Master Association suspended for 3 months
November 8, 2011
The Edgewater Isle Master Association, through its professional management company agent Commo n Interest Management Services, has failed to maintain its active corporation status with the California Secretary of State. Edgewater Isle Master joins Edgewater Isle North and Edgewater Isle South who have also failed to maintain their corporation status.
Sources at Common Interest Management Services indicate that the reason for the corporation being suspended is the State of California is slow to process the paperwork, and that they, Common Interest Management Services, have "been seeing this a lot."
The association failed to meet Franchise Tax Board requirements, specifically, "e.g., failure to file a return, pay taxes, etc." as defined by the Secretary of State, and as a result, the Secretary of State suspended the Master association on August 1, 2011.
Further, the Edgewater Isle Master Association failed to include any mention about their suspension in their 2011 year-end audit about either a tax problem or the suspension.
When a corporation is suspended by the California Secretary of State, the corporation is not legally authorized to conduct business as a corporation. Edgewater Isle Master Association was suspended yet continued to operate, publishing meeting agendas while they were a suspended corporation
Association Held Meetings While Suspended and Condos Closed Escrow
1580 Vista Del Sol, 1461 Via Vista, and 2359 Vista Del Mar closed while the association was suspended. Some or all of these condos may have had demands made upon them in escrow from the Edgewater Isle Master Association during its suspension when the association did not have legal authority to make a demand. While suspended, the association held August, September, and October board meetings, took title to a foreclosure. WOW!
Why did the Edgewater Isle Master Association fail to pay taxes or file a return? Is money missing from the association's accounts? Why has the association failed to disclose the suspension to the homeowners? Every homeowner should demand to review the books and accounts of the association to satisfy themselves that there has not been any suspicious activity with the homeowners' money.
That Got Us Thinking: What About Other Local Associations?
If Common Interest Management Services has in fact "been seeing this a lot," we decided to look up every homeowners association that came to mind in zip code 94404 to see how many others were suspended. Here is what we found:
Other Homeowners Associations in Zip Code 94404
October 7, 2011
|Bayfront Court Homeowners Association||active|
|Carmel Village Foster City Association||active|
|Cityhomes West Homeowners Association **||active|
|Cityhomes East Homeowners Association **||active|
|Emerald Bay of Foster City Homeowners Association||active|
|Harbortown Homeowners Association **||active|
|Island J Homeowners Association||active|
|Las Casitas De San Mateo Homeowners Association||active|
|Lido Isle Homeowners Association||active|
|Longwater Homeowners Association||active|
|Marina Point **||active|
|Meridian Bay Homeowners Assocociation **||active|
|Port Royal Master Association||active|
|Sand Harbour Association||active|
|Sand Harbour South Association||active|
|The Admiralty Association **||active|
|Whalers Island Homeowners Association||active|
|Winston Square Homeowners Association||active|
** Associations listed in bold are also managed by Common Interest Management Services.
We found 6 other HOAs in 94404 that are managed by Common Interest who are all listed as ACTIVE by the California Secretary of State. So we question Common Interest Management Services' assertion that this is happening "a lot." Not a single other HOA in the area that they manage has been suspended. If one has been, they are free to contact us to correct the record.
UPDATE: As of Common Interest Management Services has not offered any correction to the above statements.
Board of Directors Has Misplaced Focus: Can't Keep Own House In Order
The Edgewater Isle Master board of directors is clearly incompetent. While spending time, money, and effort to obtain a trademark or to file a small claims case they fail to prosecute (perhaps because they knew they legally could not) or pursuing foreclosure, perhaps they would be best advised to finally obtain competent management and keep their own house in order before tackling other issues.
The Association published agendas and held meetings while not eligible to do so.
Audit Fails to Mention Suspension
August 4, 2012
At the end of each fiscal year in a homeowners association, the association's books are required to be audited (California Civil Code §5305). The Master Association completed the required distribution of an audit, but the audit fails to mention that the association was suspended by the California Secretary of State for 3 months in 2011.
This audit is worthless. It is a coverup.