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Old 11-27-2013, 09:53 AM
 
5 posts, read 9,776 times
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Quote:
Originally Posted by horsecollar View Post
We really liked this community but got scared away by the financials of the HOA. There is barely any reserve fund balance (after 8 years?) and only about $20 per month of the $244 monthly dues goes towards reserves. At that rate, it will take years to have enough funds to cover a single major repair. Special assessments and/or dues increases will be the only way to pay.
Horsecollar, much of what you say is correct, but your conclusions are completely wrong. While it is true the reserve is low it is clearly adequate as anyone reviewing it will quickly discover. First, the reserve is climbing quickly; growing by nearly 400% in 2013 and 350% protected in 2014. Second, the developer has covered all reserve costs and has said they will continue to do so. Thus, the community adds to the reserve with nothing removed, so a special assessment is extraordinarily unlikely. (Note that the community has never had either a special assessment or an increase in dues.) In fact, over 20 years the reserve is projected to average over 90%, very high compared to the national average of 30-70%.
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Old 11-27-2013, 10:06 AM
 
5 posts, read 9,776 times
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Quote:
Originally Posted by eyeman56 View Post
Most of the homes with direct salt marsh/bayfront view are in the 500 year flood zone. Our new home is across the street and does not require flood insurance. We received a map of the area indicating the areas that are prone to flood. when we had our new home appraised. The one road heading out in the sanctuary has homesites in the 100 year flood zone. This is the road leading out to our private beach/ kayak launch area on the bay. Hope this helps.
I don't know which lot you purchased, but I must disagree. While the community has never flooded, Sandy would have devastated us. I'd be concerned if I lived across the street from a home requiring insurance but not me. At any rate, the new maps will be issued next week. I suggest anyone looking to live near water review the maps.
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Old 11-27-2013, 11:39 AM
 
3 posts, read 5,951 times
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Quote:
Originally Posted by Bayfronter View Post
Horsecollar, much of what you say is correct, but your conclusions are completely wrong. While it is true the reserve is low it is clearly adequate as anyone reviewing it will quickly discover. First, the reserve is climbing quickly; growing by nearly 400% in 2013 and 350% protected in 2014. Second, the developer has covered all reserve costs and has said they will continue to do so. Thus, the community adds to the reserve with nothing removed, so a special assessment is extraordinarily unlikely. (Note that the community has never had either a special assessment or an increase in dues.) In fact, over 20 years the reserve is projected to average over 90%, very high compared to the national average of 30-70%.
What dollar amounts does the projected 350% or 400% reserve fund increase equal? $20k, $50k? Enough to cover a new roof on the community center, perhaps? The community has wonderful amenities, but they'll cost a fortune when it is time for replacement or major repairs. The private bridge and boardwalk system alone would wipe out any reserve and would set back each homeowner thousands more, for example.

As for the developers, they're financial commitment ends the instant their legal obligation ends, which is probably tied into a certain number of lots having been sold. Beyond that, it's all on the homeowners backs. Sorry, I see no way that $244 per month can keep everything in check, which is why we passed on this community.
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Old 11-27-2013, 12:55 PM
 
5 posts, read 9,776 times
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Quote:
Originally Posted by horsecollar View Post
What dollar amounts does the projected 350% or 400% reserve fund increase equal? $20k, $50k? Enough to cover a new roof on the community center, perhaps? The community has wonderful amenities, but they'll cost a fortune when it is time for replacement or major repairs. The private bridge and boardwalk system alone would wipe out any reserve and would set back each homeowner thousands more, for example.

As for the developers, they're financial commitment ends the instant their legal obligation ends, which is probably tied into a certain number of lots having been sold. Beyond that, it's all on the homeowners backs. Sorry, I see no way that $244 per month can keep everything in check, which is why we passed on this community.
Horsecollar, you are obviously knowledgeable based on your observations, but your conclusions remain off. I'll respond as best I can but some of this should only be available to homeowners. For example, the reserve projected for next year is well beyond your numbers.

On the one hand you mention an 8 year old community, then mention replacing the roof with a 35 year life. Issues like roof replacement are the reason newer communities don't require the same reserve levels as older ones. Likewise, the bridge, an expensive proposition, is checked periodically and insured against catastrophic events. Problems like that do occur in places where maintenance is poor, but Bayfront's common areas have always been well maintained.

Concerning developer spending, our reserve analysis - 90% funded- assumes that continues only through next year.

