The following includes additional excerpts from the President' report which was given at the 2007 Kenthill Townhomes Annual Meeting on March 26, 2007:
Kenthill Townhomes was built in the mid-1970’s [The joint access and easement agreement was signed in 1973]. Our buildings therefore are over 30 years old. T-111 wood siding was a popular building material in the West during that time period. The life expectancy of T-111 wood siding is typically 20 years. This does not reflect or take into consideration the climate of the Northwest which considerably lessens this expected lifespan. If you walk around and look closely at our buildings you will see many instances of the wood siding buckling and bulging. This is especially true at the places where two pieces of siding meet and is covered over with a piece of trim. No caulking was used during construction. We have problems with water intrusion on many of our buildings (especially the one-bedroom units). This most often occurs on the ends of the buildings (often around the windows), but is not limited to this area. A painting project was undertaken beginning in 2000. Numerous repairs and restorations were required before the painting began (this at a cost of $5842.00). The actual painting of the buildings did not begin until 2002. The cost of the painting Project was $82,000. Paint, typically marketed as “15-year paint” was used. As a part of the Reserve Study, an analysis of the condition of our buildings with respect to the history of the painting projects which have occurred in the past was included. The authors of the Reserve Study recommended that the Board contract to have a paint job completed immediately. After investigation, estimates to complete the painting job [not including any required repairs (see above)] averaged approximately $98,000. The authors of the Reserve Study stated, “There is no such thing as ’15-year paint” (in other words, it never lasts that long). This is all the more true in the case of the condition of Kenthill Townhomes with regards to the condition of the wood siding upon which the paint will be applied. In addition to this, the general consensus concerning the paint job that occurred in 2002 was that it was of fairly low quality. The end result of all these things is that we will have to begin considering having a paint job project done at Kenthill Townhomes in the near future. Funding for the new Painting Project will also necessarily have to be taken into account. There are only two ways of funding projects: raising the homeowners dues or having a Special Assessment.
Sunday, May 20, 2007
Sunday, May 13, 2007
About Homeowners Dues & Special Assessments
We live in a community. All of us must take part in it and share in the financial responsibilities of the upkeep and long-term maintenance of our commonly held property.
To assist the Board in determining the future needs of Kenthill Townhomes, in 2006 the Board commissioned a Reserve Study to be performed for Kenthill Townhomes.
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.
Homeowners have expressed concern about certain statements which were included in the Executive Summary [from the Reserve Study] which was sent in a letter to all homeowners. One statement read in part as follows:
“Based on this starting point, your anticipated future expenses, and your historical Reserve contribution rate, we are forced to recommend a Special Assessment of $205,000 in 2006 and a Special Assessment of $225,000 in 2007. Additionally, our recommendation is to increase your monthly Reserve contributions to $4,830 [presently they are $2,778 per month], with annual inflation offsetting increases thereafter”.
The Reserve Study is a very large document. Preparing it took many months and many hours of interaction, feedback, studying, and information gathering on the part of the vendor, countless contractors, and question and answer sessions with Board members. Having said that, the Reserve Study is only a guide. It is a very useful guide, but only a guide. It does not dictate, nor will it dictate, future actions and decisions. It came with useful tools which can be used to manipulate data to produce various current and future outcomes. The Board has spent many hours reviewing the document. It has proved to be very helpful in the short time that it has been implemented in assisting with composing a rough draft of future projects and issues which will need to be considered in the short term future and the long term future.
To assist the Board in determining the future needs of Kenthill Townhomes, in 2006 the Board commissioned a Reserve Study to be performed for Kenthill Townhomes.
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.
Homeowners have expressed concern about certain statements which were included in the Executive Summary [from the Reserve Study] which was sent in a letter to all homeowners. One statement read in part as follows:
“Based on this starting point, your anticipated future expenses, and your historical Reserve contribution rate, we are forced to recommend a Special Assessment of $205,000 in 2006 and a Special Assessment of $225,000 in 2007. Additionally, our recommendation is to increase your monthly Reserve contributions to $4,830 [presently they are $2,778 per month], with annual inflation offsetting increases thereafter”.
