1 defect remediation project west campus point march 13, 2007

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Defect Remediation ProjectDefect Remediation ProjectWest Campus PointWest Campus Point

March 13, 2007March 13, 2007

22

What Is West Campus Point?What Is West Campus Point?What Is West Campus Point?What Is West Campus Point?

• 65 units

• Built in 1986

• Affordable housing for faculty

• 71 ladder faculty members (9% of total)

• Very successful in recruiting and retaining faculty

• Managed by WCP Homeowners Association

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WCP Homeowners AssociationWCP Homeowners AssociationWCP Homeowners AssociationWCP Homeowners Association

• Governed by Board of Directors elected annually

• Members usually serve 2 – 3 years

• Manages property with assistance from Town 'N Country Property Management

• Monthly financial reports and Board meetings

• Regular maintenance “walk-arounds”

44

WCP Long-term Financial PlanningWCP Long-term Financial PlanningWCP Long-term Financial PlanningWCP Long-term Financial Planning

• Comply with California law governing homeowners associations

• Annual budgeting and auditing for both short-term and long-term maintenance

• Long-term cost estimates derived from professional “reserve studies” – every 2 – 3 years– Analyze common infrastructure lifetime maintenance and

replacement costs– Fully fund recommendations

• Some issues have transcended scope of any HOA

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Leak Remediation EffortsLeak Remediation EffortsLeak Remediation EffortsLeak Remediation Efforts

1111

Leak LocationsLeak LocationsLeak LocationsLeak Locations

1212

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

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2020


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Drain OutletsDrain OutletsDrain OutletsDrain Outlets

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Envelope PenetrationEnvelope PenetrationEnvelope PenetrationEnvelope Penetration

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Door and Window LeaksDoor and Window LeaksDoor and Window LeaksDoor and Window Leaks

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Door and Window LeaksDoor and Window LeaksDoor and Window LeaksDoor and Window Leaks

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Shoddy ConstructionShoddy ConstructionShoddy ConstructionShoddy Construction

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Rot and MoldRot and MoldRot and MoldRot and Mold

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Additional IssuesAdditional IssuesAdditional IssuesAdditional Issues

• Soil grading (flooding)

• Communication between WCP and University

• Cost recovery mechanism

• Valuation of units

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Guiding PrinciplesGuiding PrinciplesGuiding PrinciplesGuiding Principles

• WCP Board needs to be an equal partner with University in shaping and approving all aspects of the solution

• No one wants to go through this #$#%&! again!

3939

Action ItemsAction ItemsAction ItemsAction Items

• Regular operational meetings

• Access to senior administrators

• Timetable

• Periodic high-level progress reviews

4040

EndEndEndEnd

4141

• Everett Kirkelie created the first budget in 1986

• Yearly Budgeting > Homeowners’ Assessments

WCP FinancesWCP FinancesWCP FinancesWCP Finances

2007 Assessmentsbased on reviews conducted every 2-3 years

of 30-year infrastructure needs

Operating… 2/3

$323 per month1)Landscaping2) Insurance3)Management

Reserves… 2/3

$168 per month1)Roofing2) Paint3)Street

4242

2007: $491/month$177,000/(30 Years)

1987: $135/month$48,600/(30 years)

1987 Scaled by Faculty Salary Scale (CPEC)

Total Monthly Payment Per Unit

Sources: WCPHOA Annual Reports, BLS, CPEC

Original budget created

by Everett Kirkelie

4343

2007: $491/month$177,000/(30 Years)

1987: $135/month$48,600/(30 years)

1987 Scaled byConsumer Price Index

1987 Scaled by Faculty Salary Scale (CPEC)

Sources: WCPHOA Annual Reports, BLS, CPEC

Total Monthly Assessment Per Unit

4444

Total

CPI Roof/Deck/Trellis

Sources: WCPHOA Reserve Studies, BLS

CPI

Assessment Based on Reserve Studies

100% funding of recommended assessments

4545

Total

CPI Roof/Deck/Trellis

Sources: WCPHOA Reserve Studies, BLS

CPI

Assessment Based on Reserve Studies

4646

Why Reexamine the WCP “Index” for Why Reexamine the WCP “Index” for AppreciationAppreciation of Units over Time? of Units over Time?

To restore original intent of both the University To restore original intent of both the University and faculty and faculty

To increase the chances that WCP owners would To increase the chances that WCP owners would be able to move out, thus freeing the homes for be able to move out, thus freeing the homes for future recruits.future recruits.

To create a common standard to apply across all To create a common standard to apply across all UCSB faculty housing owners at WCP, North UCSB faculty housing owners at WCP, North Campus, etc. based on current published Campus, etc. based on current published economic information.economic information.

Total Percentage Change in Real Estate Prices and CPI, 1975 Q1 -- 1985 QIV

Housing Data from Office of Federal Housing Enterprise Oversight)

0

20

40

60

80

100

120

1975

1975

1976

1976

1977

1977

1978

1978

1979

1979

1980

1980

1981

1981

1982

1982

1983

1983

1984

1984

1985

1985

Year (Quarterly Data)

Per

cent

age

Cha

nge

USA Housing

CPI National

4848

Total Percentage Change in Real Estate Total Percentage Change in Real Estate Prices and CPI, 1975 QI – 1985 QIVPrices and CPI, 1975 QI – 1985 QIV This graphThis graph

Approximates a graph shown to first buyers to Approximates a graph shown to first buyers to justify using CPI as index.justify using CPI as index.

Shows that CPI and real estate prices rose at Shows that CPI and real estate prices rose at similar rates, on average, in base period.similar rates, on average, in base period.

http://www.ofheo.gov/HPI.asp

1986-2006 Total Percentage Change Since 1986-IV In CPI and Three Housing Price Indices

(Housing Data: Office of Federal Housing Enterprise Oversight)

0

50

100

150

200

250

300

350

400

450

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Year

Cum

ulat

ive

Pe

rce

nt C

han

ge

California HousingUSA HousingCPI NationalS. Barbara Co. Housing

5050

1986-2006 Total Percentage Change 1986-2006 Total Percentage Change Since 1986-QIV in CPI and Three Since 1986-QIV in CPI and Three

Housing Price IndexesHousing Price Indexes Inflation in housing prices has far outstripped the CPI in the last Inflation in housing prices has far outstripped the CPI in the last

decadedecade

““Santa Barbara Co.” trend data are for the “Santa Barbara-Santa Santa Barbara Co.” trend data are for the “Santa Barbara-Santa Maria Metropolitan Statistical Area”Maria Metropolitan Statistical Area”

OFHEO data coverOFHEO data cover Single family homes Single family homes Repeat sales of same properties: “constant quality”Repeat sales of same properties: “constant quality” Conforming mortgages only, up to $417KConforming mortgages only, up to $417K Readily available dataReadily available data

1 defect remediation project west campus point march 13, 2007

Documents

mold slide

unit slide

hoa slide

street slide

roof drainage slide

envelope penetration

shoddy construction

end end slide