Dear Homeowners,
We are writing to inform you about a critical decision regarding an Emergency Special Assessment. We recognize that this news may cause concern, and we want to ensure you fully understand the nature of the special assessment, why this assessment is necessary, how it will be used, and the steps we are taking to address the urgent needs of our community.
How Much: We estimate the amount of the special assessment will be in the range of $130 to $190 per unit per month, depending on unit size. Further details will be announced once the amounts and timelines are finalized.
When: We anticipate, we will need to start this special assessment within the next 60 days.
Why: The additional funds will allow us to make critical repairs starting immediately and to qualify for a loan to overhaul the entire property.
Why an Emergency Special Assessment is Essential
Our community is facing several significant risks that require immediate attention:
1. Risk of Losing Property Insurance:
Without urgent repairs, our property insurance is at risk of cancellation. Insurance companies have raised concerns about the deteriorating condition of the property. Losing coverage would put the entire community at risk and drastically increase costs for everyone.
2. City Code Enforcement and Condemnation:
The property must meet city code requirements. If we fail to address structural deficiencies, we could face code violations, fines, or even the possibility of condemnation, which would render units uninhabitable.
3. Safety and Liability Concerns:
The deteriorating staircases, balconies, and landings pose serious risks of injury. Should an accident occur, the association and individual homeowners could be held liable, leading to costly lawsuits.
4. Ongoing Damage to Units:
Leaking roofs and deteriorating siding are already causing damage to the interior of units. Delaying repairs will only increase the cost and extent of damage, which leads to higher costs to us all.
The Emergency Special Assessment will fund these urgent repairs:
– Roof Replacement: Leaky roofs can lead to interior leaks, mold, loss of structural integrity of the the building. Roof replacement with high-quality materials and techniques helps ensure buildings will be dry and structurally sound for the long-term.
– Siding Replacement: Cracks, crevices and holes in siding allow for further leaks and structural compromise, as well as entry of bugs, rodents, and other pests. Siding replacement with a high-durability, low-maintenance material will help keep homes clean, dry, and pest-free for decades.
– Staircase and Landing Replacement: Rusty staircases and cracking cement steps can lead to trips, falls, and serious injuries. New staircases will hold up against the normal wear and tear of furniture moving and allow residents to get back and forth to their homes safely.
– Balcony Repairs and Replacement: Balconies that are compromised could potentially collapse, leading to serious injuries. New balconies allow residents to come and go safely and enjoy their outside spaces.
We will complete these projects as quickly as the funding allows.
Why We Cannot Further Delay The Special Assessment:
We understand the financial strain this assessment may place on homeowners, but it’s important to explain why we can no longer delay these costs.
– Safety risks and potential legal liabilities require immediate action.
– Continued damage to units from leaking roofs and failing exteriors will escalate without prompt repairs.
– Insurance cancellation would leave us without essential coverage.
– Fines or condemnation from the city are real threats.
The sooner we start the special assessment, the sooner we can address these critical issues. At the same time, the board is actively pursuing a loan, which will allow us to spread out the cost over several years. This minimizes the immediate financial impact on homeowners. In order for the association to raise the nearly $4 million dollars needed for the entire project, each unit needs to pay an average of $16,000. By getting a loan, this equates to a monthly payment in the range of approximately $130-190 per month per unit. This option enables us to complete the necessary repairs now while spreading the payments over a longer period of time.
Qualifying for a Loan: What Homeowners Need to Know
To qualify for a loan, the Association must meet specific financial criteria:
*Delinquency Rate: Our delinquency rate must be below 8-10% This means no more than one-tenth of the units can be behind on paying their dues.
*Special Assessment: A special assessment must be in place to generate sufficient funds to make the monthly loan payments.
*Reserve Fund: A reserve fund is sum of money in savings to be used for repairs, maintenance, and improvements. Always having some reserve set aside helps us prevent costly special assessments in the future. This is another way that lenders require that we show our fiscal responsibility as an association.
