UPDATE: Response to Sept 15, 2023 HOA Wide Email

Hello, Harvest Creek Homeowner’s,

Undoubtedly, you have now seen the HOA wide email from the Harvest Creek Board of Directors and the Property Management Company. If you have not seen it, please click here to review it in its entirety.

Since the 2022 Harvest Creek HOA Annual Meeting, Harvest Creek HOA Homeowners have requested to interact directly with the Harvest Creek HOA Board of Directors to discuss concerns regarding third party vendors and the overall management of the HOA. The Board of Directors refused to meet with these concerned Homeowners, involved the HOA Attorney at the Homeowner’s expense, and it is now clear by this email that the Board of Directors has solidly sided with the Property Management Company by co-signing this letter. You must attend the 2023 Harvest Creek HOA Annual Meeting on November 1, 2023 at 5:00pm at the C’Mon Inn to have your voices heard. If you cannot attend, complete this proxy form so we can voice your concerns.

Please find below the Harvest Creek Homeowners’ responses to the September 15, 2023 HOA Wide Email. While this website is 100% about transparency, items below may have redactions to comply with privacy rights in the Montana State Constitution and, of course, because this letter talks about attorneys now being involved (at Harvest Creek HOA Homeowners’ expense). Redactions are also in place to protect the identity of numerous Homeowners who are providing documents for this website. For more information regarding retracted documents, please email harvestcreekhoa@gmail.com

Table of Contents:

Slander

Late Fees

City of Bozeman Streets

Management Fees

Liens

Review Fees

The "Audit"

Slander:

Harvest Creek HOA Homeowner’s Response:

According to Law.com, the definition of “slander” is:

Slander (noun) -

• oral defamation, in which someone tells one or more persons an untruth about another, which untruth will harm the reputation of the person defamed.

This would be defamation based on the spoken word. Unfortunately, our limited budget wouldn’t allow for those cool singing birthday card type posters and none of our posters have said anything mean. If you do find a poster that talks, we might need to contact the Ministry of Magic.

The word they are looking for is “libel”:

The definition of libel according to Law.com is:

Libel (n) - to publish in print (including pictures), writing or broadcast through radio, television or film, an untruth about another which will do harm to that person or his/her reputation, by tending to bring the target into ridicule, hatred, scorn or contempt of others.

That would be defamation in print.

Here is the thing. Every HOA related document this website has published was created by and disseminated by the Harvest Creek Board of Directors and the Property Management Company. These are not our documents. We have not altered them. This website is merely pointing out discrepancies between the documents that they created and disseminated. If the Board of Directors and the Property Management Company have suddenly located additional documentation to address the Homeowners' concerns, they are encouraged to disseminate those documents to every Harvest Creek HOA Homeowner immediately or email harvestcreekhoa@gmail.com.

Fun Fact: According to publicly available records, this would not be the first time the Property Manager has been involved in a defamation lawsuit in Gallatin County. To see the unredacted version you can do your own search here.

Fun Fact: In that defamation case, the Property Manager’s Personal Attorney was (drum roll, please) the current Harvest Creek HOA Attorney.

Fun Fact: Details matter. There is not a "single" poster. So that email should read “posters” with an “s.” Most mailboxes still have a poster, unless you live by a current Board Member. The posters nearest a Board Member’s house have mysteriously gone missing. Should we make a “Missing Flyer” poster for our missing flyers?

Late Fees:

Harvest Creek HOA Homeowner’s Response:

In the letter, the Property Management Company and Board state that late fees are added at 60 days. In the below email from the Fall of 2021, the Property Management Company emailed a Harvest Creek Homeowner with the statement:

“Hello, I see that there was 2 25$ late fees added to your account. If a balance isn’t paid within 30 days our software automatically tacks those on” - Property Management Company

This statement is dated April 14, 2021.

This statement is dated June 8, 2021.

There are 55 days between April 14, 2021 and June 8, 2021. So how can there possibly be a "Balance forward" if late fees are added at 60 days past due?

