As residents push for answers, Brunswick HOA addresses financial concerns

Some homeowners in the Westport development in Winnabow are facing 50 to 60 percent increases in their homeowner association dues next year.

The rate hike has many in the community questioning actions of the development’s community association manager, GOProperty Management, and the Westport Homeowner Association Board of Directors. Some of their concerns include the association’s bank accounts, the board of directors’ election process, and a recent lawsuit against the HOA’s insurance company.

“It just seems like HOAs have immense authority right now, and poor homeowners — we don’t really have any way to have any influence on their directions,” said Richard Uhlman, Westport resident.

In a letter to the StarNews, the Westport Homeowners Association’s Board of Directors addressed some of the property owners’ claims, including GoProperty Management’s role.

“This Board of Directors retains a management company to perform tasks directed by the Board of Directors,” the letter stated. “The management company does not possess any decision-making authority.”

In addition to the letter, the board also provided copies of some of the HOA’s financial records — information homeowners claim hasn’t been provided to them.

As of Monday, the Association did not respond to the reason behind the sharp increase in dues.

Board addresses financial questions

Uhlman previously served as the treasurer for the Westport HOA. He explained the position was appointed and, in Westport, is not considered a member of the board of directors. He said while serving as a treasurer, he raised questions about some of the board’s actions and was told he “didn’t need to know everything the board did.”

“So I resigned,” he said.

Though he’s not serving, he’s continued to keep an eye on the organization’s financials. One item that concerned him was the movement of money — $245,000 from the HOA’s reserve account.

“It was initially put into an undeposited funds account,” Uhlman said. “Then the next month, it went into a working fund.”

In its letter, the board addressed this issue, noting the item was from closing out a Certificate of Deposit at First Carolina Bank in May 2022, which had reached the end of the term and had a final balance of $256,617.56.

“The check was sent U.S.P.S. by the bank and then received and June 13, 2022 deposited into the association’s reserve account with Enterprise Bank,” the letter stated.

The Westport HOA Board of Directors provided copies of financial statements and the check from First Bank to the StarNews to verify.

Uhlman also expressed concerns about one of the HOA’s bank accounts, a $1.3 million account with Enterprise Bank, which he said didn’t show any accrued interest.

The board also addressed this issue, noting the account did earn interest at a rate of 2.25 percent, and year-to-date interest is $23,379.26. The board noted the interest rate is “clearly reflected on the Association’s most recently reconciled Income statement for September 2023.”

But Uhlman said he’s asked about the account before, and the information was never provided.

“That’s the first time I’ve heard that,” he said.

Board stands by elections process

Some residents also voiced concerns about the board of directors’ election process. Currently, elections for the HOA’s board of directors are in progress, and residents are casting their ballots by mail. The ballots are mailed or faxed to GOProperty Management’s office in Wilmington. A third option allows residents to hand deliver the ballots to the office with proof of residence.

Tom Loftus, who has lived in Westport since 2005, explained prior to the COVID-19 pandemic, the elections were always held in-person, usually at Belville Elementary School.

“Ballots were always opened and tabulated under the watchful eye of homeowners,” he said.

He said he understands why the process changed during the pandemic, but he would like to see it go back to the way it was previously, with the elections occurring in person.

In an email to GoProperty Management, Loftus outlined his concerns with the process, noting personally delivering the ballots required the voter to “make a twenty mile round trip” to GoProperty’s office. He also noted that four of the candidates running for office wanted to see GoProperty Management replaced with “a more experienced management company.”

“This being the case, how can we have people whose contract could be in jeopardy responsible for receiving, collection and counting the votes,” Loftus wrote.

A representative from GoProperty responded to Loftus, noting election ballots were considered “discoverable evidence if someone were to sue” and would be “subject to subpoena.”

“We are keeping meticulous records of all ballots received,” the representative wrote. “You may choose to believe that GOProperty would alter official voting results to continue a management contract, however, jeopardizing our company’s reputation for the sake of one community would be absurd.”

The representative goes on two state that while “Westport is a big community” and a “good feather in our cap,” the company would not risk its standing with the “hundreds of other HOAs” it manages. She added GOProperty Management had a contract through 2024, and if it was canceled, the HOA would still owe the full amount.

The Westport HOA Board of Directors also addressed the elections process in its letter to the StarNews, writing, “Non-profit homeowners’ associations are not government entities, nor are they regulated publicly traded companies,” and as a result the elections process is different. The board noted the community had been conducting a proxy mail ballot election since the COVID-19 pandemic, and those are “very common election methods” for community associations.

“Because of the concerns raised by a few homeowners regarding the election process, the Board of Directors reviewed the process with the association’s attorney, Murchison, Taylor and Gibson, prior to the recent election, who upon review of the laws of North Carolina and the association’s governing documents determined the election process would again be in accordance with all laws,” the letter states.

Terry Meeks, who is running for the board of directors, also pointed out a discrepancy in the address shown on the ballot and the address on the return envelope.

The Board also addressed the discrepancy in its letter, noting while the address on the return address is correct, GOProperty Management’s office, a volunteer drafted the letter and made a “typographical error” in the election package that was sent to homeowners. The issue was also discussed with the board’s attorney.

The board noted the return envelope and the “primary cover page” on the annual meeting notice both had the correct address, and as of Oct. 25, GOProperty had received 162 ballots, and no homeowners had said they sent their ballot to the incorrect address.

“However, a second notice clearing up any confusion was sent to all homeowners,” the letter states. “Out of an abundance of caution, Murchison, Taylor and Gibson will be facilitating the annual meeting and will be completing a tally of all ballots at the meeting.”

Loftus said he is still “not comfortable” with the process.

“This situation is ripe for error. Just look at the major error on the ballot heading,” he said, referring to the incorrect address. “This may be legal, but it sure is not comfortable to me.”

Residents want more transparency

Residents also expressed concerns about a lawsuit the HOA has filed against its former insurance company, and while the board did confirm the lawsuit, it was not able to comment on litigation.

Uhlman said he understood there would be times when things should be kept confidential — but not every issue. He would also like to see the HOA Board of Directors get an outside audit.

“We’re not claiming that they’re doing anything wrong,” Uhlman said. “It just seems like we can’t get straight answers when we have questions.”

Loftus pointed out that as property owners in Westport, they were stakeholders in the HOA and should have access to more information.

Overall, residents say they hope things will improve, especially for those residents in the townhome communities who are facing the most significant dues increases.

“They’re probably the people who can least afford it,” Loftus said of the townhome owners.

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This article originally appeared on Wilmington StarNews: Westport residents in Brunswick want answers from HOA