The Reserve Study is a very large document. Preparing it took many months and many hours of interaction, feedback, studying, and information gathering on the part of the vendor, countless contractors, and question and answer sessions with Board members. Having said that, the Reserve Study is only a guide. It is a very useful guide, but only a guide. It does not dictate, nor will it dictate, future actions and decisions. It came with useful tools which can be used to manipulate data to produce various current and future outcomes. The Board has spent many hours reviewing the document. It has proved to be very helpful in the short time that it has been implemented in assisting with composing a rough draft of future projects and issues which will need to be considered in the short term future and the long term future.
Sunday, May 06, 2007
Financial discussion
Many homeowners have expressed their concern about rising homeowners dues. Let’s look at an example: In 2005, the Annual Budget for Kenthill Townhomes was $218,834. In 2006, an approximate 5% increase was enacted for a new 2006 Annual Budget of $228,834. $228,834 - $218,834 = $10,000. So a 5% increase is roughly $10,000.
During the 2007 Annual Meeting, the different Board members, the Secretary, the Treasurer, and the President gave their respective reports on the state of Kenthill Townhomes. Various data from the President’s report, together with some more recent information, will prove valuable. The following are excerpts from that speech (please remember that the following statements pertain to 2006 only:
“Our monthly invoice from Waste Management, Inc. varies from $1,500 to $1,800 per month. In 2003, we had a fire in one of our buildings. Costs were approximately $14,000. In 2004, a lighting repair project was accomplished near Buildings A, B, and C. Competitive bids were obtained which ranged as high as $15,000. After much Board interaction, the project was completed for $6,000. In 2005/2006 (Winter), a windstorm resulted in considerable damage to several buildings. Costs included $2,000 for tarping, $2,000 for additional landscaping cleanup, and $5,000 for our insurance deductible. [Insurance paid for one roof installation]. In 2006, five major plumbing problems occurred (broken or leaking water shut on/off valves) at an average cost of $2,200 to $2,500 each. Experts in building maintenance were consulted; the consensus is that more problems are likely to be discovered in the future, given the age of the property (built in the early 1970’s). In 2006, the passage of the Witten Consent to Amend returned the responsibility for the maintenance of windows, entry doors, and screen doors to the Association. In 2006, homeowners requested and had installed numerous entry doors and screen doors at a cost of $5,496. Window repairs (including broken windows, BB shot glass, etc.) totaled $3,668. Wood siding repairs continue at various places at buildings throughout the complex. These include (but are not limited to) Building L $1,721.00, Building R $2,237.00, and Building A $3,293.00.”
It should also be noted that requests for installations of entry doors and screen doors continue to occur in 2007 (requests sharply rose after the March 27, 2007 Annual Meeting). Installations have occurred at Building A, Building I, Building P, Building K, and Building L.
During the 2007 Annual Meeting, the different Board members, the Secretary, the Treasurer, and the President gave their respective reports on the state of Kenthill Townhomes. Various data from the President’s report, together with some more recent information, will prove valuable. The following are excerpts from that speech (please remember that the following statements pertain to 2006 only:
“Our monthly invoice from Waste Management, Inc. varies from $1,500 to $1,800 per month. In 2003, we had a fire in one of our buildings. Costs were approximately $14,000. In 2004, a lighting repair project was accomplished near Buildings A, B, and C. Competitive bids were obtained which ranged as high as $15,000. After much Board interaction, the project was completed for $6,000. In 2005/2006 (Winter), a windstorm resulted in considerable damage to several buildings. Costs included $2,000 for tarping, $2,000 for additional landscaping cleanup, and $5,000 for our insurance deductible. [Insurance paid for one roof installation]. In 2006, five major plumbing problems occurred (broken or leaking water shut on/off valves) at an average cost of $2,200 to $2,500 each. Experts in building maintenance were consulted; the consensus is that more problems are likely to be discovered in the future, given the age of the property (built in the early 1970’s). In 2006, the passage of the Witten Consent to Amend returned the responsibility for the maintenance of windows, entry doors, and screen doors to the Association. In 2006, homeowners requested and had installed numerous entry doors and screen doors at a cost of $5,496. Window repairs (including broken windows, BB shot glass, etc.) totaled $3,668. Wood siding repairs continue at various places at buildings throughout the complex. These include (but are not limited to) Building L $1,721.00, Building R $2,237.00, and Building A $3,293.00.”
It should also be noted that requests for installations of entry doors and screen doors continue to occur in 2007 (requests sharply rose after the March 27, 2007 Annual Meeting). Installations have occurred at Building A, Building I, Building P, Building K, and Building L.