These documents from the Property Management Company show that “balance forwards” (which are actually late fees) are being charged before the 60 days as outlined by the Harvest Creek HOA By-Laws.

The letter states that the statement will read as a “late fee”. No where on this statement does it say “late fee”. It continues to read as “balance forward.” No statements were received between these two statements.

The letter states that the Property Management Company will charge a late fee at 60 days. The below statement sent the by the Property Management Company dated July 1, 2022 clearly states at the bottom:

“Balances not paid within 30 days are subject to late fees”

- Property Management Company

Fun Fact: According to the documents including board meeting minutes, actions taken by a board outside meeting, the Property Management Company Contract, and other documents provided by the Board of Directors and Property Management Company, the Board never voted on or authorized a $25 late fee to be charged to Homeowners.

Fun Fact: Let’s talk about reasonable interest charges & penalties. The Harvest Creek HOA is a non-profit and should act as a non-profit. For several years, dues were $90 per quarter. The alleged late fee is $25 per quarter. That was a 27.7% penalty. The dues were recently lowered to $75 per quarter. That is a 33.33% penalty. The HOA is not a bank or corporation trying to turn a profit. The HOA is a non-profit that collects funds for continued operations and upkeep. A 33% penalty does not seem reasonable. September 2023’s prime interest rate is 8.5%

Fun Fact: At the 2022 Annual Meeting, the Property Management Company talked about the new software they were implementing. And yet, the statements coming out regarding quarterly dues are never sent consistently. This inconsistency for what should be an automated software practice could cause homeowners to miss payments with an inconsistent 30 days notice of dues payment.

Fun Fact: In order to comply with the notification period regarding quarterly dues, the 2023 4th Quarter Dues Notification should have been sent to Homeowners on September 1st, 2023 for the payment deadline of October 1, 2023. Anyone received their quarterly statement yet?

Let's say that you get your quarterly statement on September 16, 2023. Harvest Creek HOA Homeowners' Q4 2023 dues are not due until October 16, 2023 and cannot be considered late until November 16, 2023.

Who authorized the Property Management Company to waive late fees? What oversight is occurring? Without oversight, why will some homeowners have their fees waived and others not? This sounds like it could pose a liability to the HOA for housing discrimination.

$20,385* - amount of money the Property Management Company charged for late fees between 2019 - Q2 2023

$9,950* - amount of money the Property Management Company made in profit off of charging late fees not authorized by the Board.

City of Bozeman Streets:

Harvest Creek HOA Homeowner’s Response:

Please watch this video recording of the 2022 Harvest Creek HOA Meeting where the Property Manager states "We can't do anything on the street anymore we got in big trouble with the city"

According to the Property Management Company, it has been determined that the HOA does not have jurisdiction over City of Bozeman Streets. The Property Manager openly admits it in the video.

1. The Property Management Company would have to drive the neighborhood every day and document every instance of an item on the street daily to ensure that the item is actually in violation.

2. Nowhere in the Property Management Company’s contract or in the meeting minutes, actions done by a board outside a meeting, or any other documents provided by the HOA, does it state that the Property Manager has the authority to enforce or fine homeowners for covenant violations on their own volition. Nowhere does it state that the Board has given the Property Management Company the authorization to enforce and fine homeowners over covenant violations. But back to the point, the Harvest Creek HOA does not have jurisdiction to fine a Homeowner for property on a city street.

Fun Fact: The Property Management Company’s contract does not allow them to keep 50% of covenant violation fines. According to Board of Directors documentation including meeting minutes, actions done by the board without a meeting, the Board never authorized the Property Management Company to keep 50% of the covenant violation fines.

$1,300* - total amount of covenant fines collected by the Property Manager without authorization in 2022

$650* - total amount of covenant fines kept by the Property Manager without authorization in 2022.

*Reminder: these numbers are based on the financial documents created by and provided by the Property Management Company. If the Property Management Company would like to provide additional documents (all Harvest Creek HOA Bank statements would be great, thanks!) that clarify this issue, please disseminate them to the Harvest Creek Homeowners immediately.

