Time passes quickly since I have sent out an email. Many of you may not have attended the July and/or August Board Meetings, so I thought a quick recap of information regarding the Mandatory SIRS Report and the Reserve Study would be helpful for member's understanding as to the agenda scheduled for the September Board meeting.
Upon receipt of the 48-page Reserve Study and SIRS Report, we scheduled Bonnie Bogert, Global Solutions and David Glassman, the Associations attorney, to attend the July Board meeting to address the Study and Report. However, due to personal issues Bonnie Bogert was unable to attend.
On July 17, 2024 we set up an informational meeting at the clubhouse for Bonne and David toprovide information on the 2 reports and answer any questions. This was a very informativemeeting that provided us guidance to formulate a capital improvement plan for 2025 as to the mandatory (SIRS Report) and the discretionary portion (Reserve Study).
In order to develop a capital improvement plan - Two Committees were formed:
Building Committee (Scott Schrager, Chad Wagner, Jo Ann Gates and Graeme Clyne). The committee met with multiple vendors to obtain bids on Unit 186 to complete repairs, and obtain amounts on specific walls pertaining to Units 180, 184, 162, 140 and 120, (the most immediate structural damage) as well as building steps and paver steps (Code Enforcement).
SIRS and Reserve Study Committee (Mike Sjuggerud, Robert Unger, Scott Schrager, Jo AnnGates and James Taglia). This committee met to discuss how to approach the mandatory SIRSportion of the combined study and report. To prepare a capital improvement plan required layers of information and discussions as to how best to address the method to be used and proceed forward to comply with the mandatory portion of SIRS (specifically the repairs of the 3 story buildings) and the discretionary but necessary portion (the reserves).
On August 13, 2024 a presentation was made by the combined committees to the membership and Board laying out a capital improvement plan. Keep in mind that this is a 50 year old property that has used deferred maintenance as its mantra to keep HOA monthly assessments low and not to special assess on overdue building and property maintenance and repairs. This is not a negative reflection directed to anyone, it is the reality of where Lake Villas' status is at this moment in time, due to choices made over 50 years.
The SIRS Study - the mandatory requirement. These are the options:
(a) Option One - The current SIRS study indicates that Lake Villas must reserve in a specific separate account $115,000 in 2025, and then again access $115,000 in 2026 in order to begin repairs on Building Units 186 A-F in 2027. (Potentially this would be 2.5 years before Building Units 186 A-F would be completed, as you must have a percentage deposit down, and the material and labor costs potentially could increase, and can Lake Villas wait this long due to the current condition of Unit 186?)
(b) Option Two - Lake Villas can vote on a special assessment to begin January 1, 2025 - to be paid as a lump sum or 6 installment payments of $250,000. This will allow us to begin repairs to Building Units 186 A-F in March 2025 with a 30% deposit to start construction. Lake Villas must pay 3 additional installments until completion, which directs us to have money available. Completion is projected to be 4-5 months, this is a 3 story building and falls under the mandatory requirement.
(c) Option Three - the mandatory SIRS requirement of $115,000 for 2026 could be included in the 2025 proposed budget, the mandatory SIRS requirement of $115,000 could be included in the 2026 proposed budget, then there is a third requirement for 2027. This could significantly raise the monthly dues. Which could impact sales on the individual units.
The Reserve Study - more discretionary portion.
(a) The Building Committee has noted 5 very damaged walls on Units 180, 184, 162, 140 and 120. To repair these areas will require a civil engineer to prepare drawings, obtain permits, remove electrical panels, materials, labor, remove and adjust pavers, etc. The estimated cost for these repairs would be approximately $150,000. This would be another part of the special assessment to begin January 1, 2025 to be paid as a lump sum or 6 installment payments of $150,000. This would allow us to complete repairs to the 5 units above in 2025. These Unit areas listed above desperately require immediate attention to make necessary repairs.
(b) The reserves are currently funded monthly at approximately $5,500. Due to a tremendous number of completed projects (see attached list of accomplishments) our reserves are low, but can and will be restored. However keep in mind the following are additional outstanding projects:
1. a bulkhead installed at Unit 652,
2. concrete exterior walls around Unit 652 and Unit 690 require repairs
3. there are 7-8 buildings that need potential structural and material repairs,
4. 7 buildings need to be repainted,
5. adult pool has 9 leaks that need fixing,
6. the carports need repairs, and
7. the parking lot will need to be resurfaced.
(c) Code Enforcement - Lake Villas has corrected numerous projects listed as violations on the Notice of Violations - Code Enforcement issued October 2021, but the violations remaining are to the 4 building steps (Units 186, 144, 670 and 652) correcting the "run", paver steps (run and rise) and railings throughout the property. The current deadline is March 10, 2025. (Lake Villas is under an Order and a fine is accruing) Lake VIllas has estimated $50,000 toward completion of these requirements. This is a complicated process to comply with Code Enforcement requirements.
So as you can see from above Lake Villas is considering a special assessment of $450,000 in 2025 to complete the above listed projects. As Lake Villas is considering the use of outside vendors, these projects could be accomplished in 2025.
I hope this assists each member to understand the current status of Lake Villas. Unfortunately, due to the fall of Surfside, new more immediate regulations have been legislated and Lake Villas must be compliant, along with all condominiums in the State of Florida.