I have reported extensively on the Costa del Mar (CDM) home owners association (HOA). Our last update on CDM was January of this year and can be read here. To say the least there has been plenty of controversy out there for quite some time. Problems in HOA’s are certainly not unique to Mexico and after some research it would appear you can find problematic HOA’s all over the United States as well. For this I would highly recommend a very well written piece by Professor Gary Solomon who professes to be a
“published author, tenured psychology professor at the College of Southern Nevada, psychotherapist, researcher, expert witness and human rights advocate. The focus of my ongoing research is the new and groundbreaking field of panspermia, quantum mechanics and nano-techonological Darwinism in evolutionary neuropsychology. Right now however, I am focused on defining a new psychiatric disorder: HOA syndrome.”
Professor Solomon’s web site can be found here and his experience while on hiatus in a community that overlooks Las Vegas called Calico Ridge is well worth a look. Especially anyone who belongs to an HOA and especially if you belong to the CDM HOA! The article may sound very familiar indeed to anyone who has participated in an HOA or been the victim of aggression from one.
“It would take me slightly over a year to understand what was happening around me. Ultimately, my awareness would become a spin-off of my current research. I learned that residents, primarily principal homeowners, were living in a war zone, not identifiable by bombs, guns and burning buildings. Rather, a war zone masterfully orchestrated by a few fellow homeowners attempting to control their companion neighbors while making a few bucks on the side and gaining sadistic pleasure from watching their neighbors live in pain.”
If there is anyone who has experienced that exact same feeling described above, i.e. HOA syndrome, then it would certainly be Francisco Velez Villa. Who just happens to be a current resident of CDM, an ex HOA dues payer and someone not coincidentally who also at the moment is winning a law suit against the HOA. A little over three years ago I reported a story that was almost impossible to believe but goes right along Solomon’s description of a war zone like atmosphere. In this case Francisco was actually physically attacked by another member of the CDM community. For the full story you can go to the post I wrote called Costa del Mar (HOA), should they have done what they did?
In a nut shell what the board of directors of the CDM HOA did was try to stop a Mexican resident from driving his car onto the CDM property for lack of HOA dues. Something that anyone who has even the most basic concept of law and justice in Mexico would realize is a huge mistake. Francisco paid his HOA dues for 5 years then stopped when he smelled a rat. The rat started to rear its head right after hurricane Jimena but has most likely been lurking around the CDM for years before the hurricane struck. That set of events is what brings us to this latest installment on the CDM HOA soap opera that has now turned into a serious precedent setting law suit. A case that all HOA’s in San Carlos should stand up and take notice of.
Francisco has filed suit against the HOA and demanded that there be a full audit of accounting for the years starting in 2004 to 2014. The judge ruled that he was only entitled to the years of 2004 to 2010, the years he paid HOA fees. Francisco could appeal that decision but for the moment the CDM was obliged to turn over what it had to be audited. The papers were delivered for the audit right around Semana Santa and the actual audit took place with an accountant for Francisco present, lawyers representing both plaintiff and defendant a secretary for the judge and an accountant for the CDM. All in all about 7 people looked over the books for around 2 hours. CDM showed no accounting for the years of 2004 to 2006. The rest of the paper work at least according to Francisco was pretty light. In other words with no records from 2004 til 2006 how could CDM account for all the money it has spent during those years and more importantly to Francisco show how his part was spent. They certainly could not tell Francisco were all the money went and it would seem as if the judge has decided that as well.
The following is an email exchange between Francisco and someone at the CDM HOA. It is important to break this email exchange down and look closely at it.
Francisco wrote a bulk email on August 18th in English and Spanish to CDM residents stating the following.
Sentence to Costa del Mar.
Through the present document I want to inform to all the neighbors, that ASOCIACION DE PROPIETARIOS DEL FRACCIONAMIENTO RESIDENCIAL TURISTICO COSTA DEL MAR, A.C. has been sentenced by the Judge Lic. José Jesús Félix Félix, the sentence says that CDM, has to give detailed information about the money and the administration from July 2004 to today. Also has to inform about the reconstruction of the streets of the neighborhood which was made in 2007.
On the other hand, I inform you that an Audit was made about the accounting and administration of CDM, which shows the lack of documents and prove the bad administration. Likewise it was found that the documentation was incomplete, that incomes and the expenses doesn’t match. And the administration also found a very bad situation. The documentation is very little, and incomplete, that is why the judge gave the verdict to the demanding party. According to this CDM, has to show the documentation to the court to show the names of those responsible of this fraud.
In the case of the responsible are foreigner the Immigration office will be informed of this, and these people has to leave the country immediately, because they are undesirable residents. According to this, they would lose theirs residence and properties. Of the other hand, the dissolution of the association will be required.
The sentence is attached.
SENTENCIAN A COSTA DE MAR.
A través del presente conducto me permito informarles que la ASOCIACION DE PROPIETARIOS DEL FRACCIONAMIENTO RESIDENCIAL TURISTICO COSTA DEL MAR, A.C. ha sido sentenciada por el C. Juez segundo de primera instancia civil del distrito judicial de Guaymas, Lic. José Jesús Félix Félix. Dicha sentencia resuelve la rendición de cuentas, de fecha 05 de julio de 2004 hasta la actualidad. También condenándose a los demandados a la rendición de cuentas en relación con la obra, de reparación o rehabilitación de las calles de dicho fraccionamiento, realizadas durante el 2007.
Por otra parte, se informa que se realizó a CDM un peritaje contable y administrativo, el cual arrojó como resultado la ausencia y carencia de documentos que reflejen el adecuado manejo financiero y administrativo del recurso económico de la presente asociación. Asimismo se encontró que la documentación que se analizó está muy incompleta, no coinciden las entradas y salidas de dinero, y en lo administrativo la situación es aun peor. La documentación con que se cuenta no es suficiente, esta inconclusa, por ello, el juez dio el fallo a favor del demandante. Debido a lo anterior, CDM tendrá que exhibir esta documentación ante un tribunal para nombrar a los responsables de este fraude.
En caso de que los responsables resulten ser extranjeros se notificará a inmigración y tendrán que abandonar el país de inmediato, por ser visitantes indeseables, por ello, perderían su residencia en el país así como sus casas y cualquier fideicomiso con que cuenten. Además se procederá a solicitar la disolución de la presente asociación.
A continuación se anexa copia de los puntos resolutivos de la presente sentencia.
Costa del Mar Response:
It is important to note that the CDM refers to Francisco as being “significantly behind in his association dues” as if to insinuate that he simply does not wish to pay dues and that this law suit is simply about getting out of paying HOA fees. It is also of note to see who the lawyer is. David Peralta is apparently the new lawyer since it was Salas Castro who had been working on this suit before and with the latest decision of the judge against CDM it would appear Castro was fired and another lawyer was hired.
The most important statement in this reply from CDM might be this one;
“It is unfortunate that this Board must dedicate so much time, energy and expense to providing documentation from pastyears and past board decisions instead of focusing on the future of CDM.“