The sprawling Windsor Park Townhomes complex not far from Colby Park in Windsor Heights includes dozens of gray-and-white units that look much alike, except for one decorated with enough fall de?cor to fill an aisle at Michaels.
Brightly colored metal sunflowers, wreaths, mums, pumpkins, decorative frogs and mushrooms and “welcome” signs greet anyone who would pop by Unit 1202.
The only problem, some homeowners there complain, is that the resident is often incommunicado.
And that’s a problem because that resident, Terri Artis, is president of Windsor Park Homeowners Association & Management Co. By Iowa law, Artis and other members who serve on the association’s board oversee the complex’s management, its rules, finances and any special assessments to be paid by owners for major repairs to the property.
State law requires homeowners' associations to prepare annual budgets and maintain a host of records, including detailed financial records that can be reviewed by any owner who asks for them.
But owners of units in the complex like Jim Conlin, whose Conlin Properties owns and manages other properties across the metro, are having a hard time making sense of the association’s finances over the past year. Conlin said what he has seen from the HOA’s new management company, PMI Central Iowa, makes him question the accuracy and completeness of existing financial records, and convinces him the HOA needs an audit.
Conlin, who owns one of the units through his company, said owners didn't receive any financial statements for months, and as long as a year, prior to March. The last six months worth of financial records his company, received this year, from March to August, have been made available to owners, but he said he believes they are incomplete.
Those records show Artis received more than $1,000 this July and August in checks from the association, but Conlin doesn't know why.
Under state law and the Windsor Park association’s bylaws, the townhome association's financials are supposed to be available for any member to review. But Conlin said he’s sent three letters over the summer to Artis and the association trying to exercise his right to get more information and has gotten no response.
Artis, responding to questions from Watchdog, said the records are available on PMI's website, but acknowledged records under the previous management firm were "partial."
Conlin said his company has faithfully paid out monthly association fees as well as the $10,000 special assessment last year for improvements to the property. Spread across the more than 70 units at the complex, he said, the association would have taken in almost $1 million last year, so owners need better accounting.
“As a board, you have a fiduciary responsibility to not only account for funds I provide, but all members also provide, and to do otherwise is irresponsible,” he wrote in a letter in June seeking to review all the financials. “I also insist on receiving any forms sent to the state or federal tax authority which should be filed annually. These are your responsibilities, not the management company you employ.”
Conlin told Watchdog he’s also concerned because a mechanic’s lien was filed against the townhome property in January by a subcontractor, ABC Supply of Wisconsin, for $122,572. He said ABC has told Conlin Properties it didn’t get paid for work on the major siding job last year at the complex.
He said the board should have protected itself by having the contractor sign a lien waiver, which is standard practice with such big jobs.
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“Right now, no owner can sell their property without settling their pro rata share of that lien,” he said.
He contacted Watchdog after he and others at Conlin Properties made several unsuccessful attempts to get hold of Artis and other owners at the complex complained about the management to his employees. He said his company manages more than 50 homeowner associations, and each board member at those properties receives a financial report each month that is available to the entire membership.
As has been mentioned several times since the Watchdog column began in 2012, HOAs are a common source of consumer complaints but remain largely unregulated in Iowa. That leaves owners with grievances few options but to sue when they disagree with an HOA.
One already has.
Lawsuit questions president's eligibility
Conlin did not know the association and Artis already are entangled in a civil lawsuit, filed in January and set to go to trial a year from now, involving a resident who did not pay a $10,200 special assessment due in summer 2024 for the siding project.
That longtime owner, Todd Reinders, is countersuing the association and Artis, accusing her of multiple counts of breach of contract, breach of good faith and unjust enrichment.
Reinders has alleged in the lawsuit that the board didn’t have the necessary votes needed to pass the special assessment. (The vast majority of owners paid them, anyway.)
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"The Plaintiff is not entitled to enrich itself at the expense of Defendant," his answer to the association's lawsuit says.
Reinders said the association has a contractual duty under its Declaration of Covenants to make repairs that were requested many times but never happened. For example, his garage, which is damaged, is the only one at the complex that still has its original garage door. Doors, windows and lights need replacement, he said; the steps to his front door are collapsing.
“Defendant’s repair requests have either been completely and utterly ignored, or denied, yet these exact repairs have been made for other homeowners,” he alleged in his counterclaim.
He also alleged that Artis has harassed, intimidated and retaliated against him for years, and that she's made improvements at her home, including a new garage door and balcony that were superior to those of other units.
"This is, by itself, is a misuse of association funds, a conflict of interest and a breach of Ms. Artis’s fiduciary duty to the association," his counterclaim says.
In that lawsuit, Reinders and his attorney allege Artis shouldn’t even be leading the homeowners association because she’s not a townhome owner and has no association member rights.
“In order to be President of the Association, a person must be an owner of the unit in question,” Reinders’ counterclaim argues.
County records show the unit where Artis lives is owned by the John H. McGuiness Revocable Trust. McGuiness, who is in his 90s and lives in Florida, is the trustee.
Artis' unit also doesn't have a rental certificate, meaning she's also not approved as a renter there, according to the City of Windsor Heights.
Reached by Watchdog this week, Reinders said his mother in the 1980s bought the townhome where he lives and that she used to be on the association's board. Artis, he said, wasn't allowed then to be on the board because she wasn't an owner.
"I don't know how she even got on," he said.
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After several messages, Artis called Watchdog back Sept. 23 and said “all of the financials” are available on the website of PMI, the property manager.
“The board does not do the financials,” she said, and it hasn’t for years.
Later, Artis clarified that PMI Central Iowa was hired in March and that the previous property manager, Lewis Consulting, only gave “partial” financials to PMI. “The board voted to have Lewis Consulting terminated at the end of January,” she said.
Artis said Prime Home Upkeep, the siding contractor, was paid after each building at the complex was completed, and that company is responsible for not paying ABC Supply.
“The townhome association has hired an attorney to get that lien released,” she said. Prime Home Upkeep, she said, has been paid in full. “We have all the records from that,” she said.
Prime Home Upkeep did not respond to a phone call seeking comment.
Artis said she would not comment on the ongoing litigation with Reinders, but that she is part of a five-member board trying to make the townhomes a better community. She said Conlin doesn’t attend HOA meetings, which are held the third Tuesday of every month.
“I’ve lived there for 26 years, and he’s had his unit for as long as I’ve been here,” she said.
When questioned how she could lead the association when she isn’t an owner, Artis became agitated. “I’m not even going to listen to this,” she said, hanging up before the Watchdog could ask her about the association checks written to her.
Conlin said the association hasn’t been sending notices of any monthly meetings, and he doesn’t believe they are being held. When Watchdog called PMI, an employee said the meetings are supposed to happen quarterly but none are scheduled currently.
Only three people, not five as Artis suggested, are listed as other HOA board members — Josh Hiner, Peterson Johnson and Tucker Lehman — on the association's filings with the state. Hiner and Johnson could not be reached for comment.
Lehman said Tuesday that he is no longer a board member and that he could not comment on any pending litigation.
Watchdog sent several questions to PMI Central Iowa asking the other board members or the property manager to respond to questions about the lack of response to Conlin, the money paid to Artis and the lawsuit, but received no response.
(This story was edited to add new information.)
Lee Rood's Reader's Watchdog column helps Iowans get answers and accountability from public officials, the justice system, businesses and nonprofits. Reach her at [email protected], at 515-284-8549, on Twitter at @leerood or on Facebook at Facebook.com/readerswatchdog