What Are the Facts? #3 "They're Giving them Away!"

Decision Tree

Once more the HOA Board is playing fast and loose with numbers and facts.  At last night's meeting, they said that there have been "40 home sales in the past year … more than ever before."  That part is almost true -- there were 25 sales in 2013, however there were 23 in 2012 (I guess that takes it out of the realm of even "almost true."  Do they ever bother to even look at actual reports?)

Fallacy: Residents are "giving their units away."

Where the HOA Board's message really went off base, however, was when they said that the reason there are so many sales is because the conversion has scared the residents so badly that they are "giving their units away." 

I have been following park sales closely to try to determine what effect, if any, conversion is having on sales and sales prices.  I knew what the HOA Board was saying wasn't true as of October, 2013, but I wanted to make sure nothing had changed since then so I asked for a new set of official sales reports*.  I'll update this post as the 2014 sales are available.

Here's an interesting breakdown:

Year          Total Sales          High          Low       Average

2012                  23               200,000     22,500       82,124

2013                  25               142,000     30,000       75,722     

2013 AC*          16               142,000     30,000       82,950                                      

AC* - After Conversion - In other words 16 of the 25 sales made in 2013 were made after 7/1/2013 when buyers were informed of conversion.  Those sales had the low for the year as well as the high but the average sale price was actually somewhat higher than pre-conversion and the difference between 2012 and 2013 was minimal. 

At this point, I don't see that conversion is having much of an impact at all on sales, quantity or price.

Another thing to keep in mind is that, for a sale to take place, there is a seller and a buyer.  I've talked to a lot of the residents who purchased after the conversion was announced and they seem to be quite excited about the possibility of buying their lots, and for some it was a major consideration in making their purchase decision.

* Thanks Connie Winstead who reminds me that the numbers do not reflect "Sale by Owners" but says those are very rare.

Meetings

Last sunset of 2013

HOA Meeting Tuesday, 1/14/2014, 6:30 pm, upper clubhouse.  Maybe we'll hear some of the results of the committee meetings Jeff McAllister was hosting in December. 

Board of Supervisors Meeting, Tuesday, February 4, 9:00 a.m., 1055 Monterey St., Room #D170.  This is a public meeting focused on the conversion survey.

The question I've asked for months is:  what would a new survey accomplish? 

The only answer I can come up with is that it's just a way to stop the conversion.  However, since 166 of us seemed to understand the survey well enough to complete it, I don't understand why our votes are going to be tossed aside. 

What Are the Facts #2: The Space Rent Limit for Over-80 Residents Is Real! … or Was!

Just another January day at the beach.

I've had a number of residents ask me about the space rent limit for over-80 residents.  They report being told that it's "not real because it's not in writing." Or it's "not real because it's age discrimination so it would never hold up in court."

Balderdash!

#1.  Susy Forbath put this policy in writing in a green sheet she put out to all residents in the tubes on November 19, 2013.  (See below for verbatim wordage.)

#2.  If this is age discrimination, the same goes for McDonalds, the movies and every other business that offers senior discounts. (Some start at 55, some at 62, 65 or some other threshold determined by the business.)

#3.  In order for this not to "stand up in court," someone would have to sue.  What kind of a person would try to take away a benefit such as this from a senior citizen?  It would have to be a resident of this park to have any hopes of claiming "damages."  I don't think so … to at least I sure hope this isn't something that one of our neighbors would do.

Here's the statement that came out from Susy on  Gilchrist & Rutter stationery, November 19, 2013:

If approved by SLO County before January 1, 2014 and no appeal to the County is filed, starting the month after County approval, space rent for any resident homeowner 80 years of age or older at the time at the time of conversion will be increased by no more than 1% per year, not to ever exceed a compounded increase of more than $100 during the length of tenancy.

Officially … since the HOA and their lawyer appealed the conversion and succeeded in convincing the County to deem the application incomplete because of questions about the survey of support … this benefit to seniors is off the table.

However, conversations with Susy Forbath indicate that, if the application is deemed complete by the County, it will be reinstated.