Posted at: 09/02/2014 8:56 PM
Updated at: 09/02/2014 10:39 PM
By: Erica Zucco, KOB Eyewitness News 4
RIO RANCHO -- For weeks, Rio Rancho police have investigated a business they say embezzled hundreds of thousands of dollars from property owners and homeowners associations. Meanwhile, associations are dealing with the consequences of reportedly mismanaged funds.
Money paid to homeowners associations is typically supposed to be for special touches.
"They keep the exterior of the neighborhood looking good," homeowner Ryan Swanson said. "A lot of it has to do with the walls; we had some walls [needing] to be replaced, some of the watering that goes on…we have a pathway that connects parts of the neighborhood to keep it looking nice."
But a letter sent to people in the Seven Bar North Homeowners Association says their money was instead mismanaged by Double R Realty.
Police say a Double R employee embezzled hundreds of thousands of dollars in all, spanning across several accounts. Associations like Seven Bar North expect to get their money back through insurance claims, but may impose small fees to homeowners for immediate expenses like irrigation. A letter says there will be a one-time $50 fee for Seven Bar North.
"They talked about a special assessment to restore some of it...it's not going to be too expensive, so we're okay with it," Swanson said.
Insurance claims for most associations won't be settled for months, some even for up to a year.