Frequently Asked Questions about FHII Finances
How does the HOA spend our money?
Each year the HOA takes in approximately $56,000. Recurring annual expenses range from $15,000 to $25,000. Approximately $25,000 a year (difference between income and recurring expenses) is put into a reserve fund for roads and infrastructure. In years like 2017, money is taken from the reserve to pay expenses such as the $150,000 needed for road repair/maintenance in that year. Each November the Board reviews the last year’s budget, last year’s expenses, and a pro forma budget for the upcoming year. Future income is estimated, and expenses are broken into approximately 15 categories to predict next year's expenses. The current year budget is in this website's Documents section, under Finances. The Board uses the budget as a guideline, but actual allocation of money often differs. Examples are the 2017 unbudgeted repair of the guardrail on Windy Point, the 2017 reimbursement for prior website expenses, and development of an improved website.
How does the HOA keep our money safe?
The HOA maintains three accounts with a credit union: A checking account with a few thousand dollars in it is used to pay expenses each month. All income is deposited in a money market account. As needed, money is transferred from the money market account to the checking account. The reserve fund for the roads and other infrastructure is kept in a CD. Twice a year the remaining expenses for the year are estimated, and excess funds are transferred from the money market to the CD. In some years, such as when the roads are being resurfaced, money is transferred from the CD to the money market and then to the checking account.
When are our annual assessments due?
In November each year the Board determines an annual assessment for each lot. It is announced at the annual meeting in December, and bills are sent to each lot owner in late December. The assessment for the current year is due January 31. In 2008 a policy on late payments was published and put into practice (policy may be downloaded from the Documents section of this website). The policy intent is not to gain additional money for the HOA, but to encourage members to pay on time and minimize work for the volunteer Board.
Do all homeowners pay their annual assessments?
All present homeowners are paying their annual assessments and contributing to the upkeep of the HOA. We have had situations in the past where we were forced to put a lien on a lot; the lien had to be cleared before the owner could either refinance or sell their property.