Over the past few weeks, we’ve discussed the upcoming vote on the Board’s proposed $35/month increase (functionally a two-year special assessment). Many homeowners have asked an understandable question:
“How did we get here?”
If you purchased your home after 2021, you’ve never seen the historical financial reports, because the Board removed all documents prior to 2022 from the HOA website. Without that context, it’s easy to assume:
- that the HOA has always been financially unstable,
- that our reserves have always been underfunded,
- or that the current amounts charged for legal, accounting, and contracting services are normal.
They are not.
The truth—based solely on documents still available, state law, Reserve Studies, and reconstructed records—is that POHOA was financially stable for years, with clean books, predictable spending, and a functioning reserve plan.
The financial instability we are now facing did not begin decades ago.
It began recently, accelerating after 2020–2021 under successive financial and leadership transitions.
This article walks through what happened, why it matters, and how we move forward responsibly.
1. Before 2020: Clear Books, Normal Costs, Predictable Spending
From 2016–2019, POHOA’s books followed a straightforward structure:
- Operating Budget (annual spending)
- Reserve Fund (held in a dedicated account)
- Separate line items for fences, legal, accounting, irrigation, landscaping
Homeowners could easily tell:
- where money was going,
- how reserves were being maintained,
- and whether spending matched the adopted budget.
Fence repair example (2018–2019):
- A three-year special assessment ($200/year per home) was collected
- Money was clearly deposited into the Reserve Fund
- Fence repairs were properly recorded
- The books matched reality
No surprises. No confusion. No shortfalls.
This is not nostalgia—this is documented.
2. 2020: The First Major Shift — New Accounting System, New Reserve Study, New Problems
In 2020:
- The Board moved bookkeeping into a new format through TPMG (Trademark Property Management Group).
- The 2020 Reserve Study was completed—but later, the owner of the reserve-study company admitted it was done by a junior analyst who only completed a handful of studies before quitting.
- Major assets (including stormwater drainage systems) were left out entirely.
Although the 2020 Reserve Study became the “foundation” for later decisions, it contained structural flaws from the start.
This was also the period where recurring discretionary spending noticeably increased, especially in legal and administrative categories.
Everything became less clear—even for people accustomed to reading HOA financials.
3. 2021–2022: Bookkeeping Reform Turns Into Bookkeeping Confusion
In late 2021:
- TPMG resigned suddenly.
- Financial records were delayed for months.
- The 2021 Annual Report was finally produced much later—using yet another new financial format.
This is also when the steep rise in legal and accounting expenses begins, coinciding with changes in leadership:
Jennifer Hutchinson’s Financial Roles (Documented):
- 2020–2021: Treasurer on the Board, overseeing multiple shifts in accounting
- 2022: Returns as a volunteer bookkeeper
- Later in 2022: Paid as a contracted bookkeeper (without a written contract)
- 2024–2025: Returns to the Board again, then resigns mid-term
Each transition created a new version of our books, each incompatible with the last.
This is not about individuals but about the structural reality:
POHOA’s financial records have been “rebuilt” multiple times by different people using different systems.
This alone would destabilize any HOA.
4. 2022–2025: The Era of High Discretionary Spending
Beginning in 2021 and accelerating in 2022–2025, POHOA’s discretionary spending rose sharply:
Examples from financial reports:
- Legal fees doubled or tripled compared to pre-2020 levels
- Accounting/bookkeeping went from volunteer service → contracted service → $500/month payments
- Landscaping and irrigation costs expanded even as 0.8 acres were removed from irrigation
- Fence repair costs reappeared in operating budgets instead of reserves
This is the heart of the issue:
Most of the shortfall the Board now cites as justification for a Special Assessment comes from increased discretionary spending that did not exist before 2020.
Not from “aging infrastructure.”
Not from “bad financial management for decades.”
Not from “past boards failing to plan.”
This is a recent development.
5. Why Homeowners Are Confused (And Justifiably So)
Because:
- Reserve balances are not clearly separated in current reports
- Financials before 2022 were removed from the HOA website
- Multiple accounting systems were used in a short period
- The 2025 Reserve Study starts with a reserve balance not found in any published POHOA report
- The Board has not provided a year-over-year breakdown showing how spending changed
And without historical access, newer homeowners have no way to evaluate whether today’s decisions are financially sound.
That is why we are providing this context.
6. What This Means for the Proposed $35/month Increase
Homeowners deserve to know why an increase is proposed—not just be told that “reserves are low.”
Here is what the reconstructed data shows:
The primary driver of our financial shortfall is not underfunded reserves—it is increased discretionary spending since 2020.
Before 2020:
- POHOA’s largest expense was landscaping
- Legal and accounting were modest and stable
- Fence repairs were planned and funded
- Reserves were clearly tracked
After 2020:
- Legal + accounting + administrative spending ballooned
- Fence repairs started coming out of operating budgets
- Reserve reporting became inconsistent and unclear
- The 2025 Reserve Study includes figures not reflected in any available financial statements
A Special Assessment is not a long-term fix for structural financial mismanagement.
7. What the Board Should Do Before Asking for a Special Assessment
A. Pause discretionary spending until financial clarity is restored
Especially:
- Legal
- Accounting
- Irrigation and landscaping frequency
- Nonessential repairs
B. Provide homeowners with the missing financial documents
2017–2021 reports belong on the website.
C. Re-segregate reserve funds into a dedicated account
This is basic best practice.
D. Disclose all financial contracts and obtain competitive bids
Colorado does not require this—but best practice does.
E. Correct the Reserve Study inputs before basing assessments on them
A reserve study is only as accurate as its opening data.
8. What Homeowners Can Do
This is not about blame. It is about:
- Transparency
- Stability
- Responsible planning
- Protecting home values
The Special Assessment is an important vote—but it is impossible to evaluate without understanding why we are here.
Homeowners have the right to:
- Ask questions
- Request documents
- Participate in meetings
- Vote on major expenditures
- Expect accurate financial planning
9. Final Thoughts
POHOA is not broken.
But its financial practices changed dramatically beginning in 2020, and those changes—not “decades of neglect”—are what brought us to the current crossroads.
Restoring stability does not require blame.
It requires:
- transparency,
- consistent accounting,
- competitive contracting,
- and a willingness to reduce discretionary spending until reserves recover.
This article is meant to give all homeowners—especially those who bought recently—a clear picture of how POHOA’s finances evolved and why we should insist on a responsible, transparent path forward.
If you would like a deeper dive, the full Case Study and Exhibits are available.