Town Hall Meeting Q & A
On behalf of the Terrace HOA Board of Directors and our Property Manager, Eric Fordyce, thanks to all Terrace Community Members who attended and contributed to our Open Forum Meeting, held on Saturday, August 3rd. There were approximately 40 attendees. We were pleased to facilitate this discussion and provide detailed information regarding several community improvement projects we have identified and prioritized as requiring attention over the next 24 months.
This meeting was the first of two or three open forum discussions to address the need for community improvement projects that cannot be funded within our HOA’s annual operating budget or reserve account. Sometime before the end of the year, we will ask homeowners to vote on whether or not to approve a special bank loan/line of credit that will be necessary to fund any or all of the projects.
Our goals are to:
Avoid ongoing higher costs of temporary repairs as they arise - slab and pipe leaks, pavement slurry seal and patching, etc.
Preserve and increase the resale value of all Terrace homes
Minimize increases in our monthly HOA dues
The HOA Board of Directors and Property Manager have identified and prioritized the following five projects. These projects cannot be funded within our annual operating budget or reserve account, which means homeowners will pay for any or all of these projects through a special assessment. These projects would be completed in 2020 and 2021.
Priority 1: Re-pipe every condo
Priority 2: Asphalt/Concrete replacement & repair (all Terrace driving and parking areas)
Priority 3: Siding, trim, fascia and beam replacements
Priority 4: Concrete pool deck replacement
Priority 5: Wrought iron fence replacement
In order to keep all homeowners informed and to prepare you for the next meeting, please refer to the following information, included within:
Agenda for August 3rd Homeowner Open Forum - (1) Lists and prioritizes the five projects, (2) provides the costs to complete each project based on contractor estimates we have solicited, and (3) provides information on the special assessment to homeowners that would be required based on the amount of money we would need to borrow for any or all of these projects. (Download Agenda)
Q&A from the first Town Hall Meeting - the answers to questions posed during the meeting (see below)
Please review this information and do not hesitate to send us any questions or concerns you may have so that we can address them during our next open forum homeowners meeting (Contact Eric Fordyce at 949-330-6350 or by email to email@example.com). We want to ensure that every homeowner is fully informed and that we have a productive second Town Hall Meeting (to be scheduled).
Thank you for your attention to these important matters in our community.
Frequently Asked Questions (FAQ)
How will we pay for any or all of these projects?
The HOA will need to secure a line-of-credit, which will require homeowner approval. We currently have bank approval for a line-of-credit of up to $2.5 million dollars. Once we open the line-of-credit, the HOA will have six months to tell the bank how much of the $2.5 million we will actually need/use based on the cost of the specific projects that homeowners and the board approve.
Why can’t we pay for theses projects through our regular HOA dues or reserves?
Our monthly HOA dues fund our regular operating budget which pays for things like common area landscaping, pool maintenance, water, electricity, general repairs (wood or siding deterioration, slab leaks), etc.
How will homeowners know how the loan money is being spent?
Loan funds will be specifically earmarked for the approved projects, and expenditures will be tracked and reported to homeowners through the completion of each project.
How will homeowner votes be tabulated?
In order to approve any or all of the projects and loan, our CC&Rs, mandated by the State, require that at least 51% of our 152 Terrace Homeowners vote (77 homeowners), and of those 77 homeowners, at least 51% (39 homeowners) vote “yes.”
If homeowners vote to proceed, how will projects be scheduled?
These projects would be started in early 2020, and completed by the end of 2021. The re-piping and re-paving projects would not likely be scheduled at the same time in order to avoid as much inconvenience as possible to residents (roads closed off at the same time crews are working on piping creates quite a bit of havoc). However, some of the other projects being consider can potentially take place concurrent with the others.
What specific projects are being considered?
Refer to section B in the agenda that was passed out at the first homeowner town hall meeting which lists all projects being considered, ordered by rank of importance/urgency as determined by the board.
Why do we need to re-pipe every condo? Why is it the #1 priority?
What will re-piping involve and how long will it take?
Crews will re-pipe one “pod” of 6 condos at a time. Initially it may take up to 8 weekdays for each condo for the entire process, but this will decrease to 5 or 6 days as the contractor gains familiarity with each condo’s design. Depending on the size of the contractor’s staff, the community-wide project will take between 6 and 12 months.
What costs might homeowners be personally responsible for in a re-pipe?
Homeowners may be responsible for repainting where drywall has been replaced.
Will we have warranty for materials and installation on re-piping?
Yes, all of the contractors we have selected will warranty materials for 25 years.
Why do we need asphalt/concrete replacement and repair?
Previous boards - based on circumtances and funding at the time - have chose to slurry seal the pavement/driveways every few years. While we have slurry sealed many times in 33 years, it's intended as an asphalt top coat. However, it doesn't address the aging pavement and concrete that, over time, develop surface cracks and deep fissures.
What will this project involve and how long will it take?
How long will new asphalt and concrete last?
25 years with regular maintenance which would include in later years, crack sealing and slurry seal as needed.
What are the other 3 projects for?
We've discussed re-piping and re-paving in detail because, in the board's opinion and assessment, these are top priority and urgent projects.
What happens if homeowners vote "no" on a loan for re-piping?
As mentioned before, the HOA does not have funds available for this major project. If homeowners vote no on a loan, it will likely result in an almost immediate increase in monthly HOA dues (up to approx. $100 additional per month which would not require homeowner approval) and/or special assessment, as needed.
What do the numbers look like?
Here are a couple of spreadsheets that one of our fellow homeowners put together to "run the numbers"
Questions or Comments?
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