Monday, December 28, 2015

Updates from Receiver (HHSG)

Staff at Heil, Heil, Smart & Golee have reached out to us and provided some updates on some pertinent issues for Cedar Run

The following information has been quoted and/or paraphrased from the correspondence that we've had with the receiver.


Snow Removal
  • In light of the precipitation on 12/28, LCM (Landscape Concepts Management) has been instructed to throw salt and to be on standby for downed trees/limbs due to high winds.

Parking

Clearly an imperfect solution but the only solution until a new board is elected.
  1. Towing has begun for specific issues (blocking dumpster, hydrants, yellow curbs).  Two cars were towed as of December 22nd.
  2. We have been calling people that had spots in 2015 but have not reregistered for 2016 to give them a final chance to renew their spot and prevent getting towed.
  3. Owners who were delinquent on their assessments were not given a parking space for 2016.
  4. Many people had special “deals” with the Sher/Shaw group, but those have not been continued.  Rules are being applied equally to all owners/residents as stated under the existing parking program.
  5. Starting December 23rd, available spots are being assigned to owners on the waiting list.
  6. Cars without stickers will start getting towed soon.
  7.  More aggressive parking patrols will begin after the 1st of Jan.
  8. The goal is not to tow cars but to apply the rules as stated and change behavior.
  9. ***UPDATE 1/11/2016*** - Towing for vehicles without proper stickers has now begun.
Financials
  1. The FR&R report (aka the Frost report) will be available in Spanish soon.
  2. The FR&R report is being used to settle outstanding balances for homeowners.
  3. Numerous owners are now entering the collection process and will be turned over to a collection attorney in early January of 2016 if they haven't made arrangements to settle up by then.
  4. ***UPDATE 1/11/2016*** - 10 day notices for delinquent owners have now expired. Delinquent owners are being turned over to an attorney for collections.
Swimming Pool for 2016
  1. The pool is scheduled to be open 28 May thru 4 September.
  2. Contracts are in place for Life guards and the opening/closing of the pool as well as weekly maintenance.
  3. Extensive pool repairs are planned for 2016 (signed contracts for the pump room and getting estimates for the pool itself)
Maintenance
  • We are working on a new sign for the Cedar Run entrance.  The sign was hit in an accident and destroyed.
Once again please understand that the above information above came directly from HHSG.  Any opinions expressed do not represent the opinions of the blog editors or contributors.

We do, however, appreciate the efforts of HHSG to reach out to directly to us  to provide this update.  Whether it's via this blog or otherwise....whether it's good news or bad news, most homeowners would agree that more communication is desired.

For an official answer to any questions or concerns about the above information, you will need to contact HHSG directly.  Posting in the comments section will not guarantee that your question/comment is received or addressed..
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Wednesday, December 9, 2015

Cedar Run Accounting Report Now Available!!

SEE THE REPORT THAT THE SHER/SHAW GROUP DOESN'T WANT YOU TO SEE!!

Cedar Run homeowners recently received a letter from the receiver (HHSG), indicating that the report from the accounting firm Frost, Ruttenberg, & Rothblatt (FR&R) is now available to all homeowners.  This report (referred to in court as 'The Frost Report')contains an analysis of the Cedar Run HOC financial records going back from 2011 through early 2015.

The Sher/Shaw group has been FIGHTING DESPERATELY FOR MONTHS to keep YOU from seeing this report!
(see the 11/4/15 hearing transcript for the final stage of this battle along with judge's decision)

There are two main components to the Frost Report:

Body of the report
About 27 pages that explain and summarize FR&R's findings and methods used to come up with their findings.

Exhibits
Over 3000 pages of contracts, bank records, invoices, receipts, and all other backup material referenced in the body of the report.  It also includes reconstructed ledgers that FR&R created since the Sher/Shaw group had no real financial system in place.

How to obtain copies of the report

As stated in HHSG's letter, printed copies of the body of the report (27 pages) may be obtained at the Cedar Run clubhouse (in English only for now). Electronic copies can also be requested by emailing hsd@hhsg.net.

OR

You can view and download the English version right here on the blog.  Click HERE
(Spanish version to be posted when available)

The exhibits (3000+ pages) can be viewed in person, at the clubhouse by any homeowner.  We are still trying to get clarification on exactly how this will be handled, but we believe that it will require an appointment.

What's in the report?

We'll post a more detailed summary and analysis of the report at a later date.  But here are just a few highlights:

  • $168,920.55  paid to Robert Sher & Jack Shaw since they took over Cedar Run
    • ($103,479.98 to Robert; $65,440.57 to Jack)
  • $218,105.04 in legal fees paid out to Shaw Legal Services through February of 2015
    • (That may not include what was paid out to them after February of 2015, which is over $20,000)
  • $35,462.52 paid to board members
  • $27,395.58 in debit card transactions with NO RECEIPTS OR BACKUP DOCUMENTATION
  • $18,817.86 in reimbursement checks payable to Robert Sher with NO RECEIPTS OR BACKUP DOCUMENTATION
  • $167,905.92 in delinquent assessments that were never collected
    • (about $107,000 may now need to be written off as noncollectable, bad debt)
  • $43,833.91 paid to settle unnecessary, frivolous lawsuits with vendors.
  • $10,147.86 in loans given out to Zac's Landscaping with no evidence of it being paid back or any agreement to pay it back.
    • (plus $2000 of homeowner funds given to Zac's to purchase a snow plow with with no requirement for Zac's to pay it back)
  • Countless examples that show a clear pattern of utter incompetence, lack of organization, and irresponsible handling of the association's finances.
Stay tuned for a more in-depth breakdown of the Frost Report's findings and what these findings mean for Cedar Run. For now, please encourage your fellow homeowners to obtain their own copy of the report and read it thoroughly.

Spanish version of the report will be available soon for download/distribution to Latino homeowners.

The Frost report is the first real dose of transparency that we've seen in over THREE YEARS!

We'd love to hear your feedback!
(224) 544-9058
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