome: The first course of action was to conduct a forensic audit of their finances. The HOA had not conducted any type of audit in several years. The results of the forensic audit revealed that several hundred thousand dollars were missing from the HOA's bank accounts. We proceeded to file an insurance claim that resulted in a settlement, allowing the board to recover a portion of the missing funds. This situation highlights the imperative need for checks and balances and annual audits of financials. This is a practice we recommend to all the associations we manage. After the HOA had recovered financially and additional funds were raised through special assessments, we began the capital improvement process. We coordinated several property rehab projects including replacing all the siding on the buildings, reconstructing the stairwells throughout the buildings, replacing windows throughout the property, overhauling the landscaping, resurfacing the pool, waterproofing the parking structures, and replacing the roofs. The manager, lead of maintenance and the board worked in tandem to insure that all the improvements were in accordance with bylaws of the HOA, the budget for the improvements was managed properly, and the scope of work was precisely followed. By restoring the financial health of the HOA and improving the condition of the physical property, we have made a lasting positive impact on this HOA and more importantly on the residents that call it their home.