Edgewood HOA 2025/2026 Financial Disclosures

⚠️ Key Findings from Edgewood HOA Financial Disclosures

1. Disclaimed Accuracy of Financial Statements

The accountant (Browning Reserve Group) clearly states:

“The information in this report is based on representations provided by the Board of Directors of the Edgewood Townhomes HOA.”

• The financial projections rely entirely on Board-supplied data.
• The accountant did not verify the data independently.
• Statements may not reflect actual or enforceable assessments or obligations.

⚠️ This disclaimer means that if the Board misrepresents funding or assessment plans, the entire financial report will be misleading.

2. Special Assessments Were Assumed—But Never Disclosed or Collected

• Reports assume special assessments will be collected from each homeowner.
• Example: a $1,389 per unit shortfall is shown in the documents, covered on paper by assumed assessments.
• These assessments are not being collected or disclosed, artificially inflating the reserve balance.

This isn’t an isolated incident — past financials show the same pattern:

• In 2024, a ~$1,470 special assessment was “planned” but never collected or communicated to residents.
• In 2023–2024, a $4,167 per-unit shortfall appeared in financial disclosures but was similarly never assessed or resolved.

3. No Accurate Reserve Funding

2025/2026 reserve fund projections continue to show annual shortfalls, “solved” on paper by fake or unapproved assessments.

• Actual reserve funding remains critically low, with a multi-year shortfall gap.
• The reports create the illusion of solvency, with no supporting real-world collections.

⚠️ This misleading practice affects buyer due diligence, lender risk, homeowner confidence, and escrow disclosures.

4. Maintenance Schedule Assumptions Can Mask Deferred Work

Reserve studies forecast expenses on a planned timeline. If projects are delayed but the model isn’t updated, the cash-flow can still treat them as completed “on schedule,” making reserves look stronger than they are.

• Modeled vs. performed: The study resets component life as if work occurred, even when it hasn’t.
• Backlog isn’t visible: Deferred tasks become a hidden maintenance “debt” that the report doesn’t show unless it’s revised.
• Risk compounds: Repeated deferrals increase failure risk and can raise future project costs.
• Disclosure gap: Buyers and lenders may rely on the model’s schedule, assuming projects were completed.

If scheduled repairs (e.g., roofs, paving, mechanicals) were not actually performed, the reserve study should be updated to reflect the true completion dates and current condition, or the cash-flow will overstate reserve health.

What to ask for

• A list of projects the study shows as completed in the last 24 months, with matching invoices/work orders.
• The date of the most recent component inventory/condition update and any scope changes.
• Any board votes approving schedule changes and how they were reflected in the model.

⚠️ Summary

• Report is not verified by the accountant; relies on Board assumptions.
• Special assessments are falsely included, inflating reserve health.
• Same deceptive pattern in 2023–2024 with a $4,167 shortfall left unresolved.
• These practices are systemic, recurring, and materially misleading.

Shane Hill

The Edgewood Community of Residents

We are not endorsed by any HOA board.

community@edgewoodhoa.org | (279) 252-8072 | www.birdcageheights.com

Sources:
All figures and financial references are drawn from official Edgewood HOA documents and CPA review packets provided to homeowners.

Legal framework: California Davis–Stirling Civil Code §§5550 & 5570 (reserve study and disclosure requirements).

Industry standards referenced: Community Associations Institute (CAI) National Reserve Study Standards.

This publication is based on official HOA documents and CPA financial reviews provided to homeowners. It reflects matters of legitimate public concern under California law. Truthful discussion of HOA governance and financial practices is protected by the First Amendment and California’s Anti-SLAPP statute (CCP §425.16). If you believe any fact is in error, please contact us so it may be reviewed and corrected.