Entrance Gate Requires Rebuilt

Started by WesleyC1 • 13 replies • 722 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

WesleyC1 (Louisiana)
Posts: 6

Posted:

Hello all,

We have a gated community with large brick walls at the entance. These walls are 20+ years old and cracked really bad. The cost for repair is in the thousands...we do not have an emergency fund. Any ideas how to fund this?

Thanks in advance.

MikeM35 (Virginia)
Posts: 4

Posted:

Sounds like a special assessment is in your future.

AugustinD
Posts: 5,144

Posted:

Are the residents of this community required to pay monthly or yearly assessment? If so, review your Declaration, covenants and Bylaws for the phrase "special assessment." Report back.

BobB31 (Florida)
Posts: 178

Posted:

What is your role in the community? Is there a board and are you on it?

Ultimately, the membership is going to be required to pay for this, whether it's a one-time assessment for the entire amount or a loan is taken out to extend the time period over which payments would be assessed. Based on what I've read in this forum, a loan should be the absolute last resort.

Regardless, your board should immediately start taking action to build up the reserves (emergency fund) - this will also cost the membership money and is not likely to be a popular action.

WesleyC1 (Louisiana)
Posts: 6

Posted:

I am the current VP. The covenant does have a blurp about special assessments or charges for capital improvements

RoyalP
Posts: 1,104

Posted:

It is NOT a 'capital improvement'.

It is a capital expense.

It was foreseeable.

The eventual repair and replacement of the commonly owned HOA elements is foreseeable.

Y'all need a 'reserve study' to determine what y'all must fund.

? how to pay now ?

assessment / loan (guaranteed by future assessments/common elements)

YOUR ASSESSMENTS NEED TO BE INCREASED TO FUND THE MAINTENANCE OF WHAT Y'ALL OWN

y'all used the entrance for x number of years, do y'all expect the 'newbies' to pay for it ?!

NpS (Pennsylvania)
Posts: 4,216

Posted:

How much is the expected cost divided by the number of houses?

Sikubali jukumu. Read all posts at your own risk.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Wes

The gates/wall repairs should have been budgeted for in your Reserves based on a Reserve Study but if never done then the question is how do we pay for the repairs?

The answer is probably a Special Assessment laid upon each owner.

GenoS (Florida)
Posts: 4,276

Posted:

Without a reserves schedule on the wall it becomes somewhat arbitrary as far as when to repair it. "It's looked pretty bad for a number of years so we can wait a few more."

WesleyC1 (Louisiana)
Posts: 6

Posted:

Thanks for all the replies!

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Wesley,

If your HOA by-laws are silent on assessments/loans, then I'd consider launching a community discussion about the wall and the need to repair it since it's your entrance. With a zero balance in an emergency fund, I - as longtime HOA president - would recommend that you assess the community sentiment about taking out a loan (the ONLY time I recommend this) in conjunction with an immediate dues increase that covers the monthly payment + a bit extra that can be saved into a Reserve/Emergency account.

Repay that loan as early as possible, using dues increases each time you pass a budget. Then, once the loan is retired, direct the former loan payment into Reserves while holding a line on adding new landscaping or community services.

I despise loans as a practice for an HOA but, if managed, that can provide the source of future savings once the loan is retired and you hold dues rates. I'm assuming your community is, at least, middle class and that your residents can pay more the upkeep of their community and simply - as a board budget policy - have chosen not to through poor planning and being "cheap."

RoyalP
Posts: 1,104

Posted:

Quote:

Posted By KellyM3 on 05/04/2019 6:32 AM
Wesley,

If your HOA by-laws are silent on assessments/loans, then I'd consider launching a community discussion about the wall and the need to repair it since it's your entrance. With a zero balance in an emergency fund, I - as longtime HOA president - would recommend that you assess the community sentiment about taking out a loan (the ONLY time I recommend this) in conjunction with an immediate dues increase that covers the monthly payment + a bit extra that can be saved into a Reserve/Emergency account.

Repay that loan as early as possible, using dues increases each time you pass a budget. Then, once the loan is retired, direct the former loan payment into Reserves while holding a line on adding new landscaping or community services.

I despise loans as a practice for an HOA but, if managed, that can provide the source of future savings once the loan is retired and you hold dues rates. I'm assuming your community is, at least, middle class and that your residents can pay more the upkeep of their community and simply - as a board budget policy - have chosen not to through poor planning and being "cheap."

PERFECT

LisaD6 (Maryland)
Posts: 77

Posted:

For something like this.. with our condos I would use the late fee fund. I get a lot of projects done with the late fees. just recently I bought a shed and the cost to install it. Its amazing what you can do with late fees. IF I could get away with it I would put a placque on the outside of the shed and say thank you units bla bla for the shed. We are aloud to spend 15% over the budget without asking approval. This year we put the shed on the budget as capital improvement for this amount. When people don't pay its aggravating but when in the end you get funds to complete projects not so stressful anymore.

JohnT38 (South Carolina)
Posts: 1,631

Posted:

I realize others may disagree but a 20 year old wall in need of repair and no emergency funds may be the least of your problems. The bigger issue is why are you in this situation to begin with? Why wasn't this problem addressed earlier? Do you have any reserve funds? Have you ever had a reserve study done? Do you have other looming maintenance or repair issues coming?
As for the wall, have you considered tearing it down and not rebuilding it until you have the financing to do so? I know residents like the feel of a pretty wall but you shouldn't buy a Rolls Royce when your budget calls for a VW Bug.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here