2013 Trevi Gardens Annual Meeting. Presented By:
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- Aubrey Arnold
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1 2013 Trevi Gardens Annual Meeting Presented By:
2 Overview & Outline What is the purpose of the HOA? What are the benefits to homeowners? What is the current condition of our subdivision? What is the reserve account & why is it necessary? Understanding the HOA Budget... Dues & Special Assessments... Recent & Future Improvements... Did you know Questions & Answers
3 What is the purpose of the HOA? Our HOA was organized by the developer in 1978 and turned over to the residents in 1997 with the primary purpose to maintain and enhance the property values through enforcing the covenants and maintaining the Trevi Gardens common areas. The costs of operating and maintaining the subdivisions amenities as well as other expenses are paid for by the residents in the form of an annual assessment which is currently $
4 What are the benefits to homeowners? Covenants and rules help protect the value of your home and community. You do not want an overgrown weed infested yard to stand out in an otherwise well landscaped community. You do not want boats, utility trailers, RV s, and commercial vehicles parked in driveways and streets. You do not want a rogue neighbor to paint his/her house orange or pink.
5 What are the benefits to homeowners? The value of shared amenities. Trevi Gardens amenities include: Acres of Green Space A Fishing Pond A Walking Trail Walking distance to Southwind Park Access to Springfield Utilities & Chatham Schools
6 What are the benefits to homeowners? Maintaining and Improving Trevi Gardens Mowing the acres of green space Pruning or removal of trees Aquatic treatment, aeration, and restocking of the fishing pond. Planting and/or trimming our landscaping planters throughout the subdivision Weed, Insect, and Rodent Control
7 What are the benefits to homeowners? Maintaining and Improving Trevi Gardens Swale maintenance including Cattail removal Even though the cattails maintain the natural look of the swale, they are extremely invasive. Once they become established, they are very difficult and expensive to remove. They impede water flow and increase siltation in the swale causing a very inviting ecosystem for undesirable pests. Maintaining the irrigation systems Arranging for street & sidewalk maintenance Paying the bills such as insurance, water, power, & waste removal
8 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! The Front Entrance is already showing its age
9 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Notice any deterioration yet?
10 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! The paint on the letters is peeling, fading, & rusting
11 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Masonry brick just peels off the wall in your hand
12 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Exposed Electrical Wiring
13 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! The City s Cold Patching Method
14 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Trevi Drive, South End, Cracked & Depressed Concrete Pavement
15 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Typical condition of our unreinforced concrete no-outlet streets
16 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Venetian Drive, Rutting, Alligator Cracking, Existing Patch Degradation
17 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Venetian Drive, Rutting, Alligator Cracking, Existing Patch Degradation
18 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Trevi Drive, South End, Weeds growing through pavement joints along cutter lines
19 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! East Sherry Drive, Weeds growing through pavement joints along cutter lines
20 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Venetian Drive, Weeds growing through pavement joints along cutter lines
21 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Venetian Drive, Weeds growing through pavement joints along cutter lines
22 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Walkway Trail, Transverse/Diagonal Full-Depth Cracking
23 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Walkway Trail, Cracked & Depressed Concrete
24 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Walkway Trail, Cracked and Depressed Concrete with Weeds growing through
25 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Weeds & wild grass growing thru riprap around the pond
26 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Weeds & wild grass growing thru riprap around the pond
27 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Large overgrown bushes along the walking trail
28 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Large overgrown bushes encroaching on pedestrians and bicyclists
29 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Previous Beautification Project not maintained
30 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Plants dying, mulch needs replacement, irrigation system inoperable
31 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Plants dying, mulch needs replacement, irrigation system inoperable
32 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Decorative bench timbers bleached and warping
33 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Main entrance planters not maintained with dead and dying plants
34 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Main entrance planters with burch trees not properly pruned & taking over
35 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Trees growing into other trees
36 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Overgrown cattails throughout the swale
37 What is the current condition of our subdivision? Trevi Gardens common areas are 35 years old! Overgrown cattails throughout the swale encroaching on walking trail
38 What is the reserve account & why is it necessary? Reserve Account A reserve account is a separate account established by the HOA to set aside and earmark funds to pay for the major maintenance, repair, and replacement of community property. Reserve accounts are intended to prevent the need for special assessments and to help maintain a healthy and well-funded HOA.
39 What is the reserve account & why is it necessary? Inadequate Reserves = Underfunded Budget Inadequate planning can lead to an underfunded budget. An HOA board may succumb to the pressure of homeowners and not increase assessments or even reduce assessments and forego on-going maintenance. These bad decisions result in the HOA levying special assessments to address health and safety issues that arise from neglect.
