There’s been a lot of conversation among HP residents since the projected cost of Phase 2’s re-roofing requirement was announced. The 60 or so people who attended our meeting on August 7 heard a lengthy explanation of the project, how we found ourselves in this predicament, and what the Board proposes we need to do. See the video below of the 2-hour meeting at HP2 Roof Meeting 8.7.2023.
In the past week, I have received emails and phone calls from many residents concerned about the cost of the re-roofing and how it will affect them individually. People are worried about their ability to pay and the timing of this expense since many are still paying the Clubhouse assessment. Many are overwhelmed by the increased cost of living at Huntington Pointe. These are valid concerns.
I’d like to address some of these apprehensions and invite all interested to attend the Phase 2 Board meeting on Thursday, August 17, at 10 AM. (Video of that meeting is at the end) While only Phase 2 owners will be permitted to speak, everyone is welcome to listen.
There have been many newspaper articles circulating in recent days about how Boards of Directors get into trouble for a plethora of reasons. While interesting to read, these horror stories bear very little resemblance to what we are facing here at Huntington Pointe.
Your Board of Directors is made up of your neighbors. We care about the present state and the future of our community. We act honestly, openly, and with the best interest of our owners at heart. Our financial dealings, contracts, and other documents are available to all owners on our website or in person by request. Board members and Campbell Management will always do our best to answer owner and resident concerns.
The timing and cost of our roof replacements have been a major concern. Why does it need to be done now when we’re still reeling from the clubhouse assessment? Why not years ago when it might have been done cheaper? Why isn’t there money in our reserve account to pay for this work? And why is HPA not contributing?
Why now? HP2 must have our Structural Integrity Study (SIS), a State mandated inspection of our buildings as a direct result of the Surfside collapse, completed by February 1, 2024. Any deficiencies will need to be remedied immediately, or we will face State penalties. Multiple roofing experts have cautioned the HP2 Board that our roofs are in dire jeopardy of failing these inspections, and we should be prepared. In response, we have started planning the re-roofing project.
Additionally, insurance companies now require roofs to be less than fifteen years old, or they may choose to cancel coverage. We certainly don’t want that to happen. In addition to being a bad idea to go uninsured, Florida Stature 718, which governs condo associations like ours, requires that we be fully insured.
Why not a few years ago? Back in 2018, our roofs were predicted to last another 5-10 years with proper maintenance, so we repaired them as best we could. The cost of replacement was not deemed necessary at the time, so we waited. Had we known that roofing costs would increase by more than 40% in five years, we might have acted differently, but nobody expected the rampant inflation of the 2020s or the massive roofing needs on Florida’s west coast after Hurricane Ian that has escalated prices dramatically.
Why no Reserve money? Payments into our reserve fund are dictated by our reserve study. The study, updated every three years, estimates the life expectancy of numerous facets of our buildings’ structure, including roofs, stucco and paint, elevators, fire safety equipment, walkway railings, and many others. The calculated cost is divided by the number of useful years, and the prescribed amount is set aside into the reserve fund.
Before 2022 when the statute changed, a condo association could opt to contribute a lower-than-recommended amount to reserves if it was approved by a majority vote of the owners. In years gone by, Phase 2 Boards and owners voted to not fully fund reserves, keeping owner fees artificially low.
In the past few years, that mindset has changed. In 2023, Phase 2 will fully contribute to reserves in the amount of $300,000, a slight increase from 2021 and 2022 full contributions. From that fund, elevators and fire panels have recently been upgraded. Our sidewalks are repaired regularly, and buildings are painted every seven years. We are now using our reserve fund as it was designed to be used. Unfortunately, the enormous roof cost is beyond what was collected from owners in the past, so we need to find another way to pay for it.
And why is HPA not contributing? Although we all contribute to the HPA budget through our quarterly maintenance payments, HPA and each of the four phases is a separate entity… separate corporations with separate budgets. The HPA budget covers all common costs, such as the clubhouse, pools, roads, landscaping, and security services. Phase budgets, on the other hand, cover the operation and maintenance of the residential buildings in the respective phases. HPA would be responsible for the clubhouse or pool house roofs, but the apartment building and villa roofs are the responsibility of the individual phases.
The HP2 Board is in an unenviable position now. Our present situation is not where any of us wanted to be. We must properly fund our operating and reserve funds and pay for new roofs in an atmosphere where owners have “had enough !!!”. Costs are increasing and there is no funding source besides our owners. We try to mitigate expenses wherever possible while taking proper care of our aging buildings.
More details from our August 17th 2023 meeting in the video below.
Phase 2 President