Landmark Homeowners Special Meeting !!
Due to Covid limitations in 2020, the HOA Board was unable to move forward with the Rural Improvement District process to fund maintenance of our streets. The Board is reaching out again to revisit the possibility to engage our subdivision into a Rural Improvement District through Gallatin County. The first step in this process is a special virtual homeowners meeting on March 23rd at 6:30pm. James Nickelson, with Morrison-Maierle Engineering, will answer any questions and comments you may have about the process. This will a Q&A only, there will be no voting at this special meeting.
Please review the following information before the meeting:
The current assessment is that the roads are in fairly good condition but are beginning to show signs of wear.
Annual ongoing costs are approximately $20,000 to maintain the streets. This includes snow plowing, pavement preservation maintenance, and right of way weed spraying.
Our streets are 18 years old. Asphalt pavement typically requires some surface treatment in 16-24 years. Based on an on-site evaluation, the current road will require a pavement overlay in 2028 or 2029. The estimated cost for pavement overlay is $819,045.64.
With this in mind, homeowners need to decide how to fund the maintenance. There are two options the HOA Board is considering.
The first is self-managed by the collection of reserve funds through a special assessment and management of required maintenance through the HOA.
The second option is to partner with the County and create a Rural Improvement District (RID). This must be voted on and approved by the membership. If approved, starting in November 2022, each lot would pay $635 annually. In 2030 that number would decrease to $250.
What is a RID?
A Maintenance Rural Improvement District (M-RID) is a legal funding mechanism through which a subdivision can raise reserves for on-going maintenance and improvements. The RID program provides planning, management, engineering services, and administration of the fund. For more info please click on the links below.
What are the Advantages of a RID?
Scheduled Maintenance: The RID program develops a maintenance schedule and funding to ensure that our roads have good maintenance to extend the service life well into the future.
Competitive Bidding: Each year multiple RID improvements are competitively bid to qualified contractors. These bids are lower than those received on smaller projects due to the increased volume of work bid out for the combined RID projects. The HOA Board cannot take advantage of these savings, so must assess much higher amounts.
Tax Deduction: Most accounting firms consider the assessment a tax deduction so there is an advantage to fund road maintenance with RID funds vs. HOA funds.
Scheduled Maintenance: The RID program develops a maintenance schedule and funding to ensure that our roads have good maintenance to extend the service life well into the future.
Competitive Bidding: Each year multiple RID improvements are competitively bid to qualified contractors. These bids are lower than those received on smaller projects due to the increased volume of work bid out for the combined RID projects. The HOA Board cannot take advantage of these savings, so must assess much higher amounts.
Tax Deduction: Most accounting firms consider the assessment a tax deduction so there is an advantage to fund road maintenance with RID funds vs. HOA funds.
Interest Accrual: Funds in the account do accrue interest comparable to the market for secure investments.
Savings: Implementing this RID will save us at least $20,000 a year on annual expenditures to maintain the roads. We will be able to allocate those funds towards much needed improvements in the community that we would like to see done. We currently do not have the extra funds to make those improvements. Plus we will be able to keep our HOA dues at an affordable price!
What if we don't approve the RID Project?
If we do not implement a RID, the only option is to create a special assessment per lot. This amount will probably be at least $1,000 per lot, per year over the next three years or more to accumulate enough funds to repair the road. The special assessment funds collected will only be allocated for road repairs and will not be available to use for normal operating expenditures.
Please note, per the HOA governing documents, a special assessment must also be voted on and approved by the membership.
If a special assessment does not pass, once the roads deteriorate the County will step in and create a SID tax that all homeowners will be responsible to pay. The cost will be much higher than the proposed RID or special assessment.
The HOA Board will hold a community meeting via zoom:
Tuesday, March 23, 2021 @ 6:30pm Mountain Time
Join Zoom Meeting:
https://zoom.us/j/92543788415?pwd=N05EbnpYZjJ3Y1VoR1I3L3pqNVBTQT09
Meeting ID: 925 4378 8415
Passcode: 280553
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Meeting ID: 925 4378 8415
Passcode: 280553
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Comments can be sent to info@lunaproperties.biz and will forwarded to the HOA Board. All questions, comments, and concerns will be addressed at this Special Meeting!
Managed by Luna Properties, LLC
40 East Main Street - Suite 210
Bozeman, MT 59715
406.582.7490 office
40 East Main Street - Suite 210
Bozeman, MT 59715
406.582.7490 office
YEAR END HOA FINANCIAL STATEMENTS AVAILABLE
Year end 2020 financial statements for the homeowners association are now accessible to Landmark homeowners who have registered on the HOA website.
RECREATIONAL EQUIPMENT STORAGE
Per Amendment 2 of your covenants, Article IX Section 4. Recreational Equipment, all campers, motorhomes, and ATVs need to be removed from the driveways and/or concrete pads next to the driveways and enclosed in a garage or otherwise screened area from October 15th-May 1st. Trailers, boats, motorhomes, and any other recreational equipment may not be parked on the roads at any time. Thank you for your anticipated cooperation.