Holly, Michigan Early 1900s

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Holly, Michigan Early 1900s
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Holly, Michigan 2007
Woodlands of Riverside
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2007 Year Review
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Agenda

• Election of Board Seat
• Current Status
• Financial Review
• Financial QA
• Association Achievements
• Problem Areas
• Township Issues
• Plans for the future
• Election Results
• Open Floor - QA

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Association Overview and Historyas of Oct-22-07
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Association Overview and Historyas of Oct-22-07

• Activated June 7, 2006
• Total Homes of subdivision is 79
• Occupied Homes - 65
• Recently Sold Homes - 5
• Spec Homes up for Sale - 1
• Existing Foundations yet to built 7
• Empty Property No Foundation 1
• Existing Homes up for Sale - 4
• Foreclosed Homes 4 (5)

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Financial Overview

• Pulte Contributions for 2008
• Lien and Foreclosures What are they?
• Cost of Operations
• Budget Projections
• Cost of Delinquencies
• First year without Pulte
• Reserve Balance
• 2008 Assessments

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Pulte Contributions - 2007

• For 2007, Pulte took care of all Landscaping and
  Water Bills.
• This amounted to a savings to the association of
  at least 15,000 and possibly more.
• Pulte actually bills exceeded this amount because
  they tend to water more and mow more. They
  indicated that total bills were more than 25,000

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Pulte Contributions - 2008

• For 2008, Pulte agreed to pay the 565 annual fee
  for all unoccupied homes, foundations and empty
  lots.
• This is more than we would receive if they only
  paid a percentage of the expenses, which as
  defined in our bylaws states, Pulte is only
  responsible for an allocated portion of the
  costs.
• 2008 the association is completely on its own
  for the first time, and Pulte will no longer
  provide any non-required financial support in
  this development.

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Why is there a reserve?

• State Statutory Requirement mandates that we save
  a minimum of 10 revenue a year.
• This is to prevent the Homeowners from incurring
  a large expense at a later date.
• Reserve is meant to be used for major expenses
  such as road repairs, legal fees and filings,
  changes to the By-laws, and any other unexpected
  cost to the association.

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Reserve Balance

• Our reserve balance for 2007 was 17,602.
• With the concessions we received from Pulte and
  tightly managing our costs, we now project our
  year end 2007 reserves will be slightly more
  than
• 30,000
• This protects all homeowners if something major
  occurs, and assures the association will not have
  to levy additional assessments.

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2008 Assessments

• For 2008, the assessments will remain unchanged
  at 565.
• Due to Michigans eroding economic conditions,
  our sub-division may face some additional
  problems if more home are forced into
  foreclosure.
• We will continue to control costs and do our best
  to keep costs down and our reserves will grow at
  a much slower rate.
• The association is in good financial shape and
  our reserves should be able to handle any
  unforeseen events.

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Homeowner Delinquencies

• 6 units in arrears
• Total of 4,859 in Association Dues
• Total of 5,164 in Legal Fees (still waiting on a
  few bills)
• One unit foreclosed and owned by bank
• Two other units are in foreclosure and have not
  yet been taken over by the bank but have been
  sold at auction.
• CANNOT DISCLOSE WHO THE PARTIES ARE!!

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What is a Lien?
A legal claim on the property that acts as a
security for the payment of a debt. If the debt
is not repaid as promised, the lender or the lien
holder can foreclose its claim on the property
and force a public sale to pay the debt.
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What are the steps in a Foreclosure?

• The lender giving you a written notice of
  default, which will likely come by certified mail
  
• Your being given a period of time after proper
  notice pay the lender the amount required to cure
  the default and to reinstate your loan
• The lender electing to proceed with foreclosure
  under available remedies, which may include
• Pursuing a judicial foreclosure by filing a
  lawsuit to obtain a court order to sell the
  property
• Pursuing a non-judicial foreclosure by following
  procedures spelled out in your mortgage (or deed
  of trust) that allow a trustee to foreclose on
  and sell your property without a court order
• After the required time has elapsed, your being
  given a notice of foreclosure sale
• A public sale being held by auction where the
  highest bidder can buy your property
• If no one bids enough, the lender itself buying
  the property by submitting a credit bid based on
  the amount you own on your mortgage
• If the lender ends up with the property, it being
  sold by private sale at a later date
• If you have not vacated the property by the time
  of the foreclosure sale, an unlawful detainer
  lawsuit being filed to evict you
• At any point during these proceedings, the
  borrower is usually in the position to keep the
  property if the loan is paid off and the lender
  is reimbursed for any foreclosure costs.

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How Does Foreclosure Impact WOR?

• If the bank forecloses on the property before we
  do, there is little chance the association will
  get its money.
• It is important that WOR foreclose on property
  before the bank in order to get paid.

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Homeowner Delinquencies

• Successful small claims judgments against 3 of
  the homeowners. These are personal and the
  association can continue to try and collect this
  money.
• One judgment assets are being seized but may be
  protected by bankruptcy.
• Two are making payments.
• This is not personal, its business and its your
  money that were protecting

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Financial Overview

• What items are covered in each expense line?

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Financial Overview (2007 Estimated)

• Where does your yearly assessment of 565 go for
  2007?
• .

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2008 Budget

• This is the first year that Woodlands will be
  fully 100 responsible for all costs.
• The two major expenses will now be the
  responsibility of the association Lawn Care and
  Water.

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How can we control costs?

• All homeowners need to pay their assessments on
  time. no later than February 28
• Put Landscaping out to bid we believe we can save
  at least 25 based on the current contract.
• Enlist homeowners help in controlling
• Common area landscaping
• Natural area overgrowth
• General clean up
• Enlist homeowner help in controlling snow removal
  complaints. Apply the 2 inch rule.
• Work together to decrease problems in the
  association that help reduce costs.
• Follow the rules of the association.

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Association Achievements

• Legal Issues
• Shed litigation
• Collections
• Judgments, Small Claims
• Website
• Committees
• Common Element Howie Distel
• Wells Bob LeClercq
• Social Michelle Merrick
• Bid Process Chris Schriber
• Miscellaneous
• Holly Academy Nature Trail

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Problem Areas

• What
• Where
• Why
• Can they be fixed?
• Cost to benefit
• Alternatives

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Township Issues

• Annexation
• Who knows???
• Cost of Water
• 55 increase July 1, 2007
• 100 increase over base rate beginning on
  varying dates in 2009 depending on when building
  permit was pulled on your home
• Pulte Build-out to master Plan
• Additional landscaping, sitting area
• Bridge repair and possible boat dock
• Headwaters Trails www.headwaterstrailsinc.org

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Plans For the Future

• Website updates
• Advertising space

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Plans For the Future

• Homeowner buying cooperative
• Home Improvement Items
• Fine carpentry, drywall, electrician, plumber,
  etc
• Household Services
• Gardener, landscaping, etc
• Increased Homeowners Participation
• Neighborhood Cleanup
• Neighborhood Watch
• Collaborative effort to reduce cost of lawn
  maintenance
• Paint street sign poles
• Miscellaneous to be defined

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Questions?