Sutherland support dwindles as homeowners shut out of loan process

KNOW WHEN TO SAY WHEN  Being in the driver's seat of our association has its perks - just ask Kit and Stuart Sutherland; they've had their derrieres planted firmly there for the past eight years.  Not only do you get to bend and stretch every detail of the home lives of over one hundred of your neighbors until it can be shoe-horned into something more to your liking, you always have a steady supply of sycophant vendors and homeowners lined up to stroke your ego and whisper sweet yeses into your ear.  And best of all, the job comes with your very own girl Friday, who's commanded by your every wish.

New GIL Mega-Loan has CMA sharpening the shears

Editor’s note: Michele Richards from Community Management Associates was twice invited to comment on the subject of this post and have her perspective of events included. The Blog did not receive a reply to either invitation.

The Glen Iris Board is in a big hurry to borrow big – and guess who is celebrating? CMA. And guess who will be picking up the hefty party tab for years to come? You guessed it, GIL homeowners.  Most of whom would be surprised to learn how much they paid in fees and commissions the last time we got the CMA ‘hook up'.

The Blog’s review of accounting records for the $200,000 loan that was arranged by CMA in 2004 revealed not only hefty fees, but some rather amateurish attempts on the part of CMA to conceal the true nature of the costs as well.

The $3.4 million hayride

According to information presented by the Board of Directors at the most recent Annual Meeting, our Association ended 2011 with $214,035 and it expects to collect $46,106 in reserve additions from assessments over the coming year.  Those two numbers total $260,141 – which doesn’t sound like we would be doing too badly at the end of 2012, does it?

But in order to leave homeowners with that false sense of financial security, the Board had to perform the budgeting equivalent of moon walking – the act of appearing to make forward motion, when in fact, we will be going backwards.  The only difference being that they arguably did it better than the late Michael Jackson ever hoped to do as we will be going backward over the coming year by about three full stage lengths.  How so, you ask?  Because they skillfully left $400,000 that they plan to spend over the next twelve months out of the budget.

  

The Board stated that the more than $400,000 that they expect to spend off budget in the coming year will be for stucco and window repairs.  This trick is not new.  The Federal Government has been doing it for nearly a decade in the way it accounts for war spending, the only distinction being that (Continued...)

Developer Acknowledges Responsibility for Deficiencies as Early as Oct 2002

Mmm...I wonder why GIL homeowners ended up footing the $200,000+ bill for the slope stabilization project behind Ph. II when the developer acknowledged responsibility for the problem as far back as October of 2002.  Check out the Board meeting minutes from October 2002 (Continued...)