Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?

no_mo'_spam wrote:
Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Having it as a reserve is a good idea - assuming that it represents less
than one year's operating costs. It should be in an interest-bearing
account.

"no_mo'_spam" wrote...

Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?

Put it in a CD or other interest-bearing account and use the money when
the HOA next needs a new roof or paint job.

Craig

On Sun, 04 Jun 2006 18:46:32 GMT, "Craig"
wrote:


"no_mo'_spam" wrote...

Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?

Put it in a CD or other interest-bearing account and use the money when
the HOA next needs a new roof or paint job.

Craig


Right now, there is close to $90,000 in reserve (including the above
amount), with less than $30,000 in annual operating costs. There is
no community center/pool, etc. (and nowhere to build one), so this
amount just keeps growing since the annual dues exceed the annual
costs.

So, what? It just stays there forever? Even if we had to replace an
entire brick wall around the subdivision, that would be less than the
amount in reserve.

In article , no_mo'_spam says...

On Sun, 04 Jun 2006 18:46:32 GMT, "Craig"
wrote:


"no_mo'_spam" wrote...

Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?

Put it in a CD or other interest-bearing account and use the money when
the HOA next needs a new roof or paint job.

Craig


Right now, there is close to $90,000 in reserve (including the above
amount), with less than $30,000 in annual operating costs. There is
no community center/pool, etc. (and nowhere to build one), so this
amount just keeps growing since the annual dues exceed the annual
costs.

So, what? It just stays there forever? Even if we had to replace an
entire brick wall around the subdivision, that would be less than the
amount in reserve.

So - is this your 'angle' on getting a "community center/pool, etc."?? Are you
looking for a bunch of posts here basically saying "the fools! The HA should
not be letting the money lay fallow, it should be ..list of things including
your coveted community center/pool etc....!!" to show the board?

How about just addressing this straightforwardly to your Homeowner's
Association?

Banty


--

Banty wrote:
amount just keeps growing since the annual dues exceed the annual
costs.

That by itself is a good reason to reduce the annual assessment.

What does the Board say?

"no_mo'_spam" wrote...

On Sun, 04 Jun 2006 18:46:32 GMT, "Craig" wrote:

"no_mo'_spam" wrote...

Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?

Put it in a CD or other interest-bearing account and use the money when
the HOA next needs a new roof or paint job.

Craig

Right now, there is close to $90,000 in reserve (including the above
amount), with less than $30,000 in annual operating costs. There is
no community center/pool, etc. (and nowhere to build one), so this
amount just keeps growing since the annual dues exceed the annual
costs.

So, what? It just stays there forever? Even if we had to replace an
entire brick wall around the subdivision, that would be less than the
amount in reserve.

OK, we know your reserve fund size and operating costs. What is the annual
total income for everyone's fees? Given a large $30k annual operating cost,
what occasional events will occur that will be paid out of your reserve
fund? Since you don't say if you're in a group of townhouses, a multi-level
condo or whatever, these "occasional events" could include a new roof,
exterior paint, replacing an elevator motor, carpeting common hallways,
repaving a private drive or parking area and who know what else? Isn't it
better to have a properly funded reserve for these costs rather than issue a
special assessment to everyone to cover these "unexpected" costs when they
arise?

Another thing you could look at is the coverage the HOA maintains for the
buildings. Given the increases in building costs above inflation, it's
certainly possible that your HOA has underinsured your units in the current
climate.

Craig

On 4 Jun 2006 12:46:34 -0700, Banty wrote:

In article , no_mo'_spam says...

On Sun, 04 Jun 2006 18:46:32 GMT, "Craig"
wrote:


"no_mo'_spam" wrote...

Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?

Put it in a CD or other interest-bearing account and use the money when
the HOA next needs a new roof or paint job.

Craig


Right now, there is close to $90,000 in reserve (including the above
amount), with less than $30,000 in annual operating costs. There is
no community center/pool, etc. (and nowhere to build one), so this
amount just keeps growing since the annual dues exceed the annual
costs.

So, what? It just stays there forever? Even if we had to replace an
entire brick wall around the subdivision, that would be less than the
amount in reserve.

So - is this your 'angle' on getting a "community center/pool, etc."?? Are you
looking for a bunch of posts here basically saying "the fools! The HA should
not be letting the money lay fallow, it should be ..list of things including
your coveted community center/pool etc....!!" to show the board?

How about just addressing this straightforwardly to your Homeowner's
Association?

