More storage space.
Monday, September 26, 2005
Storage shed (part 6)
There are two measurement drawings. One is for the installation of a regular shed. The other is the same as the first, but shows the small section of a privacy fence attached. This small privacy section of fence only exists for certain middle units on buildings.
Storage shed (part 4)
The official shed drawing measurements have been enhanced and the type darkened in order to improve understanding. No changes to the measurements were made, but they were checked and re-checked and are in accordance with the original document drawing (see the drawing to the right).
Storage shed (part 3)
A copy of the approved patio storage shed design is available from Property Management. Installation of the storage shed does require Board approval. Failure to comply with the design specifications will require the homeowner to make the appropriate modification to the shed. [Kenthill Townhomes House Rules, page 6].
Storage shed (part 2)
Repair of any dryrot found on the outside of the newly exposed exterior wall is the next step.
New program (Part 5)
Discussions have recently occured between Kenthill Townhomes and Lake Villa Apts. All three complexes, Easthill Apts., Kenthill Townhomes, and Lake Villa Apts. have now signed up for the new program sponsored by the City of Kent to address the problem of trespassing. We will be communicating together to attempt to work on this issue which affects us all.
Audits completed
The independent auditor has recently completed his audits for the years 2002 and 2003 for Kenthill Townhomes. His reports are very similar to the 2001 audit (see previous posts in August archives on this webblog). The cover letter prefacing the audit contains the following final paragraph (as did all the previous audits which have been done):
“Kenthill Townhomes Condominium Association has not estimated the remaining lives and replacement costs of the common property and, therefore, has not presented the supplementary information on future major repairs and replacements that the American Institute of Certified Public Accounts has determined is required to supplement, although not required to be a part of, the basic financial statements."
[The above refers to a reserve study].
“Kenthill Townhomes Condominium Association has not estimated the remaining lives and replacement costs of the common property and, therefore, has not presented the supplementary information on future major repairs and replacements that the American Institute of Certified Public Accounts has determined is required to supplement, although not required to be a part of, the basic financial statements."
[The above refers to a reserve study].
Tuesday, September 20, 2005
4 ways to pay for reserve expenses
Four Ways to Pay for Reserve Expenses
By: Robert M. Nordlund, P.E.
There are four ways to pay for your Reserve expenses. The first way even provides you a bit of magic - getting a "rich relative" to help you with your Reserve expenses.
The way to pay the least amount of money for your Reserve expenses is to make regular deposits into an interest bearing account. You pay some, and the bank (your magic "rich relative") pays some. And think - over time you earn interest on interest! For a 20 or 30 unit association, it is like having another homeowner making contributions.
Method #2 is to special assess when the funds are required. This is a "straight shot" - right from your pocket to the vendor. If you need a $100,000 new roof, a $100,000 special assessment takes care of it. No help from your "rich relative" on this one, unfortunately.
Method #3 is to get a loan. In this case, assuming you measure up to your rich relative's standards, you end up paying your "rich relative's" money, not getting it from him. A $100,000 roof will end up costing the association a great deal more than $100,000, even though the payments are broken down pretty small and spread over a number of years. If you had made small payments over a number of years prior to the expense (Method #1), that new roof would have cost association members much less than $100,000.
Method #4 is the simplest method, because association members do nothing, but it is by far the most costly. When necessary Reserve projects are deferred, they don't go away. They just get bigger. That $100,000 roof project can quickly turn expensive when you add up interior water damage. A simple ironwork paint project gets expensive when painting is now wasted effort, the entire fence has to be replaced. In addition to expenses only getting larger (the association is only digging themselves a deeper hole to get out of), the negative effect on Real Estate values is serious business. On a "per unit" basis, saving $1000 per unit by not painting the association typically brings property values down by three to five times that amount. Think of that - by saving $1000 by not painting the place, your home dropped in value $3000 to $5000. You didn't save money, you lost money!
Reserve expenses are inevitable. The only question is how well prepared the association will be, and how the association chooses to deal with those expenses. Inaction, in this case, is a very expensive course of action.
By: Robert M. Nordlund, P.E.
There are four ways to pay for your Reserve expenses. The first way even provides you a bit of magic - getting a "rich relative" to help you with your Reserve expenses.
