Feedback from Homeowners

The fence committee has had contact with approximately 175 homeowners and some of the comments appear below:

bulletInterior owner – "You must provide a calculation that justifies the split between the interior and perimeter owners."
bulletTwo perimeter owners – "If the 75 perimeter owners pay half of the total and the 326 interior owners pay half of the total, that seems equitable."
bulletPerimeter owner – "The fence does need to be replaced; a patchwork repair as the way things are now is not acceptable."
bulletInterior owner – "How does the HOA plan to get the easement to the perimeter properties?"
bulletInterior & perimeter owner – "The added expense of brick columns every 75’ to 100’ ($95,000 – $110,000) doesn’t seem worth it."
bullet8 Interior & 7 Perimeter – "We need to get this done; the fence issue has gone on long enough."
bullet8 Interior & 10 Perimeter – "Incorporating the fence upkeep into the dues in future years is a good idea."

Facts

bullet The upcoming vote is to make the fence "community property", just as the greenbelt, pool, tennis courts, playground, basketball courts, and walking path are community property --- all which add some measure of value to HFII and used to different extents by each homeowner. The intent is to preserve/enhance our property values and to alleviate our neighborhood of the fence issue in the future.
bullet Per the bylaws of the association, which every homeowner has in possession, or should have had in possession at the time of the closing on the purchase of every HFII home, a favorable vote of 75% or 302 of the 401 homeowners can change the bylaws.
bullet A formal legal opinion is now being written by the law firm retained by the HFII to explain and confirm the language in the covenants that addresses how the HOA and perimeter homeowners work together to have the current stockade fence demolished and the new fence installed.
bullet Four fence companies have been requested to submit firm priced bids to the fence committee. Most pricing is good for 90 days but with rising lumber costs, any delay further increases our costs.
bullet The pricing includes necessary trimming of bushes and trees to install the new fence properly.
bullet Installation during the off-season allows the possibility of a small discount in pricing.
bullet Staining of the fence is an option but all the bidders have indicated that it is strictly aesthetic and not a means of preservative.
bullet One of the fence companies has included maintenance (rail, post, panel replacement/repair) for five years beyond the first year warranty, including staining of the street side.
bullet A temporary fence will be provided during the approximately two-week installation sequence but it will be at the option and expense of the individual homeowner.
bullet An unstained sample of the Hillcrest style fence in western cedar has been installed near the lower basketball court.
bullet The committee viewed samples of the Copperwood fence and after 10 years or so; it looks no better than the western cedar.
bullet The board has opted to include in the proposal the approximately 140 ft. of fence that runs along Dry Creek Rd.. at the end of the main greenbelt area. This section of fence will create more privacy and security, as well as provide some sound barrier to the neighborhood.

Estimates & Assumptions

bullet The current cedar stockade fence is in disrepair over a large portion of the perimeter and as a consequence there is a negative impact to all HFII owner’s home values.
    1. Based on home sales over a 3-year period, the annual price per sq. ft. increase for HFII homes has been 2% compared to Homestead Willows 4.5% and Heritage Greens 4-6%.
    2. Based upon the average HFII home sold over that same three-year period, our average price per sq. ft. is $148.57 compared to Homestead Willow’s $154.90.
    3. This translates into a value difference of $14,900 between HFII and Homestead Willows for the average HFII home of 2,351 sq. ft. sold over that 3-year period. Value differences may or may not be wholly attributable to fence design and condition.
    4. We estimate, based on an Aurora city appraisal of several neighborhoods, an attractive fence will add value to the homeowner’s property.
bulletThe cost to replace an 8’ panel of the current stockade fence, when available, is $25 - 30 per ft., excluding labor, but it is not configurable for slope and small sections. The stockade design has extremely limited availability, with one supply source in the country according to two local fence companies. One company said they could not source cedar stockade fence at all.
bulletRegardless of fence type, an interior homeowner’s value is approximately 3.5% higher than a perimeter homeowner’s value, according to common real estate experiences.
bulletA new fence will directly enhance the value of the perimeter homeowner’s property. The direct benefits to the perimeter homeowner include:
  1. Boundary identification
  2. Noise abatement
  3. Exclusivity
  4. Seclusion
  5. Security
  6. HOA maintenance in future years
bulletMost of these same benefits will also apply, to varying degrees, to interior owners.

Proposal

By assigning a discreet numerical value to each value component of a new wood fence (HFII HOA maintenance in future years, security, exclusivity, seclusion, noise abatement, boundary identification, aesthetics) for the perimeter owner and interior owner, the committee arrived at a cost component for each type of owner. These calculations resulted in a 3-year payment split of 58% for perimeter and 42% for interior. Then, the additional qualitative component of input from approximately 175 homeowners was imputed into the calculation.

Because the fence would become a common ownership item, just as the tennis courts, pool, and greenbelt are, maintenance fees going forward would become and equal responsibility for perimeter and interior owners.

With an escalation factor built into the Fence Committee calculation, the base bid for a Hillcrest style fence constructed of natural western cedar (no brick columns), installed over 9,471 feet surrounding much of the neighborhood, is $258,000. Based upon those figures, the following 3-year payoff schedule and subsequent annual maintenance schedule is proposed:

 

Property                         2004             2005             2006             2007 thru

Owner         Type       Payment     Payment     Payment            2024 *

                   Interior          $ 190               $ 190            $ 190                     $23

                   Perimeter      $ 325               $ 325            $ 325                     $23

* estimated 20 year useful life payment for maintenance & staining

Note: All payments exclude the nominal interest charges

 
bulletPayment(s) would be timed in such a way that it would be due approximately 6 months after the regular HFII dues payment, so as to stagger your financial commitment to enhance the quality of neighborhood.
bulletSeveral banks have been contacted and they are interested in working with HFII. They are quoting current and competitive rates. If the initial payment is made at the commencement of the loan, each homeowner is in effect only financing two-thirds of the total cost. (Note: each bank has different conditions in their offer, including the type of collateral, checking account placement, etc. and the HFII HOA has no firm commitment in place at this time)
bulletIf you have any questions about payment and/or financing, please contact the fence committee.

Conclusions and Future Action

bullet There is an immediate direct benefit to the perimeter homeowners ($490 plus) and an immediate indirect benefit to interior homeowners ($490).
bullet Open forum meetings (June 14 & June 21) at the pool area for all neighbors to have listen to feedback and have final questions answered.
bullet Fence Committee members will continue to canvas the neighborhood for insight and comments
bullet Fence Committee members will be available to answer questions/receive comment at the pool July 3 – 5
bullet July communication with answers to the FAQs
bullet Ballot to be mailed July 15

As always, if you have questions or comments at any time, please contact one of the fence committee members or utilized the online feedback form via the web site www.HFII.org and clicking on the "Fence" tab on the left side of the page.

Thank you.

Matt Johnston, Fence Committee Chairman (interior owner) Board member

Tony Patinella (interior owner) BOD member

Kathleen & Tony Mercado (perimeter owner)

Phil Rahrig (interior owner)

Gery Palmer (perimeter owner)

Jerry Moore (interior owner)

Bill Doyle (perimeter owner)

Mark Bird (interior owner)

Andy Jagger (interior owner)

Jeff & Annette Clemons (perimeter owner)

Patrick McCarthy (interior owner)

Lori Snow (interior owner)

Bob Moore (interior owner)