A Comparison of ArrowCreek and Other Reno Development HOA Fees

By Ben Collins
Reprinted with Permission

An ArrowCreek neighbor opined that ArrowCreek’s monthly fees are high.  After weeks of research, I disagree.  ArrowCreek’s monthly fees, as compared to those around us and as compared to what we receive, are very low.  I’ve looked at the fees and amenities, and I’ve visited many of the associations.

A detailed analysis follows.   However, two predicates need to be identified.  First, developers control the homeowners associations until more than 50% of the homes are developed.   At some point, the association is turned over to the homeowners.  As long as the developer controls the associations, the monthly fees are likely to be unrealistically low, particularly with regard to necessary Reserves.  See discussions included in the references at the end of this document.  Indeed, when the ArrowCreek homeowners took over the HOA from the developer, they found that the roads were in bad shape and that reserves were seriously underfunded.  ArrowCreek residents actually filed an action against the developer due to the underfunding. Research suggests that the underestimating of monthly fees by developers is often more than 50%.  For that reason, care must be used when reviewing data from associations that remain under a developer’s control.

Second, analysis needs to compare apples to apples.  Each development is different.  Homeowners value different things.  If a homeowner values gated security, swimming pools, a Clubhouse, tennis courts and a golf course that runs through the community creating green space and great views, there is no question that ArrowCreek is a deal.  If a homeowner specifically values the tapestry created by the colors and shapes of moving clouds, then ArrowCreek is unparalleled.  If a homeowner does not value those specific amenities, then other associations are more attractive.  The following analysis attempts to include a broad analysis.

To compare the dues of ArrowCreek with that of other HOAs in Reno, a list of the amenities available at or near sixteen Reno Developments was assembled.  Seventeen amenities, including “size” of home, presence of trails and who owns the HOA for each Development were collected on an Excel Spreadsheet.  Numerical values for each amenity were assigned using the method shown on the spreadsheet.  These numbers were added together for a “Score” for each Development.

The “Score” for each Development was then plotted against the HOA dues for that Development to give a graph of HOA Dues vs Amenities (“Score”).  The first graph below shows that ArrowCreek compares favorably to Montreux, St. James and Somersett.

Ten of the sixteen developments’ Home Owners Associations are still owned by the Developer.  It is common practice for a Developer to keep the HOA dues low to attract buyers. (References below)  When the Developer turns the HOA over to the homeowners, the HOA dues will likely increase.  I estimated this increase from various sources including ArrowCreek’s.  The “Corrected” HOA dues plotted against the Amenities “Score” shows ArrowCreek’s HOA dues relative to our amenities are strikingly favorable to all other developments in Reno as shown in the second graph below.

The graphs suggest that Montreux and St. James are comparable to ArrowCreek.  This requires more analysis because neither development includes amenities in their HOA dues.  If you add the cost of Montreux’s Sports Club into both HOA’s dues, the dues are just south of $600 per month—and that does not include the $24,500 initiation fee to join the Montreux Sports Club.

A critic of the handling of the raw data might take issue with using “Recent Price” (asking price) rather than selling price.  The only effect of that change would be to move all “Score” values slightly lower.  It would not affect the relative positions of the Developments.

A critic could also take umbrage with my derivation of numbers for square footage and price as not being representative of all “sales” and lot size in the development.  The absolute number might vary by several percentage points, but because I used the same method in each Development, the relative positions of the points would not change.

Another potential issue might be my assigning numbers to the value of a Gated community, Clubhouse, tennis courts, etc.  Those numbers are an attempt to incorporate the importance that ArrowCreek surveys have place on those amenities.  One could say that a fitness center has no importance to a specific person and that only tennis courts are what he or she wants.  To test that, I reduced all Clubhouse numbers to zero and raised all Tennis numbers to 500.  The resulting graph was compressed down but did not change the relative positions of the points.

