Adding Amenities - How Much To Budget?

Hi,

Background on our community:
About 500 homes, fully built out, association under homeowner control.
Original developer promised a community pool and there is a recreation reserve set aside but he went bankrupt before anything was ever built. Remaining lots were sold off by bank to other homebuilders so it's all built.

Dues are artificially low (developer slashed the dues to prevent revolt after not building amenities a few years before the banks foreclosed on him.

Association is in decent financial shape. We might be able to collect a little more if we delivered the original amenitiy set, but honestly, at this point, that's 15 years in the rear view mirror, and the majority of homeowners now have no idea what was originally promised. We're currently rebuilding the fence along the main road (a $150K project that we were able to pay for out of operating funds) so we're functioning pretty well as an association.

But we have this land and we have residents who would like us to do something about it...

So, associations who have built out clubhouses and pools on their own, what questions should I be asking? What's a good ballpark number to build out a clubhouse that could do a 50 person function? What's a good ballpark number to construct a pool?

I'm not really fond of a pool project (everyone wants one, nobody wants to pay for it). But a clubhouse or splash pad would be a nice addition to the community. We have a playground already that could use some sprucing up. But some feedback about your experiences would help.

Thanks.

Replacing/updating an existing amenity is one issue and is usually covered Reserves though one could argue how much of an update is allowed before it is new. Adding a new amenity, regardless of long ago promised by the developer and never delivered, falls under Capital Improvements and a whole different budgeting issue.

My initial blush is adding a new pool falls under Capital Improvements and may well require owner approval.

You have to decide what the benefit of the amenity is for. Typically amenities are "sales tools" used by the developer/builder to attract potential buyers. That is why they put in pools, clubhouses, tennis courts, or other attractive amenity options. Their cost for these items are up front one time installation costs. Which is the lowest of the costs of an amenity. The "real" expense of an amenity is it's long term maintenance/replacement/expansion costs.

Considering your HOA is already built out and owner controlled, the benefit may not be from the attraction of potential buyers. It's going to be the actual use and/or need of the amenity. Is it something the members want? Is it something that will help attract potential buyers by having it?

You all will need to weigh out what works best. A pool is a double edge sword and usually does not add value to a home. A clubhouse may be beneficial due to the ability to hold meetings and people able to rent it out. Our homes are so small that the clubhouse allowed one to have a party with more guests.

The expenses for these amenities also have many hidden costs. Have to factor in insurance coverages. There may be taxes for structures. A clubhouse would need electricity and water. Those bills can be difficult to average. Initial costs are the least of your worries. It will be the long term expenses that will get you.

Preach.

The development next to us at one point offered to offer our homeowners pool tags if we would split the pool's operating costs with them. We couldn't get enough buy-in from the community to fund it at the time (they seem to think that selling pool tags would fund that on its own... the pool tags would cost more than the annual dues if we did it that way) If we could ever get them to make that offer again now that we are in a better financial place it would be the best way to offer homeowners that perk.

There's a fantasy out there that we can just offer amenities and only the people interested in using them would have to pay for them. Reality: stuff costs everyone money.

But people also think that clubhouses just magically fund themselves (or somehow make money) from the fees you get from renting the place out. But I don't see how you could pay the bills, maintain, and insure the place for whatever pittance you might get from hosting a handful of birthday parties and people watching football a few weeks of the year. At best you might get a church renting out the room weekly if it's big enough, but that would be an expensive room to build, heat, and cool.

Developers can build into the lot price the cost of building amenities. When you come in after the lots are sold, you don't have that subsidy. So yeah, I'm not exactly chomping at the bit to build anything. But I owe it to the community to look into what things might cost and let them see that if they want x, y, or z it's going to cost everyone something. Projects are not self funding, nor are they funded by use fees alone.