The way to pay the least amount of money for your Reserve expenses is to make regular deposits into an interest bearing account. You pay some, and the bank (your magic "rich relative") pays some. And think - over time you earn interest on interest! For a 20 or 30 unit association, it is like having another homeowner making contributions.
Method #2 is to special assess when the funds are required. This is a "straight shot" - right from your pocket to the vendor. If you need a $100,000 new roof, a $100,000 special assessment takes care of it. No help from your "rich relative" on this one, unfortunately.
Method #3 is to get a loan. In this case, assuming you measure up to your rich relative's standards, you end up paying your "rich relative's" money, not getting it from him. A $100,000 roof will end up costing the association a great deal more than $100,000, even though the payments are broken down pretty small and spread over a number of years. If you had made small payments over a number of years prior to the expense (Method #1), that new roof would have cost association members much less than $100,000.
Method #4 is the simplest method, because association members do nothing, but it is by far the most costly. When necessary Reserve projects are deferred, they don't go away. They just get bigger. That $100,000 roof project can quickly turn expensive when you add up interior water damage. A simple ironwork paint project gets expensive when painting is now wasted effort, the entire fence has to be replaced. In addition to expenses only getting larger (the association is only digging themselves a deeper hole to get out of), the negative effect on Real Estate values is serious business. On a "per unit" basis, saving $1000 per unit by not painting the association typically brings property values down by three to five times that amount. Think of that - by saving $1000 by not painting the place, your home dropped in value $3000 to $5000. You didn't save money, you lost money!
Reserve expenses are inevitable. The only question is how well prepared the association will be, and how the association chooses to deal with those expenses. Inaction, in this case, is a very expensive course of action.
Sunday, September 18, 2005
What is a reserve study?
What is a Reserve Study?
By: Robert M. Nordlund, P.E.
A Reserve Study is the art and science of anticipating, and preparing for, major common area repair and replacement expenses.A Reserve Study allows the Board and Management to offset the ongoing deterioration of the common areas with Funds to ensure the timely repair or replacement of those common areas. When properly done, irregular Reserve expenses are offset by ongoing, regular Reserve contributions. Special assessments are then left for true emergencies, not expenses which could have been anticipated.
By: Robert M. Nordlund, P.E.
A Reserve Study is the art and science of anticipating, and preparing for, major common area repair and replacement expenses.A Reserve Study allows the Board and Management to offset the ongoing deterioration of the common areas with Funds to ensure the timely repair or replacement of those common areas. When properly done, irregular Reserve expenses are offset by ongoing, regular Reserve contributions. Special assessments are then left for true emergencies, not expenses which could have been anticipated.
Friday, September 16, 2005
Animal Control Regulations (part 2)
[These are some of the laws, regulations, and policies governing pets in the City of Kent and in King County [continued]:
BARKING:It is unlawful to maintain an animal which barks, or makes other oral noises, to an unreasonable degree which disturbs others. [King County Animal Services Website] Animal nuisances defined: "Any domesticated animal which howls, yelps, whines, barks, or makes other oral noises, in such a manner as to disturb any person or neighborhood to an unreasonable degree." [Kent Code 8.03.210 (11)]
STATISTICS:Euthanasia rate targets: The computation of the euthanasia rates shall be based on a population which is defined as all of King County, except the City of Seattle. [King County Code 11.04.500]King County Animal Services maintains euthanasia statistics. In 2001. 14,588 dogs and cats were received at the Kent Animal Shelter in Kent and at the Eastside Center in Bellevue. 6,300 of these were euthanized.[6,300/12 months in a year = 525 a month. 5 days per week, 21 work days in a month. 525/21 days = 25. 25 dogs and cats euthanized every day].
BE CONSIDERATE OF OTHERS:Abide by all state and local animal laws. License your pet. Maintain control of your pet so it will not be a nuisance to others. Spay or neuter your pet to prevent unwanted litters. Always remove waste products quickly to prevent health hazards. Remember, children may play in areas where animals have been. [King County Animal Services Website]
Animal Control Regulations (part 1)
These are some of the laws, regulations, and policies governing pets in the City of Kent and in King County:
OVERVIEW:"It is declared the public policy of the city to secure and maintain such levels of animal control as will protect human health and safety, and to the greatest degree practible, prevent injury to property and cruelty to animal life." [Kent Code 8.03.010]
King County Animal Control provides animal control services and enforcement for all of unincorporated King County and 31 contracting cities. The City of Kent is one of those contracting cities. [King County Animal Services brochure, paragraph 1]
LICENSING:King County and contracting cities require all dogs and cats eight weeks and older to be licensed and for dogs to wear their license tag on their collar or harness. [8.03.040]
Licenses are valid for one year from the month of purchase. Senior citizens, 65 years or older, can purchase lifetime pet licenses for spayed/neutered pets. [King County Animal Services Website]
EXOTIC PETS:Prohibited. [Kent Code 8.03.040 J. (1).]
