Costs and Financing

No HOA common area is being sold (see Official HOA FAQ #1). There is no intention to sell the front property now or in the future. Also, selling it would require a separate vote of approval from 75% of 100% of all homeowners plus 66 2/3% of the banks who hold mortgages on homes in Virginia Oaks would have to specifically write in to give permission. There is no way this would happen without community support or behind anybody’s backs.

Instead, the HOA has secured a $2.5 million line of credit, payable over 15 years, from Wintrust/Barrington. This loan would finance the whole acquisition plus rezoning plus renovation of the building and cleanup of the ponds, street frontages, and former cart path. The loan would be backed by future HOA assessments, not by the HOA front property or any other currently owned real estate, and not by the Clubhouse or land. This loan payment is included in the $180 per quarter ($720 annual) fee increase.

Annual HOA Dues Increase Breakdown

The HOA Board briefed a breakdown of the validated costs budgeted for the Clubhouse and land purchase. The verified increase would be $180 per quarter ($720 annual) per household, resulting in TOTAL quarterly fees of $430 ($1720 annual) for single family homes and $460 per quarter ($1840 annual) for townhomes. Average single family HOA fees in local communities near Gainesville are $416.50 per quarter ($1,666 per year) (see Official Board FAQ #30).

Clubhouse Renovation and Immediate Landscape Cleanup

Renovation of the Clubhouse and clean up of the general property, based on validated contractor estimates, is anticipated to cost $571,993. This includes new heating/cooling units, a new water heater, new roof, exterior repairs, painting, etc. It also includes $100,000 for cleaning up ponds; removing weeds, brush, and dead trees from around the former cart path; and bringing up the landscaping along the streets and Clubhouse to the same standards as the current HOA common area. The cost of this renovation is included in the loan.

Long-term Maintenance and Operating Costs

The cost of maintaining the additional property has been calculated for thirty years in a maintenance reserve study performed by PM+ Reserves. This is the same outside, third-party contractor who performed the most recent reserve study on current HOA facilities. Day to day operating expenses of the new land and Clubhouse have also been calculated and projected in a budget prepared by the HOA Board. This includes all expenses from insurance, utilities, landscaping, irrigation, pond maintenance, security, WiFi access, and cleaning to additional overhead and potential dues delinquencies. All such costs are covered within the $180 per quarter ($720 annual) fee increase. Each expense has a verified basis, either through outside, independent sources or through verifiable historical expenses. These expenses were validated by an outside Certified Public Accountant with HOA expertise.

Important Related Official HOA Documents:

Also see Official HOA Board FAQs related to Costs and Budget