ROPOA Property Assessments

Glenn Williams

Why property assessments and what are they used for. Property in Royal Oaks is structured by a Declaration of Covenants that states, “Annual assessments are a charge on the land and shall be a continuing lien upon the property against which each assessment is made. Assessments, together with interest, costs, and reasonable attorney’s fees, shall be the personal obligation of the person who was owner of such property at the time the assessment fell due.”
I am obligated as are sellers, realtors and title companies, to explain this when asked by those considering buying property in Royal Oaks because once the purchase is made, the new owner is in fact, agreeing to all that is contained in the Declaration of Covenants, including the continuing assessment obligation. What are assessments used for? The Declaration states, “Assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents in the properties and for the improvement and maintenance of the common areas.” Each year the Board of Directors, after considering the budget needs of the various committees, sets the annual assessment. The funds are used to maintain the privately owned streets of ROPOA, the landscaping of the common areas, and the mostly private sewer system. A portion of the annual assessment is put into a repair fund for the future resurfacing of our streets and for any capital expenses that might occur with our sewer system. A general fund is also maintained for any other capital expenses that might occur. Assessments also cover our legal fees, audits, insurance, street sweeping, newsletter publication, some social events, snow removal, taxes and employee expenses.
Royal Oaks currently employs a general manager, an operations manager, and a bookkeeper. The Association requires continuous business management and oversight. As some newcomers have asked, do the assessments cover golf, swimming and tennis? The short answer is no. The current and past developers of Royal Oaks have never included these facilities as part of an equity ownership by the residents. Therefore, any participation in these amenities can be purchased in addition to annual property assessments.
How are assessments collected? Each month’s assessment is due on the first day of the month. Property owners can choose their payment schedule, but assessments not paid within 30 days after the due date incur a late charge of eighteen percent (18%) per annum. After the Board sets the annual assessment, an invoice is mailed out in December to all property owners. Provided property owners keep their accounts current, that is the only invoice that will be mailed. If an account becomes 90 days in arrears, a past due invoice must be mailed and a $25.00 administrative fee is assessed. The account must then be brought current within 30 days of receipt of the past due invoice to avoid further legal proceedings which can include the filing of a lien, added legal costs to the assessment, and possible foreclosure if the account continues to remain unpaid. Additionally, the Association may suspend the voting rights of a property owner for continued nonpayment of assessments. The Board bases the annual assessment on the cumulative monthly budget needs of the community, so it is important that accounts be kept current by the property owners of Royal Oaks. All of these requirements and operating procedures have been mandated by the Board and they have given me specific instructions to follow them in order to best serve the needs of Royal Oaks.
In order to observe first hand and express your opinion when necessary on how your assessment dollars are being used or not used, you are encouraged to attend the monthly Board meetings. The Board of directors conducts its meetings in the Royal Oaks Event Facility the second Thursday of each month at 7:00pm. The Annual Meeting is held on the third Monday each April.
When you have questions you can contact me at 865 660-2577 or email me at: ghw4207@charter.net