Ahwatukee Board of Management received loan of $178,750 from a federal PPE relief program
Our HOA in Ahwatukee profited from the recent federal PPE program, receiving $178,750.00 designed to help small businesses. ABM/HOA is a non-profit corporation, not a small business.
This was done without getting homeowner approval as required by the association’s bylaws requiring a homeowner vote on any loan over $100,000.
Appreciate recommendations the Homeowners can take to protest this action.
https://www.ahwatukee.com/news/article_367be2a2-a519-11ea-8d55-9fe653ee7bc8.html
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Nancy,
As with any government program meant to help people there are people and corporations out there that will try and scam and abuse the program. Why would anyone believe that the HOA industry would be about any of this? I’m just surprised that we have not about more of this from the HOA industry. The payroll protection program was meant to accomplish just that If your association has no-one on the payroll or if those employees are paid thru assessment income those associations are not eligible for that program. While the government has protected people from bank foreclosures based on non-payment or apartment rental evictions based on non-payment no relief was provided to homeowners from assessment non-payment and the HOA industry was not restricted in any way from unrestrained collection cost and foreclosure. Why would this industry then be able to get forgivable loans to protect payroll, while their source of income is not in jeopardy?
If your suspect fraud report that fraud to the Office of the Inspector General thru this link https://www.sba.gov/about-sba/oversight-advocacy/office-inspector-general/office-inspector-general-hotline .
As with anything that happens in an HOA the people can come together and attend a board meeting and demand to know why the board sought and obtained a loan with the required approval of the association.
If you believe that the HOA violated their governing documents by requesting a loan without getting the required approval of the community than file a petition to the Arizona Dept. of Real Estate based on governing documents violation. Request that they comply with the governing documents and get approval from the homeowners prior to applying for a loan. Since the loan that was received was done illegally it should be returned.
These are some of my thoughts on this issue. The rest of my thought should not be posted on a public forum.
Dennis