A Big Chunk of Change

Fellow “Del Webb Reno” Owners:
I know a lot of you are unhappy that $15.00 of your monthly assessment paid to the Somersett Owners Association (SOA) of which you are a member is diverted to the private Somersett Golf and Country Club (SGCC) of which you may or may not be a member. I understand SGCC currently has 132 equity members.

Sierra Canyon’s 854 unit owners pay monthly assessments to Somersett.  Before long there will be an additional 375 owners as Sierra Canyon II comes on stream.

Now: $15 x 854 x 12 = $153,720 per year

Potential: $15 x 1,229 x 12 = $221,220 per year

Developer Pulte may build a total of 1,460 units which would equal $262,800 per year going to SGCC.
That’s a big chunk of change to send away from home for any cause!

Did you vote for this? What if your monthly assessment went down $15/month??? Are you a Club member? How many people in America would vote to support a private club they don’t belong to?

Did you know the SOA/SGCC Agreement gives SOA the “right to designate up to two (2) individuals who will be entitled to observe any and all meetings of the Board of Directors of SGCC.”

Do you know that the current two observers are also directors of the Somersett Owners Association?  How independent are they? Have you ever received any reports from them about what is going on with your money?

It should be noted that currently there are 2,446 assessment paying units for with a total of $404,280 going to SGCC. The Sierra Canyon $153,720 makes up 38% of the total SGCC receives. Has the time come for one of the observers to be a Sierra Canyon/Sierra Canyon II (Del Webb Reno) owner?

If you would like to be one of the observers, please contact the SOA board members by sending them an email ℅ Melissa Ramsey, Community Manager for Somersett at mramsey@mysomersett.com asking that an appointment be made and that you would like to be considered.

Thank you.

Joe Bower, Owner Sierra Canyon and Member Somersett Owners Association

5 thoughts on “A Big Chunk of Change

  1. Joe,

    I completely agree and support you with encouraging our neighbors in Sierra Canyon to get involved with the SOA. While the $15/month going to the SGCC might not be popular with some residents, I think there is a bigger picture here. Your analysis illustrates 2,446 assessment paying units for a total of $404,280 going to SGCC annually. As you refer to this as a “Big Chunk of Change”, this amount is dwarfed by the millions of dollars that would be lost in home values throughout Somersett if the golf club was no longer. Let’s take a simple average loss of $10,000 per home. On the basis of 2,446 units in the community, you would be looking at a loss of $24,460,000 in home values. I believe this estimate is quite conservative and the $15 assessment would have to be in place for 60 years to equal this amount. I think our $180 annual investment to protect the value of our homes and community is worth it’s weight in gold. I am not disregarding the fact that $404K is a big number, but $24.5 is not only a different ballgame, but an entirely different sport.

    1. Brian, ,

      You assume that if homeowners do not support the Country Club with assessments, it will close thereby permanently affecting property values. This may be a valid assumption in the short term, but then again it may not as the housing market is affected by a variety of economic factors. However, you, as well as many other proponents of the assessments, continue to skirt around the real issue. That is, does the SOA Board of Directors have the legal authority to assess homeowners (be it $15/mo, $30/mo or whatever) to shore up the Country Club, or take other actions they believe will protect property values, without homeowner approval? The answer is clear to me, what about you? I suspect that if the assessments had been $150/mo instead of $15/mo, you would have a different take on the matter.

  2. It is not possible to calculate the future effect on Somersett home values were the private golf course to close. However, it is possible to calculate the value history for homes at D’Andrea and near Northgate from before the general economic downtown and the closing of their courses till the present time. I suspect the values went down along with the rest of those for all homes in Reno/Nevada and maybe farther due to course closings. However, I suspect D’Andrea/Northgate homes are now increasing in a steady fashion.

    Article II Section 1 of the CC&R’s spells out the Purpose(s) of the Association. No where in the Article does it state one of the purposes of the Association is to maintain or increase home values.

  3. I want to hear you guys crying when they build homes on that golf course. My, my, I guess that $15 a month is really going to make a HUGE difference in your standard of living…

    1. To those of you (mostly Country Club Members) who feel that assessing homeowners $15/mo is meaningless change one should not complain about, I would offer the following unsolicited advice.

      Given that the Country Club needs community support more than the community needs its amenities, I suggest a more conciliatory approach. There are a lot of homeowners who feel their $15/mo could be better applied elsewhere as they get no benefit from the current agreement, this is a fact Country Club Members need to recognize. Whether they like it or not, there will be a vote on continuing homeowner assessments via the current or a replacement agreement. Insulting those who question the value of the current agreement and that $15/mo is peanuts one should not be concerned about, is simply bad policy. Lease Agreement supporters will need all the votes they can get as passage should not be considered a given. I suggest focusing on reaching out to the community with a more honest purpose as to why community support is needed and how it will benefit the community. This as opposed to the previous approach of look what “wonderful amenities” we are giving you access to and, by the way, you have no choice in the matter. I think you get the drift here.

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