A monthly $50 occupancy fee may be implemented in Third Laguna Hills Mutual for each person above two in a household, the board discussed Tuesday, Feb. 15.
The operating budget only considers two-person households, so the fee would be used to mitigate expenses from increased utility rates, most particularly water, and wear-and-tear of common areas, according to a Village Management Services staff report.
Approximately 73 condos in Third Mutual house more than two non-lessee occupants. Charging an occupancy fee would generate at least $43,800 per year.
Of the 67 live-in care providers – who are not entitled to use GRF facilities – 26 are third or fourth persons of residence. If applied, the fee would generate an additional income of $15,600, totaling $59,400 per year.
The new fee would mirror the charges GRF and United Mutual have in place, $100 and $50 per additional occupant respectively.
Public comments at the meeting presented a mixed bag of takes on the fee proposal. Those in support called the fee “reasonable,” “modest” and a “fair way to keep down expenses.” Those in opposition viewed the fee as “another restriction on property rights” and a “bait and switch.”
“What we do in this community, from my experience in other HOAs, far exceeds what is included in most communities,” said Director Donna Rane-Szostak, calling for more transparency via a published breakdown of what monthly assessments include to better inform residents.
To no objection, the board approved the resolution. The resolution must satisfy a 28-day notification requirement.
Manor alteration fee schedule
Third passed a resolution that would implement a revised manor alteration fee schedule, featuring several fee increases.
Alterations are optional modifications to a unit that require the mutual’s consent, as defined in a staff report.
Alteration fees, a charge a member would pay upon variance request, would increase by $20, jumping from $50 to $70.
As revised, the Basic Variance fee is set at $380, the Complex Variance fee is set at $662, the Unauthorized Alteration fee is set at $350 and the Resale Inspection fee would increase from $115 to $220.
Staff projects $83,000 in additional revenue from the proposed alterations fee schedule.
“We have too many things that we require variances for,” Director Jim Cook said, noting that staff and members are carrying the burden for items that could be handled at the city and engineer level in a separate review process.
“We can certainly commit to working toward a more equitable situation to reduce variances and handling it at a staff level in the future,” said Robbi Doncost, VMS Manor Alterations manager. “This revised fee schedule is a step in the right direction … it gets us to a point of (including the) additional services that staff is providing.”
The board approved the resolution. The resolution must satisfy a 28-day notification requirement for member review.
Project log
Manuel Gomez, the director of Maintenance and Construction for VMS, presented an overview of Third Mutual’s project log, a list of 19 items to be completed this year.
Projects budgeted at $1 million and up for 2022 include the Prior-to-Paint program and the Exterior Paint program, which both operate on a 15-year cycle, as well as the Roof Replacement program.
Trailing by cost, installing structural sewer pipe lining in four of Third’s three-story buildings as part of the Epoxy Waste Line Remediation is budgeted at $700,000.
The Copper Water Line Remediation, to be serviced in five buildings experiencing frequent copper pipe leaks, and Building Structures project, where staff will replace structural components as needed, follow at a half million.
Staff will also be tackling the Dry Rot program, at $275,000; Balcony and Breezeway resurfacing, at $110,039; and Termite Control, at $175,000.
For more information on upcoming projects, join the Third Mutual M&C Committee meeting on Monday, March 7 at 1:30 p.m. in the boardroom.
COVID-19 update
The decline continues in the spread of COVID-19 across Orange County, according to data published by the OC Health Care Agency.
The adjusted daily case rate in Orange County dropped to 17.3 cases per 100,000 residents as of Tuesday, according to OCHCA.
In the city of Laguna Woods, there have been 1,037 COVID-19 cases and at least 69 related deaths, as of Tuesday.
The testing positivity rate in Orange County stands at 4.7% — it’s the number of swabs and spit tests that are returning positive for the coronavirus.
Meanwhile, the health equity rate – the test positivity of disproportionately impacted neighborhoods – is reported at 3.6%.
Resale report
The average resale price for a unit in Third Mutual in January was $450,228, up from $400,823 in January 2021, according to a VMS staff report. Resales year to date numbered 50, up from 41 the year prior. Sales volume in January was $22.5 million compared with $16.4 million in January 2021.