Loveland's Independent News Source
Embattled Allendale HOA President
Wants To Serve As City Financial Advisor
Loveland - February 3, 2014  

Thompson School District bus driver and failed Loveland City Council candidate David Hallet has
applied to serve on the Loveland
Citizen's Finance Advisory Commission.  His application appeared to
be sailing towards easy approval for Tuesday night by Loveland's City Council until fellow board
members of the HOA he heads stepped forward to complain about his eminent appointment.

According to fellow HOA board members and Allendale Home Owners, Hallet has mismanaged the
association's modest annual budget of approximately $65,000, failed to disclose important financial  
transactions in a timely manner and is still refusing to release an internal audit of the
HOA's finances they demanded be conducted.  

A local IT (information technology) program manager Terri Rady told LovelandPolitics she joined the
Allendale Board in 2013 due to concerns over Hallet's questionable experience in handling rather
simple financial transactions on behalf of fellow Allendale homeowners.

“I really didn’t get involved a whole lot until the water pump went bad…they applied a $25
assessment on all homeowners.”
 Later Rady discovered the board received $23,000 from the
insurance provider to replace the failed water pump but didn't refund the special assessment.
Instead, Hallet determined the HOA would
keep the special assessment collected and not make any
formal announcement to the homeowners that the insurance provider, in fact, covered the costs of
repair they had been assessed by the HOA according to his fellow board members.

During his run for City Council against incumbent Councilman Dave Clark last November, Allendale
HOA board member Bob Konzem said he submitted a letter critical of Hallet's leadership of the HOA
to the Loveland Reporter-Herald which was never printed.  Konzem did communicate his distaste for
Hallet in one email to friends during the campaign stating,

"Regarding Dave Hallet.  He is currently the Allendale Homeowners President.  I joined the board
In Feb 2013 and that is when he became President.  He likes to dictate at all the board meetings
and wants everything his way."

Rady said it was during the annual board meeting when she first learned of the insurance
reimbursement thus raising other questions about what was not being disclosed to all homeowners.  
Rady was elected to the board that night and like fellow board member Bob Konzem has been
battling with Hallet over his alleged mismanagement ever sense.

Audit Results Still Unknown

Unlike most Home Owner's Associations in Loveland, the Allendale HOA doesn't hire a professional
property management company to manage the affairs of the HOA.  Allendale does pay one
homeowner, Lisa Willis, to manage the affairs and finances of their association at a rate of $1,400 per
month.  In addition, Allendale also paid a "covenant enforcement" officer who lives in the subdivision
$275 per month in 2013.  

At a grand total of $20,100 per year, Allendale's management costs do seem excessive as both Rady
and Konzem have complained.  Especially curious is why there doesn't appear to be a licensed real
estate broker involved in the management of Allendale Homeowners Association.  

Lisa Willis, according to LovelandPolitic's inquiry at DORA (Department of Regulatory Agencies)
Division of Real Estate, is not a licensed real estate broker.  While not required by law, most
homeowner associations in Colorado employ licensed real estate brokers or management companies
run by brokers to manage their associations.  This practice ensures the people responsible for
collecting the annual dues are licensed by DORA and must follow strict rules regarding disclosure,
liability insurance and business ethics guidelines enforced by the Colorado Real Estate Commission
and peer associations.

Outside Audit Becomes Inside Job

In early 2013, Hallet ascended to the presidency of the Allendale HOA and spent the better part of
last year battling both residents and board members who were demanding more transparency in
Allendale's finances along with a complete audit according to Rady.

Rose Melville was selected to conduct what Hallet is said to describe only as a "review of the
finances" instead of the formal audit homeowners were demanding.  Soon after she was retained,
Rady and Konzem discovered Melville was hardly independent but really the mother-in-law of
another board member.  In response to complaints regarding the conflict-of-interest, the auditor's
son-in-law, Joel, resigned from the board and her daughter (his wife) stopped attending board
meetings.   Nonetheless, Hallet invited Joel to return to his seat once the financial review is
completed according to Rady.

Homeowners in Allendale have been assured the "financial review" was completed in late December
and everything is fine.  However, Hallet has not released the report even to  his own board  members
pending what he is reported to be describing as some “tweaking” still required of the document by
Melville.  Fellow board members who spoke with LovelandPolitics accuse Hallet of secretly meeting
with his friend's mother-in-law to assist in editing the report before it is released to the board and
larger community.

One issue in Melville's financial report LovelandPolitics has been told required some "tweaking" is
Willis' signing HOA checks without any documented authorization from the treasurer.  According to
Colorado non-profit regulations, expenditures of the HOA must be approved or signed by the board
treasurer who was apparently not involved in most of the transactions.  

A common complaint by both angry board colleagues of Hallet and lesser involved homeowners is the
way Hallet and Willis decide many board issues behind closed doors without consulting the HOA
board.  Both Konzem and Rady are seeking Hallet's removal as President of the HOA (not from the

UPDATE:  Following the publishing of this story Rady resigned from the board.  Hallet's application
for the city commission was not approved by council but is awaiting staff review of the allegations
against him.
David Hallet
Allendale Home Owner's
Association President