PROPERTY OWNERS' ASSOCIATION

Horseshoe Bay Property Owners’ Association

By Phil Lee, President

This is the first of a series of articles on the Horseshoe Bay Property Owners’ Association. The purpose of this series is to provide a better understanding of the role and responsibilities of the POA and how the POA serves its property owners and the community. The series will highlight such areas as the Organization and Staff, Nominating Process, the POA Budget, Road Maintenance, Long Range Planning, Quail Point, and Special Programs. The series is presented at this time to coincide with the annual election of new directors to the POA Board of Directors and the Annual General Membership Meeting in March.

Most of us have lived in developments where we had some type of homeowner organization that served as point of contact on issues and actions affecting the local community. In most cases, the HOA or POA had taken over from the developer who had established a basic set of covenants and restrictions that set down the standards for maintenance and beautification of residences and common property within the development. Across the board, the objective was generally the peace, harmony and cooperation of the property owners and the protection of property values. Initially the developer enforced compliance with these community rules and restrictions, but at some point as the development grew, the association assumed that responsibility.

A similar procedure was followed with the development of Horseshoe Bay, but with certain essential adjustments. When Horseshoe Bay was developed there was no municipal jurisdiction or taxing authority to provide the normal community infrastructure and funding. The developer expected to have a long-term presence and involvement in the community, especially with the development, growth and operation of the Horseshoe Bay Resort.

To meld these diverse needs together into a cohesive community the infrastructure required a very detailed set of covenants, declarations and restrictions. It had to establish sufficient central authority, organization, and control to keep pace with the growth and development of community needs, and the interests and investment of the Resort. That document became the Declaration of Reservations. Similar to deed restrictions, the Declaration of Reservations are binding on all property owners.

The Declaration of Reservations established the POA to provide the necessary infrastructure to assure a viable and functioning community. It transferred to the POA the ownership of the street network and numerous parcels of common property, including Quail Point. It assigned the POA responsibility for improving, maintaining, and beautifying all common areas, maintaining and operating all land and improvements owned by the POA, and maintaining the street network. The POA was also made responsible for the general maintenance of all other functions reasonably incident to the safety, health and welfare of the property owners and residents of our community and with enforcing compliance with the Declarations of Reservations.

To fund community needs and golf course maintenance, the Declaration of Reservations established a maintenance fee to be collected from the property owners. The Horseshoe Bay Maintenance Fund, Inc. was established to collect, administer and dispense these funds. The POA would receive approximately 34% of the revenue collected through the maintenance fees, with the balance going to maintain the golf courses. That split continues today. The income received by the POA from the Maintenance Fund increases annually based on the Consumer Price Index.

Beyond this annual disbursement from the Maintenance Fund, the only option available to the POA to generate additional funds for community construction or improvement is through an assessment of the property owners. An assessment requires the approval by two-thirds of the property owners. As the recent road assessment vote proved, this is extremely difficult to achieve.

To meet community needs and fulfill its responsibilities, the POA is organized around a Board of Directors consisting of seven resident property owners. The board meets monthly to review ongoing issues and actions, provide guidance and direction to the staff, and to establish operating policy. These meetings are open to all residents and property owners. They are always welcome to attend these meetings and express their concerns and recommendations on the various issues confronting the POA. The board is attentive to the property owners and residents and encourages their participation.

The board provides guidance and direction to the General Manager, who is responsible for the day-to-day POA operations and who serves as the point of contact for all POA business requirements. The GM is responsible for contracting and supervising the work performance throughout the subdivision, the resolution of resident problems and complaints, and the enforcement of the covenants and restrictions set forth in the Declaration of Reservations.

The GM, assisted by two administrative staff members, maintains the POA business office that is open from 9 a.m. to 4 p.m. Monday through Friday. They conduct all normal business operations and provide a point of contact for residents on all POA services and activities. The GM also represents the POA on both the HSB Maintenance Fund and the HSB Architectural Committee, and works closely with the city staff on community matters.

The POA provides several special programs and activities throughout the year. It hosts the annual POA Clean-up Day activities and the 4th of July parade and picnic. Quail Point serves as the Community Center for HSB. It is open daily for numerous special events, bridge and poker games, yoga, bingo, the wood-carvers, parties and receptions, group meetings, and routinely serves as the early voting facility for all of Horseshoe Bay. It plays a vital role in the life of our community, however the building itself is over 30 years old, and needs to be expanded and renovated to better serve the needs of the community and keep pace with development.

The incorporation of Horseshoe Bay and the establishment of a city government changed the infrastructure within our community. It has provided an opportunity to review and restructure some of the roles and responsibilities of the POA and to transfer those better performed by a municipal authority to the city. Two functions, building permits and animal control, have already been transferred city by the POA. No doubt, others will also be transferred as well.

However, many functions are better performed by the POA and would be burdensome to the city and less responsive to the needs of the property owners. The POA and the city continue to work together to achieve the best balance.

The HSB POA was established by the Declaration of Reservations and cannot be dissolved or terminated and any realignment of its roles and responsibilities require the approval of the Declarant and the Amenities Owner. The POA and its funding structure will continue as a viable element within our community and to serve its property owners. The HSB POA makes up over 93% of the population of the City of Horseshoe Bay. “We are them and they are us.”

Subsequent articles will more closely examine many of the activities introduced in this article. The POA is here to serve its residents and property owners. That responsibility is best accomplished with the participation of those we serve. If you have any questions or comments, you are welcome to visit the POA Business Office located at Twilight and Red Sails. The telephone number is 598-8795 and our email address is hsbpoa@tstar.net.

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