A new community center without any additional assessments? This idea is almost unheard of! But, it is exactly what’s happening at one CCMC community. Like many other communities, Spectrum at Val Vista (Gilbert, AZ) experienced a 5% increase in homeowner delinquencies in 2009. Our on-site CCMC team immediately renegotiated service contracts, reducing expenses by 13% and the board implemented a transfer fee. This plan resulted in a healthy contingency account. Within two years the account exceeded $190,000 and the board was able to pay off a loan from reserves two years early.
So this year, at their annual meeting, our team introduced a board resolution to change the use of their existing common area and use these funds to build a community center. Due to shrewd financial planning and a broad community vision, the resolution did not require a special assessment or an increase to the assessment rate. Needless to say, it was adopted.
By the end of this year, projections indicate this account will be large enough to pay for half of the design and construction costs associated with the new center. The rest will be financed from reserves with the loan payments offset by the alleviation of the office rent – as our team will now office inside the community center. The entire project should be paid in-full within six years.
Concepts for the 3,500 square-foot community center include a reception area, office space, multi-purpose room with a kitchen, event lawn, amphitheatre and serenity lounge. A grand opening is anticipated for the summer of next year – the same time their team’s current office lease expires.
This is a great example of the innovative, community-focused management offered by CCMC. Our team was able to turn recession dynamics, long-term financial planning and a desire to improve the quality of neighborhood life into a tangible neighborhood benefit.