Condo board – and owners – failed their duties

HOA Perspectives - the Fox & Hounds of HOA Business and Politics

Condo board — and owners — failed their duties by not uncovering alleged embezzlement

Donie Vanitzian, JD

Question: Our development has hundreds of condos and an unusually large budget. Our homeowner association was served with a search warrant to review our records and computer data. A forensic audit found evidence of embezzlement by an employee and others. All owners just received notice that a big special assessment has been imposed on each unit and our monthly assessment is being raised by a substantial amount. Was the board negligent? Should insurance cover loss of association funds? Are special assessments and increased monthly dues the only way to handle this situation? What if owners can’t afford to pay?

Answer: Assets that this board manages are owned by titleholders and because of that, are included in the board’s management of the common interest development.

Negligence is the failure to use such care as…

View original post 472 more words

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s