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DEERFIELD NEWS CONNECTION

March 21, 2025 

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Concerns About the Proposed Management Contract

 

The court-appointed receiver is reviewing a $520,000 management contract for 2025 between Scott Fields, Deerfield Management, LLC, and the Deerfield Resort Homeowners Association (HOA) to oversee daily operations. Gaps in detail raise questions about its clarity and impact on homeowners.

 

Key Issues

 

• Unclear Job Duties: Lists major responsibilities but lacks specific goals or standards, making performance hard to assess and potentially leading to disputes.

   

• Limited Cancellation Options: No provisions for termination, notice periods, or dispute resolution, which could complicate resolving issues.

   

• Budget Clarity: Merges past spending with future estimates without detailed breakdowns or requirements for financial reviews, updates to homeowners, or board approval, leaving fund management unclear.

   

• Use of Personal Property: Permits Scott Fields to use his real estate office and storage for HOA work, but omits rental terms, liability, or oversight, risking financial or legal concerns.

   

• Scott Fields’ Roles: As president of Fields Development Company (the resort’s developer), leader of Deerfield Management LLC, and an HOA board candidate—while named in a lawsuit over HOA funds—his multiple roles raise conflict-of-interest worries.

   

• Insurance Coverage: Lacks standard insurance requirements (e.g., for accidents or errors), leaving the HOA vulnerable to financial liability.

   

• HOA Board Oversight: No mandates for reporting to the board, budget approval, or operational reviews, reducing board oversight of operations and finances.

 

Current Status

On January 27, 2025, the contract went to the receiver for review. On February 3, receiver, Scott Reams emailed Preston Hawkins, Fields' attorney, seeking more transparency and requesting financial records (e.g., 2024 tax forms, job descriptions, pay rates). Despite follow-ups and a February 13 court hearing, to date no response has been received.

 

Next Steps

The receiver can approve, reject, revise, or seek other management options. Adding clearer terms and details would strengthen a contract, assisting the Board with the management of Deerfield Resort.

 

Follow the links below to review the contract provided by Scott Fields, understand why a receiver may want a management contract, and explore an article on HOA management contracts.

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Proposed Management Contract 2025 – 

$520,000 Budget Breakdown

 

Mr. Reams, the court-appointed receiver, is reviewing a proposed $520,000 management plan for 2025 from Scott Fields' new company, Deerfield Management, LLC. With an upcoming HOA board election, property owners should understand how this plan may impact dues and community services.

 

Staff Paid by HOA Dues

Depositions reveal that resort staff have been employed across multiple businesses associated with Scott Fields—Fields Development Company, Fields Real Estate, and Deerfield Water Company—while being paid using HOA dues. Although Scott Fields and Paula LeJeune Fields stated that time spent on non-HOA tasks was tracked and reimbursed, no documentation or reimbursements have been found in HOA records.

 

Now, Fields' newly formed company, Deerfield Management, LLC (established on January 28, 2025), proposes to manage the HOA. This raises concerns that HOA funds may continue to support employees who also work for other Fields-affiliated businesses, without clear accountability for how staff time is allocated.

Paula LeJeune, Deposition Transcript

 

Budget Proposal Concerns
The $520,000 lacks essential elements of a professional HOA management contract proposal, raising several concerns: 

 

• Dues-Based Budget: This contract has a budget structured to match HOA income rather than based on actual service needs. It lacks a clear scope of work and does not include financial reporting requirements.

 

• Staff and Operations: The proposal includes $201,869 (39%) for payroll, covering staff for office, security, groundskeeping, and pool maintenance, plus $75,000 (14%) for management costs under Deerfield Management, LLC, totaling $276,869 (53%) for staffing-related expenses. Operating costs ($243,131, 47%) cover landscaping, road repairs, and utilities, but lack detailed 2025 projections. This 53% staffing allocation significantly exceeds the standard range of 25-35% commonly found in professionally managed homeowners associations (HOAs), where management fees generally include staff supervision with minimal direct payroll expenses.

 

• Tax Liability:  An outstanding $44,183 delinquent payroll tax from previous operations demonstrates mismanagement of tax responsibilities. Unclear past liabilities expose property owners to financial risks.

 

• HOA Dues Usage: The common areas are owned by Fields Development Company and the Fields family, not the HOA. Under Tennessee law, HOA dues should be allocated to community-owned assets, not private holdings.

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• Budget Gaps: The plan fails to allocate funds for essential needs such as road improvements, reserves, security upgrades, and operational software. Instead, Scott Fields suggests special assessments without offering a long-term strategy or recommendations for addressing infrastructure needs.

 

Need for Clearer Planning
The proposed contract does not include a detailed breakdown of Deerfield Resort's operational costs based on historical data, making it difficult to evaluate how funds will be used. It does not provide specific details on how expenses will cover services or projects, nor does it outline plans for long-term needs such as road repairs. Increased transparency and structured planning can help ensure that dues are allocated efficiently and support future community requirements.

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Proposed Management Contract 

 

Why Does the Receiver Need a Management Contract

 

Hellmuth & Johnson - Homeowner Association Management Agreements:

The Top Ten Issues

 

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