OVERVIEW:"It is declared the public policy of the city to secure and maintain such levels of animal control as will protect human health and safety, and to the greatest degree practible, prevent injury to property and cruelty to animal life." [Kent Code 8.03.010]
King County Animal Control provides animal control services and enforcement for all of unincorporated King County and 31 contracting cities. The City of Kent is one of those contracting cities. [King County Animal Services brochure, paragraph 1]
LICENSING:King County and contracting cities require all dogs and cats eight weeks and older to be licensed and for dogs to wear their license tag on their collar or harness. [8.03.040]
Licenses are valid for one year from the month of purchase. Senior citizens, 65 years or older, can purchase lifetime pet licenses for spayed/neutered pets. [King County Animal Services Website]
EXOTIC PETS:Prohibited. [Kent Code 8.03.040 J. (1).]
Saturday, September 10, 2005
Updated
The following is an excerpt from a post on another website:
"Here is the second one:
As I said before, I really do not want to try to conduct Association business on any website. I do want to post from time to time to make information known. There is some information that has been posted about how much it costs for Kenthill Townhomes to be connected to Easthill Apts. First, a reminder that we are governed by a certain document signed in 1973 called the Easement and Joint Maintenance Agreement. Second, that there was a thread posted that listed all the ways we are connected to the apartments. These are the things we share the costs in repair and upkeep of. The information that was posted used several of the past years, and showed how much each item cost and then came up with some averages. Those numbers were very close.
But I have some more recent and updated information that shows that it costs between about $6000 and $8000 per year. This appears to be because several improvements have been made, such as doing something to the Cabana or trimming some trees along a shared roadway. The cost of being connected to the apartments rises and falls from year to year, depending on what repairs may be done. Sometimes a project is a one time event, other times it may be required at certain times, such as every 5 years or so. Possible examples of this would be when they remodeled part of the Cabana, or when they have to repair something having to do with the swimming pool or maybe buy a new compressor or a pump, etc."
Saturday, September 03, 2005
Attorney answer
Hi, Tom.
Good questions. There is no specific section of the Declaration that states exterior windows and screen doors are common areas. Rather, these are legal interpretations based on the words used in the Declaration.
In your case, it is necessary to review the sections of the Declaration pertaining to the boundaries of Apartments in connection with the description of common areas to determine whether exterior windows and screen doors should be considered part of an Apartment (and therefore be the responsibility of the individual owners) or be considered common areas (and therefore be the responsibility of the Association).
Common areas are defined in Section 5.01 of the Declaration as “all parts of a building, except for the Apartments as defined by section 4.01, and the land.” Thus, if exterior windows and screen doors are not included in the boundary of an Apartment, as defined in section 4.01, then they are by default common areas.
Legally speaking, an Apartment is essentially nothing more than a box of air. Its boundaries are defined in Section 4.01 Boundary of Apartment as follows:
The apartment boundaries are the interior surfaces of the perimeter walls, floors ceilings, windows and doors and the apartment includes the airspace so encompassed except that any . . . structural or other mechanical parts of the building contained within a wall which is included in the perimeter of an apartment shown on the plans shall be part of the common area to the point of the surface of such wall . . . . (emphasis added)
At most, the interior finished surface of the window frame (i.e. paint) is included within the boundary of an apartment. As a result, if the interior trim on a window frame needed to be painted it would be the responsibility of an individual owner. However, the window frame and all structural components of the window are common areas and thus the responsibility of the Association.
Screen doors are clearly outside of the Apartment boundary and are therefore also common areas and the responsibility of the Association. Under the same analysis, it is clear that exterior doors are part of the common area building structures and the Association’s responsibility.
