Transcript 2008 Annual Homeowners Meeting

Persimmon Creek
Annual Meeting
August 22, 2013
www.PersimmonCreekHOA.com
Your Board
Term Expires
Andrew Yonce
President & CEO
August 2013
Marlin McCoy
Vice President
August 2014
Jaclyn Carter
Secretary
Stepping down
John Stocker
Treasurer
August 2014
Nick Lay
Member at large
August 2013
Steve Reeves
Member at large
August 2014
Pete Dickinson
Member at large
August 2014
Derek Edwards
Member at large
August 2013
Jessica Stauffer
Member at large
August 2014
Kurt Colburn
Chairman, Architectural Committee
Stepping down
Derek Minker
Member at large
August 2014
Dan Hall
Member at large
August 2013
Sala Danboise
Member at large
August 2013
President’s Priorities 2012-2013
Maintaining a Balanced Budget
 Continuing the Downward Delinquency Trend
 Save one year of operating expense
 Playground Renovation Project

 (Finished)
Maintain Community Common Areas
 Continued Monitoring of the Blenheim Project

2012 -2013 Year in Review

Strong Financial Position

Delinquencies are Down again 4rd year running
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Playground Restoration – Finished
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Replace Gazebo roof - Finished
FY 2012-2013 Financial Report
Current Cash Position
Estimated Ending balance (8/31)
$ 48,649.47
Back Dues owed to the community was $8893.79 (as of 7/31/2012)
Back Dues owed to the community is $5961.04 (as of 7/31/2013)
A decrease of 33%
Will have reached our target to have one year of HOA expense the reserve
by 2014 -- one year early!
FY 2013-2014 Dues
Dues will remain at $239 for 2013-2014
Things to keep in mind:
•
Dues notices will be mailed Sept 1st
•
Dues are due Sept 30th
•
All reasonable payment plans accepted, Contact Aspen
•
Failure to pay will result in account being sent to collections
FY2013 - 2014 Budget
Dues for 2013-2014 will be $239 per home
2013/14 Budget
Income
06310 - Association Fees
$
45,410
Expense
07010 - Management Fees
12,160
400
07020 - Accounting & Audit Fees
07160 - Legal Fees
500
07280 – Insurance
2,200
07300 – Website
250
07320 - Office Expense
2,000
07410 – Community Expense
150
07990 - Bad Debt Expense
5,000
08910 – Electricity
5,000
09020 - Grounds Maintenance
7,300
09110 - Repair and Maintenance
500
09140 – Janitorial
2,700
09410 - Grounds Committee
633
End of Expense
09910 - Reserves - Saving Contribution
$
$
38,793
6,617.00
Renting Rule
Proposal to remove the following rule:
{As of July 1, 2009, all sales of homes must be for owner-occupied use only.
Existing rental properties [owned by other than an owner-occupant prior to July
1, 2009] will be allowed to continue as rental properties. Beyond July 1, 2009, if a
current rental property is sold, it will fall under the new restriction of owneroccupied use only.}
•
We had 187 homes when the rule when into affect. Since then about 20 homes
have sold. That’s167ish homes that still can rent.
•
This rule does not prevent renters.
•
•
•
The former President of the HOA that proposed this rule is now renting
The President at the time the rule passed he is now renting
Three other board members have rented out their homes in the last year
Renting Rule
The typical argument is that “Renters” are bad and “Homeowners” are
good.
• This is a generalization that is based on little facts
• Are some renters bad residents? Yes
• Are renters good residents? In most cases, Yes
• Are some homeowners bad residents? Yes
• Are homeowners good residents? In most cases, Yes
•
We currently have no landlords behind on HOA dues
•
We have had success in working out issues with landlords
Our Renting Rule…
• What does the renting rule do for us? It drives down property
values for everyone.
• Foreclosure increases in likelihood for owners that move,
have difficulty selling, and cannot rent
• Reduces the potential size of the market for our homes by
‘excluding’ potential buyers
• At present we know of at least 6 foreclosures
Renting Rule - Case Study
Case Study #1
73 Mule Deer
•They decided they wanted to move closer to their kids in Florida.
•Put their house on the market for over a year
•They had an offer on the house, accepted.
•The offer was from a single Man, early in his career.
•He found out about the rule while reading our website, Contacted the HOA to
