Defect Remediation Project

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Defect Remediation Project

• West Campus Point
• March 13, 2007

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What Is West Campus Point?

• 65 units
• Built in 1986
• Affordable housing for faculty
• 71 ladder faculty members (9 of total)
• Very successful in recruiting and retaining
  faculty
• Managed by WCP Homeowners Association

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WCP Homeowners Association

• Governed by Board of Directors elected annually
• Members usually serve 2 3 years
• Manages property with assistance from Town 'N
  Country Property Management
• Monthly financial reports and Board meetings
• Regular maintenance walk-arounds

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WCP Long-term Financial Planning

• Comply with California law governing homeowners
  associations
• Annual budgeting and auditing for both short-term
  and long-term maintenance
• Long-term cost estimates derived from
  professional reserve studies
• every 2 3 years
• Analyze common infrastructure lifetime
  maintenance and replacement costs
• Fully fund recommendations
• Some issues have transcended scope of any HOA

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Leak Remediation Efforts
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Leak Locations
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Roof Drainage
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Roof Drainage
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Roof Drainage
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Roof Drainage
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Roof Drainage
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Roof Drainage
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Roof Drainage
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Roof Drainage
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Roof Drainage
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Roof Drainage
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Roof Drainage
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Drain Outlets
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Envelope Penetration
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Envelope Penetration
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Envelope Penetration
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Envelope Penetration
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Door and Window Leaks
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Door and Window Leaks
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Shoddy Construction
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Shoddy Construction
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Shoddy Construction
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Rot and Mold
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Rot and Mold
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Rot and Mold
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Rot and Mold
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Additional Issues

• Soil grading (flooding)
• Communication between WCP and University
• Cost recovery mechanism
• Valuation of units

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Guiding Principles

• WCP Board needs to be an equal partner with
  University in shaping and approving all aspects
  of the solution
• No one wants to go through this ! again!

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Action Items

• Regular operational meetings
• Access to senior administrators
• Timetable
• Periodic high-level progress reviews

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End
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WCP Finances

• Everett Kirkelie created the first budget in 1986
• Yearly Budgeting gt Homeowners Assessments

2007 Assessments based on reviews conducted every
2-3 years of 30-year infrastructure needs

• Operating 2/3
• 323 per month
• Landscaping
• Insurance
• Management

• Reserves 2/3
• 168 per month
• Roofing
• Paint
• Street

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Total Monthly Payment Per Unit
2007 491/month 177,000/(30 Years)
1987 135/month 48,600/(30 years)
1987 Scaled by Faculty Salary Scale (CPEC)
Original budget created by Everett Kirkelie
Sources WCPHOA Annual Reports, BLS, CPEC
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Total Monthly Assessment Per Unit
2007 491/month 177,000/(30 Years)
1987 Scaled by Consumer Price Index
1987 135/month 48,600/(30 years)
1987 Scaled by Faculty Salary Scale (CPEC)
Sources WCPHOA Annual Reports, BLS, CPEC
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Assessment Based on Reserve Studies
Total
100 funding of recommended assessments
CPI
CPI
Roof/Deck/Trellis
Sources WCPHOA Reserve Studies, BLS
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Assessment Based on Reserve Studies
Total
CPI
CPI
Roof/Deck/Trellis
Sources WCPHOA Reserve Studies, BLS
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Why Reexamine the WCP Index for Appreciation of
Units over Time?

• To restore original intent of both the University
  and faculty
• To increase the chances that WCP owners would be
  able to move out, thus freeing the homes for
  future recruits.
• To create a common standard to apply across all
  UCSB faculty housing owners at WCP, North Campus,
  etc. based on current published economic
  information.

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Total Percentage Change in Real Estate Prices and
CPI, 1975 QI 1985 QIV

• This graph
• Approximates a graph shown to first buyers to
  justify using CPI as index.
• Shows that CPI and real estate prices rose at
  similar rates, on average, in base period.

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http//www.ofheo.gov/HPI.asp
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1986-2006 Total Percentage Change Since 1986-QIV
in CPI and Three Housing Price Indexes

• Inflation in housing prices has far outstripped
  the CPI in the last decade
• Santa Barbara Co. trend data are for the Santa
  Barbara-Santa Maria Metropolitan Statistical
  Area
• OFHEO data cover
• Single family homes
• Repeat sales of same properties constant
  quality
• Conforming mortgages only, up to 417K
• Readily available data