With just a handful of buildings and garages remaining to be sided, we are almost done! Exteriors Unlimited plans to be completed by year end and all garage doors will also be finished at that time.
If this schedule holds-up, the Association will perform a “true-up” in January, compiling all the costs and will calculate a final cost for the project and the final price for each home-owner. At this time, we still believe the project will come in under the projected cost of $1,500,000 and right on schedule.
As a reminder, if the final cost of the project were to exceed $1,500,000 then all owners who have fully paid for their siding will be assessed an additional charge, unless that additional charge is deemed insignificant, in which case it will be funded from reserves. If, as expected, the final cost of the project is less than $1,500,000, then the Association will refund all owners the amount by which they have overpaid. Owners who have not paid for their siding will pay their cost as determined by the true-up process.
At this time, all owners who have not paid for their siding should expect to pay for it in full by February 1st, or perhaps March 1st, at the latest. The board will finalize this timeline during the next month and will provide you ample notice about the exact due date for payment.
For those of you who are considering taking the 10 year loan option, you should be prepared to make your first payment in February, if February 1st is the Payment Due Date. The interest rate on the loan will be 7.35%. While that was an attractive rate when we did the deal with New Alliance, it may not be an attractive rate today. Other means of borrowing (e.g. home equity loans) may offer a better option. We recommend all owners explore all options available to them before making their final decision. Residents selecting the 10 year loan with New Alliance will have their monthly loan payment added to the monthly common fee. Both fees will need to be paid in full each month. The loan may be paid off early at no penalty.
As we discussed two years ago, it’s to the benefit of the Association if all residents were to pay “cash” for their siding, i.e. no residents select this 10 year loan option. This keeps the debt off of our Balance Sheet and, frankly, keeps Meadow Hill out of the loan business. However the option is available to you.
More information will be forthcoming and we will review this in more detail at our meeting in December.
If you have any questions, please call me or email me at (LINCMAY@COX.NET).
Submitted by Lincoln May, Treasurer