Bad Debt - up nearly $100,000 in 12 months


The financial stability of the HOA depends on all property owners paying their dues on-time, which is by July 31. 

How is the HOA doing in collecting bad debts? The Board retained a new lawyer (Turner Padget) a year ago. But apparently they didn't part ways with the old lawyers (McCabe, Trotter & Beverly, PC).

So now the HOA has two (2) law firms, and bad debt is nearly $100,000 higher than a year ago.

Every month this statement appears in the Financial Report: "Collection activity is being conducted in accordance with Association policy." 

Opinion: There is either something wrong with Collection activity or with Association policy - OR BOTH!

If you owned this company (the HOA), would you get rid of everybody running it and start over? Think WWED (What Would Elon Do?).

As of April 30, 2025 the Accounts Receivable (Line 1200) of the HOA totaled $479,433. That is almost entirely unpaid dues and is $99,694 higher than one year ago ($379,739).

And that $379,739 was after the Board, quietly and without a discussion or vote at a board meeting, wrote off bad debt of $118,918 in April 2024.

The Allowance for Uncollectible Accounts (Line 1300) is $299,167. This number hasn't changed for 12 months and cannot be accurate.

A former Director said at a board meeting, "We are not in the business of putting people out of their homes." He meant, when they don't pay their dues.

My answer to that is, "The HOA is a non-profit corporation, but it is not a charity!"

If you are paying your dues on time, then you are carrying those who are not. Is that fair?

What's the problem? Nobody on the Board or the Finance Committee is paying attention to what is happening to the finances of the HOA. They don't know or understand what is happening. 

And the HOA is suing the guy who is writing and talking about it!

Let the Board know how you feel about that debt to the HOA. If they don't start reducing that bad debt, fire them and get some directors who will collect it.

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