Swimming pool vs. property values

When we sent out the 2009 annual budget in December, we told homeowners of the increasing problem with delinquencies and that if things didn't improve quickly, the Board would have to make some hard spending decisions, such as reducing the swimming pool season or cancelling it altogether. Later, we published an article about this in our newsletter, suggesting homeowners let us know what they wanted on or before our April meeting. I didn't attend that meeting because I was working, but our property manager later told me the decision was to keep the pool closed (the costs of delinquencies, complying with the new federal law and several other pool repairs we need to do was all a bit much). And it's an old pool, built in 1972.

Now, I'm wondering if the Association should consider keeping the pool altogether - and if we were to close it up what that would do to our property values, which are probably already in the tank, given delinquencies, too many renters and the generally manure pile that is today's real estate market. We are a community of townhomes and the pool is next to our community building - this is pretty much at as far as amenities go. Of course, something this major would require a homeowner vote.

Has anyone else faced this problem? If so, how did you approach it (e.g. consult with local realators to see how much of a drop there may be)? If you did eliminate the pool or another major amenity, did you replace it with something else? And how have things turned out since then?

As always, many thanks for your comments and suggestions.

Thanks for the comments - we have 156 units.

Somehow, I suspect if we didn't have a pool, that might be ok with the majority of homeowners - provided the money was used to improve something else in the community. Besides the upkeep, the other problem we've had is behavior - the pool area is surrounded by a chain link fence (that people have jumped over and now it's leaning in spots) and last fall, someone used the pool cover (it's an in ground pool) as a trampoline - so in addition to complying with the federal law, we'll also need another $1500 or so for a new cover. There's also the matter of leaks (somewhere) and the surrounding sidewalk is in desperate need of repair. I'm thinking the area's become a gigantic money pit.

SheliaH,

We have a discussion every year or two - should we fill in the pool (most residents have their own pool)or should we demolish the tennis courts. Neither facility gets much use.

It seems to me that the Board would not (and should not) have the authority to dispose of any facility. People bought here knowing that we had a pool and tennis. I don't think we could legally eliminate either facility.

I agree with you Sheila - You might have to get the homeowners to all vote on this issue in order to change this, but it's doable. Like you, I just have wondered if any other HOA has not only considered this, but did in fact follow through and filled in the pool.

Peter,
On the issue of amenities, a lawyer who was hired to address this very issue in my rental HOA, stated that because it is classified as an amenity, there must be 100% approval from the owners to remove whatever the amenity is (pool, tennis court, whatever) The theory is that people bought into the community because of the amenity.

Now I wholeheartidly dissagree with him. I had my own pool so who cares about a community pool. What if i am too old to play tennis? Who cares about the tennis courts and so on. So I would suggest to the O.P to just ask an expert in your commuity, like your HOA attorney if you have one.

I like Kirks idea, give them 2 choices. Increase in dues to support the pool or removal of it. Getting 100% seems tough to obtain if you ask me.

I just thought of a third option - rip out this old pool and replace it with a new one, complete with the equipment needed to comply with the federal pool safety law and perhaps a few "green" bells and whistles that can conserve water and energy in heating the thing. Of course, this would be several thousand dollars (which we don't have) and would require a special assessment (and we know how popular THOSE are).

We amended our bylaws some years ago that I believe would require a 75% approval for something like this - I'll have to check. Thanks to the delinquencies, however, the actual number eligible to vote would be considerably smaller, but if we got 75% of that, ok.

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