Using reserves to build a playground?

We have a couple of very pushy homeowners who want to use our reserves to build a playground for their children. Our reserves are about 70 to 80% funded and we have no playground nor did the developer ever plan on a playground. They knew that when they bought here, but we worked hard to build up our reserves and now these mommies want that money spent. I have written in my newsletters that reserve funds cannot be used to add a playground only to replace one that was already existing
We are in South Carolina, and I am not finding any specific rule against it. I’d like to shut this conversation down once and for all.

Congrats on building up your reserves, by the way. It isn't easy and a lot of communities don't manage it.

Bret,

One can borrow from the reserves with a plan to pay it back in a resonable time.

My suggestion:

Do the work and find out:

1) Cost of paying back the reserves for the playground over 5 years (10 years if the fund has no major upcoming projects).
2) The amount needed to put into the reserves for playground (replacement, replacement mulch, painting, maintenance, etc.).

Then inform the membership that the only way to accomplish this is to raise assessments by $x,xxx month/year

Additionally, you may want to do some leg work with the zoning/permitting office.
Some States require amending the PLAT if there are major landscape changes or trees are being removed.

Better yet - form a committee to this work for the board (as it will educate those who want the playground).

Don't forget the cost to insure this new amenity, regular maintenance, and inspections.

I remember the story about the family who sued the HOA because their kid was injured on some equipment. The HOA lost after a long legal battle. And with the issues surrounding insurance nowadays, an insurer that's forced to fork out settlement dollars could easily view that as an excuse to dump an expensive client.

Amenities like this often become "attractive nuisances" as well, and may attract people from outside the community.

I'm often thankful that my community doesn't have any amenities.

I like Tim's idea of forming a committee and letting them do the legwork.

Cathy and Kerry and pretty much spot on. Firs you need to find out if you can use reserves for
new capital improvements. Second, you don't want to deplete your reserves for this expenditure.

A play structure for a commercial property is going to cost somewhere north of $20,000.00, and that's
not including a sunshade, add another $15,000.00 to $20,000.00. Then your HOA liability insurance will go up.

You will need to significantly raise assessments to cover the cost of insurance and to replace your reserves,
not to mention you will need to have a new reserve study completed. One last thing, you will need to hire a company
to come out to annually inspect the play set, They will make sure the structure is safe for children to play on to prevent
injuries. Don't forget that the play structure will need to have the components repaired and replaced.

One of the crucial elements in the play set is the base. Will you be able to use bark or will you have to use
the rubbery pad. The rubbery pad is expensive and needs to be tended to quite regularly.

Just because your HOA's insurance did not go up (for a different amenity) does not mean that the OP's insurance would not go up for a playground. Insurance is nowhere near that simple.

We went through a similar proposal for , first, a playground, and then a swimming pool.

Back story is we had a couple of houses that were sold for below community average prices due to size/repairs. etc. and they were bought by (*unique to our overall community) young families.

Then they wanted us to use our reserves to build a playground "for their children", and then a swimming pool, for the same reason.

Our rec committee developed a couple of proposals, and they were floated to the community in a vote. Both were rejected.

I actually would like a pool, but not a little dinky thing populated with someone's screaming children. Basically, it was proposed a a baby-sitting facility. Nope. The cost to build a "good" pool project with appropriate support facilities...bathrooms, changing rooms, showers, etc. was substantial, and way beyond what was proposed. Throw in staffing, management, water quality testing to meet local requirements, insurance, security, et al and the cost gets high. We just didn't have a sensible plan to finance (beyond our reserves) any project, let alone one which was desirable to the greater community.

So, the answer is put the project in front of the community and let them decide if they wish to spend the money. Pools are like time-shares....they never stop needing to be fed more $$$. Playgrounds, maybe not so much, but they still wear out, need supervision, need maintenance, security and insurance. Those costs aren't going down any time soon.

Say, Wendy, I can see why you're so P-O'd, and I assume this happened before you were on the Board,, right? In your mind, what would a "capital an improvement clause" look like? Would it be in your CC&Rs?

So....I'm emotionally driven to share this--can't help myself-- which only slightly relates to this subject.

Across the street and a few doors down a hill from a friend, a two-story house underwent a complete remodel for over a year in a non-HOA neighborhood. They covered the backyard space with a pool/deck/BBQ area. But where will the kids play?? Ah, of course, so-help-me-gawd--there is a full size trampoline with high "safety" sides ON THE ROOF.

My pal posted a pic on FB, and an early comment was "Darwin works in mysterious ways" : D