Building a Better Future for Makaha Surfside
Our association collects over $5 million in AOAO fees every year—our money, your money—and we cannot afford to watch it go up in flames. Every dollar we contribute should be working for us, not wasted on poor policies, mismanagement, or overpaid, underperforming individuals. It’s time to stop burning money and demand real accountability. We need strong checks and balances to safeguard our finances and protect our community from corruption and theft. While we strive to keep the aloha spirit alive, we must also run our association like the business it truly is—with transparency, responsibility, and a system that ensures every cent is protected. This is our home and investment. This is our money. Let’s protect it.
Please note: The information provided through these communications is for informational purposes only. I am sharing this as an individual homeowner, not as a representative or agent of the board or any other entity. I strongly encourage you to join a MSS Committee. Diversity sparks brilliance, so please just come to observe if nothing else. The content here is based on my own research and understanding of our community’s needs and governance.
Aloha Fellow Makaha Surfside Owners,
Less than 20% of owners call Makaha Surfside home, and thus we need the support of our investor owners as well as those enjoying Surfside as a vacation home, to ensure its prosperity and integrity for generations to come. Since being elected as board member since March 2023, I have valued owner’s input and invite you to join this important ongoing discussion. Let’s work together to create a management structure that truly reflects our community’s values and needs while supporting our collective financial future.
The following is a summary of my top priorities and goals for us to cut costs and avoid future corruption. I am Jess Herzog, a resident owner at Surfside, a single mom, a business professional, a Hawai’i State Notary Public and I am studying to become a Registered Parliamentarian with NAP. For a quick history about my experience at MSS, I didn’t ask to be on the ballot when I was elected to the Board in 2023. That was an error by the manager at the time, “RD”—just one example of the longstanding mismanagement we endured under their contract for almost seven years while they collected over $500,000 in management fees. I have redlined their contract highlighting countless failures that support the need for a complete overhaul of how our association is managed, not to mention the ability for us to take legal action against that company for breach of contract and their fiduciary duty!
Know your rights: Per §514B-154 Association records; availability; disposal; prohibitions. (a) The association’s most current financial statement… (2) Be transmitted to any apartment owner making a request for the minutes, by the board of directors, the managing agent, or the association’s representative, within fifteen days of receipt of the request…(b) Financial statements, general ledgers, the accounts receivable ledger, accounts payable ledgers, check ledgers, insurance policies, contracts, and invoices of the association for the duration those records are kept by the association and delinquencies of ninety days or more shall be available for examination by unit owners at convenient hours at a place designated by the board…
It is YOUR Money – time to speak up and protect it!
Since May 2023, I’ve been working to address the corruption that has plagued our community for decades only to find it is a nationwide epidemic. This isn’t just about the $333,000 that was embezzled from us—it’s about the system that allowed it to happen. The condo industry is rife with corruption and theft, fostered by management companies that hold unchecked power over our finances and operations.
The Root Cause: A Broken System
The current system of governance under management companies is fundamentally flawed. It centralizes power in the hands of a single entity, creating opportunities for mismanagement, inefficiency, and outright theft. This is basically legalized racketeering, and it has no place in our community.
To protect our association, we must dismantle this broken system and replace it with a model that prioritizes accountability and professionalism.
The Proposed Model: A Team of Specialists
Instead of relying on a single management company, I propose hiring dedicated professionals to handle specific aspects of our community’s operations. This approach ensures expertise, accountability, and flexibility while preventing any one entity from holding too much power.
Here’s How It Works:
- Dedicated Accountant
- A licensed accountant will manage our financials, provide monthly statements, and oversee banking activities.
- This ensures rigorous oversight and protects against mismanagement.
- Real Estate Professional
- An on-call advisor for real estate-related consultation, ensuring board meeting compliance and maximizing rental income for AOAO owned units.
- Construction Project Manager
- A seasoned project manager will oversee reserve study obligations and construction projects, ensuring they are completed on time and within budget.
- Qualified Office Manager
- An experienced office manager will lead day-to-day operations, supported by our current staff, who will have the opportunity to grow under expert guidance.
- Elect to become Self-Insured
- The insurance industry operates like an MLM scam—taking in billions, spending a fraction on claims, while limiting coverage and increasing rates. To avoid this financial burden, we can obtain a bond for coverage and redirect our $500K+ annual insurance premium into an interest-bearing account, building financial independence and reducing long-term costs.
- Improved Collection Policies
- We can revise our collection policies to allow the use of the small claims court system to secure judgments against owners in arrears before they turn into tens or hundreds of thousands in lost revenue.
- This approach is faster, more cost-effective, and ensures actual recovery of funds, unlike the current system of relying on lawyers and liens, which often fail to return money to the association.
Benefits to Our Community
1. Enhanced Checks and Balances
Direct hiring means direct accountability. Each professional will have clear roles and responsibilities, ensuring transparency and trust.
2. Potential Cost Savings
By paying only for the services we need, we can reduce overall expenses. This flexible model eliminates the inefficiencies of an all-in-one package.
3. Security and Peace of Mind
With experts managing specific areas, the risk of embezzlement or mismanagement is drastically reduced. Our finances and operations will be transparent, fostering trust within our community.
Contact Information
For questions or more details, feel free to reach out to me 808.445.0239 or:
Stay Informed and Engaged in Our Community
In our shared journey to enhance the management and governance of our community, staying informed and connected is crucial. Unfortunately, our current communication channels are often restricted, and not all significant updates or initiatives reach every owner as they should.
To ensure you receive timely and transparent information directly from me about upcoming initiatives, important meetings, and community actions, please sign up below. This is about empowering each of us with the knowledge to make informed decisions and engage meaningfully in the stewardship of our community.
Your voice matters, and together, we can ensure it is heard.
Jessica Herzog is a current member of the National Association of Parliamentarians and she actively volunteers in various roles within local units.
- Hawai’i State Association Parliamentarians – Membership Committee Chair
- Aloha-‘Ohana Parliamentary Unit of Hawai‘i – Treasurer
- Pono Parliamentary Unit of Hawai‘i – Secretary
Please fill out the form below to receive vital Surfside updates and critical legislative information. Let’s make a real difference!
Disclaimer
Please note: The information provided through these communications is for informational purposes only. I am sharing this as an individual homeowner, not as a representative or agent of the board or any other entity. The content is based on my own research and understanding of our community’s needs and governance.
While I strive to provide accurate and up-to-date information, I do not claim that the content is error-free or comprehensive. I am not providing legal, financial, or professional advice. As such, I am not liable for any actions taken based on the information provided on this website. I encourage all visitors to verify any information independently and consult with professionals as necessary before making any decisions affecting your interests in our community.