For those of you who attended the 7/31 special meeting, we were told by Connery that we were $20,00 in the deficit for the year.  So, if i do the math 148 homes x $205=$30,340.  That would mean that two-thirds of the subdivision did not pay their dues.  While they may be counting late fees, I find it difficult to believe.  It sounds like Harwood is going broke or our budget is not being managed effectively.  I've sent an email to Connery requesting a copy of the budget and a special meeting to review the budget so we have a better understanding of where we are and how we can address it.  Please sound off if you are as concerned as I am.  We cannot make the changes we all talked about in the meeting with out financial transparency.

From: BOD 

When letters were sent to all homeowners for the Ratification meeting back in March to discuss the budget along with other items each homeowner was sent a budget report along with the letter stating the date of meeting.  I chose to display it on the big white board for everyone to get a bigger picture of what our normal expenses were and show how we were spending unneccessary money to file liens on homeowners who we're not paying there dues. 

That cost on average is $300 per lien filed, which comes out of our budget and we will not be able to retrieve that money until either the homeowner pays there debt in full or they sell the home.  

When I mentioned the $20,000 dollars I was stating that we as an association was owed that amount due to unpaid dues and late fees from homeowners, that amount is now around $14,600 still owed to the association for unpaid dues and late fees. 

To this date we have 27 homeowners that is responsible for the amount owed. 

So instead of spending "unnecessary money" to file liens on homeowners, why not work with them to set up a payment plan?  After all, the goal is to get the dues money in so that the budget money can be spent on what it supposed to be for.  

Also, if there are only 27 homeowners owing dues, that comes to about $5500.00-  even if you were to add in another $1000.00 in fees (being generous), that leaves about $8100.00 in deficit unaccounted for.   Where did this money go?

Shouldn't someone be calling for an official audit?

Those 27 homeowners can come out to well over $5500, because some of them have likely not paid for several years, or ever (keeping in mind that the first houses in the neighborhood closed over 4 years ago at this point).  These are probably the houses that have the liens on them which have not paid for multiple years.  So you have 2, 3, or 4 years worth of dues, late fees for the period of delinquency (I believe Connery indicated this was $15/month but don't remember for sure), interest on the principal, plus legal fees for the origination of the lien.

For example:  If a homeowner has not paid any dues in three years, the following could take place (the numbers are approximated or guessed where I don't know the exact figures - this is indicated)

Annual Assessment:  $200 (this is approximated since it was initially slightly below, now slightly above)

Interest Rate:  18% on principal only (this is a guess because I don't know the actual interest rate being charged but the Covenants state "the lesser of the maximum rate permitted by law or eighteen percent per annum")

Late Fee:  $15 per month, not subject to interest (best recollection of what Connery stated at the special meeting)

Legal Fees:  $100 per lien (just a guess as I have no idea of the actual cost)

Adding it up:

Assessment for year 1 + 18% interest ($200 x 1.18) = $236 + assessment for year 2 = $436 x 18% interest = $514.48 + assessment for year 3 = 714.48 x 18% interest = 843.09

3 years of late fees ($15 x 36 months) = 540

Legal fee = $100

Grand total = $1483.09 from one house

Connery also mentioned at the special meeting that the vast majority of the liens (he did not indicate a specific number) were placed by AMS prior to the homeowners being given control of the HOA (i.e., before we had any say in the matter).