The importance of a Clubhouse to potential buyer is shown by Google Earth.  In 1990, the Caughlin Club was fully established and about 75 of its 2,300 houses had been build.  ArrowCreek and Montreux had not been started.  By September of 1999, the ArrowCreek Residents Center and all its amenities were complete. The Golf Course, with all its buildings and playing grounds were complete. Less than 90 homes had been build.  At the same time, Montreux had completed its clubhouse and golf course while less than 20 home had been built.  At Somerset, the golf courses and Town Center had been built or partly built by November of 2004, well before the greatest number of homes were completed.  The first buildings to go up at The Presidio at Demonte Ranch in 2014 were the club houses.  The history of the Hidden Valley development includes this:  “With the completion of the clubhouse, golf course and a few homes along Piping Rock, the residential pattern and distinction of living in Hidden Valley began to be recognized.”   https://hiddenvalleyhomeowners.com/history-of-hidden-valley-2/

Those people who only want to pay for those amenities they use had ample opportunity to investigate ArrowCreek and all the other communities in Reno before choosing to buy in ArrowCreek.  ArrowCreek has not altered its offering.

If you have comments with the material presented here, please suggest improvements as critique without improvement helps no one.

http://smokymountainnews.com/news/item/8763-homeowner-hassles-as-developments-evolve-many-homeowner-associations-find-themselves-woefully-unprepared-for-the-future

http://www.city-data.com/forum/real-estate/2161718-why-hoa-dues-so-high-some.html

https://candysdirt.com/2015/02/20/giving-dues-due/

All data and graphs are available from Benjaminicoll@charter.net

Note: Red dots are Developments where the HOA is owned by the Developer
Black dots are Developments where the HOA is owned by the homeowners
Blue dot is ArrowCreek

Montreux: $24.5K Initiation Fee+$338/mo + rolling 1 year contract.
Somerset: “On-site visits and interviews with staff confirmed that the cardio fitness area is crowded with machined which makes the space undesirable, and possible unsafe. The cardio room experiences peak usage during the morning hours before work and after-work hours, Residents are using private gyms elsewhere in Reno to exercise during these peak hours.”
https://somersettunited.files.wordpress.com/2015/03/soa-final-amenities-assessment-report.pdf
Caughlin Club Rates for HOA member: Couples $127/mo; Children (5-11) $18/mo; (12-20) $28/mo.

Posted in AC411, ACHOA, ArrowCreek, ArrowCreek 411, ArrowCreek HOA, ArrowCreek411, Caughlin Ranch, HOA, SOA, Somersett | Tagged , , , , , , , , , , , , , , , , , | 1 Comment

An ArrowCreek Property Value Update (October 2017 from Washoe County Assessor Records)

This report for the October UPDATED ‘FACTS’ from the Washoe County Assessor Records since last posted for September, 2017, in An ArrowCreek Property Value Update (September 2017 from Washoe County Assessor Records), shows that we entered into the Fall buying/selling season with an additional seven properties changing owners during this reporting period. Custom Homes on the Golf Course continue to show a 15.9% premium to customs not on the course. Whether this is a short term aberration, now going on three reporting cycles of data, or the beginning of a long-term trend, it certainly catches one’s attention.

ArrowCreek Home Owner Association (ACHOA) initiatives are underway to enhance sales and values (a most positive step given the latest values). The initiatives include a Landscape Committee, which is looking into improving the water quality around our parkway to enhance the ‘greening’ of plantings, a strategic planning initiative, which has yielded a preliminary concept that has received rave reviews from those who’ve seen it. These initiatives are intended to enhance and maintain ArrowCreek as a premier people and family oriented community collocated with a private golf club, identified as a Non-Residential area in the governing documents.

Since September of 2017 and over the past twelve (12) months:

1. ArrowCreek properties have stayed in the premium class within Washoe and Douglas Counties. As you read this report you will see that prices have improved for properties on the golf course, with an average appreciation rate of a market leading 14.1% over this past year, while prices for homes not on the golf course have also trended upward with an increase of 6.4% over the same period. With seven properties changing hands this past month, there wasn’t a ‘hottest’ neighborhood.

