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WOODLAND
HILLS HOMEOWNERS HOLD FIRST PUBLIC IMPROVEMENT DISTRICT MEETING…
Approximately
100 people from the Woodland Hills subdivision met at the Colleyville
Community Center Thursday evening for the first public discussion of
the proposed Public Improvement District (PUD).
Donna O'Brien, president of the association, opened the meeting
by reviewing the problems currently facing the neighborhood.
The deterioration of the common open space areas prompted the
consideration of the PID. Others
factors make the management of these issues difficult.
There are currently seven homeowner associations within
Woodland Hills, with up to three assessments being paid by various
owners. Ten separate
filings of deed restrictions make it hard for the HOA to monitor
violations. Options
available to remedy these factors were discussed.
Homeowner dues could be increased or special assessments
created, deed restrictions could be amended, a PID could be created,
or a lawsuit could be filed against non-mandatory members.
It was stressed that a lawsuit is not being considered.
Homeowner
Kay Allen presented information concerning the impetus for her
involvement in the situation and emphasized that the meeting was for
informational purposes only. Prior
to moving to Colleyville she resided in a Trammel Crow development in
Grand Prairie. When the
time came for the developer to turn the maintenance of the common
areas over to the city the residents sought a way to continue the high
level of maintenance they preferred.
The formation of a PID accomplished this desire.
Allen noted that with the age of Woodland Hills (approaching 20
years) a number of maintenance issues must be considered in the near
future.
The
state statute allowing the creation of PID's was passed in 1987.
A petition supported by 51% of the affected property owners
asking for the creation of a PID must be presented to the city.
After conducting a feasibility study the city holds a public
hearing and the PID is passed by resolution at the discretion of the
council. Money collected
by a PID is held in a separate account.
According to city official Terry Leake it is estimated that the
annual administrative costs for a PID would be approximately $5,000,
which would be charged to the PID as a fee. The city's responsibilities would include holding annual
public hearings, collecting assessments, distributing funds and filing
liens.
Attorney
Ike Shuee of Hughes & Luce law firm was present at the meeting and
spoke. He specializes in
creating PIDs for neighborhoods and was responsible for the PID
created in the Park Glen subdivision in Fort Worth. Shuee stated that any liens filed against property owners due
to nonpayment of PID fees would be cleared at the time of resale.
He emphasized that the state constitution strictly limits the
power of foreclosure and that the city would never be expected to
foreclose on a property in these situations.
Benefits derived from the use of PIDs include the ability of
the city to negotiate with contractors for public improvements and
exemptions from sales tax according to Shuee.
He also stated that the PIDs he has helped create have
specifically prohibited the issuance of debt.
The
scope of services covered by a PID generally include mowing and
landscape maintenance and may also include security, fountains, tennis
courts and other items. Only
items specifically mentioned in the PID are allowed; therefore it is
important to determine initially what the residents want included.
Changing an existing PID virtually requires starting the entire
process over again. Administrative
issues such as how the board will be elected, a cap for annual
increases, and how members will vote may also be spelled out in the
document.
The
homeowners association board of Woodland Hills has discussed assessing
a flat rate per residence as the PID fee, which is the current method
for dues. Mr. Shuee
indicated that it is more common to assess as a percentage of property
value, but that either method is acceptable if approved by the city
council. It has been
recommended that an advisory board of 5 members be created to manage
the PID. An annual budget and a five-year budget would be approved at
a mandatory annual public hearing.
Current budget projections suggest that if the PID for Woodland
Hills were approved the initial annual assessment would be $400 per
residence, with the homeowner dues decreasing to $86.
The $400 figure is derived from the proposed annual budget of
$144,900, which includes fixed costs of water, electricity, insurance,
landscaping and mowing. The
$86 would ensure the continuation of current homeowner association
activities, such as social events, newsletter and architectural
committee. The association maintains a reserve of $50,000 for
emergencies. The initial
cost of setting up the PID has been estimated at between $2,000 and
$4,000.
Other
issues brought out during the discussion include the involvement of
the city in the PID. Administrative
fees could be increased, but the council would be politically liable
in this event. Other
concerns about the city's involvement will need to be handled during
the structuring of the document creating the PID if it is pursued.
It was mentioned that the PID could be disbanded by the same
method used to set it up, i.e. 51% support via a petition.
Some residents suggested a lower initial assessment in order to
increase the possibility of support by the non-mandatory residents.
No action was taken at this initial meeting.
It was noted that there were representative present from other
neighborhoods who might be interested in the creation of additional
PIDs in the city.
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