Get 2 months of free community web site hosting from Community123.com!
Saturday, May 25, 2019
Get 2 months of free community web site hosting from Community123.com!
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Entrance Gate Requires Rebuilt
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
WesleyC1
(Louisiana)

Posts:3


05/01/2019 1:23 PM  
Hello all,

We have a gated community with large brick walls at the entance. These walls are 20+ years old and cracked really bad. The cost for repair is in the thousands...we do not have an emergency fund. Any ideas how to fund this?

Thanks in advance.
MikeM35
(Virginia)

Posts:4


05/01/2019 1:33 PM  
Sounds like a special assessment is in your future.
AugustinD


Posts:1594


05/01/2019 1:33 PM  
Are the residents of this community required to pay monthly or yearly assessment? If so, review your Declaration, covenants and Bylaws for the phrase "special assessment." Report back.
BobB31
(Florida)

Posts:74


05/01/2019 1:37 PM  
What is your role in the community? Is there a board and are you on it?

Ultimately, the membership is going to be required to pay for this, whether it's a one-time assessment for the entire amount or a loan is taken out to extend the time period over which payments would be assessed. Based on what I've read in this forum, a loan should be the absolute last resort.

Regardless, your board should immediately start taking action to build up the reserves (emergency fund) - this will also cost the membership money and is not likely to be a popular action.
WesleyC1
(Louisiana)

Posts:3


05/01/2019 1:46 PM  
I am the current VP. The covenant does have a blurp about special assessments or charges for capital improvements
RoyalP
(South Carolina)

Posts:737


05/01/2019 2:55 PM  
It is NOT a 'capital improvement'.

It is a capital expense.

It was foreseeable.

The eventual repair and replacement of the commonly owned HOA elements is foreseeable.

Y'all need a 'reserve study' to determine what y'all must fund.

? how to pay now ?

assessment / loan (guaranteed by future assessments/common elements)


YOUR ASSESSMENTS NEED TO BE INCREASED TO FUND THE MAINTENANCE OF WHAT Y'ALL OWN


y'all used the entrance for x number of years, do y'all expect the 'newbies' to pay for it ?!
NpS
(Pennsylvania)

Posts:3247


05/01/2019 5:16 PM  
How much is the expected cost divided by the number of houses?

Je publie un degagement de toutes responsabilite. Read all posts at your own risk.
JohnC46
(South Carolina)

Posts:8276


05/02/2019 7:20 AM  
Wes

The gates/wall repairs should have been budgeted for in your Reserves based on a Reserve Study but if never done then the question is how do we pay for the repairs?

The answer is probably a Special Assessment laid upon each owner.
GenoS
(Florida)

Posts:2907


05/02/2019 10:26 AM  
Without a reserves schedule on the wall it becomes somewhat arbitrary as far as when to repair it. "It's looked pretty bad for a number of years so we can wait a few more."
WesleyC1
(Louisiana)

Posts:3


05/02/2019 10:38 AM  
Thanks for all the replies!
KellyM3
(North Carolina)

Posts:1367


05/04/2019 6:32 AM  
Wesley,

If your HOA by-laws are silent on assessments/loans, then I'd consider launching a community discussion about the wall and the need to repair it since it's your entrance. With a zero balance in an emergency fund, I - as longtime HOA president - would recommend that you assess the community sentiment about taking out a loan (the ONLY time I recommend this) in conjunction with an immediate dues increase that covers the monthly payment + a bit extra that can be saved into a Reserve/Emergency account.

Repay that loan as early as possible, using dues increases each time you pass a budget. Then, once the loan is retired, direct the former loan payment into Reserves while holding a line on adding new landscaping or community services.

I despise loans as a practice for an HOA but, if managed, that can provide the source of future savings once the loan is retired and you hold dues rates. I'm assuming your community is, at least, middle class and that your residents can pay more the upkeep of their community and simply - as a board budget policy - have chosen not to through poor planning and being "cheap."
RoyalP
(South Carolina)

Posts:737


05/04/2019 7:16 AM  
Posted By KellyM3 on 05/04/2019 6:32 AM
Wesley,

If your HOA by-laws are silent on assessments/loans, then I'd consider launching a community discussion about the wall and the need to repair it since it's your entrance. With a zero balance in an emergency fund, I - as longtime HOA president - would recommend that you assess the community sentiment about taking out a loan (the ONLY time I recommend this) in conjunction with an immediate dues increase that covers the monthly payment + a bit extra that can be saved into a Reserve/Emergency account.

Repay that loan as early as possible, using dues increases each time you pass a budget. Then, once the loan is retired, direct the former loan payment into Reserves while holding a line on adding new landscaping or community services.

I despise loans as a practice for an HOA but, if managed, that can provide the source of future savings once the loan is retired and you hold dues rates. I'm assuming your community is, at least, middle class and that your residents can pay more the upkeep of their community and simply - as a board budget policy - have chosen not to through poor planning and being "cheap."




PERFECT
LisaD6
(Connecticut)

Posts:55


05/05/2019 9:05 AM  
For something like this.. with our condos I would use the late fee fund. I get a lot of projects done with the late fees. just recently I bought a shed and the cost to install it. Its amazing what you can do with late fees. IF I could get away with it I would put a placque on the outside of the shed and say thank you units bla bla for the shed. We are aloud to spend 15% over the budget without asking approval. This year we put the shed on the budget as capital improvement for this amount. When people don't pay its aggravating but when in the end you get funds to complete projects not so stressful anymore.
JohnT38
(South Carolina)

Posts:26


05/05/2019 1:08 PM  
I realize others may disagree but a 20 year old wall in need of repair and no emergency funds may be the least of your problems. The bigger issue is why are you in this situation to begin with? Why wasn't this problem addressed earlier? Do you have any reserve funds? Have you ever had a reserve study done? Do you have other looming maintenance or repair issues coming?
As for the wall, have you considered tearing it down and not rebuilding it until you have the financing to do so? I know residents like the feel of a pretty wall but you shouldn't buy a Rolls Royce when your budget calls for a VW Bug.
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Entrance Gate Requires Rebuilt



Get 2 months of free community web site hosting from Community123.com!



News Articles Provided by: Community Associations Network
News, articles and blogs about condos/HOA's

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice:  (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.

Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement