Cohousing-L Mailing List: Re: HOA dues

[Barb Andre (mba]

David Mandel wrote:
> 
> Barbara:
> 
> Congratulations on having instituted an HOA assessment system that tries to
> reflect an actual correspondence to usage. I have a couple of questions:

I cannot take the credit for this. The system was set up by the then
Finance/Legal Team and our developer (Wonderland Hill).

> 1. Does it really work all that simply by just plugging someone's new
> numbers into the spreadsheet and getting an automatic adjustment of
> everyone else's fees?

Yes. I use Lotus 1-2-3, but any spreadsheet program will work as well.
If your square footage, equivalent person, and garage/carport ownership
numbers are correct, the percentages and assessments can all be
calculated easily.

> 2. How often do you make adjustments? Whenever anyone's situation changes
> (new occupant, taking over a garage, etc.) or periodically, like once 
> a year?

Adjustments are made yearly (changes go into effect with the January
assessments). At that time the budget, and hence the total monthly
requirements, may change, and any changes in numbers are made (i.e.
anyone who has turned one during the year, any new occupants, or any new
garages). The square footage is the *total* square footage of the
houses, regardless of whether it is finished or unfinished, so that
number will not change unless someone makes an addition to the house.
Keep in mind that we have only been *fully* occupied for about 3 weeks,
although the first residents moved in almost a year ago. We may revisit
the whole system in a year or two or three. Who knows?

> 3. Have you ever compared your bottom line to a simplified system like the
> most typical ones: taking into account only number of units and floor
> space? If so, is it really enough different to make the complication
> worthwhile?

I have never compared our system to a simplified system. The initial
budgeting and system set-up legwork was done with the help of our
developer before I came on as Treasurer.

> 4. Have you ever thought of factoring in income to create a bit of "from
> each according to his/her ability, to each according to her/his need"? If
> yes, then why did you decide not to take it into account? Without including
> income as a factor, your inclusion of number of residents per unit as one
> in determining assessment level would seem potentially regressive, as
> poorer people tend to have more residents at home per given unit size.

Point well taken. I don't know if the Legal/Finance Team at the time
considered factoring in income. It might be worth looking into, although
it means inquiring into everyone's income level each year. I don't know
if the community would like to do this.

> 
> Thanks. Feel free to share these questions and your answers with the whole
> list if you wish.
> 
> David Mandel, Sacramento