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

Saturday, September 12, 2015

HOA Elections


Bookmark and Share







It's that time of the year when HOA elections at BLMH occur. Our HOA has 336 owners. But we have some difficulty filling seven board positions. However, we recently had a full board of seven.

In a few days we'll have our annual meeting and owners will elect several board positions. Our president, after several years has decided this is to be his last term on the board. We have several incumbents who I understand are running for another term.

Will other owners be sufficiently motivated and concerned to step up to fill a board position? I certainly hope so. I've been asked me opinion of the lack of owner involvement and I has consistently stated that it is the issue of greatest concern to me at this Home Owners Association. Governance is an important component of a HOA. It it is lacking, then it really isn't a "Home Owners" association is it?

When asked why they don't participate many owners will say they are "too busy." Some see the board as an authoritarian body whose primary task is the unpleasant one of enforcing rules. Rules such as paying one's fees. In the past a few have taken the position that paying monthly fees should be strictly voluntary and so too for any other rules that are not convenient. Everyone seems to agree that the HOA should be maintained, but there is some disagreement about who should pay what. A few years ago, it seemed a board took the position "pay if you can." That was unworkable of course because money is necessary to pay everyone from the City of Wheaton water department, to our snow plowing service to the landscaper.

There are differences of opinion about what constitutes the proper maintaining of the property.  As a fiduciary, it is a board member's duty to uphold the bylaws and the rules, and maintain the property within reason and impartially.

Impartiality is one of the tripping points for owners. Everyone agrees we should be treated fairly and equally. In other words no special favors, everyone is to uphold the rules and pay their fees. However, these are generalities. When the rules apply to each of us is when they become unpopular.

This confusion about board duties and responsibilities led to some serious disagreements a few years ago and two board turnovers. This confusion lingers even today. Some would prefer that the HOA take on the maintenance of their units. Beginning with fire places, and as long as we are at it, why not the furnace, air conditioner and hot water heater, too?

These are "manor style homes." Forty-four of them on a property of about 40 acres with 15 acres of turf, hundreds of trees, three streams and waterfalls, perhaps a half-mile of walks and so on. Operating and maintaining the common element aspects requires ALL of the fees. There is no money remaining to assume the responsibilities of individual owners.

However, some owners want to live in a home like environment with private walking paths, etc. but would prefer the costs of an apartment. Some see the bank balance for the HOA and are of the opinion this is a lot of money. Yes, it is. However, this HOA has taken ten years and nearly $2 million dollars for a roofing project. That's about $200,000 per year and it took far longer than ten years to accumulate this. The project is not yet complete and may require another 2 or 3 years.

Street and water mains are another infrastructure area which has required large sums of money. Taking care of about 100 dead and dying trees has also been expensive.

The street project will continue with work on cul-de-sacs for another few years.

All of these projects and other day to day maintenance will take every dollar that our owners contribute to the HOA via their fees. Most do this without complaint or incident.

Not all are happy. But then, making people happy is not one of the duties and responsibilities of a HOA board. Will the coming election be a popularity contest? We'll see. This election will be important, as are all elections at BLMH. I've been in a race against time since 2007. There remains much to do to build an organization.


No comments:

Post a Comment

Please leave a comment!

Note: Only a member of this blog may post a comment.