Alternation and Addition Form

Started by ErinA1 • 14 replies • 997 views

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ErinA1 (Illinois)
Posts: 43

Posted:

Our HOA requires this for exterior work, for those who are familiar with this form is it common to request the price or estimate for the work being done? I really don’t see why the board which I am on should know how much you are paying for your fence, etc. just trying to get a feel if this is a common ask or if it just a little nosey.

BillH10 (Texas)
Posts: 1,217

Posted:

I have managed associations in Texas and served on boards in California and Texas.

I have never heard of asking for the cost of the project. However, I can understand doing so if the cost is somehow tied to the permit or another municipal/regulatory process and it is used as a double check to ensure a permit is obtained.

ErinA1 (Illinois)
Posts: 43

Posted:

Thanks for your response, I am going to check with our Mayor's office (they issue all permits) and see if they require the price for projects.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I can see a few reasons why the cost estimate of the project may be requested. You can always change the form to not include it or make it optional. However, that will be up to your ACC/Board.

One of the reasons I can see for a cost estimate is if it violates the rules, the HOA should be able to remove it. The HOA may want to know the price range they are dealing with if it comes to that?

Another one is that some overzealous home remodelers/flippers think some projects add "value" to their homes. So now they think their home sale price will now increase the amount of the project. Now they put their house for sale for that extra money. Other house won't be able to compete. You now may the "Keeping up with the jones's" syndrome.

Don't think it's really all that necessary to reveal the cost but there may be some considerations to discuss. It could be a red flag to see a fence replacement costing 5K when it should be 2K. Something else may be going on.

Former HOA President

BenA2 (Texas)
Posts: 1,273

Posted:

Even after reading the previous responses I can't think of any reason the HOA would need to know the cost of the project. I don't know why the municipality would want to know, but even if they did, you would be able to verify a permit was obtained without knowing the cost estimate.

The only information you can require is information necessary to determine if they are in compliance with your CC&Rs.

KerryL1 (California)
Posts: 14,550

Posted:

I agree with Ben.

SueW6 (Michigan)
Posts: 814

Posted:

I am sure the municipality wants to know if you are increasing the value of your home by $25,000 or $250. Think: taxes!

KerryL1 (California)
Posts: 14,550

Posted:

Say, erin, Sue seems to think yur municipality requires this. Is that so? Or just your HOA?

SheliaH (Indiana)
Posts: 6,964

Posted:

I would agree it's not the HOA's business on how much the project costs (after all, it's not coming out of the association funds). It may be they're equating price with quality, which aren't always the same thing. I'd be more concern with the dimensions, type of materials being used, etc., to make sure the work is in compliance with any design standards the association has established.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

BenA2 (Texas)
Posts: 1,273

Posted:

Quote:

Posted By SueW6 on 02/13/2018 10:13 AM
I am sure the municipality wants to know if you are increasing the value of your home by $25,000 or $250. Think: taxes!

True, but what you spend for improvements does not necessarily correspond to the increased value. I'd be surprised if many governments even ask for the cost.

MarkM31 (Washington)
Posts: 494

Posted:

Quote:

Posted By BenA2 on 02/13/2018 6:44 PM

Posted By SueW6 on 02/13/2018 10:13 AM
I am sure the municipality wants to know if you are increasing the value of your home by $25,000 or $250. Think: taxes!

True, but what you spend for improvements does not necessarily correspond to the increased value. I'd be surprised if many governments even ask for the cost.

Yup, there is no relationship between the cost of the project and added value.

MarkM31 (Washington)
Posts: 494

Posted:

Quote:

Posted By MelissaP1 on 02/12/2018 3:07 PM

Another one is that some overzealous home remodelers/flippers think some projects add "value" to their homes. So now they think their home sale price will now increase the amount of the project. Now they put their house for sale for that extra money. Other house won't be able to compete. You now may the "Keeping up with the jones's" syndrome.

That makes no sense

Quote:

Posted By MelissaP1 on 02/12/2018 3:07 PM
It could be a red flag to see a fence replacement costing 5K when it should be 2K. Something else may be going on.

Like what?

Quote:

Posted By MelissaP1 on 02/12/2018 3:07 PM
I

One of the reasons I can see for a cost estimate is if it violates the rules, the HOA should be able to remove it. The HOA may want to know the price range they are dealing with if it comes to that?

Could you explain what you mean?

FredS7 (Arizona)
Posts: 927

Posted:

Maybe they want the estimate so they can see who the contractor is and determine if the contractor is insured?

Otherwise- people who write forms seem to ask themselves what blanks they can put in to get filled out. Not whether the requested information has any actual utility.

MarkM31 (Washington)
Posts: 494

Posted:

Quote:

Posted By FredS7 on 02/14/2018 7:03 AM
Maybe they want the estimate so they can see who the contractor is and determine if the contractor is insured?

Otherwise- people who write forms seem to ask themselves what blanks they can put in to get filled out. Not whether the requested information has any actual utility.

If the HOA wants proof of insurance, or to be named as ad additionally insured, they should ask the HO for that information. Otherwise, pricing is none of their buisness

ErinA1 (Illinois)
Posts: 43

Posted:

I checked with our Mayors office and they ask for the project estimate when issuing their permit to determine if said project is the only work being done. As for the HOA request for estimate it definitely isn’t a government requirement and I also have to agree it’s none of the HOA business if you pay $5K for your fence or you pay $3K. I mean I’m not in the right to tell someone if their paying too little or too much and I think what is happening with my board it turns everyone into professional contractors, landscapers, etc. and in reality we’re not. Appreciate all the feedback!

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