Tom_Harwood_-_Presentation_3

Tom Arwood spoke to the knights at their July 5 Council membership meeting.  He explained the rationale for the HSV POA proposed Declaration Amendment.  The following was taken verbatum from the POA web site:

What are the key aspects of the current Declaration on special assessments?

• Authorizes the Board to ask the membership for a special assessment.

• Limited in time to one year.

• Use restricted to capital improvements or additions.

• Must be approved by 51% of property owners.

What does the proposed Declaration amendment change?

• It removes the one year limitation and allows the property owners to vote on the finance ofcapital projects over a number of years.

Why is changing the one year limit important?

• It allows the POA to spread out the cost for capital projects. Instead of a large monthly special assessment for one year, the Board could ask for a more reasonable monthly special assessment over several years.

• The Hot Springs Village Strategic Plan identified the need for Hot Springs Village to make capital improvements and to replace or improve basic infrastructure and recreational facilities as they wear out.

• The POA must identify the means to fund projects now that the developer is no longer active and providing funding for infrastructure and amenity investments.

How does this help the Property Owners’ Association?

• It provides the new General Manager and Chief Financial Officer with the flexibility to finance capital projects approved by the property owners while lowering the annual cost to the property owners.

Can the Board impose a special assessment without a vote of the property owner?

• No, and a vote for the recommended Declaration amendment does not change that requirement.

• Approval of this amendment does not cost the property owner any money.

How long has the special assessment been available in the Hot Springs Village Declaration?

• Since its inception in 1970.

How many times has it been used?

• None. The one year limit places a burden on property owners by requiring that all costs for capital projects be assessed in a single year, rather than over a number of years.

What types of projects could be funded with a special assessment?

• The proposed Declaration amendment does not change the use of the funds. Projects would continue to be limited to capital projects such as recreational amenities or infrastructure costs.

Does the proposed amendment have a time limit on special assessments?

• No. A single time limit is not set out in the proposed amendment.

• Any vote on a special assessment by the property owners will be tied to a specific capital project for a specific amount of time.

What do these changes do for me?

• Protects property values through the maintenance and improvement of capital assets.

• Spreads the burden of cost across a greater period of time.