Keep in mind, however, that if all exterior doors in the condominium need to be replaced as indicated in your email, through economies of scale, it should be much cheaper for the Association to have the work done all at once than to have the individual owners contract separately to have each door replaced. So maybe this isn’t so bad after all.
Let me know if you need anything else.
Kris
Good questions. There is no specific section of the Declaration that states exterior windows and screen doors are common areas. Rather, these are legal interpretations based on the words used in the Declaration.
In your case, it is necessary to review the sections of the Declaration pertaining to the boundaries of Apartments in connection with the description of common areas to determine whether exterior windows and screen doors should be considered part of an Apartment (and therefore be the responsibility of the individual owners) or be considered common areas (and therefore be the responsibility of the Association).
Common areas are defined in Section 5.01 of the Declaration as “all parts of a building, except for the Apartments as defined by section 4.01, and the land.” Thus, if exterior windows and screen doors are not included in the boundary of an Apartment, as defined in section 4.01, then they are by default common areas.
Legally speaking, an Apartment is essentially nothing more than a box of air. Its boundaries are defined in Section 4.01 Boundary of Apartment as follows:
The apartment boundaries are the interior surfaces of the perimeter walls, floors ceilings, windows and doors and the apartment includes the airspace so encompassed except that any . . . structural or other mechanical parts of the building contained within a wall which is included in the perimeter of an apartment shown on the plans shall be part of the common area to the point of the surface of such wall . . . . (emphasis added)
At most, the interior finished surface of the window frame (i.e. paint) is included within the boundary of an apartment. As a result, if the interior trim on a window frame needed to be painted it would be the responsibility of an individual owner. However, the window frame and all structural components of the window are common areas and thus the responsibility of the Association.
Screen doors are clearly outside of the Apartment boundary and are therefore also common areas and the responsibility of the Association. Under the same analysis, it is clear that exterior doors are part of the common area building structures and the Association’s responsibility.
Keep in mind, however, that if all exterior doors in the condominium need to be replaced as indicated in your email, through economies of scale, it should be much cheaper for the Association to have the work done all at once than to have the individual owners contract separately to have each door replaced. So maybe this isn’t so bad after all.
Let me know if you need anything else.
Kris
Attorney question
On 03-27-2005, Kris Sundberg wrote a lengthy letter to the members of our Association in which several questions concerning our Declarations were discussed and answered. One of these was related to the necessity of having our entire Homeowners Association vote (51% majority) to accept on any House Rules and Regulations or revisions to them. In the period that followed, the Board made appropriate changes to those rules. A copy was sent to the office of Kris Sundberg for review. On 05-27-2005, Mr. Dean Pody finished reviewing our House Rules, emailing a copy of his suggested revisions to them. I have two questions with respect to his comments. First he wrote:
Screen doors and exterior windows are common areas and thus the responsibility of the Association to maintain [In Microsoft Word reading layout view, page 3 of 7].
I have reviewed the Kenthill Townhomes Declarations and can find no evidence to support this viewpoint. Section 4.0 “Boundary of Apartments” makes no mention of this. Section 5.0 “Description of Common Areas and Facilities” makes no mention. Section 6.0 “Description of Limited Common Areas” makes no mention. Section 6.02 does mention that the Association may require uniformity in exterior appearance, but no makes mention of responsibility.
The second question is somewhat related in nature. Are we also to conclude that all exterior doors are the responsibility of the Association?
Again, I can find no evidence to support such a position in our Declarations.
As you can imagine, should this in fact be the case (in both these instances), it could very well pose a significant problem for the Association. Exterior door + frame = $300.00 parts & labor. Screen doors are similar in price and labor].
Please review our Declarations and provide specific reviews with respect to these two questions. Thank you.
President
Kenthill Townhomes Homeowners Association
Screen doors and exterior windows are common areas and thus the responsibility of the Association to maintain [In Microsoft Word reading layout view, page 3 of 7].
I have reviewed the Kenthill Townhomes Declarations and can find no evidence to support this viewpoint. Section 4.0 “Boundary of Apartments” makes no mention of this. Section 5.0 “Description of Common Areas and Facilities” makes no mention. Section 6.0 “Description of Limited Common Areas” makes no mention. Section 6.02 does mention that the Association may require uniformity in exterior appearance, but no makes mention of responsibility.
The second question is somewhat related in nature. Are we also to conclude that all exterior doors are the responsibility of the Association?
