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

33

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

55

Leak Remediation EffortsLeak Remediation EffortsLeak Remediation EffortsLeak Remediation Efforts

66

77

88

99

1010

1111

Leak LocationsLeak LocationsLeak LocationsLeak Locations

1212

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

1313

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

1414

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

1515

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

1616

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

1717

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

1818

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

1919

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

2020

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

2121

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

2222

Roof DrainageRoof DrainageRoof DrainageRoof Drainage

2323

Drain OutletsDrain OutletsDrain OutletsDrain Outlets

2424

Envelope PenetrationEnvelope PenetrationEnvelope PenetrationEnvelope Penetration

2525

Envelope PenetrationEnvelope PenetrationEnvelope PenetrationEnvelope Penetration

2626

Envelope PenetrationEnvelope PenetrationEnvelope PenetrationEnvelope Penetration

2727

Envelope PenetrationEnvelope PenetrationEnvelope PenetrationEnvelope Penetration

2828

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

2929

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

3030

Shoddy ConstructionShoddy ConstructionShoddy ConstructionShoddy Construction

3131

Shoddy ConstructionShoddy ConstructionShoddy ConstructionShoddy Construction

3232

Shoddy ConstructionShoddy ConstructionShoddy ConstructionShoddy Construction

3333

Rot and MoldRot and MoldRot and MoldRot and Mold

3434

Rot and MoldRot and MoldRot and MoldRot and Mold

3535

Rot and MoldRot and MoldRot and MoldRot and Mold

3636

Rot and MoldRot and MoldRot and MoldRot and Mold

3737

Additional IssuesAdditional IssuesAdditional IssuesAdditional Issues

• Soil grading (flooding)

• Communication between WCP and University

• Cost recovery mechanism

• Valuation of units

3838

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