On with the facts:

a.) Seven (7) properties were recorded sold in ArrowCreek between 7 and 29 September 2017 (Per the Washoe County Assessor, who appears to be running late as the data was extracted on 23 October and the last ‘sale’ recorded was 29 September). This brings the total number of properties transferred over the past year to 86 or 7.9% turn-over rate for our community. This is a relatively low rate, still in the single digits, that may be attributed to a general satisfaction with living in our gated community or a positive perspective on our amenities and an emphasis on the secure stable environment offered within ArrowCreek.

b.) Four (4) properties on the golf course (where the property boundaries actually touch the golf course, not just have a ‘view’ of it) were closed during this reporting period. The rolling average selling price for homes on the golf course now stands at $286.29 per square foot. This is an increase of $1.77 per square foot from September’s value, based solely upon the statistical rolling average calculation. The 12-month rolling average sales price increased to $1,094,494.25, again based upon statistical methods. No additional lots, on the course, were sold. The rolling average selling price for undeveloped property on the golf course now stands at $234,568.06 per acre.

c.) Three (3) properties were sold that are not connected to the golf course. The rolling average selling price for off course homes increased to $247.09 per square foot, which is up by $2.95 per square foot. The twelve-month rolling average sales price increased to $804,425.44. No additional lots were sold during this reporting period. The rolling 12-month average selling price for vacant land, not on the golf course, now stands at $251,920.67 per acre.

d.) The figure below shows the value trends over the past twelve months. Our homes and properties have appreciated very nicely over this past year and that trend continues.

2. The housing market in Northern Nevada for existing homes continues to follow economic trends. The summer selling season has faded but we are still seeing a boost to our unique community.

Do keep in mind that everyone’s selling price is based upon their own set of circumstances and the above picture is hindsight, not necessarily foresight. Going forward let’s focus our energy on improving the amenities we currently have and build out those that were in the original ArrowCreek/Southwest Point development plan, by using our already available acreage and funding. With that we should see a better environment for all home owners and buyers.

Continuing with the Commentary from previous months: the author received a query about semi-custom and custom homes both on and off the golf course and their relative selling prices. The author’s concern was that there wouldn’t be a significant enough turn-over sample to give a meaningful value. However, with that caveat presented, the following statistics are updated:

Semi-custom On-course: $236.61 per Square Foot
Semi-Custom Off-course: $230.29 per Square Foot
Custom On-course: $345.01 per Square Foot
Custom Off-course: $300.08 per Square Foot

By Ron Duncan
October 26, 2017

For previous postings of the ArrowCreek property value updates: click here.

Posted in ArrowCreek, ArrowCreek 411, ArrowCreek411, Home Sales, Home Values, Land Re-Use, Land Use, Land Value Study, Property Value, Real Estate Value, Truth | Tagged , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Top Ten Principles for Maintaining  An Autocratic HOA Oligarchy

Top Ten Principles for Maintaining  An Autocratic HOA Oligarchy**

                                                                                **” Oligarchy” per Wikipedia: A form of power structure in which  power rests with  a small number of people   in a later Wikipedia  definition ( the leadership class)

            By James N. Verhey—– Qualified Member and Resident of Arrow Creek

Hi All,

Here are some of my reflective thoughts on historically  NEGATIVE   political manipulation principles that have been used in past and current ArrowCreek  political seasons as well as ongoing operations for unrepresented  control of our community destiny.

1. Control the communication channels. Minimize two way communications flow. Use obscure communication vehicles for official messaging that are difficult to access. Avoid Open Agenda Town Hall Meetings …at all costs.

2. Diminish, discount, demean, denigrate and ridicule all perceived adversaries. Put a special and aggressive focus on any real or potential troublemakers.

3. Define “conflict of interest” in terms more liberally than what is required of Nevada Legislators. Cover and mask the underlying  agenda.

4. Explain only when it is absolutely necessary and then complicate and obfuscate. Use partial truths.

5. Use blaming and name calling techniques liberally for marginalizing any perceived opponents.

6. Refrain from soliciting Member expertise or opinions  and viewpoints . Never acknowledge communications of issues/ concerns and improvement ideas and then accuse the HOA  servant subjects of being apathetic, negligent and disinterested.

