May 20, 2025
This page preserves a formal police report submitted to the Citrus Heights Police Department concerning allegations of financial misrepresentation, reserve-funding discrepancies, and potential fiduciary misconduct involving the Edgewood Homeowners Association during the 2024–2025 fiscal period.
The report alleges that HOA leadership publicly represented the association’s reserves as being funded at approximately 55%, while reserve-study documentation and financial disclosures allegedly reflected substantially lower reserve funding levels closer to approximately 8%. The filing further asserts that reserve projections incorporated large assumed special assessments that were neither approved by homeowners nor collected, potentially creating the appearance of stronger financial reserves than actual reserve cash balances supported.
The document additionally discusses projected reserve deficits, deferred repair obligations, rising HOA dues, and concerns regarding the association’s long-term ability to fund major infrastructure projects including roofing, paving, drainage, and structural maintenance. The report characterizes these issues as potentially impacting vulnerable homeowners, including elderly and lower-income residents within the 108-unit community.
The archived filing also references cease-and-desist communications issued during the resident recall effort, allegations of suppression of public criticism and community organizing activity, and requests for investigation into possible violations relating to financial disclosures, fiduciary obligations, and homeowner protections under California law. Supporting materials referenced in the report include reserve studies, HOA financial statements, board communications, meeting records, archived forum discussions, and related community documentation.
Police Report: Suspected HOA Fraud
and Financial Mismanagement
I am formally requesting that the Citrus Heights Police Department investigate serious and ongoing financial mismanagement, misrepresentation, and potential fraud by the Board of Directors of the Edgewood Homeowners Association (Edgewood HOA), located at Spyglass Lane, Citrus Heights, CA 95610. This community includes 108 homes, many of which are occupied by elderly, disabled, or low-income residents—including my father, who owns one of the units. I serve as a community advocate on behalf of those affected by the Board’s mismanagement.
In July 2024, the HOA Board claimed that the Association’s reserves were 55% funded. However, the 2024/2025 Reserve Study conducted by the Browning Reserve Group indicates the true funded level was closer to 8%—a shortfall of over $450,000. Despite being informed of the discrepancy, the Board continued to present false financial statements to the community.
Public records confirm the reserve fund held only $158,380 as of March 31, 2024. Despite this, the Board-approved financial forecast claimed a balance of $606,149, which was based on fictitious future special assessments of $4,167 per unit—assessments that have never been approved, disclosed, or collected. The HOA Board instructed the reserve study firm and its accounting vendor to include these fictional assessments in the budget, without informing the membership. This constitutes a material misrepresentation of the Association’s financial health.
The financial risk is significant. Even with increased dues of $474/month beginning in 2025, the reserve fund is projected to collapse into deficit by 2026/27, with negative balances exceeding $366,000 by 2028/29. Urgent capital repairs are scheduled (including roofing, asphalt, drainage, and structural systems), yet the Association lacks the funds to cover them. The Board has failed to notify residents of these deficits. Instead, they have suppressed dissent by issuing cease-and-desist letters through legal counsel to those organizing recall efforts or public websites, including www.birdcageheights.com. These threats appear to be SLAPP tactics (Strategic Lawsuits Against Public Participation) intended to silence public oversight.
These actions represent a failure of fiduciary duty, and potentially violate California elder financial abuse statutes. Many of the affected homeowners are especially vulnerable due to age and income. They are now at risk of losing access to needed repairs or being burdened by unexpected special assessments.
Potential Criminal Statutes Implicated
- Misappropriation of funds
- Falsification of public documents
- Failure to disclose material financial obligations
- Elder financial abuse
Documentation Available Upon Request
- The complete 2024/2025 Reserve Study by Browning Reserve Group
- HOA financial disclosures and budget documents
- Board meeting minutes and public statements referencing false financial health
- Cease-and-desist letters sent to residents
- A timeline of reporting inconsistencies
- Archived content from www.edgewoodhoa.org
- Community member correspondence and sworn declarations
We respectfully request that the Citrus Heights Police Department accept this report for investigation and assess whether criminal wrongdoing has occurred. Homeowners deserve transparency and accountability from their elected board.
Please contact me directly at (279) 252-8072 or shanehill@edgewoodhoa.org to coordinate further documentation or testimony.
Sincerely,
Shane Hill
Community Advocate, Edgewood Townhomes
Edgewood Home Owner Advocacy
www.edgewoodhoa.org is an independent community-interest website created to share local news, events, and civic resources in the Birdcage Heights / Edgewood area of Citrus Heights, California. It operates solely for neighborhood news, transparency, and to foster open communication among residents. Edgewoodhoa.org is not affiliated with, sponsored by, endorsed by, operated by, or connected to any homeowners association, property manager, HOA board, or common-interest development.