Banty

I apologize, Banty. I didn't mean to waste your time reading such
insignificant and trivial posts. There is no "angle". I was simply
asking a question. And there is no room to build anything, which I
mentioned in a follow up post.

These are single-family homes, with no other buildings in the
subdivision. There are no maintenance issues, other than a brick wall
on the outside that shouldn't need to be replaced for many years.

In this case, we had a sudden, unexpected windfall of money that has
been sitting there for a few years. I was curious as to what
reasonable expectations are as to the use of the money. Is having all
homeowners skip of year of dues reasonable? A refund of some of the
amount? Leave it there forever?

That's it, I was just soliciting opinions. No ulterior motives, I
promise.

"no_mo'_spam" wrote in message
...
On 4 Jun 2006 12:46:34 -0700, Banty wrote:

In article , no_mo'_spam
says...

On Sun, 04 Jun 2006 18:46:32 GMT, "Craig"
wrote:


"no_mo'_spam" wrote...

Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?

Put it in a CD or other interest-bearing account and use the money
when
the HOA next needs a new roof or paint job.

Craig


Right now, there is close to $90,000 in reserve (including the above
amount), with less than $30,000 in annual operating costs. There is
no community center/pool, etc. (and nowhere to build one), so this
amount just keeps growing since the annual dues exceed the annual
costs.

Snip

These are single-family homes, with no other buildings in the
subdivision. There are no maintenance issues, other than a brick wall
on the outside that shouldn't need to be replaced for many years.

In this case, we had a sudden, unexpected windfall of money that has
been sitting there for a few years. I was curious as to what
reasonable expectations are as to the use of the money. Is having all
homeowners skip of year of dues reasonable? A refund of some of the
amount? Leave it there forever?

That's it, I was just soliciting opinions. No ulterior motives, I
promise.
IMHO- do a review of all outstanding and ongoing expenses, including
insurance and such, and perhaps bring them up to snuff. See if maybe there
are improvements that could lower the fire insurance rate for everyone, like
extending a water main and adding a hydrant. Does the association pave the
streets, or does city cover that? A preventive maintenance chipcoat may be a
worthwhile investment. What about street lights? Once you go through the
list of possible useful stuff at the board meeting, the residue past one
year of planned expenses (or whatever bylaws or local laws dictate) should
be refunded, either as a dues holiday, or cut checks.

And by the by- if the perimeter wall is the only remaining 'common area',
maybe y'all should consider deeding it to the adjacent lots, or the city,
and disbanding the HOA. Seems like a lot of work for little benefit.

aem sends...

On Mon, 05 Jun 2006 00:20:11 GMT, "ameijers"
wrote:


"no_mo'_spam" wrote in message
.. .
On 4 Jun 2006 12:46:34 -0700, Banty wrote:

In article , no_mo'_spam
says...

On Sun, 04 Jun 2006 18:46:32 GMT, "Craig"
wrote:


"no_mo'_spam" wrote...

Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?

Put it in a CD or other interest-bearing account and use the money
when
the HOA next needs a new roof or paint job.

Craig


Right now, there is close to $90,000 in reserve (including the above
amount), with less than $30,000 in annual operating costs. There is
no community center/pool, etc. (and nowhere to build one), so this
amount just keeps growing since the annual dues exceed the annual
costs.

Snip

These are single-family homes, with no other buildings in the
subdivision. There are no maintenance issues, other than a brick wall
on the outside that shouldn't need to be replaced for many years.

In this case, we had a sudden, unexpected windfall of money that has
been sitting there for a few years. I was curious as to what
reasonable expectations are as to the use of the money. Is having all
homeowners skip of year of dues reasonable? A refund of some of the
amount? Leave it there forever?

That's it, I was just soliciting opinions. No ulterior motives, I
promise.
IMHO- do a review of all outstanding and ongoing expenses, including
insurance and such, and perhaps bring them up to snuff. See if maybe there
are improvements that could lower the fire insurance rate for everyone, like
extending a water main and adding a hydrant. Does the association pave the
streets, or does city cover that? A preventive maintenance chipcoat may be a
worthwhile investment. What about street lights? Once you go through the
list of possible useful stuff at the board meeting, the residue past one
year of planned expenses (or whatever bylaws or local laws dictate) should
be refunded, either as a dues holiday, or cut checks.

And by the by- if the perimeter wall is the only remaining 'common area',
maybe y'all should consider deeding it to the adjacent lots, or the city,
and disbanding the HOA. Seems like a lot of work for little benefit.

aem sends...

