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AUSTIN (KXAN) – Mason Weems was celebrating with the family last December and preparing for the New Year when he heard a knock on his door.
It was around 7 p.m. and he remembered being greeted by a contractor he had been in contact with about water damage in his apartment.
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Weems said the contractor gave him a cost estimate earlier this year, but the water damage was never repaired.
He said if he saw the builder near Riverside Grove or RG Townhomes in southeast Austin, he would tell him to speak to the property management company.
But that December night, Weems stated that the contractor shared something else.
“He said, ‘Hey, I don’t know if you know, but I didn’t get paid and some of the other salespeople weren’t paid,'” Weems said. “After that my whole life changed.”
$ 7.75 left in HOA account
Weems said he learned from their HOA attorney that the Plateau Property Management Corporation mishandled their HOA money.
According to a letter from Plateau’s attorney to several HOAs, the company collects regular and special reviews from members and deposits these funds into the club’s designated current and money market accounts, which are managed by Plateau.
“We had about $ 120,000 on paper in our reserve fund. And when we looked up instead of $ 120,000 or something, we got $ 7.75. So there was never $ 120,000 in our bank account, ”Weems said. “I was able to access the bank records and only see a lot of money movements from and on our account to other accounts that we didn’t understand.”
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Overnight, Weems became treasurer of the RG Townhomes Owners Association and most recently president.
“We had salespeople who hadn’t been paid for three months, they had to be paid. We had the landscapers who hadn’t been paid … nobody had been paid, ”Weems explained.
Riverside Grove Townhomes and Boulevard Condominiums share a fence and trees in southeast Austin. (KXAN Photo / Chris Nelson)
A similar discovery was made of a neighboring lot at Boulevard Condominiums.
Not only do they share a fence and trees with RG Townhomes, but also services from Plateau until last year.
“$ 100,000 of our HOA money. Yeah, I mean wiped out, ”said Lisa Novak Hopkins. “We were all very surprised.”
She was informed by the Boulevard Condominium Association that there was also a lack of funds on her HOA account.
“We pay this every month in good faith that it goes into the right hands and that it will just be wiped out so we can pay our bills – you know – we have to do landscaping, pool maintenance and all sorts of things,” Novak Hopkins explains. “Then the freeze happened in Austin, so pipes burst, there were all these other unexpected things.”
Treasurer terminated
A letter both HOAs received and shared with KXAN investigators detailed what happened.
The letter states that Plateau has become aware that its treasurer has mishandled the accounts, which has drained the association’s funds significantly.
The management company’s attorney went on to explain that the treasurer has been fired and that Plateau is trying to find out how much of the association’s funds are not being captured and whether those funds can be found.
KXAN investigators asked to speak to the owners of Plateau, but their attorney said that as this is an ongoing legal matter, Plateau has no comment at this time.
Both HOAs had to submit special appraisals and increased fees to cover the accumulating costs.
“So, it’s been a pretty big financial shock to everyone, I think having to somehow reimburse some of those expenses and funds,” Weems said. “There are some people with a steady income here and all. And we haven’t had a HOA raise in a while, so it was pretty low. “
Police investigation
Almost a year later, Austin police are investigating but said no information is currently available.
The Boulevard Condominium Association alerted homeowners that there was a lack of funds in their HOA account in December 2020. (KXAN Photo / Chris Nelson)
“I think everyone just wants someone to pay to have consequences,” said Novak Hopkins. “It is very upset, a lot of people.”
The Boulevard Condominium Association has left no comment as Austin Police have an ongoing investigation.
The attorney representing the association sent a letter to the homeowners informing them that seven associations administered by Plateau, Austin, are affected and that they have all received the same letter from Plateau’s attorney.
Those affected say that everyone in a HOA should ask their board of directors about insurance and whether mismanagement would be covered with money. They also stated that HOAs should always use an outside auditor to point out suspects.
Weems said he is making sure there are safeguards in place so this doesn’t happen again. He said this should be a warning to all HOAs and homeowners.
“It also shows that we are resilient, just as many people have been committed to helping and volunteering,” said Weems. “And, you know, like with dog running, we had someone to run the dog and someone to run the weight room and pool. And the entrance gate always breaks. So that’s what someone found out. And, you know, one of the boys is out there, a tree falls. So, he’s out there with the chainsaw like he’s just doing it. And yes, it was just good in that sense. “
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https://www.kxan.com/investigations/money-missing-from-austin-hoas-says-attorney/
