AN OWNER’S PERSPECTIVE

Why do we have a Homeowners Association (HOA), for the mutual benefit of all the members of the Association? This means that the elected officials, Board of Directors and their appointed Manager will always have some owners upset with them.

The Directors, I believe, should openly discuss issues with and seek input from owners. Since becoming an Association member n 1988, I have found that our Boards did neither. Consequentially, we the Association members face another increase in our monthly dues and/or another Special Assessment. Why? Because those Boards stifled input from owners and chose courses of least resistance. They got away with that practice because most owners only knew a few if any of their neighbors The Board even inserted a Code of Conduct in the CC&R’s that prohibits the discussion of issues by Board members with owners and we approved it. The current Board President has indicated at the June and July Board meetings that he believes in “full disclosure.”

What we have learned in the past few months is that we have problems. The buildings need maintenance and there are questions regarding what is the proper method of providing that maintenance. The roads need paving and that the Reserve Funds that are supposed to be available for those purposes are not there. In addition we learned that there is a problem with the upper decks that is looking more & more like it is headed for another lawsuit. The last lawsuit cost us $1.4 million in legal fees, while providing $1.8 million for the repair work to the upper decks. Another result of that lawsuit was a Special Assessment of $1.26 million was needed to completely fund the repairs. Now, we may have to spend more of our limited revenue in pursuing a warranty clause in the original contract that should have been resolved four years ago before any of the work commenced.

In June the Board sent out a ballot to owners asking for approval for another Special Assessment of $660,000 for painting or cleaning the buildings. Early returns are running two to one against approval. Now the Board is contemplating increasing the monthly dues by 11% to $350 to pay for the painting. Which the Painting Committee, appointed by the Board, opposed 4-1. We are also looking at another Special Assessment of approximately $1200 to pay for the repaving of Phases I-IV.

Why the propensity for Special Assessments, because previous Board failed to fund the Reserve Accounts. What are Reserve Accounts, they are like savings accounts that provide for emergencies and maintenance to fixed assets like the buildings and roads. The Association is required to have an outside assessor develop an analysis or study of our Reserve Accounts and also provide the remaining life of the assets and the funding required to maintain these assists every three years and update them annually. Past Boards have chosen to ignore these Studies and did not funding the Reserve Accounts. They chose the Special Assessment method of funding relying on the lack of communication between owners to have them pass. The Internet now provides the communication needed by owners and we are learning more about how our Association is run every day. 

I believe that the Reserve Accounts need to be funded to meet future needs. However I believe that they should be funded through a combination of reduced spending and increased revenue. Not simply adding revenue (dues or special assessments). Is it necessary to do all five phases at the same time can’t they be schedule for one phase per year? 

Last year Rico Pietropaolo was elected to the Board, he does not agree with the Special Assessment method of funding. Currently the other Board members can ignore his comments because they have the votes to keep him quiet. He needs your help to show them that he has the support of the owners. Call Roger Lubin, Board President or Bob Blum, Director and Treasurer and tell them you support Rico and feel the same way he does about the way the Association is financed. If you would like to be kept up to date on what we learn about the Association or talk to other owners and own a computer log on to www.mesquiteowners.com  or e mail Rico at Enricop24@aol.com  or me at JMassey218@aol.com .

Joe Massey, Phase III, unit C-15