2017 - A Year of Fun

As 2017 comes to an end, it has been another year of fun on the board at BLMH.

The board tackled one of three stream segments this year and completed a common area deck which had begun in 2013. Both of these projects actually atrophied for more than a decade. Earlier boards went for large, visible projects such as the re-roofing, but couldn't do much of anything else because they or their predecessors had failed to save.

Turning our Titanic around has had its fun moments. I'm not a proponent of spending money on flashy projects, so under my watch it has been primarily about dealing with the crisis and breakdowns created by others.   Doing so has been as much a grind as it has been a party. However, it can be satisfying to see others live in their cone of impossibility and then show then how really stupid they have been.   They'll never learn of course, so after three years of trying I stopped. Much better and more satisfying to deal with REAL problems instead of the personal agendas of others.

I think this demonstration is just about over and has run its course.

We now have two boards. One forward thinking and forward looking and the other mired in the past.

I did complete my 2018 project list and I have completed the estimates for their cost.  Meanwhile the "Henny Penny" is still fighting be battles of a decade ago. Too bad they are so little and so late. The owners could have been spared a lot of pain with a little timeliness.

I'll probably publish the project list in February 2018. Whatever happens will be determined by the entire board. There will be some stonewalling of course. If you can't build anything then perhaps all that one can do is tear down anything and everything around them.

Being on the board since 2010 has brought back some fond memories. I was one of a large number of children. When it came to doing chores, or anything they didn't want to do, some of the siblings had be dragged kicking and screaming all of the way. Boards are like that!

We live in a 40 year old HOA - OMG, the sky is falling

Our HOA is 40 years old. Is that a problem? It does need maintenance and for over a decade the boards have spent more than $250,000 each and every year catching up to the problems and maintenance backlog. However, there is always an opportunity for grandstanding, and some board members need to be heard. A few have lived in the past and at least one desperately needs to be heard and loves to run management and even maintenance on wild goose changes. 

In a HOA 40 years old there is some reality to face. Many aspects of our association buildings don't meet current building code standards. This is not a secret, nor is it really a big deal, unless a board member or an owner wants to make it one. "Stupid is as stupid does."

A couple of years ago it was "the water mains are failing." More recently it was "we don't have enough money and we need higher fees". That was true for a large portion of the life of this HOA, but when given the power of the presidency, not all will put it to good use. Power can take on a life of its own. Separating the big problems from the small ones is worth doing. But I think some of our board members developed some poor habits over the years. If you can't deal with the really big problems, then make a lot of noise about the small ones and then deal with those.

A 40 year old HOA is an opportunity for any grandstanding board members to make  a public statement, and to become a nuisance. It has happened before and I'm sure it will happen again in the future of this HOA. Human nature can be petty and when worry takes hold, well, we may cater to the lowest common denominator and the most fearful among us.

Here's the problem we face. With 336 units, any baloney when multiplied can result in significant financial problems for the association and our owners. It's simple math. A $1000 contrived problem in one unit can become a $336,000 burden for the entire association. Of course, if the same board member who raises these same specters is also a proponent of higher fees, as in "Our fee increases are too low" then the issues become apparent.

I for one do tire of dealing with those who are stuck in the past. I think do think it might be the time to sell my unit and move on. There is a lot of good I can do with 500 free hours per year.

I'm sure there will be dancing in the streets!

Brrr! A real arctic blast

I guess the "polar vortex" is back?  Things have gotten quite chilly all the way to the east coast.

The heater in the utility room is doing well; this has the purpose of preventing the pipes from freezing. I'm currently 1800 miles distant, but this is what the conditions were a few minutes ago:

The end of home ownership? A look at tax changes

The probable passing of the tax overhaul bill has created a lot of dis- or mis-information. As noted at the Wall Street Journal in an article entitled "The Tax Reform Promise":

"The media are now chortling with Democrat Chuck Schumer that Republicans will “rue the day” they passed this. Actual CNN headline: “Public opposition to tax bill grows as vote approaches.” But we’d dislike this bill too if all we knew was what the media reported ". (Emphasis is mine).