40 What is the reserve account & why is it necessary? Inadequate Reserves = Underfunded Budget Reduced care and upkeep of HOA common areas may result in the inability to sell or secure financing. Lenders (subject to underwriting guidelines from Fannie Mae or Freddie Mac) may deny funding loans whenever an association funds less than 10% of its operating funds into its reserve yearly.
41 What is the reserve account & why is it necessary? Inadequate Reserves = Underfunded Budget Property values may depreciate dramatically because of deferred maintenance and inadequate funds to satisfy financial obligations. Lenders are reluctant to fund loans when an association cannot meet its financial obligations.
42 Understanding the HOA Budget What is an HOA Budget? An HOA budget provides a road map for the operations of the community and should include a reasonable estimate of known operating expenses, as well as a plan for funding future capital purchases.
43 Understanding the HOA Budget Operating Expenses The operating expenses portion of the budget determines what services will be provided to homeowners, as well as day-to-day maintenance of the community. These expenses include utilities, management, accounting and legal services, as well as cleaning and maintenance of the property.
44 Understanding the HOA Budget Reserve Account Every year, money should be set aside in a reserve account to fund long-term, major projects. Reserve funds can be used for repair, maintenance or replacement of the parts of the common property and/or litigation involving these items. Did you know the HOA had to take out a loan to cover the expenses of the Agustus Lane pavement repairs due to inadequate reserves.
45 Understanding the HOA Budget Where is the money going? The current $ assessment does not even cover the 2014 estimated operating expenses to maintain the common property. Before now, the HOA did not actively plan for funding our reserve account as part of the budgeting process in an effort to not raise assessments. Currently, the reserve account does not even cover one years worth of the HOA operating expenses!
46 Understanding the HOA Budget Inadequate Collections = Underfunded Budget Inadequate assessment collection procedures result in insufficient funding to satisfy the HOA s financial obligations. For example, homeowners that refuse to pay their assessments may rely on the HOA s poor collection process as a way to delay making their assessment payment. This may result in a domino effect where other members stop paying their assessment under the rationale that since others are not paying, why should they.
47 Dues & Special Assessments What are our options? Maintain the Status Quo! Keep the current $ assessment and continue to cut-back on common property maintenance. Pay costly special assessments whenever needed. Increase yearly assessments and implement effective collection procedures to begin establishing a healthy HOA budget which plans for the needed long-term maintenance and repair of our common property.
48 Recent Improvements Aquatic Management
49 Recent Improvements Walkway Trail Addition
50 Recent Improvements Walkway Trail Addition
51 Recent Improvements Mulching Trees Waldo Landscaping & Construction
52 Recent Improvements Sidewalk Improvements
53 Recent Improvements Beautification of our green space including planting trees on our common property Waldo Landscaping & Construction
54 Recent Improvements Beautification of our green space including Tall Grass & Cattail Removal on 2 nd Street
55 Recent Improvements Eliminating Health and Safety Risks
56 Future Improvements Implement Assessment Collection Procedures Immediately contact delinquent homeowners in writing and explain that payment plan options are available Set up a phone or in person meeting with delinquent homeowners to determine an appropriate payment plan option A payment plan agreement will be prepared by our attorney for each delinquent homeowner
57 Future Improvements Implement Assessment Collection Procedures Homeowners that default on their payment plan agreement will be sent a demand letter from our attorney Our attorney will pursue a lien judgment if the homeowner does not promptly respond to the demand letter or immediately pay all pass due assessment(s) and accrued attorney fee(s)
58 Future Improvements Implement Assessment Collection Procedures Documenting the entire collection process as well as providing payment plan options along with our attorney promptly responding to violations by sending demand letters is necessary and will help guarantee a ruling in the HOA's favor when the attorney pursues a lien judgment See Article VIII, Section 7, in the covenants for more information regarding the remedies already in place for the collection of delinquent assessments
59 Future Improvements Anticipated Future Projects Walkway Trail Repair Scheduled for 11/2013 Front Entrance Renovation Possibly Beginning Spring 2014 Riprap Maintenance at the Pond Possibly Beginning Spring 2014 Swale Improvement City Street Repair/Replacement Subdivision North End Entrance
60 Future Improvements 2014 Improvement Currently soliciting quotes from local landscaping companies to provide Trevi Gardens with general landscaping & property maintenance services that include: Mowing, trimming, and edging Weed control and prevention Shrub trimming Watering Mulching Planting Removal
61 Did you know a license is required to Apply pesticides on the common property A license is required of everyone who purchases or applies Restricted Use Pesticides. Commercial and public applicators must be licensed to use any pesticides. Anyone applying any pesticides in the course of employment must have a license. However, a person using a general use pesticide on his or her own property is exempt.
62 Did you know the rules and covenants are online
63 Question & Answer Section A lot of information and guidance provided in this presentation was found at:
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