Stonegate HOA Finances

Overview

The HOA has one primary source of income: the $108 per lot monthly assessment. Fines and late fees provide a negligible additional amount of income for the HOA. Total annual income from the $108 monthly assessment for 239 homes is $309,744. Which sounds like a lot of money...

...until you consider the HOA's substantial expenses. The HOA is responsible for landscape maintenance of the large amount of Landscape Maintenance Areas. Maintenance costs are split between two large expenses: water and maintenance crews. Water costs soar during the summer but are lower during the winter. Cost of maintenance crews to trim plants, replace dead plants, and maintain water lines is substantial but relatively fixed throughout the year. The management company costs $___ per month. However, the management company currently doesn't provide as many services to the HOA as other management companies that charge a similar fee. The management company should be surveying for CC&R violations but currently does not.

The HOA's expenses match its income on an annualized basis. This leaves the HOA with little to no reserve fund and puts it in a precarious position should a serious unexpected event occur.

Likely Short-term Changes

One short-term change is complete as of 15 Oct 2002 -- the security patrol has been terminated. The patrol seemed to have no noticeable effect on the already-low crime rate, and indeed, some people believe the security patrolman actually was responsible for some mail thefts.

Offsetting this savings is some much-needed tree trimming. Trees in the LMAs are seriously overgrown and are a liability to the HOA since the HOA is responsible for keeping them from growing to a state where they obstruct views.

A small (<10%) increase in the amount of the HOA assessment is also likely.

Needed Long-term Changes

Contracts with the maintenance companies need to be evaluated for potential savings.

Contracts with the HOA management company need to be examined and a comparison with the numerous other management companies performed.

Homeowners need to be convinced to take possession of portions of the LMAs to reduce the burden the LMAs place on the HOA.

Last modified on 7 Mar 2005 by AO