Lastly, there's two points you're missing. First, every time a home is sold - over 30 in 2013 alone - the builder contributes approx. $500 to the reserve. That's over $15,000 just for builder contributions in 2013. Finally, the community will soon have 180 homes. Suggesting a special assessment of "thousands" - say $2,000 per homeowner - would equal $360,000, an unfathomable amount. Even worst case special assessment scenarios are well under $100 per homeowner.

Sorry you didn't end up here. You sound like the kind of knowledgeable person communities need.
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Old 11-27-2013, 03:33 PM
 
3 posts, read 5,951 times
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Quote:
Originally Posted by Bayfronter View Post
Horsecollar, you are obviously knowledgeable based on your observations, but your conclusions remain off. I'll respond as best I can but some of this should only be available to homeowners. For example, the reserve projected for next year is well beyond your numbers.

On the one hand you mention an 8 year old community, then mention replacing the roof with a 35 year life. Issues like roof replacement are the reason newer communities aandnddon't require the same reserve levels as older ones. Likewise, the bridge, an expensive proposition, is checked periodically and insured against catastrophic events. Problems like that do occur in places where maintenance is poor, but Bayfront's common areas have always been well maintained.

Concerning developer spending, our reserve analysis - 90% funded- assumes that continues only through next year.

Lastly, there's two points you're missing. First, every time a home is sold - over 30 in 2013 alone - the builder contributes approx. $500 to the reserve. That's over $15,000 just for builder contributions in 2013. Finally, the community will soon have 180 homes. Suggesting a special assessment of "thousands" - say $2,000 per homeowner - would equal $360,000, an unfathomable amount. Even worst case special assessment scenarios are well under $100 per homeowner.

Sorry you didn't end up here. You sound like the kind of knowledgeable person communities need.
Seems like a well thought out plan and I wish the community all the best. But I remain wary about any community that has lots of expensive infrastructure and minimal reserves; hence my close look at the financials. If the reserve fund can continue to grow per your projections - and remain untouched through the years then, perhaps, the financial burden on homeowners can be minimized. The reality, however, is that as a community ages, repairs begin to stack up, reserves are depleted, and special assessments are requiredb to cover costs.
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Old 12-09-2013, 03:47 PM
 
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FYI HOA fees are $247.00 per month in 2014.
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Old 12-11-2013, 07:14 AM
 
Location: Arezzo, Italy and Lewes, DE
59 posts, read 146,649 times
Reputation: 37
Quote:
Originally Posted by horsecollar View Post
We really liked this community but got scared away by the financials of the HOA. There is barely any reserve fund balance (after 8 years?) and only about $20 per month of the $244 monthly dues goes towards reserves. At that rate, it will take years to have enough funds to cover a single major repair. Special assessments and/or dues increases will be the only way to pay.
Horsecollar, did you decide on a community? It could help other posters decide what communities might be less risky.

I think most of the buyers in Bayfront over the past 2 years took a close look at the financials before buying. I know I did. Other owners have posted here the projection for the reserves so no need for me to repeat it. The owners are very involved in the management and maintenance of the community, and short of a significant weather event, there should be no surprises. And we are insured. Regardless, this is a very personal decision on how much risk there could be versus the benefits, at what I consider a reasonable investment of under $250 a month. I don't think anyone here is naive enough to think there will never be a need for investing in the infrastructure, making repairs, or even a desire for improving or adding amenities. We hope there is enough of a reserve to cover these types do expenses, but if not, I would be prepared to do my part for the pleasure of living here. I think most owners here that I have met and talked to have the wherewithal to do that.

In the new flood maps, my lot and home have been removed from the 500 year flood zone. But I will still keep a flood insurance policy.
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Old 12-27-2013, 06:16 AM
 
5 posts, read 9,776 times
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Quote:
Originally Posted by eyeman56 View Post
FYI HOA fees are $247.00 per month in 2014.
To be precise, dues are $244 / month. Going back to the first homeowners in 2005, dues have never increased.
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Old 05-10-2014, 08:37 PM
 
1 posts, read 1,313 times
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Default Ground Rent

Regarding Bayfront At Rehoboth, do the homes require ground rent? I know a lot of older developments in that area involve ground rent, which is an absolute dealbreaker for me. Thanks!
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Old 05-11-2014, 04:16 AM
 
7,362 posts, read 10,801,819 times
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Quote:
Originally Posted by WahooDave View Post
Regarding Bayfront At Rehoboth, do the homes require ground rent? I know a lot of older developments in that area involve ground rent, which is an absolute dealbreaker for me. Thanks!
No, Fee Simple Ownership
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