Friday, October 28, 2016

Cedar Run Receivership Ending on 11/1/16; HHSG Hired on Interim Management Agreement

It is Finally Ending!!

Cedar Run HOC was placed in receivership by the court in February of 2015 due to egregious and blatantly illegal activities by the Sher/Shaw group that was in control at the time.  This receivership order will expire at 11:59 PM on October 31, 2016, thus putting the elected board (voted in on August 4th) in full control of all HOC operations.

HHSG, the company that was assigned by the court to act as Receiver, will officially become Cedar Run HOC's management company and report directly to the board of directors.  They will no longer be an agent of the court as far as Cedar Run management operations are concerned.

Although the board has signed a management agreement with HHSG, the board is still considering  other management companies.  At the request of the board, HHSG agreed to a short term, interim contract with the Cedar Run HOC.  This contract has a "60-day Opt-out" clause, meaning that the board can terminated it within 60 days after giving written notice.  The purpose of this agreement was to give the board more time to make an informed choice on future management.

Things to note about Cedar Run HOC management:
  • The board has formed a committee with the sole purpose of exploring management options and reporting back to the board members.
  • As described by committee members at the 10/19 board meeting, the committee is also evaluating candidates' viability to manage Cedar Run's eleven Phase Associations.
  • Per the board's decision at the 10/19 board meeting, the committee will select companies as finalists that will be interviewed by the board at open meetings (i.e. homeowners are welcome to attend).
  • While HHSG is currently working under an interim agreement, they are also being considered as a candidate (potentially a finalist) for the long-term management of Cedar Run.


***Important Change to Payment Instructions***
By now, all Cedar Run unit owners should have received a statement from HHSG, which includes payment instructions.  Some important things to note:
  • All owner account numbers have changed.
    • While the payment address and general instructions have not changed, Unit owners will need to indicate their NEW ACCOUNT NUMBER (found on the statement) to ensure their payment posts properly.
  • The balance on this latest statement may not be correct.
    • It does not reflect any balance that owners may have had during receivership.
    • Those balances will eventually carry over, but there may be some formalities with the court before that can happen.

1 comment:

  1. Kinda late to tell us about a new account number, isn't it? I've already made the change with my bank, but given that the payment is technically due on 11/1, how many owners are realistically going to catch this on time? Hopefully it will work itself out without any debacles involving late fees for people who paid using the old account number.

    I am glad to see that the board is looking at multiple companies instead of taking the easy route of just hiring whomever is already managing the property. I hope the reputation Cedar Run has built over that last few years isn't going to hinder our ability to find good candidates. We know it scared away all the pool companies....

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