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Olathe HOA's 'significant shortfall of money' could end up costing homeowners

An Olathe HOA has filed a police report and called a special meeting to discuss a “significant” budget shortfall. Parkhill Manor also has filed a lawsuit demanding its former property manager return its "records and bank accounts."
An Olathe HOA has filed a police report and called a special meeting to discuss a “significant” budget shortfall. Parkhill Manor also has filed a lawsuit demanding its former property manager return its "records and bank accounts." Parkhill Manor Homes Association

An Olathe HOA has filed a police report and called a special meeting to discuss concerns about its former property manager that it says in a related lawsuit could cause "irreparable harm" to the neighborhood.

Parkhill Manor Homes Association said in the lawsuit that Jonathan Young and his company, Haven Property Management, have "failed and refused to deliver plaintiff's corporate books and records and bank accounts."

The HOA notified homeowners of the problem in a letter sent last week.

Similar concerns raised by a homeowner in the HOA prompted an Olathe lawmaker to propose legislation to make homes associations more accountable by putting their oversight under the Kansas Attorney General. The bill, endorsed by House Speaker Pro Tem Scott Schwab, died on the House floor last month after a brief debate.

Parkhill Manor HOA fired Haven Property Management at the end of January and hired a new property manager.

The HOA said its attorney sent a letter to Young and Haven Property Management on Jan. 29, demanding that the company immediately turn over all books, records and funds.

"To date, Haven and Mr. Young have not responded," the HOA said in its letter to homeowners.

Young has not responded to multiple requests for comment from The Star. He did not attend an April 2 court hearing on the HOA’s civil suit against him, and the court ruled that he had to turn over the association’s books and bank accounts within 10 days.

The HOA filed the civil lawsuit on Feb. 6, asking the court to order Haven and Young to turn over all of its books, records and funds. Then the board filed a criminal police report with the Olathe Police Department on Feb. 15.

The report, obtained by The Star, lists the alleged "crime incidents" as "making false information" and "theft-embezzlement." Police said they could not comment on ongoing investigations.

HOA president Tom Volz said Thursday that the documents had not yet been received.

The special meeting, set for April 23, will address the budget concerns and how to resolve them, according to the letter sent to homeowners.

"It appears we now are faced with a significant shortfall of money to run our neighborhood," the letter said. "We would like to make a recommendation on how to make up this shortfall so we are able to maintain the Association's property."

Facts and figures about homeowners associations across the U.S., in Missouri and in Kansas.

The Star highlighted the Parkhill case in a recent story. The newspaper’s 2016 series, HOAs from Hell, found that HOAs wield far more power than homeowners realize, and some actually torment the homeowners they are supposed to protect.

Last year, Parkhill Manor homeowner Scott Wircenske sued the HOA, saying the board repeatedly refused to let him see meeting minutes and financial records as required by state law. Wircenske told The Star he’d voiced concerns about Young — who lives in the subdivision and was a board member before becoming the property manager — but said the board ignored him.

The case was settled last fall, and the HOA turned over a batch of records. Wircenske said he then contacted investigators with the Johnson County Sheriff’s Office.

But Wircenske says the HOA still hasn’t provided all the documents he requested. The HOA says that is because Young has not turned them all over.

Parkhill Manor is not alone in accusing Young and his company of mismanaging funds.

An Olathe woman won a $3,138 judgment against Young in 2016 after she said he failed to pay her the money owed on property he managed for her. And last year, the courts awarded a Montana woman a $4,000 judgment against Young for money due on a townhouse he managed.

In another 2017 case, a San Jose company won a $2,500 judgment against Young for failing to turn over tenants’ security deposits on property it was managing in Lenexa. And in January, Discover Bank won an $8,214 judgment against Young for unpaid credit card bills.

Wircenske, who shared his story about Parkhill HOA with Kansas lawmakers in February, now is livid that homeowners in his HOA may have to pay the price for the alleged mishandling of their dues.

“This is the first time they have told us anything that is going on and from what it appears, we are going to have to pay additional dues or fees in order to cover for the losses by Haven and the board,” he said. “So the board that is partly responsible for losing the money is now going to ask for more. Unbelievable.”

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