Tonight is veto night on the special assessment. If 51% (aprox 123 owners) of the homeowners vote to veto the special assessment recommended by the board, it will force the management company and the association board to do something they have not ever done before- PLAN!
The 10 percent solution
Fannie Mae, Freddie Mac and FHA all require that 10% of annual budget be for reserves BUT they will consider a reserve study if this requirement is not met and if reserve study shows that reserves are well funded. Fannie, Freddie and FHA are not only folks who give or insure loans but they do most of them so local lenders who portfolio loans are a possibility.
Ravencrest Association board claims they can not dip into the reserves because of FHA status. Do the math. The annual budget is somewhere between $300,000 and $432,000. Lets just say it is on the higher end. Ten percent required in the reserves is $43,200.
The proposed flat special assessment will garner $216,000 designated for repairs that have been neglected by management for many years. (There is no itemized plan of attack for how the funds will be spent and for what period of time.)
Presently the association reports we have more than $300,000 in reserve.
If $216,000 is needed to make the repairs and we have $300,000 in reserves, what would be left is $84,000 in the reserve account which would be more than 20 percent of the annual budget!
ALIRT wants to force the board to give each owner an itemized justification of what the regular assessment is and a voice to veto special assessments, regular assessments and to insist on a committee that holds management and the board accountable for long term planning for the community.
Special Assessment Membership Meeting (Thursday, August 30, 6PM-8PM, Woodmen Valley Chapel):
If you are a homeowner in Ravencrest, you should have received an official notice of meeting/proxy for this special meeting. The Board of Directors will be stating the reasons for the recently approved special assessment (these reasons were also presented at the Annual Membership meeting in May 2012).
The Board of Directors wants to make sure homeowners have all of the tools and resources they need to make an informed decision. If you would like to review the monthly financial reports for Ravencrest, the annual budget, or the most recent Reserve Study (a financial/infrastructure plan for the next 30 years in Ravencrest) before attending the meeting, you may find those by visiting http://www.RavencrestHOA.com and clicking the link “FINANCIALS.” In addition, you may also find all of the current Bylaws, Articles of Incorporation, Covenants, Conditions & Restrictions, the monthly meeting minutes and more!
Please note that this special assessment has been approved by the Board of Directors, and this special meeting is being called to state the reasons as to why this assessment is necessary to the maintenance and improvement of Ravencrest (per section 4.04 of the Bylaws and 6.04 of the CC&Rs). In addition to outlining the necessity of this assessment, homeowners will also have the opportunity to veto this special assessment (as per 6.04 of the CC&Rs).
*IMPORTANT* If you are unable to make this meeting, please assign a homeowner to your proxy and return it.
If you need more information please e-mail Ravencrestrental@juno.com