RSFA October BOD: Steady As She Goes

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With only 2 1/2 weeks since the last Board meeting (the odd time being due to scheduling conflicts), there weren’t a lot of agenda items. But interesting, important and consequential actions were nonetheless taken.

Yearly Assessment

Every year, every HOA sets its dues assessment rate for members to pay. In every other California HOA, each homeowner pays the same fixed amount, and thus the assessment rate would typical increase by a set percentage amount (like 5% or whatever) to account for inflation/services, etc.

We are different, of course, having a specific carve out in CA law (don’t ask), such that our assessment rates are charged as a percentage of our County assessed property values. In recent history, that rate has been $0.14 per $100 of assessed property value. In other words 0.14%, or .0014 times of your property value as assessed by the County. So you typically pay 1% of your assessed value in property taxes each year, and 0.14% in HOA dues.

Due to California’s property tax system (Prop 13 and others), County assessed property values change every year by the rate of inflation, capped at 2%, or re-assessed to the purchase price when the property is sold.

What this means is that on an HOA wide basis, HOA dues collected in aggregate naturally increase from year to year at a capped inflation rate plus a moderate amount more reflecting property sales in the past year (assuming property values keep increasing, which over any longish time period, they do).

This year, the Board decided to keep that $0.14 rate unchanged, meaning your particular HOA dues will only increase by the capped 2% rate. However there were a lot of property sales last year, so the HOA as a whole will see an estimated 8.7% increase in dues collected. That may seem like a lot, but I suspect that it will just barely cover inflation related cost increases, if even that.

Seth Goldman, the Association’s CFO, presented this interesting chart showing yearly assessment rates since the 1980’s:

Roundabouts May See Construction in 2024

The County gave us a presentation of where they are at in the project to install three roundabouts on Del Dios at the eastern side of Rancho. They are in the middle of engineering design, and expect to complete that in fall 2023, at which point they will seek funding for the estimated $12M project. The aim is to make the project “shovel ready” to make it eligible for various state and federal funding dollars like Trans Net, gas tax, HUTA and SB1. If that happens, right of way acquisition would start in 2024 with construction starting maybe towards the end of 2024.

Roundabout locations shown as red dots.

The Old Mabee Property Gets a New Owner and New Project

Long time residents will remember that over the past twenty or so years, two different high density projects have been proposed for the 29 acre parcel at the corner of Calzada Del Bosque and Via De La Valle:

Location for the proposed Silvergate RSF project.

There may now be a third such project. AmeriCare bought the property in August 2021, and its CEO, David Petree, gave member input at the Board meeting. He was there to give the Board a heads-up that they intend to “develop, own and operate a high-end, licensed, assisted living, campus-style retirement community” at this location.

The property is made up of four parcels, two of which reside in the Covenant, two of which do not.

Project concepts were not shared with the Board but presumably will be done at some future time. Like all building projects, this would have to comply with all RSF regulations and obtain Art Jury approval, and in this case, also obtain a County Major Use permit.

RSF Donates PAC Funds To ERRD

Encinitas Residents for Responsible Development (ERRD) is a grass roots community organization that is pushing back against the Goodson high density development proposed to be built on Rancho’s doorstep at the base of Encinitas in Olivenhain (original background story here). After Encinitas City Council this year gave the go-head for the developer to build their massive six story, 250 unit apartment complex, ERRD filed suit to stop or at least scale down the development.

After hearing Olivenhain community member Dan Vaughn give an update on the lawsuit, the Board discussed donating money to ERRD from PAC funds to help with the lawsuit and voted 7-0 to do so. Absent any further action, the developer would likely start construction by the end of the year. ERRD will be filing an injunction to stop development until the lawsuit can be heard in early 2023.

I’ll be writing a more detailed article about the RSF PAC in the next couple of weeks.

Recreation Campus Refurbishment Project Advances

The Board voted 7-0 to spend a maximum of $12K to pay Ocio Design for the first phase of the campus refurbishment project. Ocio will be doing a feasibility analysis, building on top of their work that was started two years ago before the pandemic hit, of refurbishing the snack bar, restaurant, parking lot and tennis complex. Results of this work is expected as soon as the next Board meeting in November.