How can SCOV raise additional revenue for community projects?

There are many revenue sources for SCOV. Annual Homeowner Fees, Comcast & AT&T Contracts, CD & Treasury interest, percentage of merchandise sales (Gift Shop), Activities revenue, Capital Contribution Fees, Views Golf & Restaurant revenue.

There are fundamentally three options that our HOA can choose to raise additional funds to pay for community projects, excluding selling real property:

• Annual Homeowner Fees 

• Capital Contribution Fee

• Special Assessment

Each of these will be explained with information from our governing documents. Let's look at each option one by one.

Annual Homeowner Fee

What are Annual Homeowner Fees? Annual Homeowner Fees are paid by HOA members to the Association to cover expenses to run the daily operations of an HOA community and to fund an Asset Reserve Account for recurring community maintenance projects.  Annual dues are determined after an open membership discussion with the General Manager, BOD Treasurer, SCOV Controller and the Finance and Budget Committee.

How much can SCOV homeowners be charged for Annual Homeowner Fees?

Per the Master Declaration, Article 3, Section 3.1, the Annual Homeowner Fee may be increased by an amount no greater than fifteen percent (15%) of such fee from the preceding year. Based on the 2024-25 Annual Homeowner Fee of $2470, the Board could impose a maximum 2025-26 Annual Homeowner Fee increase of $370 per Lot without the approval of residents. Any Annual Homeowner Fee increase exceeding 15% would have to be approved by two-thirds of the voting residents.

FACT: In SCOV history, there has never been an Annual Homeowner Fee increase of over 15%. Since 2000, there have been eight Annual Homeowner Fee increases between 10.7% and 15%. Between 2000 and 2007, there were seven increases to fund the newly created, Capital Fund. In 2021, there was an increase of 10.7% due to the contract negotiated with Republic for single-provider trash and recycle removal, added to the Annual Homeowner Fee by a community vote.

Capital Contribution Fee

What is the Capital Contribution Fee?  Per the Master Declaration, Article 3, Section 3.5 The Capital Contribution Fee is paid upon the transfer by conveyance of title to any Lot that is not an Exempt Property.  The 2024-25 Capital Contribution Fee is 1.5 times the Annual Homeowner Fee ($2470 x 1.5 = $3705). The Capital Fund is used for purchase, construction or major reconstruction of real property of the Association. Any increase in the Capital Contribution Fee will add additional money to pay for Capital Funding projects.

FACT: Prior to 2004, funding for Capital projects was paid for by using funds from the Annual Homeowner Fees. The Capital Contribution Fee was approved by the Board and homeowners and began in July 2004. It was set at 1x the Annual Homeowner Fee. The increase of the Capital Contribution Fee to 1.5x Annual Homeowner Fees was approved by the Board and homeowners and began in July 2016.

Special Assessment

What is a Special Assessment? A Special Assessment is an additional fee designated to be earmarked for a specific project and paid by HOA homeowners in addition to their annual homeowner fees.

How much can SCOV homeowners be charged for a special assessment? 

Per the Master Declaration, Article 3, Section 3.2, the Association may levy a Special Assessment against each Lot applicable to only that fiscal year, to cover expenses that cannot be met from approved budgeted revenues. The amount of a Special Assessment in aggregate shall not exceed five percent (5%) of the gross revenues (5% of the 2023-24 $10,000,000 gross revenues = $500,000) of the Association. Based on the Revenue from the June 30, 2024, SCOV financial statement, the Association, with approval of the Board but without approval of homeowners, could impose a maximum 2025-26 Special Assessment of $200 per Lot ($500,000 /2488 = $200). Any amount exceeding 5% of gross revenues would have to be approved by two-thirds of the voting households.

FACT: Since 2000, the only SCOV Special Assessments were $325 in 2001 for the for the purchase of the Welcome Center on June 29, 2000 (repay loan balance of $812,222), $250 in 2002 for the Welcome Center Renovation, $77 in 2005 for an anticipated end-of-year shortfall, and $385 in 2013 toward the cost of the expansion of the Fitness Center.

These are options with which SCOV may raise funds to complete the Copper Center project. If the community wishes the building to be completed sooner, additional funds will have to be raised as noted above. If none of these options are adopted, renovation of the Copper Center will still be done, but completion will take a longer time frame.  The fact is, we own the Copper Center, just like we own the Activity Center, Welcome Center, Artisan Center or any of our other facilities. Not selling any of these properties will only enhance current and future SCOV resident experiences, as has been the case throughout our history. With our available options and current financial position, the asset value of any of our SCOV properties is not a major concern.