Again, I can find no evidence to support such a position in our Declarations.
As you can imagine, should this in fact be the case (in both these instances), it could very well pose a significant problem for the Association. Exterior door + frame = $300.00 parts & labor. Screen doors are similar in price and labor].
Please review our Declarations and provide specific reviews with respect to these two questions. Thank you.
President
Kenthill Townhomes Homeowners Association
Thursday, September 01, 2005
Institute opinion
"Special Assessments vs. Ongoing Contributions
By: Robert M. Nordlund, P.E.
Why not just special assess for Reserve expenses when the expenses occur? It fundamentally boils down to fairness and responsible corporate planning. By nature, Reserve expenses occur unevenly through the years: some years will have minimal Reserve expenses, some years will be especially hit hard. Pieces of the corporation are continually being bought and sold, and it is unfair for owners to be subject to "good luck" or "back luck" with respect to what Reserve expenses "come due" during the years they own a unit at an association. That is no way to treat the other co-owners of your multi-million dollar Real Estate partnership! Some owners in this scenario pay much more than their fair share, and some owners pay much less than their fair share. Board members in these situations bear the additional risk of knowing when major expenses are likely to "come due", and are under extreme liability scrutiny when it comes time to decide to sell their unit… Somebody always gets holding the bag. In most cases, special assessments as an ongoing way of conducting business at an association should not even be an option. Governing Documents of most associations specifically require an "adequate" amount of Reserves to be set aside on an ongoing basis to offset anticipated Reserve expenses. Special assessments are designed as the solution for emergencies, not regular common area expenses.Just as an association's Governing Documents require assessments to be collected in a particular manner (equivalently for all units, or variable based on # of bedrooms or square footage or some other factor), those same Governing Documents typically require assessments to be appropriately distributed over the membership over the years. In this way, every owner pays their fair share of the deterioration of the common area components for the amount of time they owned a unit at the association, and there is no chance of Board members being accused of "self-dealing" by keeping the assessments low during their tenure for their own personal benefit.Certainly, many homeowners can individually manage their money to gain a greater return than the association, which has limited investment options. But the association needs to be run responsibly, and demonstrate to its owners that funds will be available when they are needed. There is no guarantee that the Board can pass a special assessment and collect the funds in sufficient time to meet a pressing Reserve expense. The association needs to make progress, even at its potentially slower pace, towards meeting its projected obligations. "
By: Robert M. Nordlund, P.E.
Why not just special assess for Reserve expenses when the expenses occur? It fundamentally boils down to fairness and responsible corporate planning. By nature, Reserve expenses occur unevenly through the years: some years will have minimal Reserve expenses, some years will be especially hit hard. Pieces of the corporation are continually being bought and sold, and it is unfair for owners to be subject to "good luck" or "back luck" with respect to what Reserve expenses "come due" during the years they own a unit at an association. That is no way to treat the other co-owners of your multi-million dollar Real Estate partnership! Some owners in this scenario pay much more than their fair share, and some owners pay much less than their fair share. Board members in these situations bear the additional risk of knowing when major expenses are likely to "come due", and are under extreme liability scrutiny when it comes time to decide to sell their unit… Somebody always gets holding the bag. In most cases, special assessments as an ongoing way of conducting business at an association should not even be an option. Governing Documents of most associations specifically require an "adequate" amount of Reserves to be set aside on an ongoing basis to offset anticipated Reserve expenses. Special assessments are designed as the solution for emergencies, not regular common area expenses.Just as an association's Governing Documents require assessments to be collected in a particular manner (equivalently for all units, or variable based on # of bedrooms or square footage or some other factor), those same Governing Documents typically require assessments to be appropriately distributed over the membership over the years. In this way, every owner pays their fair share of the deterioration of the common area components for the amount of time they owned a unit at the association, and there is no chance of Board members being accused of "self-dealing" by keeping the assessments low during their tenure for their own personal benefit.Certainly, many homeowners can individually manage their money to gain a greater return than the association, which has limited investment options. But the association needs to be run responsibly, and demonstrate to its owners that funds will be available when they are needed. There is no guarantee that the Board can pass a special assessment and collect the funds in sufficient time to meet a pressing Reserve expense. The association needs to make progress, even at its potentially slower pace, towards meeting its projected obligations. "