Hunger at its best

Greg Unit 121

Happy New Year

Thank you for your email and I wish you and yours a Merry Christmas and a Happy New Year, but NO; Linda I'm not interested in purchasing Unit 321.

And I do thank you for clarifying how this front line information was to be used and possibly profited from even more so if one of the insiders of this non-profit has a real estate license. I'll bring it up at the next Board meeting.

Greg Unit 121

Smoked Rat

I received an encouraging letter from the Texas State Board of Public Accountancy complete with File number an instructions of how too access complaint information on line. Now that this government agency has the back door and the Bar Association possibly watching the front door as to who is going to take ownership of By-Law changes profiting insiders of a Non-profit; I think it's time for a little smoke and see what comes out of the hole.

At last November's annual meeting Mr. Kerry stated 16k was spent on attorney fees for these changes half to be paid in 2011 and the other in 2012. But the question is: did the Board or an attorney who may have had a prior relationship with a Board member receive any of this money? Remember the change of compensating Board members and the tactic of stretching expenses over two years has the same MO when Rob Mabe was paid the last $10,000 overpayment for the super pier during 2009 and 2010 verses using that earmarked money for the Breakwater and Lift Station assesments. Sound familiar?

Geg

Unit 121

On the lighter side

I'm glad to see my property management company's is gaining a foothold at Kontiki with her new web site at www.kontikibeachrockport.com. Hopefully, this may negate any negative press by the in house property management company when quarrying http://travel.yahoo.com/p-hotel-7030528-kontiki_beach_resort-i . I've also received several emails addressing these concerns and, I'm still wondering why the in house rental company doesn't require a damage deposit but puts owners liable for these activities?

Greg

Unit 121

Another challenge

I was reading the TEXAS DISCIPLINARY RULES OF PROFESSIONAL CONDUCT from the Bar Association's web site when the attorney's client is an entity.

Did you know a lawyer representing an organization must take reasonable remedial actions whenever the lawyer learns or knows that:

(1) an officer, employee, or other person associated with the organization has
committed or intends to commit a violation of a legal obligation to the organization or
a violation of law which reasonably might be imputed to the organization;
(2) the violation is likely to result in substantial injury to the organization; and
(3) the violation is related to a matter within the scope of the lawyer’s representation of
the organization.

So what was the motive and purpose to change By-Laws and lease common elements for less than fair value to to an insider of a Non-profit? The IRS and Texas Law clearly define what is permissible; therefore, it appears the HOA's attorney and the refering attorney must not have known Phase II was a Non-Profit and I'll be challenging with a grievance through the Texas Bar Association.

Greg

Unit 121

It's that time of year again

I bet your thinking I was talking about opening presents, OK it's that time too.

At the first of the year it will be time to lease the front office and other Phase II common elements. It's going to be interesting to see if the lease for the front office will remain $1.00 per month now that Linda Bohn is NO longer on the Board; therefore, the IRS won't have claim to a fair value being charged, wrong answer. The IRS concern, did the By-Law changes have perpetual connotations when she was an insider and if competitors were allowed to participate. Ouch. I guess it's time to ask Skippy some legal questions.

Now it's time to make some 2012 predictions:

1. Because of more legal bills the audit won't occur and President Kerry is too ashamed to divulge a complaint was filed for unreasonable compensation to insiders.

2. By the end of new year the rental company and Phase II won't have the same accounting firm.

3. The new Board member will resign because her code of ethics will be tested to the limit and she'll figure out why the rental company nominated her.

Greg

Unit 121

Therory

When does theory become fact? When enough evidence is compiled proving so? I believe the documentation to prove just that is now available and more will be forthcoming. Several government agencies’ received complaints of concealing and conspiring to conceal HOA documents from its members. It’s been almost a year since any financials have been made accessible but the Board is publishing budget results monthly. How can they publish this news letter without seeing financials? The monthly news letter I read stated professional expenses were within budget limits but at the annual meeting we learn 16K was spent on legal fees which were not contained in the budget approved by popular vote.

Is something wrong here? I believe so and I can’t wait to hear from the HOA’s attorney when finds out Phase II is a non-profit and he was instrumental in changing By-Laws for the perpetual inurnment of an insider which may have perpetual tax consequences also. Ouch!

Greg Unit 121
Tight lines and Merry Christmas