Owners Meeting 1/13/16 Reserve Study - History 2014 HOA Board - - PowerPoint PPT Presentation

Plantation on Pelham Owners Meeting 1/13/16

Reserve Study - History

• 2014

– HOA Board recognized a need for a Study – Obtained quotes from Engineering Co.’s

• 2015

– Home Owners voted to pay for Study – Study performed – Detailed Findings shared on NHE’s web site – HOA Board elected committee to review

Plantation on Pelham Owners Meeting 1/13/16

Reserve Study - Summary

Expenses Over Next 10 Years* :

• Townhomes:

$902,046

• Single Family Lots: $240,379

(* over and above present operating expenses)

Plantation on Pelham Owners Meeting 1/13/16

Major Expenses - Next 10 Years

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Common Area:

$20,000

$245,000

front gate Road Paving

Townhomes:

$82,000 $180,000

$128,000 $132,000 $168,000 Townhome Alleys Townhome Paint Townhome Roofs Townhome Roofs Townhome Roofs & Alleys _______ _______ _______ ________ ____ _______ _______ _______ ________ ________ Total Townhomes

$8,000 $82,000 $189,000 $129,000 $132,000 $168,000

Total Common Area

$15,000 $41,000 $16,000 $22,000 $15,000 $16,000 $16,000 $245,000 $21,000 $32,000

Plantation on Pelham Owners Meeting 1/13/16

Reserve Funds - Current Rate

• Townhome Reserves

2015: $ 76,580 2025: $303,780

• Single Family Lot Reserves

2015: $20,131 2025: $71,331

Plantation on Pelham Owners Meeting 1/13/16

Reserve Deficits Over Next 10 years

• Townhomes:

$598,266

• Single Family Lots:

$169,048

Plantation on Pelham Owners Meeting 1/13/16

Cost to Fund Reserve Deficit

• Townhomes:

$598,266 ($128/month for 10 years)*

• Single Family Lots: $169,048

($353/year for 10 years)*

(* in addition to present fees)

Plantation on Pelham Owners Meeting 1/13/16

Options to Fund Deficit

• Do Nothing
• Common Areas insolvent in 2-3 years
• Townhomes insolvent in 6-7 years
• Special Assessments as needed
• Extremely high Dues the year needed
• Require Home Owners majority vote for each Assessment (past problem)
• Sell Clubhouse
• Valued +$500k

Plantation on Pelham Owners Meeting 1/13/16

Options to Fund Deficit (pg. 2)

• Increase Regime Fees
• Flat increase to stay same over 10 years
• Must be high enough to cover early significant costs
• May generate high excess reserves in later years
• If you move, you will have paid an excess for repairs in the future
• Slowly step up fees each year
• Will require annual vote of all home owners (past problem)
• Combination of above with Special Assessments added
• Others?

Plantation on Pelham Owners Meeting 1/13/16

What’s Next?

HOA Board:

1. Evaluate Feed-back from 1/13/16 mtg. 2. Requesting Home Owners to email feedback to NHE by Friday, 1/22/16. 3. Schedule additional community mtgs. to answer question. 4. Review all input from community and offer options to vote on. 5. Sponsor vote if community is favorable to Regime Fee increase. (Will require: 2/3 of 87 Owners = 58 votes to pass)