-- Tuesday, May 19, 2009 --
HEADLINE - Supplemental Report On Special Owner's Meeting On May 14, 2009
After reviewing the hand-outs that they gave out at the door when entering the Special Owner's Meeting, please note the below VERY IMPORTANT INFORMATION.
There was an item on the agenda called "5. New Business", scheduled to be discussed that night, before the Board and Alcor decided to cancel the meeting since they didn't want any Mortgagees at the meeting... what do they have to hide???
This "New Business" item reads as follows: "5. New Business - Proposed Amendment to By-laws to formally and legal [Sic] set standards regarding number of rentals from this point forward - relates to new Owners from this point forward only."
So... is the Board and Alcor admitting, once again that I was right and that they ILLEGALLY changed the By-laws when they ILLEGALLY changed the "Rules And Regulations - Exhibit E" back in 2008 when they added a new rule limiting the number of rental units and giving the Board and Alcor control of the units available for rent? YES THEY ARE!!! What this also means is that if you have a vacant unit that you wanted to rent out right now, you should be able to do it without having to follow the ILLEGALLY passed "Rule" from 2008. Remember though... that since the current Board and management contract are also ILLEGAL, anything they try to do "legally" right now would also be considered illegal. They really need to dissolve the Board
themselves, hold new and legal elections for Board members, legally appoint new Officers, etc... and then the legal Board can start to make legal changes as long as they continue to follow the Condo Documents, which says that the Condo Documents can only be changed by following those three pesky little steps... meaning they have to ASK THE OWNERS and get an 80% approval
from the owners before they can just go around changing things. WOW... WHAT A NOVEL IDEA... ASKING THE OWNERS BEFORE JUST DOING WHATEVER THEY WANT TO DO! Folks... I think things will finally be starting to change around FCCA... and if they do not do it voluntarily, then the Court will eventually ORDER them to do it!
I previously reported that changing the Rules to put these kinds of restrictions on people, who never had a restriction when they bought their unit, was ILLEGAL but as we've seen in recent weeks TFOI's, the current and past Boards and managers of FCCA haven't really cared much about following the rules... the same rules they try to shove down everyone else's throats and demand that you follow them or they will threaten, harass, fine or sue you if you don't.
Now... speaking of renting out your unit...
Here's a couple of little hints if you choose to use the "Official" lease that one of the previous illegal Boards added to the "Rules And Regulations - Exhibit E", without first getting an 80% approval from ALL of the owners. In that "Official" lease, available for download from the Fountain Court website, there is a section in the lease that basically says the Lessor (Owner) is responsible for providing maid service to the Lessee (Tenant), so you may want to read through that lease and make a few changes to it.
On page 3, of the "Official" lease, under the section "MAINTENANCE AND REPAIR", it currently reads as follows: "Lessor will, at his sole expense, keep and maintain the Unit and appurtenances clean, sanitary, orderly and in good condition and repair during the term of this Lease, except for those repairs due as a result of Lessee's or his visitor/guest's misuse or neglect, which repairs will be at Lessee's expense."
What this says, is that the "Lessor" (the Owner) will keep and maintain the unit in a clean, sanitary and orderly condition during the term of the lease... meaning the Lessor (Owner) is promising maid service as part of the lease.
Another thing you may want to add to the lease, is the option to raise the rent in January, 2010, or anytime prior to that date, in the event Alcor and the Board legally or illegally raise your Condo Dues. I suspect that a $50.00/month increase will be proposed soon, in order to try and balance the books since Alcor and the Board currently show the books as hemorrhaging red ink... READ ON!
The next VERY IMPORTANT issues were noticed in reading the handouts.
Under the "LIABILITIES AND CAPITAL" section of the "Balance Sheet" that was handed out, they list "Total Current Liabilities" as "0.00", which is A BIG LIE!!! I'm not a CPA, but if you look at the same "Balance Sheet", under the section, they call "Current Assets", they have two items, "Katrina/Gustav Ins. - Oper" and "Katrina Insurance Fund - MM" and these two line items have balances of $23,570.99 and $34,504.98, respectively. These two lines, I believe, is the money that Alcor and the Board is currently holding back from owners who have not completed their Katrina repairs. I know there are still at least two units in the rear courtyard that have not been completed and I've heard from a few folks in the front courtyard who say they haven't received all of their money from the Gustav claim. So... is Alcor and the Board reporting this money as an asset but not showing the reciprocal liability line item since most of this money is actually owed to the owners for whom the money was originally intended? This "Balance Sheet" seems to violate the Bylaws which require the FCCA Books be kept according
to generally accepted accounting guidelines.
As previously reported, the line item for "Edward Jones Account" has gone down from over $175,000.00 to now showing only $36,798.49, meaning around $140,000.00 is gone from that account since September, 2008, the last time that I received a "Balance Sheet" from Alcor.
Next, under "Capital", you'll see that Alcor has the "Beginning Balance Equity" listed as $349,672.36, then "Retained Earnings" listed as a NEGATIVE $173,827.96 and the "Net Income (Loss)" listed as a NEGATIVE $56,689.23, so the "Total Capital" has gone down from $349,672.38 to $119,155.15 and this figure is still listing the $58,000.00+ of Insurance proceeds that is owed to some of the owners, but not listed as a liability... meaning the actual "Total Capital" is REALLY LESS THAN $61,000.00.
The "Insurance Reserve Account" ONLY has $920.57 in it... WOW.. not much of an Insurance Reserve.
FCCA IS HEMORRHAGING RED INK RIGHT NOW AND IT'S UP TO THE OWNERS TO TELL THE BOARD AND MANAGER TO QUIT SPENDING THEIR MONEY LIKE A BUNCH OF DRUNKEN SAILORS... no offense to drunken sailors who are actually more responsible than Alcor and the Board seem to be. Maybe I need to change that "drunken sailor" parody to "Washington politician" since politicians are much more irresponsible than a drunken sailor could ever be.
I really think one or more owners should bring this "Balance Sheet" and one or more of the previously issued "Balance Sheets" to their own accountant for a quick review. If they tell you what I think they will tell you, you don't have to sue Alcor and the Board yourself, just come and join us since we are already suing over some of these issues and can amend our current lawsuit to add these new issues. It would be much less expensive for you to join us than it would be to start up your own new lawsuit... but that is also an option for you.
I will be scanning and uploading the above reference documents (and some other recent documents) so you should be able to download them from http://TheFountainOfInformation.blogspot.com by clicking on the FileFront link included in the header of every page. This will be done in the next day or two.
Until next time, let "The Fountain Of Information" flow!
Lenny Vasbinder, Editor
TheFountainOfInformation@gmail.com
http://www.TheFountainOfInformation.Blogspot.com
Cell-504-621-1870 eFax-413-318-0742
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Lenny Vasbinder NHSNOLA@gmail.com
Cell-504-621-1870 Fax-413-318-0742
http://www.NeighborhoodHomeServices.com
P.O.Box 74031, Metairie, LA 70033-4031
Handyman Services, Lawn & Garden Care, Painting, Gutters Cleaned, General Cleaning & Trash Hauling, Etc.
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