Post by Admin on Oct 15, 2013 13:33:12 GMT -5
Cross-post from AnonNews
August 23, 2013
So, I shudder to think what will happened when our reserves are eliminated?! Is the management going to access everyone a whopping additional fee to replace them? And another thing, this place could very well be ran on a HOA fee of between $250 and $300/per quarter to each owner, as it is now, they are spending every nickel that comes in as fast as they possibly can and also wasting it on costly re-do's, frivolous purchases, checks to Sun Trust Bank for cash for
Then there's the crazy director who was quoted recently as saying the board would spend all $1.7 million of reserves to prevent revitalization of our CC & R's!
________________________________________________________
August 23, 2013
HOA cannot levy a special assessment on owners to replenish exhausted Reserves. Owners have the right to vote to NOT have a Reserve Fund. (This could put the kabosh on IT's bad habit of "executing reserves".) Can you imagine this MANBOD having no boundaries on the ability to make owners keep paying to fund never-ending ego projects and botched repairs?
They CAN, however, levy a special assessment to pay for the repair or replacement of amenities and infrastructure. They can only levy an assessment on the lots that have not yet expired. Well...they CAN levy the assessment on the expired lots but it is totally up to the owner whether they will accept the levy or cH allenge the authority to levy. HOA would probably S u e owners who refused to pony up. Oh Happy Days!
This unresolved covenants expiration issue dramatically increases risks to unexpired lots; they potentially bear the burden of the entire SLohA budget and any special assessments if the expired lots refuse to pay assessments and for whatever time it takes to wind its way to a resolution through the courts. If the courts recognize the sovereignty of 80+% of the lots, they might still order the owners to pay a contribution to the community for services consumed. But, that would not be sufficient to have a fully-funded budget as we are currently approving. The covenants expiration issue is potentially more financially impactful to the unexpired lot owners than it is for the expired lot owners although it can interrupt or shut down services to all owners.
Add to this that our sewer plant appears to be increasingly stressed, requiring almost constant maintenance and owners have a possible looming special assessment to either build a new plant or dig new infrastructure (there go the newly-paved roads!) to hook up to another treatment plant. Either way it will require a loan. Without a reserve fund or stable revenue base ie mandatory assessments on all lots, the loan qualification process will not be easy or cheap. Can you say PortaPotty?
The ostrich approach cannot work for anyone. The issue needs to be settled as quickly as possible so that revitalization can begin while owners are still engaged with the future of the park. Subsequent property owners and probate transfers will surely complicate the process and diminish the commitments that have been made over the years by long time owners who will be the foundation of the revitalization mandate.
________________________________________________
August 23, 2013
So, I shudder to think what will happened when our reserves are eliminated?! Is the management going to access everyone a whopping additional fee to replace them? And another thing, this place could very well be ran on a HOA fee of between $250 and $300/per quarter to each owner, as it is now, they are spending every nickel that comes in as fast as they possibly can and also wasting it on costly re-do's, frivolous purchases, checks to Sun Trust Bank for cash for
Then there's the crazy director who was quoted recently as saying the board would spend all $1.7 million of reserves to prevent revitalization of our CC & R's!________________________________________________________
August 23, 2013
HOA cannot levy a special assessment on owners to replenish exhausted Reserves. Owners have the right to vote to NOT have a Reserve Fund. (This could put the kabosh on IT's bad habit of "executing reserves".) Can you imagine this MANBOD having no boundaries on the ability to make owners keep paying to fund never-ending ego projects and botched repairs?
They CAN, however, levy a special assessment to pay for the repair or replacement of amenities and infrastructure. They can only levy an assessment on the lots that have not yet expired. Well...they CAN levy the assessment on the expired lots but it is totally up to the owner whether they will accept the levy or cH allenge the authority to levy. HOA would probably S u e owners who refused to pony up. Oh Happy Days!
This unresolved covenants expiration issue dramatically increases risks to unexpired lots; they potentially bear the burden of the entire SLohA budget and any special assessments if the expired lots refuse to pay assessments and for whatever time it takes to wind its way to a resolution through the courts. If the courts recognize the sovereignty of 80+% of the lots, they might still order the owners to pay a contribution to the community for services consumed. But, that would not be sufficient to have a fully-funded budget as we are currently approving. The covenants expiration issue is potentially more financially impactful to the unexpired lot owners than it is for the expired lot owners although it can interrupt or shut down services to all owners.
Add to this that our sewer plant appears to be increasingly stressed, requiring almost constant maintenance and owners have a possible looming special assessment to either build a new plant or dig new infrastructure (there go the newly-paved roads!) to hook up to another treatment plant. Either way it will require a loan. Without a reserve fund or stable revenue base ie mandatory assessments on all lots, the loan qualification process will not be easy or cheap. Can you say PortaPotty?
The ostrich approach cannot work for anyone. The issue needs to be settled as quickly as possible so that revitalization can begin while owners are still engaged with the future of the park. Subsequent property owners and probate transfers will surely complicate the process and diminish the commitments that have been made over the years by long time owners who will be the foundation of the revitalization mandate.
________________________________________________