Why Should We Trust Our Reserve Study?

Serious Questions: Why won’t Diversified Facilities answer questions about our reserve study, and why does the Board of Directors hire incompetent/unlicensed contractors?
I received a communication from Mr. Tom Stephan (The President of Diversified Facilities - the SCA reserve specialist), stating that he can not, and he is under no obligation to respond to individual homeowners in matters concerning our reserve reports.

Diversified Facilities has been proven to be one of the most incompetent, and unprofessional reserve companies that do business in the State of Nevada, and now we find out that the firm that the SCA board of directors contracted to handle our multi million dollar reserve studies is not even properly licensed–for many years!

Not only has Diversified Facilities committed numerous errors in their reports, but they have consistently published reports that do not conform with the established guide lines provided by The State of Nevada.

I am of the opinion, that the board of directors have serious problems about their fiduciary duties by continuing to have dealings with a reserve specialist who works out of a residential neighborhood in California, instead of a local, reputable, properly licensed firm right here in Las Vegas.

Mr. Stephan refuses to answer why he committed a 35% error when calculating the square feet of needed paint surface for a Villa Home. He also refuses to answer why he committed a 39% error when establishing the cost of paint need for the Villas.

As a direct result of Diversified Facilities errors 162 Villa home owners have suffered financially, yet the board of directors will not consider any other reserve specialist, and will not even consider bids from any other source.

The Nevada Statute Regulation R145-06 Sec. 20 (a (3)) states that a reserve specialist is subject to disciplinary action if the reserve study specialist commits “Negligence or gross negligence”.

Why doesn’t the board of directors read the rules, and follow them? Why should we trust the board’s business judgment–considering all of the problems we have discovered?

This entry was posted on August 26, 2008 at 08:05 and is filed under SCA Board, Laws & Rules, Other. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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