see if it was possible to get a waiver in the future if needed. We had to state that
that was not an option.
•He pulled his offer
•The owners decided to rent because they found a house in Florida that they
wanted to buy.
•They rented their house
•The renters ended up being a problem to the community.
•The HOA and fellow homeowners documented the events that took place.
•The HOA provided all the documentation to the homeowner and respectfully
requested that the homeowner not give the renter an opportunity to renew the
lease.
•The renters lease was not renewed, they moved out
•Once the inspection was done the homeowner found there was 6k in damage
done to the home.
Renting Rule - Case Study
Case Study #2
•Owner purchased her house after the rule was put into place.
•She cannot rent her home
•She has lived in the community for the past 3 years
•She recently got engaged to someone that lives in Baltimore.
•They plan to move in together in his house down in Baltimore after the wedding.
•Her options are as follows:
• Sell her house for less then what she owes
• Foreclose
Renting Rule – What if Scenario
Scenario
Joe is being forced to relocate for work. (He is not allowed to rent his home.) He
decided to rent his house anyway instead of foreclosing and ruining his credit. He
rents to a great family with two small kids. The family is well liked in the community.
It is brought to the HOA’s attention that Joe is not allowed to rent his home after the
renters have been in for 3 mo.
Does the community want to spend it’s HOA dues going fighting Joe in court to
remove these renters?
Yes
The renters get kicked out (what did they do wrong?)
The HOA spent 10K or more on legal fees (per case)
The owner forecloses on the townhome
HOA Dues have to go up to cover new cost of legal fees
No
We have to treat all cases equal
So, We do not enforce the rule
What’s the point of the rule?
Renting Rule
So what are we really talking about?
• A rule that increases the possibility of foreclosure
• A rule that has and will continue to turn away buyers from the
community.
• A rule that will keep home values lower the other townhome
communities that do not have a similar rule.
Let’s give our community the best possible chance of increasing in
value in the coming months and years by repealing this rule.
Renting Rule Vote
Proposal to remove the following rule:
{As of July 1, 2009, all sales of homes must be for owner-occupied use only.
Existing rental properties [owned by other than an owner-occupant prior to July
1, 2009] will be allowed to continue as rental properties. Beyond July 1, 2009, if a
current rental property is sold, it will fall under the new restriction of owneroccupied use only.}
Board of Directors Standing for
Election
Term Expires
Andrew Yonce
President & CEO
August 2013
Nick Lay
Member at large
August 2013
Derek Edwards
Member at large
August 2013
Dan Hall
Member at large
August 2013
Sala Danboise
Member at large
August 2013
Aspen Property Management
200 East Main Street
Elkton, MD 21921
Phone: (410) 620-2598
Fax: (443)303-8890
General Email: [email protected]
Brad Carrillo, President/Property Manager
Email: [email protected]
James Kulesza, Property Manager
Email: [email protected]
Website: http://www.aspenpropertymgmt.com
Aspen Management Report

Aspen visits the Community once a week
 To date we have opened 155 violations
 We have resolved 147 violations
 We are currently working on 8 violations

Typical Enforcement Procedure
◦
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◦
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Initial warning
Second Warning
Final Warning
Advise the Board to make a determination to send to legal for
enforcement or attempt to resolve with an alternative method.
Aspen Focus for 2013-2014
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Manage 2013-2014 HOA Billing / Processing
Collect on Pass Due Accounts
Manage Finances to the Board’s Budget
Focused Enforcement of the following:
◦
◦
◦
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
Homeowner Landscaping Maintenance
Exterior Home Maintenance
Trashcans Storage
Parking
Other Tasks as Assigned
Important Information

Corron’s Trash Removal 410-287-4790
◦ Preferred Community Trash Hauler
◦ Special Community Pricing, With No Fuel Surcharge
◦ Ask for the Persimmon Creek pricing
Thank You for Attending
Questions?