Updated Surplus Numbers

Updated Surplus Numbers
Updated Surplus Numbers: Actual surplus 2018 per audit was $85,163.
Boards 2011-2018 implemented policies and procedures with specific goals:
stabilize owner fees, achieve maintenance objectives and achieve annual budget surpluses.
Any surplus was retained by the association.
The board elected in fall 2018 decided to increase owner fees, even in view of a large potential surplus

Average fees prior to 2019

Average fees prior to 2019
Average fees per owner prior to 2019:
RED indicates the consequences had boards continued the fee policies prior to 2010,
BLUE indicates actual fees. These moderated when better policies and financial controls were put in place by boards

Better budgeting could have resulted in lower fees

Better budgeting could have resulted in lower fees
Better budgeting could have resulted in lower fees:
RED line = actual fees enacted by boards,
BLUE line = alternate, fees, ultimately lower with same association income lower had
boards used better financial controls and focused on long term fee stability

Friday, October 8, 2010

A Possible Future for BLMH?

A concerned unit owner sent me an email containing this link to an article at Suburban Life. The concerned owner wrote: ".......I can see the same visible wear and tear on [our BLMH] buildings..........apathy and unwise spending affects all of us in a complex this size."

I have included a summary of current and anticipated BLMH projects at the conclusion of this post. Money is the "fuel" that makes all of the programs and repairs possible at BLMH. The establishment of formal programs with specific goals and timelines can and will assure equal treatment of all unit owners and will facilitate the timely completion of specific repairs. That is the possible difference between BLMH and the association in the Suburban Life article. That difference is by no means, guaranteed.

The article, dated September 1, 2010 is entitled

Complex where overhang collapsed has history of problems

The article begins "Some residents who live in a condominium complex where a decorative overhang collapsed on several balconies earlier this week were not surprised by the incident."

The condominiums in the article were built in 1967-1971 according to the unit owner. He stated he once lived there, prior to moving to BLMH.

He suggested I read the article, and I did. I suggest you do also, and take the time to also read the end of the article, which deals with "Inspections and violations."

Click on the following link:

Suburban Life Article - Neglect-at-Condominiums


I don't know how long the article will be at Suburban Life, so I'm going to quote some of it here.

"Inspections and Violations
Carol Stream Community Development Director Bob Glees said..."We will conduct inspections on an as-called basis....If a resident were to contact us with a concern, we’ll go and inspect and make sure the property is in compliance with maintenance codes.”

Over the years, Glees said village officials have been called to the Carol Shire complex for maintenance violations such as inoperative door locks and lights, peeling paint and general upkeep.

“Some of the condos are owned by absentee landlords who rent them out,” he said. Glees said village officials are looking into Tuesday’s facade collapse.

“It’s not a good situation,” he said. “If that had happened during the day somebody might have gotten hurt. We’re looking into whether we should perhaps work with the homeowner’s association to inspect some of the other buildings in the complex and determine whether there is reason to believe any other of these features might be weakening and in danger of collapse.”" (Highlights are mine).


What Can We Do At BLMH To Avoid This Situation?
I stated to my fellow owners at the annual meeting that one of my greatest concerns at BLMH is "apathy and resignation" on the part of owners. Boards too, can be apathetic and when faced with the many problems of a larger association, can become resigned. There is a significant difference between listening to owners and becoming a reaction to owner complaints. I have suggested to the board that we identify other systemic problems here at BLMH. The reserve study is a valuable tool in that quest.

I also suggested that we design additional programs to resolve many of the common problems here at BLMH. Programs include the characteristics of priorities, commitments, systematic methods, and specific timelines, which are specific start and end dates, with funding to accomplish that.  Our programs currently include short, medium and long term of 5-, 10- and 20- years duration, many with imprecise dates and nebulous funding. Those projects may be wishful thinking unless there are specific commitments made, including a financial one.. We need to add others and re-commit to some of the existing programs, which are under-funded.

We currently have significant ongoing maintenance and replacement programs here at BLMH, some of those match the characteristics I list above. These include the replacement of inserts on balcony railings, the roofing project, the driveway project, and our painting and trim replacement schedule.

Other issues less defined and in need of a systematic approach with specific goals, funding and timelines include, but are not limited to:
  1. Establish a program for Masonry Repairs.
  2. Establish a program for Garage Slab Concrete replacement.
  3. Identification of other problems and issues affecting our property.
Current projects which require additional funding to assure timely completion in accordance with the stated commitment of this and prior boards, and the reserve study include: 
  1. Increased funding to assure timely completion of Roofs.
  2. Complete review and re-commitment to driveway project, which is severely underfunded.
  3. Re-commitment to the limestone window sill program.
  4. Re-commitment to the street repair and replacement program.
  5. A formal drainage program to address issues of standing water at buildings and entrances.
  6. Completion of stream modifications and new concrete.
  7. Review the formation of a long-term replacement program for our aging trees.
Comments, Corrections, Omissions, References, Miscellaneous News
Note 1. The reserve study is currently under review by the board and by management. Some recommendations of the reserve study will not be followed; it is, after all, a guide and our history may not support the author's position. For example, our history with the stucco exterior panels does not support the position taken in the study.

Note 2.  Management has recommended a 7% fee increase in 2011. This is after review of the reserve study. Prior to the recent association election, a board member stated to me that "we will not require a 7% fee increase." I am uncertain of the financial basis for that statement. However, our shortfall of about $780,000 indicates to me that the driveway replacement, planned to be completed in 6 years, cannot and will not be completed in less than 13 years unless there is additional funding. That would require doubling fees collected for driveways, or suspending other projects and operations. What are we to give up?

Note 3. What we, at BLMH do this year, the next, and the year after that, will decide our future. We can postpone fees and decide to complete "necessary" repairs and replacements on a schedule that matches that of the fees currently collected. If we do, then we cannot do the work in a timely manner. In such a case, the "concerned owner's" statement will become a reality. It's entirely up to us, the owners, and to this and future boards.

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