Serving the Residents of Lakewood Forest
2019 YEAR IN REVIEW-Legal Expenses
Legal expenses are paid to an outside law firm to assist with both collection and deed restriction issues. Often times, the association must file lawsuits against owners in Harris County Civil Court in efforts to collect outstanding assessments or seek compliance on severe violations of deed restrictions. Out of 2616 lots, on average, 5-8% are under legal consultation at any given time. The HOA does recoupe a portion of legal fees on an annual basis.
Figures for 2019 are as follows:
Budget for legal fees 130,000.00
Approximate amount spent in legal fees 90,000.00
Approximate reimbursement from owners 31,000.00
Actual net expense 59,000.00
The most common issues for legal referral in Lakewood Forest are:
-Collection issues (owners not paying the annual assessment)
-Lack of exterior home maintenance
-Lack of exterior lawn maintenance
-Inoperable, recreational, commercial vehicles & trailers parked in subdivision outside of garage
Financial Information
2019 YEAR IN REVIEW-Financial Highlights
- Association collected 99.85% of the assessment billed in 2019
- An audit of the 2018 financial records was conducted by an independent 3rd party accounting firm, McCall Gibson Swedlund Barfoot PLLC
- HOA has been fully funding the reserve account on an annual basis since the inception of the initial reserve study conducted in 2016
- HOA was able to make an annual contribution in the amount of
$126,250.00 (excluding interest) towards the community projects fund in 2019 which was instrumental in keeping the assessment rate the same for 2020
2019 YEAR IN REVIEW-Association Endeavors, Community Project & Reserve Funds
- Major endeaveors in 2019:
(1) Dick Taylor Pond, Erosion Pt. 8 project which addressed erosion caused by Hurricane Harvey at the perimeter wall at the Dick Taylor Pond in the patio lake section; thank you to Mike Chidalek for his involvement in this project.
(2) Initiation of phase 1 of Grant Road Wall Replacement Project
Community Projects Fund
Community Projects Fund Contribution
- Total contribution to the community project fund for 2019 was $ 127,459.76 which consisted of the following:
(a) $ 50,000.00 contribution for 2019
(b) $ 1,209.76 interest income
(c) $ 50,000.00 contribution made in December as a contribution for 2020
(d) $ 26,250.00 contribution made in December to allocate towards future tree trimming which did not occur in 2019
Community Project Fund Expenses
- $ 5,712.50 for electrical work, survey, permitting costs and installation of LED sign
- $ 3,900.00 for decorative landscape bed at Fund Office
- $ 4,391.74 for new decorative lanterns for all monument wing walls
Reserve Fund
Reserve Study – A budget planning tool which identifies the current status of the reserve fund and a stable and equitable funding plan to offset anticipated future major common area expenditures.
Reserve Fund Contribution
- Total contribution to the reserve fund for 2019 was $111,378.75 which included an annual contribution as dictated in the reserve study in the amount of $90,200.00 and then an additional $21,178.75 which was earned in interest income. Reserve Fund Expenses
- $3,275.00 in landscape refurbishments
- $9,970.00 in expenses affiliated in preparation for replacement of Grant Road wall replacement project (Engineering consult, right of way/boundary & easement survey, geotech soil testing)
Lakewood Forest Fund, Inc.