How will Inflation really affect the HOA?

How concerned are you abut inflation? Do you think it affects the budget and spending of The Summit HOA?

The 2022 Budget increased from $1,317,550 to $1,320,050. That's $2,500 (0.19%) That's 2/10 of 1%. (The Treasurer told the Board that the budget increased $3,500.)

"In February 2022, consumer prices rose 7.9 percent—the highest annual inflation rate increase in 40 years." (Source: Hillsdale College NAtional Survey on Inflation in the U.S. (May 2022))

HOA President Justin Martin had this to say (to some) about inflation in 2022: "This year we're going to have increased costs because inflation for everything is hitting us hard, however, as far as the overall budget is concerned, we'll be just fine."

QUESTION: If the HOA is going to have increased costs because inflation for everything is hitting us hard", how is everything going to be "just fine"? Isn't that naive?

Why didn't the Budget increase? The Board apparently did not consider an increase in dues. Why wasn't it honest with its members and the homeowners about reallocating a significant amount budgetted for reserves to current spending. What will be the future impact of that adjustment? Although expenses are higher in several categories, the real reason the budget did not increases is that money going into one reserve was sharply reduced. Sort of like robbing Peter to pay Paul?

Following is a portion of an email I received from Hillsdale College (Mich.) asking for opinions on inflation.

Take a couple of minutes and complete this short survey.

Be sure to sign up for their free bulletin, Imprimis.

Inflation is on the rise in America. And there’s no sign of it slowing down.

Economic historian John Steele Gordon discussed inflation in a recent issue of Imprimis, Hillsdale College’s digest of liberty. And he noted that adding trillions more to the national debt is not the solution but will only make the problem worse.

Nevertheless, support for socialism and other ideologies destructive of the free market also appears to be on the rise in our country, especially among younger Americans. 

That’s why you’re receiving this email today.

Hillsdale College seeks to understand more clearly what Americans think about our nation’s economy and the inflation we’re experiencing. And I’m hoping you can help by completing our National Survey on Inflation in the United States using the secure link below:

https://lp.hillsdale.edu/national-survey-on-inflation/ 

Comments

Post a Comment

Popular posts from this blog

Annual Meeting, Barony Place Neighborhood - continued to 5/4/2024

Barony Place Neighborhood (Barony Place I and Barony Place II attempted to hold a Neighborhood Meeting this afternoon. Of the 78 homes, seventeen (17) homes were represented, and that was not sufficient to meet the quorum requirement of 26. The meeting was continued to Saturday, May 4, 2024, 1:00PM, at 44 Barony Place Circle. An effort will be made to have at least 26 homes represented in-person or by proxy. Three homeowners have volunteered to be on the Neighborhood Committee: Tracy Manderino (Barony Place II), Della Glynn (Barony Place II) and Gwen Hayes (Barony Place I). If a quorum is present on May 4th, those present, including by proxy, will elect the Neighborhood Committee. Once the Committee has been elected, it will select one of its three committee members to be the Voting Member for the next 12 months. The other two members will be Alternates. A new announcement will be distributed to your newspaper box, along with a proxy. If you will not attend Saturday's meeting, plea
Read more

Open Letter to Barony Place "Voting Member"

An open letter to the "Voting Member" of Barony Place Neighborhood. Good morning, Billie, If you and/or an Alternate attended last night's board of directors meeting, will you please send out a recap of the meeting to Ann Stirlen and me (and to all the homeowners and residents in Barony Place)? About a dozen homeowners from throughout The Summit showed up for the board meeting  at the church  last night, only to learn from one person that it had been switched to Zoom, which allowed the board to meet in secret. Many of them had not received the email from the office that the board was (illegitimately) closing the meeting to homeowners. There are only about 1,800 (73%) email addresses of the 2,480 Members in the website database. I attempted to join the meeting on Zoom, as I am Attorney-in-Fact for Ann Stirlen, but I was not admitted to the meeting. The HOA's attorney has quoted a section in the By-Laws that she believes allows the Board to close the meetings. That spec
Read more

Special Assessment Possible?

How would you feel about a $3,000 Special Assessment levied by the HOA against you and every other HOA Member (homeowner)? Article X, Section 4 in the CC&Rs allows this. Are you aware of that? Should the Board do everything possible to eliminate the possibility of such a Special Assessment? What is the Board doing that might just lead directly to such an Assessment? The HOA, by actions of the President (Justin Martin), the Treasurer (Vernell Butler, and the Safety Committee Chair (Dennis Rybicki) entered into a contact with the Richland County Sheriff's Department, effective February 1, 2023. They arranged for special patrols in the Summit at a cost of $48.00/hour. In the Special Duty Agreement is a Liability clause. It reads,  "The Requestor will hold harmless the Richland County Sheriff's Department from any and all claims or liabilities resulting from service and indemnify RCSD for any loss due to any injury of its employee unless there is a determination of neglige
Read more