Prescott Valley - Stoneridge (HOA, mortgage, house)

[DellNec]

StoneRidge homeowners await bankruptcy announcement - The Prescott Daily Courier - Prescott, Arizona

StoneRidge might see their dues double to around $2,000 a year per home. This all because of a pending bankruptcy issue. Tough news for those in the subdivision, especially in these though economic times.

[BriansPerspective]

I agree, this is an unfortunate situation. I heard that SunCor was negotiating with Shea, but Shea could not obtain financing for the purchase.

As for the CFD, presumably Larry Tarkowski knows what he's talking about. He's a smart guy. That said, unless the CFD contract states that the current homeowners are jointly and severably liable for the debt service, then the debt service could be frozen and tied up in bankruptcy court. It's more likely that the homeowners will have to eat the bill though.

Empire and Townsend went bankrupt in Quailwood and those CFD fees did not go up that I am aware of. Perhaps in Quailwood, the homeowners were already paying the full amount.

[DellNec]

Originally Posted by BriansPerspective

I agree, this is an unfortunate situation. I heard that SunCor was negotiating with Shea, but Shea could not obtain financing for the purchase.

As for the CFD, presumably Larry Tarkowski knows what he's talking about. He's a smart guy. That said, unless the CFD contract states that the current homeowners are jointly and severably liable for the debt service, then the debt service could be frozen and tied up in bankruptcy court. It's more likely that the homeowners will have to eat the bill though.

Empire and Townsend went bankrupt in Quailwood and those CFD fees did not go up that I am aware of. Perhaps in Quailwood, the homeowners were already paying the full amount.

I believe the money issue in Stoneridge is due to the high cost of maintaining the golf course. Golf courses = high maintenance costs. Of course they pass these costs down to the homeowner who resides in that subdivision.

[keninaz]

It would appear that the developer made their money and is ready to bail.
Why couldn't the homeowners form their own HOA and take it over themselves?
I am not a fan of HOAs myself and don't like them, but it may be an alternative for the owners within the subdivision.

[BriansPerspective]

Originally Posted by DellNec

I believe the money issue in Stoneridge is due to the high cost of maintaining the golf course. Golf courses = high maintenance costs. Of course they pass these costs down to the homeowner who resides in that subdivision.

The golf course is public, so Prescott Valley foots the bill for that. The CFD was created to pay for the StoneRidge bridge and for the subdivision streets and sewers.

[BriansPerspective]

Originally Posted by keninaz

It would appear that the developer made their money and is ready to bail.
Why couldn't the homeowners form their own HOA and take it over themselves?
I am not a fan of HOAs myself and don't like them, but it may be an alternative for the owners within the subdivision.

There is already an HOA. In addition to the Community Facilities District (CFD) which paid for roads and sewers (~$900/yr/home), the HOA costs a little more than $50/mo/home (~$600/yr/home). The HOA covers the cost of the community center (gym, pool, tennis, etc.), policing the rules, and maintaining ownership records. The CFD isn't really something to be managed, it's basically an additional mortgage payment for the infrastructure.

Some subdivision developers eat the cost of the infrastructure (such as Granville, Viewpoint, and Prescott Country Club) others pass the cost onto the homeowners in the form of a property tax (such as StoneRidge, Pronghorn, and Quailwood). In subdivisions with a CFD, the buyer is basically paying the equivalent of an additional $15,000 per house as compared to a subdivision without a CFD. If the homeowner were to trade the $900/yr CFD cost for additional mortgage, that would translate to $15,000. $15,000 amortized over 30 years at 5% = $75/mo = $900/yr.

[keninaz]

Very informative, thanks for the information.

[smilinpretty]

I lived in one subdivision with HOA, never again.

[BriansPerspective]

Originally Posted by smilinpretty

I lived in one subdivision with HOA, never again.

They're not all bad. The self-managed HOAs are usually pretty reasonable. The ones managed by third parties can be oppressive. Sometimes the management companies get overzealous.

[Rogarven]

My main reason for dealing with them is that it is a sort of "zoning" ordinance. IOW, what if I have a $300K-400K house with some property and then next door is a double wide. Doesn't that affect the value of my property? Brian, am I right?