Association Fee Increase

I expect that by now everyone has received a letter like this one, complete with the good news - our association fees have been increased.

If your old rate was $164, your new rate is $194; an increase of $30 or 18.3%.
If your old rate was $177, your new rate is $213; an increase of $36 or 20.3%.

This increase is effective as of July 1^st, 2020.  But the fun isn't over!

A second rate increase of $20 will be effective as of January 1^st, 2021 - and a very happy new year to you, too.  If you believe our board of directors and property manager Tom Jones, these increases will bring the residents closer to the amount deemed necessary by the reserve study.  Translation: Plan on future increases, and plan for these increases to be significant.

For anyone who isn't familiar with this reserve study, let me begin by stating that we, the residents of McNaughten Village, paid for it.  The reserve study cost us three thousand dollars ($3000).  The original study stated that McNaughten Village was in good shape, financially speaking, and no increases in association fees were necessary beyond a normal cost of living increase - 3% to 5%.  When that result didn't satisfy the board of directors and the property manager, the study was revised and resubmitted so as to justify an increase in fees.

Again, we paid for this study (both studies, actually) yet we haven't been sent a copy of the study, and for $3000 I, for one, believe the board of directors should have been much more transparent about this.  I also believe that if our association rates increase by 20%, the residents should have had the opportunity to review a list of maintenance items and costs that were incurred last year, along with the maintenance and improvement plan for the following two years.

One resident suggested that a general meeting was in order, one that included everyone who lives here.  If we assembled, maybe we could address this increase in fees along with other problems that are unresolved.

Official Letter