PMHOA Funding Source Information (Communication 1)

Hello Homeowners,

I hope you all have had an awesome labor day and if you had the day off enjoying your day back. I wanted to give you all an update on the HOA and the upcoming budget that the board had the chance to review last week. We are in good shape with balancing the budget and creating that much-needed reserve account that's well over 10K as of now.

As a homeowner, the board wants to ensure that we provide the best experience for you as a homeowner loving your neighborhood is one of the critical factors that you made when you purchased your home in Princeton Meadows. Recently there have been many new developments springing up around us, and our neighborhood needs to look and feel on par with others.

After careful consideration, the board has come up with a few recommendations on a budget that we will need to decide on as a community to ensure that Princeton meadows can be that neighborhood that has the potential to be.

Below are the recommendations that we all as a community can vote on and discuss as to determine what's best for our community and our home values. Note that I have been struggling al;l year to come up with the best solutions and ensure that Princeton meadows will never end up in a situation as we have in the past with unpaid bills leans etc. The books have been worked in just about every way I can work them, but the below options are where we are.

~Options~

1. 20% Increase the Yearly HOA dues.
2. Enact a one time $300 assessment for each home in the subdivision.
3. No Action and stay on a 5-year plan we are currently in year 3.

~Explanations~

1. The first option would be to increase dues this option would not be quickly reversed once dues have been raised. But would give the HOA similar capital to fix large items immediately and sp[eed up the five years plan to the familiar grounds revamp immediately.

2. The second option would be a 1-time assessment for all homeowners with the current reserve that we have now and the added assessment we can complete all outstanding issues with the common grounds immediately. This option is the least invasive as the HOA dues will not increase just the one-time assessment.

3. The final option is to stay on track with the 5-year plan we are in year 3, and there is still a lot of work. A lot of homeowners are expecting things to happen a bit faster so to make this happen and fix things an assessment or dues increase is needed. With the budget that we have, we are in a good place, but the pool will need to be resurfaced that alone will deplete our reserve and place the HOA  in the red for the end of the year next year based on previous projections.

Below are some action items that will be addressed with the assessment or dues increase. Note that the assessment can bring a lot of items up instantly unlike a dues increase will be a gradual change but more accelerated than the 5-year plan. Below are average estimates to bring the items back to 100%.

1. Pool resurface  - 47k
2. Pool grills - $300
3. Pool furniture -  2K
4. landscape  revamp including flower beds multiple times a year - 8K
5. Irrigation  - $1,900
6. Pool Porter service $1,700

As a consideration, a lot of these items can be started and completed by the end of the year since we have the funds in the bank we need to decide on what option works best for us as a community.

~Benifits of an assessment of due increase~

1. One way in which the HOA preserves and enhances property values is through ensuring the proper upkeep of the home. The HOA will require that the homeowner mends broken fences, makes repairs to any significant external damages, and even keeps up with the lawn care. When it comes time to sell the home, then, the homeowner will find that the resale value is optimal.

2. Additionally, the HOA can assist homeowners by providing emergency services. Whether it’s a fire or a home break-in, the homeowner can benefit from having a quick response—someone who can attend to all damages done promptly, preventing further damage. That’s what the HOA seeks to do.

3. The HOA preserves the appearance of the neighborhood, too. The value of your property is very much affected by how the surrounding lawns and common areas look. The HOA ensures proper upkeep.

4. The HOA preserves uniformity in the neighborhood, too. One house with a bright pink fence or an unkempt lawn can cause all of the properties to lose their value, but an HOA can maintain a sense of cohesion among all neighborhood homes.

5. Finally, an HOA can prevent abuses. Does someone use your front yard as a trashcan, or does a neighbor allow his tree branches to sprawl into your yard? In a well-run HOA community, this would never happen—and as such, your property values would not suffer from these abuses!

 With the assessment, the HOA would have a better handle on property values as other divisions spring up around us. By addressing each hierarchy of need, contributions to property values are possible (Scheller, 2015b). As can be seen from the chart below, addressing issues such as crime, aesthetics, neighborhood behavior monitoring, and professional management can lead to increased housing prices.

When comparing homeowners associations to neighborhood associations, it has been seen that approximately 97% of HOA presidents agree or strongly agree that protection of property values is the primary goal of the HOA versus only 70.5% of neighborhood association presidents (Scheller, 2015b). The research shows that homeowners associations tend to operate more efficiently within the hierarchy than neighborhood associations. This could be due to their restrictive legal covenants which neighborhood associations typically do not implement.

I know this is a lot to take in, please review the information and contact myself or anyone on the board to discuss the following proposed solutions.
- Joneschris903@gmail.com - Chris - 903-578-0719
- pastormarkc@gmail.com - Mark
- psardo525@gmail.com - Pam

First Service Rep
- Jenifer.Reider@fsresidential.com - Jenifer - 214-451-5433

Voting URL 
https://pollev.com/chrisjones648

Feedback  form 
https://form.jotform.com/82468233530152

CITATIONS

5 Ways an HOA Improves Property Values. (2015, June 07). Retrieved from https://kuester.com/5-ways-hoa-improves-property-values/

Scheller, D. S. (2015b). Neighborhood hierarchy of needs. Journal of Urban Affairs.

Scheller, D. S. (2015a). Neighborhood governments and their role in property values. Urban Affairs Review, 51(2), 290-309.