Because the association’s only monthly income comes from dues, it is essential that homeowners are current on their payments to ensure we qualify for the loan.
Collection Efforts
To improve our financial standing, decrease our delinquency rate and qualify for the loan, we are continuing aggressive collection efforts. This includes foreclosure on delinquent properties when necessary. Collected back dues will be allocated to repairs and reserve, and the special assessment funds will be held in a separate account to ensure they are used for these critical needs.
FREQUENTLY ASKED QUESTIONS:
Why such a large assessment?
The Willows Condominiums were constructed in the 1980’s. There are 11 residential buildings as well as a clubhouse and office. Naturally, all of the major elements of our buildings must be replaced every so often. Even with regular maintenance and timely repairs, building elements do need to be replaced after they’ve aged past their normal lifespan. We are now in the position of needing to replace all of our major structural elements and make sure we have a maintenance schedule in place to then maximize the lifespan of those elements. The total cost of this is approximately $3.5 million in the best of our estimation at the time of this writing. The assessment is necessary to cover the cost of replacements and repairs that cannot be delayed. Failing to act now will only result in higher costs later and increased risks of damage or liability.
Can we spread out the costs?
While the work cannot be delayed, we are working to secure a loan to allow homeowners to pay the special assessment in installments over several years.
Could this have been prevented?
Yes, most likely. If the association had consistently collected monthly dues over the past 20-30 years that were adequate to cover the monthly bills (utilities, insurance, etc) PLUS enough to put aside reserves for major projects, the major work could have been done along the way, long before now. This is how HOA’s are able to avoid sudden large expenditures that haven’t been adequately planned for.
Although the issues The Willows faces are serious, unfortunately they are not uncommon. Many homeowners’ associations find themselves in similar circumstances. The way that communities like ours are able to successfully overcome them is by investing in their assets for the future.
Where can I get more information?
Attend board meetings and open house gatherings– more details below.
Periodically check our website at thewillowstulsa.com for any updates.
Message First Commercial through the owners’ portal with specific questions or concerns.
How Can I Help?
There are several things all homeowners can do to help the HOA maintain the property, reduce costs, build community engagement, and foster a safe and neighborly environment for all residents:
Attend HOA Meetings Regularly
Stay informed about decisions, share feedback, and contribute ideas. Your presence fosters transparency and ensures homeowner voices are heard.
Serve on a Board Committee
The Board is forming a community action committee to help with tasks such as organizing projects and activities, communicating with residents, and collecting feedback to make recommendations to the board.
Participate in Community Clean-Up Days
Join or organize community clean-up efforts to maintain the property’s appearance, reducing landscaping or maintenance costs.
Encourage Neighborly Communication
Get to know your neighbors, especially those above or below your unit. A cordial relationship can be a lifesaver in emergencies. Help to promote awareness about important issues like maintenance, assessments, and meetings.
Monitor Common Areas
Report maintenance issues, rules violations, or safety concerns through the owners’ portal to help the association address problems before they escalate.
Promote Timely Repairs and Maintenance
Perform routine inspections in your unit for issues like leaks or running toilets. If you rent out your unit, stay in regular contact with your tenants and encourage them to report any issues to you immediately.
Stay Current with Dues and Assessments
Keeping your dues up to date strengthens the association’s financial health and helps fund essential projects and reserves.
What Next?
We understand the need for clear and open communication in order to help our community members to pull together in challenging times. To provide homeowners with detailed information and a chance to ask questions and offer input, we will be hosting a series of informational meetings over the next several weeks to discuss the emergency special assessment:
Monday, September 30th at 6pm at First Commercial, 8316 E 73rd St. Tulsa
Wednesday October 2nd at 6pm (regularly scheduled board meeting), Willows Clubhouse 6645 S Victor Ave. Tulsa
We will announce further meeting dates as they are finalized. We encourage you to attend, ask questions, voice your concerns, and offer solutions.
Thank you for your attention to these matters and your support as we work together to save our community.
Sincerely,
The Willows HOA Board
