...until you consider the HOA's substantial expenses. The HOA is responsible for landscape maintenance of the large amount of Landscape Maintenance Areas. Maintenance costs are split between two large expenses: water and maintenance crews. Water costs soar during the summer but are lower during the winter. Cost of maintenance crews to trim plants, replace dead plants, and maintain water lines is substantial but relatively fixed throughout the year. The management company costs $___ per month. However, the management company currently doesn't provide as many services to the HOA as other management companies that charge a similar fee. The management company should be surveying for CC&R violations but currently does not.
The HOA's expenses match its income on an annualized basis. This leaves the HOA with little to no reserve fund and puts it in a precarious position should a serious unexpected event occur.
Offsetting this savings is some much-needed tree trimming. Trees in the LMAs are seriously overgrown and are a liability to the HOA since the HOA is responsible for keeping them from growing to a state where they obstruct views.
A small (<10%) increase in the amount of the HOA assessment is also likely.
Contracts with the HOA management company need to be examined and a comparison with the numerous other management companies performed.
Homeowners need to be convinced to take possession of portions of the LMAs to reduce the burden the LMAs place on the HOA.
Copyright © 2016 Andrew Oliver