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Dan avatar
@peepso_user_2(Dan)
Question from Owner:
*What's the reason for doubling the savings (reserve) contribution? Are there any major projects planned/anticipated?*

We anticipate many major projects over the next 10 years to replace building components that are reaching the end of their useful life. This includes the roof, 4 roof top AC/heaters, heat exchanger for the hvac system, and similar items. Details projects for which components, which years, and at what costs will be shared when the reserve study process is concluded. The goal is to have this done by the annual meeting in 2023.

*Also about the savings increase: why did the board decide to fold this into the monthly fee, rather than having an additional payment for one month, as we have done in the past?*

The reserve study will forecast will show that collecting 20% of the operating budget to fund reserves is not enough to avoid regular budget amendments like we had for the boilers. The decision to fund the reserves at 20% of operating for 2023 is a baseline that will blunt some of those budget amendments but won't eliminate them.

In 2022 we had a lot of new owners move into the building who were surprised to find out about the boiler project and that there was so little money saved to reduce that expense. Saving money in preparation for these repairs will make expenses more predictable for new and current owners.
2 years ago
Dan avatar
@peepso_user_2(Dan)
My concern as an owner is how do we know that the money collected for reserves will actually get spent on the projects being used to justify the increases?
I've looked into this and we can set up dedicated accounts for specific projects in advance and then deposit money into those accounts each month.
My understanding is that it is important to do this for the larger items after there is a baseline amount in the general reserve fund. This will allow the community to pay for unexpected expenses while still earmarking savings for specific projects.
2 years ago
Chris O. avatar
@peepso_user_29(Chris O.)
@peepso_user_2(Dan) You may know of owners who were surprised by the upcoming assessment for the boiler. That's actually the fault of their realtor, who are legally required to disclose those. I know of several owners who also sold in 2022, and made arrangements for the new owners to be reimbursed for that assessment.
2 years ago
Chris O. avatar
@peepso_user_29(Chris O.)
@peepso_user_2(Dan) While I do not question the need to increase reserves, I still question the decision to roll that into the monthly fees. That high a fee makes it more difficult to sell, the value of our property decreases. I for one would much prefer a 1 time (or 2 times if needed) additional payment over the year. That way the overall fee stays at a more reasonable level.
2 years ago
Dan avatar
@peepso_user_2(Dan)
@peepso_user_29(Chris O.) Disclosure and honesty are really important imo. I think in MA real estate professionals are more accountable than sellers
2 years ago
Betsy A. avatar
@peepso_user_113(Betsy A.)
One of the reasons that everyone pays for parking pass is also that money (or traditionally it did) also covered the cost of maintenance of parking spaces. I don't have a space but am fine spending money to paint and number them. I also don't mind spending money to plow those spaces. My guess (just a guess I know) is there are very few people that don't use their parking pass either themselves or for guests.
2 years ago
Dan avatar
@peepso_user_2(Dan)
Question from an Owner:

*Will the increased fees limit the number of buyer interested in my unit when I sell?*

Probably. But we're already seeing buyers disqualified due to insufficient reserve funding and no reserve study. We will have a completed reserve study soon and will have an expert present it to owners in a future meeting.
2 years ago
Dan avatar
@peepso_user_2(Dan)
Question from Owner:
*I was just wondering, historically speaking, has there ever been a reduction in the HOA fees?*

In a community like ours where almost 1/3 of the budget is energy costs it is unlikely to see the operating budget and related fees go down.
We have had a few years where fees have stayed flat and in the case of FY2021 and FY2022 the fee went up once in that 2 year period.
2 years ago
Dan avatar
@peepso_user_2(Dan)
Question from Owner:
*What is the projected outlook for next year? Will the HOA fee more likely be increased in the future or remain the same?*

It is likely fees will continue to go up every year due to the increasing costs for energy, the increases from vendors, and the increasing costs for materials used in maintenance and repair.

We also need to save money to support upcoming replacement projects. These will be outlined in the reserve study when it is published.
2 years ago