Any Ideas?

My subdivision consists of volunteer board members and a property mangement company that seems to serve as a "padlocked gate" where direct communication with the board members are concerned.

Given that my subdivision is a total of 45 lots on a street spaning roughly one quarter of the several mile long street, with each lot holding two units per lot, we are a very small subdivision. We have no common areas or facilities. Our only shared immenity is yard care. Our annual HOA dues are 300.00 which causes our overall collection of dues to be $27,000.00 per year. There is almost $24,000.00 in reserves and the yard care has been budgeted at $14,000.00 per year.

Most of us have only partial grass on our front lawns and would agree that the yard care has always been incredibly poor. Because of this fact, I proposed an annual dues reduction by 1/3 at the last quarterly HOA meeting and was denied without an explanation. As of to date I have 30 members in agreement with this reduction proposal.

What suggestions would you have for the next step as I would like to continue pursuing this effort?

Just learning as I go...

: )

No entrance sign, landscape, or roads to take care of?

Go over the approved budget.

Find out WHY this little lawncare has such a large bill.

There was an entrance sign for the first few years but it was removed a few years ago. Apparently the several streets in this original development were divided up into 4 subdivisions, one of which supposedly has no residental governing. So no, there is no common area landscaping and the street belongs to the city. Crazy...huh?

Dorie,

Welcome to the forum.

Assessments need to be based on totaling actual yearly expenses, the amount needed to be set aside for reserves and the amount needed to be set aside for contingencies. This total would then be divided by the number of lots - identifying the annual assessment per lot. Just because there is money in the Reserves, it does not indicate that your Association has enough funds. My Association had over $50,000 in the reserves. However, when our reserve study was completed, we needed to raise assessments by 20% to fully fund the reserves.

You indicate that you have no common area or facilities. Are your roads private or public? Is your Association a condominium (thereby required to maintain roofs, etc.). Are there electric bills for street lights? Who pays for the snow removal, trash service and recycling services? Who takes care of the sidewalks and curbs? Just because there is no facilities like a pool or playground doesn't mean that there isn't common elements that need to be maintained or repaired.
Here is a link to a thread in this forum about Reserve Funds. The links in that thread might help demonstrate what typical things are common elements that need to be maintained.

As for the lawns, is the problem associated to lack of light? Our development is over 30 years old and the mature trees block a lot of light causing some lawns to suffer. The fix to this is to prune or remove/replace those trees.

Is your intent to minimize association expenses, receive better lawn care or to just have a reduction in assessments?

Tim

Well you are on the right track, learning everything you can first.

The next step would be to attend board meetings to listen and learn what is happening. Follow this up with volunteering for a committee and/or submitting your name for the Board.

Good luck.

Tim

Dorie:

Before you conclude it would be prudent to reduce your CCs I would hope you take the time to gather more information about what it might cost to run your property.

Of course most people will support such a reduction just like most kids would rather have ice cream for dinner rather than vegetables and the like.

I will use the numbers you provided to perhaps explain. You mention your annual dues now stands at $300. Assuming that is for a 12 month period that brekas down to about .82 per day. Your suggested one third reduction would bring that down to .57 per day. Just curious what do you think can be covered for that amount fo money?

Your numbers seem to suggest the total collected now stands at $27,000 per year.

Certainly not an enormous amount of money to operate a property. If we take away the $14,000 you say covers the landscaping your property is left with just $13,000 per year or $1083 per month and $270 per week.

Does that sound like a reasonable amount to cover the costs of running a property? $270 per week I mean?

So if what you say is true the most the MC can be robboing you is $270 per week.
Hardly the great rain robbery.

Now lets go along with the 1/3 reduction you have suggested. Well $27,000 minus 1/3 leaves you with $18,000 minus the $14,000 landscaping and that leaves a surplus of $4,000 per year. Or $11 per day.

Hardly, seems like this would be enough to cover even limited costs.

Do you have a master insurance policy?
What is the fee paid the MC?
Do you have an accountant?
Do you have a yearly audit?
Do you have a pool?

I would suggest even with minimal expenses your property is now running bare bones and clearly could not function on 1/3 less.

And finally there is difference between lawn maintenance and landscaping. You can hire someone to mow the lawns weekly or you can require they give you a golf course. If the lawn was not done properly in the first place perhaps say the soil was not sufficient there would be little anyone could do without major work.
Not just running amower over the lawn. For $14,000 per year you will not be getting lawns re-done. IMO

So before you conclude a 1/3 reduction makes sense perhaps you should gather the facts as to whay expneses your property in fact has. Once you understand those numbers sit down and go over them to see if they even make sense.

$270 per week doesn't cover much.