This, along with a lot of other posts, are the opinions that I was
hoping for. Thanks for everyone's ideas (including Banty's, who I
probably shouldn't have singled out).

Most of us would love to disband the HOA, but unfortunately, the
by-laws won't let us for another 15 years or so. Plus, the city LOVES
the HOA's, so there probably isn't anywhere to go to fight it.

In article , no_mo'_spam says...

On 4 Jun 2006 12:46:34 -0700, Banty wrote:

In article , no_mo'_spam says...

On Sun, 04 Jun 2006 18:46:32 GMT, "Craig"
wrote:


"no_mo'_spam" wrote...

Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?

Put it in a CD or other interest-bearing account and use the money when
the HOA next needs a new roof or paint job.

Craig


Right now, there is close to $90,000 in reserve (including the above
amount), with less than $30,000 in annual operating costs. There is
no community center/pool, etc. (and nowhere to build one), so this
amount just keeps growing since the annual dues exceed the annual
costs.

So, what? It just stays there forever? Even if we had to replace an
entire brick wall around the subdivision, that would be less than the
amount in reserve.

So - is this your 'angle' on getting a "community center/pool, etc."?? Are you
looking for a bunch of posts here basically saying "the fools! The HA should
not be letting the money lay fallow, it should be ..list of things including
your coveted community center/pool etc....!!" to show the board?

How about just addressing this straightforwardly to your Homeowner's
Association?

Banty

I apologize, Banty. I didn't mean to waste your time reading such
insignificant and trivial posts. There is no "angle". I was simply
asking a question. And there is no room to build anything, which I
mentioned in a follow up post.

Your question is a rather general question, the kind that, when asked, the asker
is often 'fishing' for an answer. You have gotten these answers,
straightforward ones relating to maintenance and reserves, but so far, you've
shot each one down. So that leaves me wondering, 'what's this person getting
at?'

Possibly, your discussion of your specific concerns and your ideas for use of
the money would help.


These are single-family homes, with no other buildings in the
subdivision. There are no maintenance issues, other than a brick wall
on the outside that shouldn't need to be replaced for many years.

Is having all
homeowners skip of year of dues reasonable? A refund of some of the
amount? Leave it there forever?

OK, that's better.

What is the opinion of the HOA, though? Perhaps you'll find that there are
repairs heretofore unknown to you, or plans in progress for building or refunds.

Banty


--

"no_mo'_spam" wrote in message
...
Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?


What do the HOA documents say? There may well be some sort of clause in the
association paperwork that specifically states what constitutes 'excess'
funds and what must be done in this situation. What has the Board said
when you asked about this?

Honestly, whatever any of us think is 'reasonable expectations for the use
of this money' doesn't matter at all. What matters is what the bylaws and
HOA attorney say.

HOA will never lower fees. They are made of little people who get some
power and act as ridiculous as our leaders in DC with telling us what
to do. "You want to paint YOUR door green?" and crap like that means
never a HOA for me

Tracey wrote:
"no_mo'_spam" wrote in message
...
Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?


What do the HOA documents say? There may well be some sort of clause in the
association paperwork that specifically states what constitutes 'excess'
funds and what must be done in this situation. What has the Board said
when you asked about this?

Honestly, whatever any of us think is 'reasonable expectations for the use
of this money' doesn't matter at all. What matters is what the bylaws and
HOA attorney say.

HOA will never lower fees. They are made of little people who get some
power and act as ridiculous as our leaders in DC with telling us what
to do. "You want to paint YOUR door green?" and crap like that means
never a HOA for me

Tracey wrote:
"no_mo'_spam" wrote in message
...
Our HOA sold a small parcel of land back the city a few years ago for
about $45,000. This money has been sitting there ever since. What
would reasonable expectations be for the use of this money? I see no
point in it just sitting there.

Any ideas?


What do the HOA documents say? There may well be some sort of clause in the
association paperwork that specifically states what constitutes 'excess'
funds and what must be done in this situation. What has the Board said
when you asked about this?

Honestly, whatever any of us think is 'reasonable expectations for the use
of this money' doesn't matter at all. What matters is what the bylaws and
HOA attorney say.

"Travis Jordan" wrote in message
...
Banty wrote:
amount just keeps growing since the annual dues exceed the annual
costs.

That by itself is a good reason to reduce the annual assessment.

What does the Board say?



It didn't sound like there was any "annual" assessment -- or are you
referring to monthly maintenance fees? The only time an assessment would be
paid is if there were not enough funds to cover expenses