Is your peace of mind to preserve your home value and our community worth $31.00 per month?
Posted on November 5, 2015 by ArrowCreekTruth
The current loan terms the HOA has negotiated are for $3.3 million amortized over 15 years with an interest rate of 5.0%. That equates to $26.00 per month per lot for 15 years. The loan may be adjustable but this is the term now so far as we know.
The second question that is asked is “How much will it cost to maintain the land we are buying?” The independent Browning Reserve Study has placed that number at $2.00 per month per homeowner lot through 2018 when a new Reserve Study has to be performed pursuant to NRS chapter 116. See the ACHOA web site for the Browning Reserve study. The total cost for the loan and reserves is $28.00 per month per lot.
The third matter that comprises the $31 is real property taxes which might increase by $3.00 per month per lot. This amount is waiting reassessment and may go down. The real property tax assessment would appear on tax bills and not be added to the HOA dues.
There are two speculative matters, the details of which are not known to everyone, but are completely manageable..
The first speculative matter that is a potential cost to lot owners if the HOA purchases the golf course is if the FOA allows some of the course to go brown. This is called “dormancy.” This cannot happen, if it all, until 2017 per the agreement between the HOA and the FOA. If dormancy occurs, during or after 2017, the FOA will still provide irrigation. If, for example, the FOA could justify closing 18 holes, then the cost for this would be $80,000 for 90 days, or $74 per lot for the 90 days ($40,000 for 9 holes for 90 days). It would be up to the HOA Board in place at that time to determine if it wanted to continue or to use the land for some other purpose. These sums are much less than the $575 to $700 per month per lot for 18 holes that had been projected in other communications.
The final potential cost is fuels reduction/mitigation for the golf courses. This amount has been put forth, again by lesser informed parties, as “cost unknown.” While the exact cost for this work is unknown at this time, a report conducted for the HOA in 2013 by RCI, an engineering, resource and environmental services company, evaluated both the HOA common areas and both golf courses in need of fuels reduction. Areas were prioritized based on the highest hazards existing at the time. Only a small portion of the golf courses not covered by existing fairways, parking areas, and buildings were evaluated and listed as fuel reduction priorities. The HOA asked the company doing the report to provide priorities for the golf courses for information only. A copy of the completed report was provided to the golf course owners at the time.
If the land is purchased by the HOA, a current analysis of those golf course areas identified in the initial report would have to be conducted again in order to re-prioritize the need for fuels reduction on both golf courses. Based on priority level, funds would be set aside to schedule fuels reduction and treatment by priority areas over time. The HOA would also apply for available grant funding to offset costs as the HOA has done to help fund fuel reduction and treatment in the common areas identified in the 2013 report. For example, the projected amount for the identified fuels mitigation of the 81.5 HOA common areas was approximately $100,000. The HOA applied for a State grant, and will receive two-thirds of the amount. (The State grant provided 2/3 of the total funds required for the fuels mitigation and treatment. The HOA had a required match of 1/3 or approximately $34000.) That fuels mitigation/treatment work outlined in the HOA grant application will be completed by the end of this year.
Sources: ArrowCreek ACCC and the Fuels Reduction committee