Greetings Owners and Happy New Year:
Following the City of Minneapolis' rejection of our Housing Improvement Area (HIA) funding application, the question, "What's next?" is a major concern for all of us. Below you'll see a short summary on the latest work for those of you who want a quick update as well as a more detailed review on our Association's large capital projects and the options being considered by the Board of Directors (Board).
· HIA is no longer an option for the Falls and Pinnacle.
· There are still critical projects which need to be addressed in the near term (between now approximately 3 years) and other work that will be completed in 2018. The schedule is being refined.
· Many owners still want the opportunity to pay their share over a longer period of time and the Board is working with FirstService Residential to research options to allow a choice of payment options.
· There will not be a completed recommendation on sequencing of projects or funding options in January.
Background to fill in blanks if you missed the December HIA or other notices
Last year, the Board applied to the City of Minneapolis for Housing Improvement Area (HIA) funding. This allowed owners to pay their share of needed work either upfront or through property taxes for about the next 17 years. At that time, the Board also decided that if HIA was not available, owners would pay three Special Assessments over three years to pay for the work.
In December 2017 the City officially declined the Association's application for HIA funding. "Although other funding options may be more expensive in the short or long-term," the City's representative wrote," there appear to be other options available to your Association." The Board is looking for funding options which make paying for the necessary work more affordable than Special Assessments over a small number of years.
The letter received from the city is here: City Letter.
Funding options under review; no decision by January Board meeting
Repair and maintenance projects included in the HIA application still must be funded. The alternative to HIA funding which the Board approved last year is three Special Assessments over the next three years. The Board is not implementing those assessments immediately as we are working with FirstService Residential (FSR)to research any alternatives with a payback option longer than three years. The Board is hopeful that through the new partnership with FirstService Residential/Paradise more options may be available to assist with funding the projects.
With HIA, there were strict guidelines to establish the sequencing and timing of the work. While the work still needs to be done, the Board can consider other options. We continue to work with FSR, CPMI (the Association's owner representative and project management firm) and other experts to review all needed work. This review includes those projects listed in the HIA funding application and other large capital projects which were not included in the application. The goal is to establish an efficient and cost effective sequence for all the work to be completed.
Analysis and research is expected to be complete in February. Decisions, timelines, etc. will be communicated as soon as possible.
Now that HIA is not an option, there have been questions about the wording of the Resale Disclosure Form. The repairs must be done. Wording about pursuit of HIA funding will be removed and information will be included to communicate the best cost estimates of the upcoming capital projects and current status of funding research.
If you have not reviewed the repairs and want additional background, a definition of many of the mechanical and infrastructure projects can be found here: Brief Description of Work.
More details ahead
We understand owners are anxious for more details. Our consultants, FSR and the Board are working as quickly as possible to complete the full review all capital projects mentioned above. We are committed to making decisions as soon as we have the necessary research and analysis completed. We will communicate s soon as there is additional information to share. What is expected is that the most critical work will begin in Fall, 2018.
As always, any questions, comments, concerns can be addressed to anyone on the Board as well as our Property Management team.
Falls and Pinnacle Home Owners Association Board of Directors
ALL Board Members - Including Property Management: firstname.lastname@example.org
Deb Justesen HOA President Deb.email@example.com
Judy Bearman Vice President firstname.lastname@example.org
Harvey Peck Secretary Treasurer Harvey8peck@gmail.com
Scott Dauner Director at Large email@example.com
Joe Kulas Director at Large Ljkulas70@gmail.com