Investment and CD Procedures

In 2024 the HOA took money ($126,351.61) from a Reserve Account CD and purchased an Annuity. The Board has never disclosed this to Members and discussed it at a Regular Board Meeting.

Who is the Annuitant? The name of this person (believed to be a current board member) has never been disclosed.

Many annuities have purchase charges (commissions) and surrender charges. The value of the annuity is reported in the Financial Operating Results at its original purchase price. That is not the actual net cash value of the annuity.

When the 2024 Annual Audit was finally released, the Auditor reported the value of the annuity on December 31, 2024 as $121, 440 (a loss of $4,912).

The PRM (Art. III, §C, ¶9) reads,

Investment and CD Procedures: The initiation of securing CDs must follow the procedure outlines below.

a. The signature cards should contain 2 names from the Property Management firm (South Community Services) and 2 names from the Summit Community Association,  the President and the Treasurer.

b. In order to "Cash Out" a CD, There [sic] must be 2 signatures, 1 from the Property Management firm and 1 from Summit Community Association (either President or Treasurer).

The President of the HOA at the time was Danny Trapp. The Treasurer of the HOA at the time was Linda Potter. The property management company was CAMS.

Did the Board follow its procedure, when the CD was surrendered?

Why didn't the Board inform the Members that $126,352 was being withdrawn from a CD and being used to pay a single premium on an annuity?

What was the value of that annuity on December 31, 2025?

What is its value today?

Why is the Board silent about this "investment"?

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