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Sept 2, 2020 <br /> <br />I am the Secretary/Treasurer of a Homeowners Association here in Orono. <br /> <br />We are one the many HOA’s with the responsibility for the maintenance of our common area <br />street. <br /> <br />We are moving forward on an update to our street. Our timing is get the work done over the <br />next two years e.g. 2021 and 2022. <br /> <br />Our preliminary investigation and bids that we have solicited indicate that the costs associated <br />with the rehabilitation of our street will be quite sizable, in the range of $200,000 to $250,000. <br />These costs have grown quite dramatically over the years. <br /> <br />The HOA’s approach has been to assess the homeowners for the costs of the road once <br />contracted for. At today’s prices, the assessment on a per property basis is as much as $25,000. <br />The HOA did not take the approach to assess in advance of an anticipated street rehabilitation <br />project. Most of the homeowners were not owners at the time that this approach was <br />adopted. <br /> <br />Our request of the city is this: We believe that city has the ability to provide a bond for the <br />finance of the road improvement. <br /> <br />We propose that the city use that ability to get the funds necessary to capitalize the project. <br />The city would then assess our homeowners with their pro rata share of the road project over <br />ten years. <br /> <br />The guarantors of the bond will be the homeowners as well as the city through its ability to <br />attach assessments to the property. <br /> <br />The HOA will be relieved of the assessment problem and collection process thereto related. <br />Property transfers will be accommodated through regular property transaction mechanisms. <br /> <br />Full disclosure is maintained because of the public nature of the property assessment. <br />Collection problems will be non-existent because the responsibility for the assessments are <br />attached to the property. We will not set neighbor against neighbor over the collection of <br />assessments. <br /> <br />All costs of issuing the bond, legal matters, etc. (hopefully reasonable) would be borne by the <br />homeowners who benefit. There are nine such homeowners. <br /> <br />This model could be used by the over 40 homeowner associations who have a similar <br />responsibility. <br />