We Need Your Vote!
By now, you should have received an email (and soon, a posted letter) regarding the proposal by the Board of Directors to enter into a loan to finance the painting of the exterior of our buildings.
Much is detailed in that mailing that we won’t repeat here.
First, good news: we want to let you know that you may avail yourself of blank ballots and a ballot box in the Clubhouse to submit your vote. All voting must be on the designated form, on a hard copy, and filled out completely. As in all voting on HOA issues, there is one vote per unit by the homeowner(s). You may, of course, also mail your ballot as designated on the email to you. Deadline is January 17, but please try to respond asap.
Some questions have been posted to the HOA Board and also by Facebook, which we will address here. We hope this helps you to make a clear and careful decision.
Question: OUR DUES WILL NOT GO UP IN 2020 , BUT WILL THEY GO UP IN SUBSEQUENT YEARS?
Answer: First, the loan’s effect on the budget doesn’t change for 7 years. So it won’t “raise” dues.
Second, any changes to the budget to affect dues (up or down) will be from our regular and planned expenses (utilities, maintenance, etc.) and these items can always go up – much as your home expenses do. It is hoped that our regular planned reserves will take care of any emergency costs that arise. Contributions continue each year to the Reserve Account as they have in the past. And we have been taking steps (like the landscaping and pool changes) to help stabilize and lower some of our expected costs.
FYI, NO Board should be making promises NOT to raise dues. While every measure is taken to keep dues low and/or not raise them (we pay them too!), the Board has a fiduciary responsibility to provide for the financial well being of the property. So it can’t ever say “no increase” beyond one year if the Board is performing responsibly.
Question: What effect does a loan have on our property values and/or resales?
Answer: Think of this the same way as if you took out a personal loan. If you have a good credit rating, good source of income and – it helps – some money in the bank, it’ll have very little effect. That’s the case with Glenwood Green. We have a great track record, no prior special assessments, sound budgeting with good consistent income, and good reserves. And at the lowest interest rate in years, knowledgeable brokers would applaud our timing. It would also be noticed that the funds are going into Capital Improvements that directly affect our home values, not operating expenses.
Question: Can you/Will you pay off the loan early if budget/reserves seem to allow?
Answer: First, the terms of the loan will allow early pay-off. The Board discussed a long-term loan (7 years) to minimize pressure on the budget and provide for flexibility with our reserve balances should a future emergency or opportunity arise. However, as reserves grow and the Board is able to hold the line on expenses, the Board will consider using reserves at that time to pay off the line early.
Note: the Board will consider contracting for a new Reserve Study in 2020 after these major projects are completed. The current one, done by expert engineers, still has several years to run with other, much lower cost items anticipated in the remaining life of the study. However, since we will have completed several of the highest cost projects and ahead of schedule, we will be able to re-evaluate our future reserve needs. It is anticipated that once the new study is completed, we can expect the financial needs for future projects to lower our projected reserve balance requirements – allowing us to consider projects earlier than anticipated and/or pay-off the loan.
To discuss this or any other questions further, contact the HOA Board directly. Or let us know if you’d like to talk by phone.
Thanks for your careful and thoughtful consideration – and please vote soon and vote YES! Let’s get this one done and look like the great community we are in the next decade!
JUST FOR FUN ….and a lot of work too!
If you haven’t seen Google Installer Justin movin’ and groovin’ around our buildings, you may want to search him out one day soon. He has been using stilts to reach high places (inside our garage door recesses, for example) without having to go up and down ladders! And yes, he works with them on all day, every day! It’s a family affair here for Justin. His Uncle and other relatives are all part of the company doing our Google Install. Shake hands the next time you see him – if you can reach him!