Greetings to all Sun City Hermosa Homeowners:
Year-end financials and budget was mailed last month to our entire community for full transparency. Our bank account balance of ● $13,963 reflects recent payments. We just paid our D&O board insurance for the year, our premium decreased to ● $2,767. Avalon management fees from September to February were ● $6,000. Their employees quit, our experience in working with Avalon was very unproductive, we are very fortunate to have found Diversified Association Management. They make reporting violations very easy for you via your online account.
Effective January 1, 2020, Senate Bill SB323 became law, it requires substantial changes in how elections are conducted, an independent party to serve as Inspector of elections is now mandatory. Our governing documents need to be updated to be compliant with the new law. Our Inspector of elections invoice was ● $1,500, already paid.
Our governing documents (CC&R’s and BYLAWS) have been partially reviewed by an attorney, they must be updated to be compliant with new California laws. As explained in last month’s newsletter, a few years ago Sun City Hermosa was involved in a fair housing discrimination lawsuit, a legal defense was provided by our insurance carrier and the matter was settled with a large sum of monies paid. Our governing documents will be updated to prevent another lawsuit. We have set aside ● $2,000 to cover the legal costs to update our CC&R’s and BYLAWS, we are currently working on this.
You will see $2,289 set aside to cover bad debt; 2020 was a year of uncertainties, multiple factors affected the functionality of our lives and this community. TO ALLEVIATE YOUR HARDSHIP, WE ARE CANCELLING ALL LATE FEES AND PENALTIES AS LONG AS OWNERS WITH PAST DUE BALANCES BRING THEIR ACCOUNTS CURRENT OR MAKE PAYMENT ARRANGEMENTS BY APRIL 30, 2021. Diversified Association Management has agreed to provide us with all of their services, including accounting, billing, and collections for ● $1,275 per month. Diversified Association Management is Family Owned, all managers, accounting staff, and support staff are shareholders of the company. Everyone you speak to cares about the business like an owner.
The $15 dues increase from $75 to $90 annually, representing an allowable 20% increase, was necessary because there had been no increases in 10+ years. We are projecting our bank account balance will increase to over ● $23,000. The current financial status of Sun City Hermosa is great, now that we have retained a good management company OUR $90 YEARLY DUES WILL REMAIN STABLE FOR SEVERAL YEARS.
We are in need of volunteer residents to help us to continue to improve this community by joining or helping the board. Please contact management if you would like to volunteer.
Sincerely,
Sun City Hermosa CCC Board of Directors, President
Diversified Association Management www.diversifiedassociationmgmt.com
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