On Sept 23rd, 2024 at 6:30 pm an HOA meeting was held at the firehouse. The following was discussed:
The lake requires an inspection to determine what needs to be fixed before it undergoes a mandatory assessment by the State in 2025. If it does not pass the evaluation, the state has the option to drain it.
The estimated cost of the inspection is $12-15k.
The last inspection (about a decade ago) determined the drain was not functioning properly.
A conservative estimate to repair the drain today is $300k (based on the previous inspection estimate)
The total HOA funds (lake and HOA) are currently $32k.
It would cost an estimated $4,000 in HOA dues per lot to pay for the lake repairs.
The HOA has contacted several City, County, State, Federal, and non-profit organizations and has been informed that these agencies do not want to acquire the lake and cannot provide funds to an HOA to help with the lake. These agencies include:
Larimer County
Colorado State
USDA
LFRA
BTWC
PID
Congressmen
County Commissioner
** Some agencies mentioned above can provide funds to help with the lake to an LLC or non-profit organization, but not to an HOA.
A proposal was made to hand responsibility for the lake and firehouse to the homeowners who live around the lake with the following contingencies:
The lake would remain available to the public for recreational use and to government agencies to fight fires
The lake would be acquired by an LLC or non-profit org the lake residents would form, so they would be eligible for funds the HOA cannot obtain to fix the lake.
The lake residents would maintain the lake, which involves the following, all of which outside of finances, these people have been doing for over 10 years:
Pay property taxes and insurance (currently costs the HOA $3,200/yr)
Repair the lake so that it would pass the 2025 assessment - since they would not be an HOA, they would be eligible for funds available through various agencies
Work with agencies and write grants to get the funds needed to repair the lake
Maintain the aerator
Maintain the trails
Mow the grass
Fire mitigation
Manage invasive weeds that overtake the backside of the dam
Clean up water lilies that overtake the lake (requires maintenance in knee-deep mud)
Plow the lake roads
Maintain the waterway and its walkway on the backside of the dam
A vote was cast to determine if HOA members were in favor of the proposal to hand the responsibility of the lake and firehouse to the residents who along the lake (who would form an LLC or non-profit) based on the aforementioned contingencies. 25 out of 25 votes were in favor of the proposal.
The residents that live along the lake stated they wanted to review the results of the inspection before agreeing to take on responsibility for the lake. An inspection is being scheduled and should be underway within the next month. The cost of the inspection is the HOA’s responsibility.
The following questions were asked during the meeting:
What about a GoFundMe for the lake?
The HOA cannot set one up without being heavily taxed. The org established by the lake residents could set up a GoFundMe that could be tax-reduced or free & the public could donate to it to help the lake.
What is the value of the lake?
A real estate agent and research by the HOA board indicate the lake holds little to no value. The source of water is not valuable and the lake water cannot be used easily for agricultural purposes.
What is the value of the firehouse?
The firehouse sits on land that is primarily an easement allowing road access to the lake and a water byway where nothing is permitted to be built. The building itself requires repairs.
What would the firehouse be used for?
Rent out to pay for the lake maintenance
What if one lake resident does not want to do what’s right for the lake?
The lake org would require a vote by all members for any decisions, so no one member could make unanimous decisions for the lake
Can the lake residents decide they don’t want to provide public or government access to the lake for recreational use or to fight fires?
No. If so, the agreement would be nullified. It's also important to note that, regardless of who owns the lake, the government has the right to use all water sources for fighting fires, whether privately or publicly owned.
How will residents have access to the lake?
Residents will continue to have the same level of access to the lake they have today. A form will be available at the lake to sign, to relinquish lake residents from liabilities.
What will happen if a lake resident moves or passes away?
Their membership in the lake organization would be handed to their next of kin who would take over their residence; considerations would be made to open the organization to other Storm Mountain residents or new lake resident owners to help maintain the lake if next of kin does not acquire a residence
What would happen to the HOA if the lake and firehouse no longer belong to it?
The HOA would still exist.
Could we disband the HOA if the lake and firehouse are no longer a part of it?
A vote would have to be made by HOA members to do this
What happens next?
An inspection will be conducted to determine what must be done to fix the lake
The residents that live along the lake will determine if they will take on the responsibility of the lake post-inspection
The HOA Board will work with the HOA lawyer to ensure all documentation is properly filed for transfer of ownership/responsibility
A follow-up HOA member meeting will take place once the above three steps are completed
Attached is a letter from the lake residents to the HOA.
Comments