Can amenities be eliminated without detracting from the appeal and quality of life in an HOA? In these tough economic times terminating previously expected/available amenities is not out of order or uncommon. HOA amenities don’t come free and their existence doesn’t mean they’re needed, have been cost justified, and/or should be continued (under current circumstances).
Consider your home telephone (land line), bank checks, or cable television service you’ve been paying for year after year, at the same level but now you have a cell phone, the kids have moved out and now your tv viewing is more limited, and you pay your bills via the Internet. Do these currently seem like good personal expenses? Similarly, your HOA is obligated to its’ members to complete a yearly review of all services provided for cost/benefit and make sound business decisions on continuing, terminating, or modifying services.
This is referred to as your Board’s fiduciary responsibility but the way some Boards operate they most likely never heard this word. I doubt your Board (especially in age restricted communities with no term limits) completes any sincere review that considers the value of existing amenities and the financial impact on the community: they rubber stamp everything that currently exists which is “the easy way out”. A beneficial amenity can be described as a needed/expected service to the community, one that attracts home buyers and/helps maintain property value, contributes to community comfort and convenience, and/or is used by/serves a majority (preferably more) of the community.
Many so-called amenities were placed in your community by your real estate developer to attract buyers without regard to utilization and HOA expense. This is real estate “eye candy”. The developer understands that such facilities give potential buyers a “feel good” impression of the community making them want to join in and subsequently buy. Once the homes are sold and the management of the community turned over to the homeowners, this stuff is no longer the developer’s responsibility but dumped, with all associated expenses, on the HOA.
Their continued support/expense is justified only based on their existence: management by being uncreative. In many cases, such as my age restricted community in Colorado, the swimming pool becomes a poster child of the “eye candy” syndrome. Think of it, the pool is open 3 1/2 months, mostly used by 10-20% of the residents, some grand children, but can be best characterized by “non-usage” with the potential for expensive repairs and maintenance. Potential home buyers in this age group (60, 70 year old plus) are no longer “water bugs” and their hierarchy of needs and amenities would rate a part year, outdoor swimming pool low on their list: “eye candy” doesn’t raise home values, it raises expenses.
If Board’s thought outside the box on financial management (or should I say outside their rocking chair, referring to their manner of thought not their age) they would convert the pool area to a more fully functional, higher usage, outdoor picnic and meeting area and apply the subsequent yearly cost savings into an amenity of higher use such as an exercise facility. I don’t hold my breath but then again implementing term limits could change my pessimism. So most likely your pool and mine will continue to exist based not on financial sense or benefit but because it simply exists. I wonder what a vote of the community would render if the pros and cons were presented fairly? How about choosing between a rise in HOA fees for all vs ending the pool (or other) amenity used by the few? We close post offices, libraries, etc. for cost/benefit and usage reasons, why not the same thought process with HOA amenities?
Sure this topic and action may seem revolutionary, but the uproar will be brief, from the few and the vocal, but the result may be that you can actually give some respect to your Board for doing the right thing. A good rule in managing amenities is to ask if they reflect sound business practices and/or are managed similar to amenities in your city/county government. Bike paths, parks, fire and police services, and many other services are provided via tax collections. They make financial sense and contribute to the appeal of the community, have visibly high usage, and are expected. These are similar to snow removal, landscaping, and architectural services in an HOA.
Specific use facilities such as health clubs, swimming pools, soccer fields, and dog parks assess a use fee and mostly pay their own burden on the community. If your HOA conducts special use classes such as Yoga or other exercise classes, participants pay a fee. The HOA community clubhouse used as the administrative/government center and hosting HOA meetings, clubs, parties, and festivities is not considered an amenity but a necessity and benefits 100% of the residents: no problem there. So, you get the picture: what’s required, what’s not, what’s up for review, termination, or user fee assessment and what’s not.
Again, just because something exists and has existed doesn’t justify its’ existence, period. Sacred cows exist with the support of your “lifer” Board and enabling residents who are on auto pilot with continuing the past regardless of cost to the community.
Source by Stan Hrincevich