Management Fees:

Harvest Creek HOA Homeowner’s Response:

Fun Fact: The Property Management Company has stated that they charge the same amount in management fees every year.

$7.50 x 523 Doors = $3,922.50

$3,933.50 x 12 Months = $47,070

This would make the yearly management fee = $47,070.

2020

According to financial documents provided by the Property Management Company, in 2020, the Property Management Company charged $40,986 in management fees.

$40,986 divided by 12 months = $3,415.50

$3,415.50 divided by 523 doors = $6.91 per door

2021

In financial documents provided by the Property Management Company, in 2021, the Property Management Company charged $47,070 in management fees.

$47,070 divided by 12 months = $3,922.50

$3,933.50 divided by 523 doors = $7.50 per door

2022

According to financial documents provided by the Property Management Company, in 2022, the Property Management Company charged $52,414 in management fees.

$52,414 divided by 12 months = $4,367.83

$4,387.83 divided by 523 doors = $8.39 per door.

RED FLAG: One of the biggest concerns regarding the Harvest Creek HOA’s financial situation is the fact that there are poor and unclear accounting practices happening (i.e. balance forwards vs late fees, improper notifications, accounting documents sent to different homeowners that don’t match, inconsistent management fees). In this letter, the Property Management Company admits to errors in the spreadsheets that the Homeowners were provided. The Property Management Company claims to charge the exact same fees every year but this is not consistent with the P&Ls the Property Management Company prepares and disseminates.

Aren’t these errors enough to prompt the Board of Directors to start a full audit of the financials and bid out to other Property Management Companies?

Fun Fact: There are actually 530 lots in the Harvest Creek HOA.

Fun Fact: As of September 16, 2023, the 2020 - 2023 Harvest Creek HOA P&Ls are not publicly available on the Property Management Company’s website. So how exactly are they available for all to view? Why weren’t the original documents and the updated documents just attached to the email to all Homeowners? This website would be happy to add the “corrected” P&Ls to this website. Email us at harvestcreekhoa@gmail.com.

Fun Fact: See that “Fine Schedule” up there? Guess what? That “Fine Schedule” was never authorized by the Harvest Creek HOA Board of Directors and does not appear in any documents regarding the management of the Harvest Creek HOA.

Fun Fact: According to this letter, the Property Management Company offered to drop the fee, but according to the May 2023 Board of Directors Meeting Minutes, the Board never authorized any change to the Property Management Company fees. The minutes simply state that the "Management fees are now..."

Liens:

Harvest Creek HOA Homeowner’s Response:

Who decided that liens are filed on owners that are delinquent 2+ quarters on dues? That is not in our By-Laws and according to the meeting minutes provided, the Board has never authorized that time frame. According to meeting minutes, the Board Members have not authorized any specific liens to be filed and according to Harvest Creek HOA By-Laws the Chairman of the Board must sign off on all lien filings.

Fun Fact: A public records request for all liens filed in Harvest Creek HOA sorted by date shows that only one (1) lien was filed in the Harvest Creek HOA in 2020. And it was a lien release. Documents provided by the Property Management Company show that $5,335 was charged to the Harvest Creek HOA for the filing of liens in 2020. How are we charged $5,335 dollars for non-existent liens? Where exactly is this money being “recuperated” from?

Math Time!

Scenario 1

Literal Translation of the letter “The amount in the management contract is $150 for filing and $150 for release.”

1 Lien Release in 2020 = $150 to release the lien

$5,335 charges for lien filings - $150 for the lien release = $5,185 charged to the HOA for non-existent lien filings.

Scenario 2

Funny story, y'all! The Property Management Company’s Contract actually allows a $150 + the cost of the lien filing, but you know ... .details.

Gallatin County Clerk & Recorder charges $5.00 per lien filing/release.

1 Lien Release in 2020 = $150 to release the lien + $5 Gallatin County Clerk and Recorder Lien Release Fee = $155 lien release cost

$5,335 charges for lien filings - $155 to release the lien = $5,180 charged to the HOA for non-existent lien filings.

