Why Many Ohio Communities End Up Self-Managing

Many associations in Ohio adopt self-management not because they prefer it, but because they lack the budget or size to hire professional management from the day one. In small communities, the board often handles everything by necessity. Over time, however, financial complexity, compliance demands, and liability risks can exceed the capacity of volunteer leaders. When that happens, the “do-it-yourself” model begins to show serious cracks.

Self-Managed Gone Wrong: Ohio Examples of Misuse and Theft

These Ohio cases, involving self-managed or semi-self-managed associations, illustrate how even local, smaller communities can become vulnerable when they lack robust financial controls and oversight.

Surrey Point II, Warren, Ohio
In Trumbull County, the president of the Surrey Point II HOA was indicted for stealing $140,218 from the association by submitting falsified invoices—some from phantom vendors, some for work never performed. He pleaded guilty to attempted grand theft. The case exposed how the absence of dual controls and independent verification enabled the fraud.

Warren Condo Association, Ohio
Also in Warren, a former condominium association president was sentenced to five years of probation for attempted grand theft tied to theft from his own association. The official pleadings cite that he diverted funds belonging to the association for unauthorized use.

Because many self-managed boards rely heavily on a single volunteer treasurer or president for bookkeeping, approving expenses, reconciling accounts, and vendor payments, those roles become single points of failure. In these Ohio cases, the lack of built-in checks and audits made it easier for misconduct to go undetected for years.

Industry Observations: CAI and Self-Management Risk

The Community Associations Institute (CAI) provides guidance for volunteer boards that self-manage, but also warns about the heavy burden such boards assume including financial, legal, insurance, compliance, and enforcement responsibilities. Their Self-Management Guide outlines how every function that a professional manager would perform must fall on the volunteer board, which increases exposure to errors, gaps, and liability.

CAI also emphasizes that risk management and insurance strategies are essential. Volunteer boards must identify exposures (fraud, mismanagement, liability) and adopt both risk control (internal checks, audits, professional relationships) and risk financing (insurance, fidelity bonds). Without those safeguards, boards are vulnerable to loss.

In essence, CAI does not say self-management is impossible, but it warns that self-managing boards operate with much greater risk and require elevated diligence, policies, and professional support to mitigate that risk.

The Hidden Cost: Why Fidelity Insurance Is Higher

Ohio law requires associations to carry fidelity insurance (sometimes called crime or surety coverage) to protect against theft, embezzlement, misappropriation, or unauthorized taking of association funds. (See Ohio Revised Code Chapter 5311.16 and 5312.06).

In practice, insurers view self-managed associations as higher risk because they often lack:

• Segregation of duties
• Independent reconciliation
• Formal accounting systems
• Periodic external review or audit

Those risk factors translate into higher premium rates and more restrictive coverage terms. By contrast, associations using professional management with documented internal controls and transparent accounting are better positioned to obtain more favorable fidelity insurance coverage.

What Professional Financial Management Offers

Engaging Eclipse for financial support adds structure and protection rather than relinquishing control. With Eclipse, your board gains:

• Credentialed professionals who monitor changes in Ohio law, federal mandates, insurance standards, and industry best practices
• Regular board updates and training on key regulatory, insurance, or financial changes
• Access to legal, audit, or consultative support when unusual issues or disputes arise
• Defined escalation protocols so that boards never face crises alone
• Transparent accounting systems and oversight that reassure homeowners and insurers

This means your board doesn’t have to act in isolation, it is partnered with institutional experience and continuity.

Streamlined Tools That Free Your Board to Lead

At Eclipse, our financial management offering is powered by a robust backend and secure owner/board portal:

• Owners can pay assessments online (ACH, credit/debit)
• Vendor invoices are coded, approved, and paid through the same system—complete with audit trails
• Boards enjoy real-time visibility into bank balances, ledgers, statements, and reserve tracking
• Document storage is centralized for budgets, audits, past reports, and compliance records

Because Eclipse handles the transactional complexity, your volunteer board is freed to direct focus toward:

• Architectural and design review
• Maintenance oversight and capital planning
• Vendor sourcing, contract negotiation, and oversight
• Community rules, governance strategy, and resident engagement

Summary

Even in Ohio, where communities may feel small and informal, the risk of theft, financial mismanagement, and legal exposure is very real when associations remain self-managed. The reputational, financial, and insurance cost of trying to do it all without institutional safeguards is too great.

By partnering with Eclipse through our Financial Management service offering, your community retains decision-making power while gaining professional backing. If your board is ready to strengthen financial integrity, mitigate risk, and focus your volunteers on what they do best, Eclipse is the partner you need.

Ready to get started?
Contact us today to schedule a free consultation and learn how our Financial Management services can transform your self-managed community!