Lulled by “Sorta” Accountability

  • Posted: March 6, 2014

The 111 East Chestnut Condominium Insider Lulled by "Sorta" Accountability  This article was originally titled “Promises Promises.” But it’s far more than that. The following chronicles a waffling and “sorta accountable” approach that’s easily missed unless you’re tracking it. Bottom line: “Truthiness” is dangerous. There’s no “Great Train Robbery” here at 111. It’s about a culmination of white lies and fibs that silently drain the coffers and leave you powerless to move once you wake up.

The following are from various communications from management and the Board. Note the progression:

10/23/12 “Our financial Projections indicate that by 2016, our current slate of major infrastructure projects will have been completed, our installment loan will be retired, and our reserve fund will approach $1.25 million. This fund grows precipitously thereafter.”

10/23/12 “At no point do our projected reserves drop below $290,000.”

10/23/12 “To temporarily augment our reserve fund, we’ve secured a $1 million line of credit… that’s designated for emergency purposes only.”

9/18/13 “Despite the expenses associated with the above-listed building infrastructure improvement projects, we continue to aggressively pay down our 5-year note. Its original balance was $1.6M; its current balance is about $1.1M. By 2015, this debt should be fully retired.”

10/23/13 “At no point will our reserves drop below $300,000.”

10/23/13 “By 2018, our reserve balance will approach $2 million. By then we expect that all our outstanding loans will be paid off.”

1/13/14 “The replacement reserve accounts held $38,461.”

2/5/14 “A draw on the line of credit was also completed in the amount of $262,505.51 to reimburse the reserve expenses paid during December. The proceeds from the loan draw were deposited in the reserve account.

2/10/14 Dear Homeowners, We are pleased to announce the start of our [$40,000] Fitness Center expansion project.”

Suffice to say, WAKE UP!

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