Fun Fact: There are federal regulations governing Debt Collection Practices including liens established by third parties on behalf of HOA. Check out more information here: https://www.hopb.co/fair-debt-collections-practices-act-fdcpa-hoa-collections

Review Fees:

Harvest Creek HOA Homeowner’s Response:

The Harvest Creek HOA By-Laws state that:

Fun Fact: The Property Management Company’s Contract, the meeting minutes, and other documents show that the Harvest Creek HOA Board of Directors never authorized the Property Management Company to act as the Harvest Creek Architectural Review Committee.

Fun Fact: The Property Management Company’s contract, the meeting minutes, and other documents show that the Harvest Creek HOA Board of Directors never authorized an Architectural Review Committee Fee of $200.

Fun Fact: Check out Section 21 of the Harvest Creek HOA By-Laws. Yeah, that right here states that the Harvest Creek HOA "Architecture Control Committee may require reasonable fees to be paid with the filings of plans AND specifications AND the issuance of building permits." Here is where the difference between and vs or is important. The way this reads is that reasonable fees can be adopted for projects requiring plan filing and the issuance of building permits. This is talking specifically about large scale construction projects requiring building permits. Homeowners' adding fences and landscaping their yard are not required to file plans and get building permits so this fee does not pertain to actions such as fencing and landscaping.

The Harvest Creek HOA is a fully established neighborhood dating back to 2005. There is no major construction that would require significant review.

There is no dedicated Harvest Creek HOA Architectural Review Committee Document. The generic Property Management Company document that homeowners are expected to fill out is named “Landscaping & Fencing Review.”

The "Audit":

Harvest Creek HOA Homeowner’s Response:

At the 2022 Harvest Creek Annual Board Meeting, concerned homeowners wanted a full financial audit of the Harvest Creek financials based on discrepancies found within the documents produced by the Property Management Company which would essentially be an audit of the Property Management Company’s accounting practices and documentation. Aside from providing documentation to a third party accounting firm, why is the Property Manager claiming involvement in an audit regarding their own practices?

According to this letter, it sounds like the Property Management Company is helping to fund the audit. 50/50 Split? $2,500 from the Property Management Company and $2,500 from the HOA? No, the Harvest Creek Homeowners funded a $5,000 audit to verify that three checks were deposited into bank accounts. Again, this was not what was asked for and it was clear that the checks were deposited. The Homeowners wanted a full financial audit which included tracking down where these checks went after they were deposited.

RED FLAG: Property Management Companies are supposed to provide operational services at the discretion of the Board. The intent is not that the Property Management Company runs the HOA, runs Board Meetings, runs the Annual Meetings, and serves as the only point of contact. Why is the Board hiding behind the Property Management Company?

RED FLAG: The concerned Homeowners have asked numerous times about whether the HOA Attorney is representing the HOA as an entity or the Members of the Board as individuals on a board. This letter states that the Board of Directors have an attorney and that the Attorney is representing the Board Members…not the HOA as an entity.

Please provide documents to clarify the "incorrect statements." In this letter, the Property Management Company admits to having errors in the financial statements they created and disseminated to the HOA Homeowners and then didn’t provide the updated documents.

The Harvest Creek HOA Homeowners should be able to speak directly to the Board Members who represent the Homeowners. Homeowners should not be filtered through a Property Management Company that they have concerns with. It has been noticed that there is a tendency to direct all communications through phone calls which can be easily denied. The recommendation is to only communicate through email or written documentation.

The Board of Directors should be running the HOA. Not a Property Management Company who profits at the expense of homeowners.

The Harvest Creek HOA Homeowners welcome questions, concerns, and helpful guidance to be emailed to harvestcreekhoa@gmail.com. The Homeowners are proud of the very beautiful neighborhood that Harvest Creek has become and remained over the years due to Homeowners’ dedication, blood, sweat, and tears, and of course, OUR funds and as such the Harvest Creek Homeowners demand that these concerns be addressed by OUR board regarding OUR money in order to ensure the future prosperity of the Harvest Creek HOA and its members.