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[TowerTalk] HOA's OT

To: towertalk@contesting.com
Subject: [TowerTalk] HOA's OT
From: Tom Anderson <ww5l@gte.net>
Reply-to: ww5l@gte.net
Date: Sat, 20 Sep 2003 18:22:16 -0500
List-post: <mailto:towertalk@contesting.com>
This is off topic about antennas and HOA's, but some TT members might
find it interesting anyway.  It was printed in Saturday's Dallas Morning
News.

Tom, WW5L



http://www.dallasnews.com/latestnews/stories/092003dnccohoadues_hp.128163e8.html

                 Some homeowner groups hit by steep rise
                 in dues 

                 Inaccurate estimates by exiting developers called
growing problem

                 09:14 PM CDT on Friday, September 19, 2003 

                 By PAULA LAVIGNE / The Dallas Morning News 

                 Ken Nelson sought to become the first elected president
of his Plano homeowners
                 association, believing that his experience as a small
businessman could help him
                 scour the budget and lower the $420 annual dues he and
256 others were paying. 

                 But Mr. Nelson soon discovered that his Wolf Creek
Estates Homeowners
                 Association was several hundred dollars in the hole and
had no money set aside
                 for big repairs and projects, such as dredging a series
of lakes. 

                 Instead of lowering dues, he and his board had to
persuade homeowners to raise
                 dues to $800, said Mr. Nelson, who is now president of
Texas Neighborhoods
                 Together, a statewide organization that represents
neighborhood groups such as
                 homeowners associations. Today, the dues stand at $835. 

                 Mr. Nelson faced the problem four years ago, when the
developer turned the
                 association over to residents, as is customary when
most homes in a
                 neighborhood have been sold. In his position with Texas
Neighborhoods, Mr.
                 Nelson terms the problem "widespread" ? and he expects
it to grow. 

                 Homeowners, developers and property managers agree that
most developers set
                 residents' dues based on a realistic budget for present
and future amenities.
                 Those who don't ? the exact number experts don't know,
but they say it's far
                 more than a renegade few ? have set up their
homeowners, and their
                 neighborhoods, for an uncertain future. 

                 The issue has caught the attention of state
legislators, who say they're considering
                 ways to make sure homeowners aren't caught off guard
when it comes time for
                 them to begin paying to keep the community pools clean,
the lawns mowed and
                 the hedges trimmed. 

                 "What can occur is a situation where a developer
refuses to have any
                 pre-transition activity and won't let the homeowners
become involved," said Fred
                 Shapiro, owner of Dallas-based SBB Management, which
manages associations
                 for homeowners and developers. "Next thing the
homeowners know, they're being
                 nominated, or they volunteer, and they have no idea of
how a homeowners
                 association works." 

                 Growing trend 

                 Homeowners associations have been growing in popularity
across the nation, yet
                 their concept remains new to some homebuyers.
Developers generally form and
                 govern an association when they plan a new community ?
and some cities, such
                 as Allen, even require them for new subdivisions. 

                 In some communities, associations are responsible for
minor features, such as an
                 entryway, fountain or shared grassy area. Elsewhere,
associations maintain pools,
                 equestrian centers, golf courses and other full-time
facilities. 

                 When developers get close to finishing a development,
usually when two-thirds of
                 the lots have been sold, they turn the association over
to a board of elected
                 residents. The residents' board is then responsible for
all amenities and
                 maintenance, and for setting dues. 

                 $35,000 debt 

                 A debt of almost $35,000 surprised residents in a
Parker neighborhood when they
                 took over their association last year, said president
Jeff Harrison. Mr. Harrison
                 said he knew that dues had been falling short, but he
was stunned to find such a
                 large difference. 

                 Dues totaled $70,000, but the association's expenses
exceeded $100,000, he said.

                 "We were running out of money," Mr. Harrison said. "We
were fixing to have to
                 quit watering and quit paying the mowing company." 

                 Homeowners approved an extra $182 one-time assessment,
and the association
                 cut back where possible, he said. Homeowners blamed the
developer, Prosper
                 Land Co., which bought the subdivision in its early
stages from another developer.

                 David Garrett, senior manager of Premier Communities,
managed the subdivision
                 for Prosper. The initial developer had set the dues too
low, he said, and Prosper
                 was spending thousands of dollars to make up the
difference. Mr. Garrett said he
                 warned residents that once the developer left, they
would likely have to raise their
                 dues. 

                 Problem not uncommon 

                 Jim Wilck, former president of the Plano Homeowners
Council, said that of the
                 roughly 150 mandatory dues-paying associations he has
worked with, he has
                 heard of this type of problem 10 to 20 percent of the
time. 

                 Most developers do a good job, and some will even leave
money behind, he said.
                 He said in his subdivision, the developer left
residents with more than $20,000 in
                 reserve. 

                 Mr. Shapiro advises developers to set their dues based
on how much it will cost to
                 maintain and improve the amenities and common areas and
keep the association
                 running. And residents should be part of the homeowners
association from the
                 beginning, he said. Letting residents see the bills and
contracts and make
                 suggestions will smooth the transition, he said. 

                 Turning a neighborhood over to residents who don't know
anything about their
                 homeowners association can be damaging to the
developer, said Douglas
                 Gilliland, president of Triwest Group, a development
company in North Richland
                 Hills. 

                 As a developer, Mr. Gilliland said he wants his
neighborhoods to stay in good
                 shape. 

                 "But if I don't have a tool to make sure my homeowners
buy into that philosophy,
                 then they will cause my investment to deteriorate," he
said. 

                 Unregulated process 

                 The creation and transition of homeowners associations
is a largely unregulated
                 process in Texas. People who buy homes in a community
with a mandatory
                 homeowners association are required to abide by the
rules and restrictions
                 drafted by the developer, but there are no state or
local laws that detail what
                 needs to be in those documents or what homeowners are
entitled to from the
                 developer. 

                 Six states ? Alaska, Connecticut, Minnesota, Nevada,
Vermont and West Virginia ?
                 have adopted the Uniform Common Interest Ownership Act,
designed to clarify
                 the relationship between the developer and homeowners
and make it easy for
                 developers to involve owners in governing associations. 

                 State Sen. John Carona, R-Dallas, said he plans to
introduce legislation in the next
                 session that would require more financial disclosure,
specifically that annual
                 budgets be posted 10 days before any meeting. He also
wants to require that
                 associations meet at least once a year. 

                 Homeowner association leaders say they're exploring
whether cities can demand
                 certain provisions of developers in order to get the
city to approve their plans.
                 Plano, for example, requires developers who are
designing neighborhoods with
                 private streets to put money into a reserve account for
future street maintenance.

                 Mr. Carona, who owns a large, national management
company, said some states
                 require that developers set aside a reserve account for
maintenance of the entire
                 subdivision. Texas doesn't need that now, he said, "but
as we see the continued
                 growth and expansion of size and complexity of
amenities, then I think that day
                 may come." 

                 E-mail plavigne@dallasnews.com

_______________________________________________

See: http://www.mscomputer.com  for "Self Supporting Towers", "Wireless Weather 
Stations", and lot's more.  Call Toll Free, 1-800-333-9041 with any questions 
and ask for Sherman, W2FLA.

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