I am the president of my condo association which is managed by Koger. We were first told of this issue (through an email from the portfolio manager) on March 5th 2007, despite the rampant rumors. We heard nothing more about the issue from Koger until a belligerent and petulant memo from Robert Koger (in which he places blame on many of the associations for their tardy audits) was thrown into our board meeting packages on March 17th.

I was shocked to learn that there was a short-of-receivership deal brokered that, among other things, gagged the VA Attorney General and allowed what was appears to be a grossly incompetently managed company to continue operating while allowing the owner to sell out at the expense of his staff and customers. Shame on the entire Koger family.

I have had anecdotal tidbits that there were problems with Koger as long as a year ago when a valued employee mysteriously resigned (her version) or was fired (Koger's version). The company was, at that time, commingling funds of many associations -- clearly illegal under the Code of Virginia.

In any case, I understand that the company was sold, the HQ building in Fairfax was sold and that the Koger family will no longer have anything to do with the new management.

Does anyone know who the buyer is?

PS--it seems rather self-serving to me that the Koger's chose to sell the company rather than attempt to fulfill their fiduciary duties to their customers.

I, too, am president of a homeowners association managed by Koger. While I am concerned for our members' funds and the sale to a new management entity, and while we are taking every action available to protect our interests in these matters, I will not be so quick to cast judgment.

Based on the information available to me, this situation arose through the action of a single employee who worked in a position of trust. While better management controls might have uncovered the problem earlier, I doubt that such controls could prevent it -- or something else like it -- entirely.

This is an organization with 30 years of history serving clients. Let's see how the situation develops before we condemn the whole organization.

I'm glad there's a new sheriff in town. Hopefully somebody reputable.

Our association's account manager from Koger is terrific. I hope we get to keep her.

I'm in one of the Koger-managed homeowners' associations and also work in the accounting office for a large Northern Virginia real estate developers. Our company has worked with the company buying Koger and they really are first rate. I hope this sale goes through.

By now, many of you have probably received the letter from the buyer, National Realty Partners. The letter was mailed in a Koger envelope.

The letter contains a website address to which one is directed: "We encourage you to visit www.NRP-Koger.com to learn more about NRP's record of excellence and our plans to exceed your expectations."

Well, not only is there no website for National Realty Partners, the referenced website is blank:

www.nrp-koger.com
This page is parked free, courtesy of GoDaddy.com

So, what's the deal with this buyer? Who are they what's the deal with the botched communications and missing website?

I just looked and the website is up at www.nrp-koger.com. Helpful stuff. I am told that National Realty Partners has met personally with attorneys representing every HOA affected by Koger and that, by and large, they were impressed with their professionalism and competence. They will be a breath of fresh air.

My wife chaired a task force for the Wash Metro Chapter of CAI several years ago looking at this specific type of problem. They put on an ed program and wrote articles for the chapter magazine.

There are definitely steps that every association board should take that will protect their funds and virtually eliminate the opportunity for this type of fraud. The treasurer of every association should take a look at materials by CAI both online and in their publications.