A lot of self-serving people and politicians are predicting the end of the world, yet again. For homeowners or condominium owners, one "expert" was quoted in the Wall Street Journal as saying "There’s really no difference between owning and renting in the tax code anymore for most Americans.” -That's according to Ed Mills, a Washington policy analyst at financial-services firm Raymond James & Associates, in an article entitled "GOP Tax Overhaul Makes Homeownership Less Appealing".

However, the numbers show differently. For example, there is a lot of hoopla about decreasing the deduction for mortgage interest to "only" mortgage debt up to $750,000.

What's reality? According to Zillow: "The median price of homes currently listed in the United States is $259,900 while the median price of homes that sold is $225,262. The median rent price in the United States is $1,600."

Here are some things coming out about the tax bill. As usual, if you are really concerned, check with your accountant or tax professional.

The bill allows taxpayers to claim a deduction on interest on up to $750,000 of mortgage debt on a first or second home. In other words, anyone with a home mortgage at BLMH will be able to claim the interest on the mortgage. However, homeowners will no longer be able to deduct the interest paid on home-equity debt.

Under the new bill, the amount that taxpayers can deduct per return for state income or sales taxes, as well as for property taxes, is capped at $10,000. That should not pose a problem for most owners at BLMH.

"Most families with children will benefit from a rise in the standard deduction to $12,000 from $6,350 for single filers and to $24,000 from $12,700 for married couples. Many families will also see reductions in their marginal tax rate, or what they pay to the government if they earn another dollar."

According to the tax policy center: "in 2018, families with children under 17 will see tax cuts that average from $210 a year for the lowest 20% of earners—those making $20,690, on average—to $9,330 for the top 20%, earning $400,530, on average. Those in the second, third and fourth income quintiles—with average incomes of $44,460, $80,050, and $135,440—will see average tax cuts of $820, $1,420, and $2,230, respectively...".

The end of the world? Hardly.

[Addition: The "Tax Policy Center" is a liberal organization, so I am sure they really hated putting that information out. Yet politician Schumer insists the tax bill aids “only the wealthiest few” and is simply to "help the rich and hurt the middle class." Even the "Tax Policy Center" numbers don't support his absurdity.]

Another disaster!

I guess it's over?

This is apparently my next opportunity to suffer mightily. Some at BLMH apparently would say "Life is Hell."

The tax bill is supposed to pass and I have it on good authority it will be "Armageddon....like Death" to quote politician Pelosi. Politician Schumer says it is an "absolute catastrophe."

I have it on good authority from the same people that I barely escaped "Death camps" a short time ago. Meanwhile, the Dreamers are all headed to "Concentration Camps".

I must has missed the end of the world in November when Nibiru, or Planet X, supposedly influenced the earth.

 I think I'll watch the Wizard of Oz and sing along with Dorothy and her Merry Band: "Lions and Tiger and Bears...Oh My!" Perhaps I should also watch that portion of the movie and "Pay no attention" to the charlatans behind the curtain?

What's the chances of meaningful snowfall for Christmas?

What's the chances of meaningful snowfall for Christmas? Here's the NOAA historical probability map.

A zero percent fee increase

Our board decided upon a 0% fee increase for 2018.

While preparing my article for the newsletter, I advised owners that "this is a rarity" and it is.  It is impossible to say what will occur in October 2018 when the next board meets to decide the budget for 2019.

Here are a few of my observations:

1. It takes years to build large deficits or large surpluses.
2. Recent boards have taken a pragmatic approach.
3. Recent boards have take an approach supported by good data.
4. Not all owners cooperate which is why legal costs for our fireplace fiasco hit more than $40,000 this year. That fiasco was entirely a consequence of builder error and City of Wheaton Building Inspector incompetence. Yet we were sued by the City of Wheaton.

The association board will be evaluating actual 2017 costs after the end of the calendar year. At that time we'll know how we actually did. We can't predict snowfall in November-December when we prepare the budget in September. Nor can be predict the total manhours required to maintain our nearly 40 acres. Yet, it seems we'll be within +/-100 hours for the year. 

I have completed my maintenance/project list for 2018. Staying ahead and performing proactive/preventative maintenance is one of the ways to keep costs to a real minimum. For example, we've proactively replaced about 300 feet of water main. Is it an accident that our water main failures are reducing? I think our maintenance efforts are paying off. 

We are now addressing maintenance issues ignored and "put under the bus" more than 10 years ago.