7. Establish an aura of potential intimidation and possible retribution for functioning as an opponent.

8. Amplify leader martyrdom and self sacrifice as a disguise for other  motivations.

9. Appear reasonable. Display  a thin veneer of civility to cover fundamental ruthlessness.

10. Remain unaccountable with the use of other people’s money.

This OLIGARCHIC  POWER /CONTROL culture needs to be replaced with application of a new community based version of  factors and inspirations of the draft ArrowCreek  Management Transformation Model document (see 10/19/17 blog: I Am Voting NO for the ACHOA Governing Document Changes).

Regards,

Onward and Upward,

Jim Verhey

Posted in AC411, ArrowCreek, ArrowCreek411, HOA | Tagged , , , | Leave a comment

The Blueprint for Board Member Success Webinar

This week HOA-USA (www.hoa-usa.com) features a free webinar brought to us by our friends at Associa.

Preparing your association for 2018 isn’t only about drafting budgets and scheduling maintenance; it’s also about considering ways your board can lead your community even better in the coming year – but with the amount of advice available on becoming an effective association board, it’s difficult to discern the best information. That’s why Associa is inviting you to join us for a webinar giving you the blueprint for your board’s success. This insightful webinar, hosted by Associa’s VP of Development, Debra A. Warren, PCAM®, CCAM®, CMCA®, gives you the roadmap to align your initiatives around a manageable plan and execute them professionally.


Here’s what you’ll learn:

• Detailed step-by-step instructions for strategic planning and smooth implementation to end the confusion about achieving your community’s goals once and for all
• The six most important elements of board success so you can align your priorities with what works
• Specific tips for streamlined operations that will create more efficiency

This is your chance to learn from an expert with over 25 years of experience in the community association industry. Limited space is available. Register now!

Click HERE to claim your seat for Blueprint for Board Member Success!

CONNECT
See who else is attending!
Join the Facebook event group

Use #HOASUCCESS during the webinar to interact with
other attendees and the Associa team
Follow @Associa on Twitter for more updates!

Posted in AC411, ArrowCreek 411, ArrowCreek411, HOA BOD | Tagged , , , , , | Leave a comment

Washoe County Real Property Assessments To Be Mailed By December 18

    Washoe County Assessor: Notices headed to property owners

    Real Property Assessment Notices will be mailed to property owners by Dec. 18

    Media Release
    For Immediate Release
    www.washoecounty.us

    Contact: Amy Ventetuolo
    aventetuolo@washoecounty.us
    775.328.2070

    Reno, Nev. Oct. 25, 2017.  The Washoe County Assessor’s Office will be mailing Assessment Notices to property owners over the course of the next few weeks. Property owners can expect to receive their notice no later than the week of Dec. 18.

    What does this mean? Assessment Notices serve to inform the property owner of the taxable and assessed values of their land, buildings and secured personal property for the next fiscal year.

    What do I need to do when I receive my Assessment Notice? After reviewing your Assessment Notice, if the owner agrees with the value, no further action is needed until it is time to pay property taxes.  Tax bills will be issued by the Washoe County Treasurer in July 2018. 

    What if I disagree with the assessed value of my property? If a property owner has questions or concerns regarding the assessed value, please contact the Washoe County Assessor’s Office, 775-328-2233 or the Washoe 311 customer service center by dialing 311. The Appraisal Division will gladly assist taxpayers in reviewing records, providing physical inspections, and making any corrections deemed necessary.

    “Our goal is to ensure every property owner knows the Washoe County Assessor’s Office is accessible to them,” says Washoe County Assessor, Michael E. Clark. “We are proud of our open door policy and welcome questions and any information that might assist us in making accurate and equitable assessments.”

    What if I can’t resolve my concern with the Assessor’s Office?  If a property owner does not feel their concerns have been adequately addressed with the Washoe County Assessor’s Office, they may file an appeal with the County Board of Equalization for a review of the property’s taxable value. Appeal forms may be obtained by contacting the Washoe County Assessor’s Office or the Nevada Department of Taxation. The appeal deadline is January 16, 2018.

    For questions or more information, please visit: https://www.washoecounty.us/assessor/index.php or call 775-328-2233 or the Washoe 311 customer service center, by dialing 311.

Posted in AC411, ArrowCreek 411, ArrowCreek411, Washoe County | Tagged , , , , | Leave a comment