Cherry Lake Homeowners Association, Inc.

A Message from the President

Nov 11, 2001

Dear Neighbors:

As mentioned in our last newsletter ?“Lighting?” is something we should all be aware of, especially now that Fall and Winter are upon us. Since we do not have street lamps it is imperative that we all take the initiative and keep our Yard Lights serviced and working. It has been suggested that we consider getting Street Lamps for our neighborhood. Neither the City of Indianapolis or Warren Township provides this type of lighting. We are researching this, and this is what we know so far, it would cost an estimated $145.00 per lamp, per year. A community of this size would need at least 30 lights, x $145.00 = $4,350.00 per year. An minimum increase of $15.00 per homeowner a year. So the best solution at this time is to keep those Yard Lights working and ON.

I?’m sure you are probably tired of hearing us discuss the Homeowners Association dues, however, I would like you to consider the following:

Homeowners dues are generally payable at the 1st of every new year. This year notices will go out in January and will be due by March 15, 2002. Our dues are considerably lower than most associations in this area. Cumberland Lakes (at Cumberland Road and 30th Street) for example have association dues of $40.00 a month. When an association budget is put together every year, it is based on the fact that the association will receive dues from every homeowner at the 1st of every new year. When this does not happen, the association can have problems paying it?’s bills. Projects might have to be put off such as Entryway maintenance and snow plowing delayed. By delaying payment to our vendors, we take the chance of having our ?“good?” vendors thinking twice about doing work for our association the next time. They may also raise their rates to our association in the future. By not paying their invoice when due, it is like borrowing ?“their?” money for a month or two. Next time they will want more money because they know that we will be late and they will want interest on ?“their?” money.

More and more, mortgage companies, banks and potential homeowners are looking at community association?’s financials before they make their decisions to back loans, finance homes and buy homes. They are trying to protect their investment. When they look at receivables (outstanding dues) of a community association and they find that they are high, most likely they will not finance a loan or the potential homeowners will back away from the community because they feel that dues will have to go up to cover the residents that don?’t pay, or there will be special assessments in the future of the community. Banks and mortgage companies count on the fact the property values should always go up.

Homeowners Association Dues are the life?’s blood of a Homeowners Association. Please remember the next time you are late with your payment or don?’t make a payment...the whole community feels it.

Have a Happy and Safe Holiday Season
Skip Donnell, President