Monday, December 9, 2013

Management Company Change

The Board of Directors has chosen Cherry Creek HOA Professionals to manage the community starting January 1, 2014.  More on that at the bottom of this letter - but please read carefully everything in between.



Information to Come
Over the next couple of weeks you will be bombarded with information related to the HOA.  Please watch both your mail box and your inbox.

Communication
The preferred method of communication is electronic - using both a website and email.  To view the website, go to http://www.cchoapros.com/hea.  

To receive emails, go to the website and click on "Subscribe"  (If you received this email directly from the HOA address (hea@cchoapros.com), you are already subscribed.  We did that for you as a courtesy.)  You can "unsubscribe" any time you'd like, but we really don't want you to do that, so we'll try to bother you with only the stuff that matters. 

We also from time to time will mail important information to you by US Mail.  It's easy to blow off something marked "HOA" as junk mail, but please don't do it.  We try not to waste your time, so if we're sending you mail or an email, it's something we think you might need.  We hope you'll agree.

2014 Budget
As was discussed at the annual meeting last week the economics of the HOA providing property insurance is not feasible.   The Board was faced with a dilemma with regard to the 2014 budget.  As you know, the past year's budget included a line item for insurance on each of the individual houses.  In past years it made a lot of sense to cover the houses under a master policy.  That is no longer the case.  In order to cover the houses under the master policies that have been proposed to us, an increase from $260 to at least $295 could have been necessary (perhaps even more).  The alternative is to remove insurance from the 2014 budget, reduce the dues to $225, and have each individual homeowner purchase their own policy.  The budget has not been finally approved as of the writing of this posting, but it will be mailed to all owners and posted on the website within the next few days.  Please watch for the information.  Which leads us to the most important part of this email:

Insurance on Your House
Beginning at 12:01am January 1, 2014, each individual owner will be required to provide insurance on his/her house individually.  In almost all cases this will be as simple as calling your insurance agent and instructing him that you need to cancel your "HO-6" policy and replace it with the appropriate homeowners policy to cover your building, structures, furniture, fixtures, and liability.  We will be sending you many more reminders, but you should start the process as soon as you can.  In most cases it should not be a difficult transition, but a matter of this much importance shouldn't be left to the last minute, especially with the holiday season upon us.

You are probably wondering why we are giving so little notice on this important matter.  The fact is, purchasing a policy to cover a single house is a relatively painless and quick process.  Purchasing a policy to cover 45 homes on one policy is much more time-consuming and difficult.  It just became apparent in the past few days that we were not going to be able to secure a contract on an economical basis for a master policy.  The Board went as far as they could with their due diligence in trying to place the policy, but it has finally become apparent that no insurance company in the standard lines market was going to offer coverage.  They explored coverage under surplus lines (basically, a surplus line in insurance is similar to car insurance for people with really bad driving records), but determined it was not feasible.  On behalf of the Board, I want to acknowledge that we are not giving you a lot of time, but given the facts and circumstances of the search, I believe that they adequately explored their options and have come back to you, the owners, with the best possible deal.
  Each of the board members is open to your questions and feel free to reach out to them with any questions.

Last, but not Least
By way of introduction, my name is David Kinney. I'm the Owner and CEO of Cherry Creek HOA Professionals, and I'm going to personally manage Heathstead during the transition period and possibly beyond.  We are extremely grateful for the opportunity given to us by Heathstead HOA.  Our company started in 2003 when Denise (Kinney) and I had enough of our own management company and decided to start our own.  Ten years later, we have grown to manage over 30 communities.  But every one we add is just as exciting as the one before - we expect nothing different from Heathstead! 

I'm sure there will be much more to come in the next few weeks.  Please stay tuned!

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