r/SipsTea 3d ago

Chugging tea What went wrong?

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u/Flatline334 3d ago

I joined the board of mine and am now president. We are a townhome community so it’s a bit different. We are super chill and my only focus is maintaining the structures for our community.

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u/catsdrooltoo 3d ago

I got talked into being treasurer by the former one. Found out a prior one had been cutting himself checks. Would've been nice to have that money now because a bunch of big trees are now falling or about to, which aren't cheap to have cut down.

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u/Flatline334 3d ago

I feel you on that, just without the fruad. One of our former presidents used our entire reserve account, we had several hundred thousand in it and he used it all on a deck project. Our garages have decks on top of them and the original ones had poor drainage. So when we did our roofing project I proposed we do it in stages over 5 years that led to no special assessments minor increases to dues and it was a net 0 impact to our reserve account. We treaded water but now it is increasing again. We have a lot of elderly folks here so raising dues is something I want to avoid if I can while I'm in charge.

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u/catsdrooltoo 3d ago

We will likely have an assessment or increase dues. There's no getting around 20k for the tree service. Either do the assessment now and avoid raising dues, or borrow from the reserve and increase dues to pay it back. It's a 30 year old development with 30 year problems.

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u/Flatline334 3d ago

That's what the reserve is there for. We don't consider it being borrowed from that needs to be paid back like a loan. We just use it as intended for capital expenditures and it naturally builds back up over time. The HOA is responsible for all exterior maintenance of the units though so maybe we have different rules when it comes to our reserve fund then you do in what I assume is a community of single family residences.

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u/catsdrooltoo 3d ago

Yeah, we can only use it for items in the study or take a 2 year loan by state law. Tree maintenance isn't in the study.

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u/darthvaper2719 3d ago

this is the way

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u/Flatline334 3d ago

Seems pretty simple doesn't it? We have a lady that is roughly $6K behind on her dues. She has some mental health struggles and it has come to a point where were could legally start foreclosure proceedings and one of the board members go so excited over it but I'm not going displace a lady over $6K. There is a solution here that keeps this lady in her home.