Thoughts on the 2008 Budget Date: Dec 11, 2007 1:56:12 PM PST Author: Rob, STCCA President Fellow Homeowners, I wanted to take the time to explain my position in regard to the 2008 Budget, and specifically, the reserve amount. I have been inundated with requests to reconsider the budget, so I think it is important for me to explain why I believe this is the right thing to do. I really love this neighborhood. I have studied "new urbanism" concepts for a decade or more, and was very excited when Suwanee planned to build one in its backyard. I believe that a community like this is so much more livable than the cold, isolating traditional cul-de-sac communities that have been the norm in suburban development since the 50's. I love that I can walk to restaurants, go to free concerts, and interact with my neighbors on a regular basis. I am such a big believer in the concept that in addition to buying a single-family home to live-in, my wife and I bought two townhomes to rent out. I am here for the long-term. Unfortunately for me, the rental amount I have been able to get on both my rental properties here is lower than my actual costs. This situation is going to get worse with the recent increase in assessments. The reality is that rental amounts are driven by market forces, not by how much my costs are. I mention all this so that you know that I really do care about this community, and I am affected by the increases, too. So, why do I support the increases if it means it is adding further to my monthly cash flow losses on my rental townhomes? Because I have a long-term view. In the short term, saving for the future hurts me and I see no immediate benefit. Just like all of you. But in the long term, it is the right thing to do. First of all, the Governing Documents (the "docs") compel us to do so. This is the reality of the situation: a) The docs require that the Association is responsible for the townhome maintenance b) The docs require that the Board put money in reserves to fund this maintenance c) The docs require that the amount in reserves be enough to fund the repair or replacement of assets which have an expected useful life of three years or more d) The reserve study gives us a reliable estimate of what this reserve amount should be e) The 2008 budget is based on this reserve amount, as required by the docs These facts are indisputable, and all can be found in the Covenants and Supplemental Declaration. Please do not fault me or my fellow Board members for doing our job to follow the docs. This is what we were elected to do. To those of you who don't like the rules established by the documents, your only recourse is to try to have the documents changed. Personally, I do not think this is a good idea. Logic and experience tell me that this neighborhood will be nicer if the maintenance is taken care of by the Association, as long as it is properly managed. Nicer property equals higher property value. Higher property value is good for everyone. My experience in real estate has proven to me that townhome communities where each owner takes care of his own maintenance are less desirable than the more traditional HOA-financed arrangement we have here. I ask the homeowners to please try to put yourself in the shoes of the Board members who have to consider what is right for the community, not necessarily what is right for them as individuals. If you were in our shoes, would you really be trying to lessen your own costs, even if that meant you were setting the community up for budgetary problems in the future? If good solid research says it will cost $1000 in 2 years to paint the townhomes, why would we only collect $500? Is that a responsible way to run a business? I am open to your comments and suggestions. Remember, we are all on the same team here and we all have similar goals: let's keep this a nice place to live and let's get maximum value for our investments! Warm Regards, Rob Rob Rohloff, President, Shadowbrook at Town Center Community Association Last modified by Rob, STCCA President on Dec 21 2007 12:11PM   Reply to this Post

Date: Dec 12, 2007 8:01:48 AM PST Author: Jessica Rob, You ask us to put ourselves in your shoes, well that impossible to do as we have not been granted access to review the reserve study. I know I personally have requested it multiple times, and in the Q & A sent to the community it stated it would be available on the website, and it is not. In 15 years, we will have put $13,500 in to the reserve. It is hard to grasp why that number is so high for a roof and some paint. I got some quotes and for that number I could paint bi-annually and still have enough left for a roof. Obviously, homes don't need paint every other year. I understand you want the community to remain looking great, as do I. But, until we can see some numbers to justify the increase you cannot ask us to understand. Sincerely, Jessica   Reply to this Post

Date: Dec 12, 2007 9:36:27 AM PST Author: Rob, STCCA President Jessica, You are absolutely right. We are asking you for blind faith right now, which is a lot to ask for, and I understand that. Here's the status on the Reserve Study report: I received a final draft of the report from Ray Engineering only yesterday, even though it was promised to me at the beginning of last week. Unfortunately, the reserve study report still includes deck maintenance, which it should not. I sent it back to them to modify yesterday, and they have promised me they will expedite the changes. I have stressed to them the importance of getting this done ASAP. I hope to have the report today to be posted, so keep checking back. Apologies to all for the extreme delay on this, but this is largely out of our control. Thanks for your patience. Sincerely, Rob Rob Rohloff, President, Shadowbrook at Town Center Community Association   Reply to this Post

Responsibilities of Board Date: Dec 18, 2007 7:27:03 AM PST Author: bob Hi Rob, I can respect your position concerning the budget; however, there are 200 more of us that have invested in properties in Shadowbrook. You stated that it was the responsibility of the board to follow the covenants. Yes, you are correct! However, I do not agree that the board is a dictatorship. In my opinion, the board should gather all available information and make the best informed decision possible. What about the opinions of the other 196 that live here too? Nelda Heatherley   Reply to this Post

2008 Budget Date: Dec 18, 2007 8:41:47 AM PST Author: Rob, STCCA President Hi Nelda, I think you may have misread my post. The point I was making was that this was NOT a dictatorship! I am all for understanding the opinions of each of the 201 homeowners here. However, you know as well as I do that the Covenants do not care about your opinion or my opinion or anyone else's. It is our job as Board members to follow the Covenants as they are written. The governing documents represent a legal contract that each of us entered into when we purchased our homes here; the Board's job is to enforce the documents. Having said that, if there is something in the governing documents that a majority of the homeowners disagree with, we can have that part of the contract changed. It will take 75% of the homeowners (and a significant amount of money toward legal fees, I should mention) to change the documents. Here's where my opinion comes in: my opinion is that it would not be wise to change the documents to have townhome owners take care of their own maintenance. I think we are better off following the lead of the majority of other townhome communities where the Association is responsible for maintenance. But again, this is not a dictatorship. My opinion is only one of 201. If the majority of owners disagree with me and decide it is in their best interests to change the documents, that is well within their right. And should that happen, the Board will enforce the amended documents with the same vigor as the current documents. Rob Rohloff, President, Shadowbrook at Town Center Community Association   Reply to this Post

Dictatorship Date: Dec 19, 2007 10:14:26 AM PST Author: bob Rob, I appreciate your most lengthy reply. Your actions speak louder than words.erzv5   Reply to this Post