PROPERTY OWNERS' ASSOCIATION

Special Assessment to Fund a Horseshoe Bay Property Owners
Road Renewal Program.

Why use a Special Assessment?

Like most Property Owners Associations in Texas the Horseshoe Bay POA is a non-profit corporation established by The Declaration of Reservations created by the Developer and a set of Bylaws. The oversight of the POA operations is entrusted in a Board of Directors elected by the members and its operations funded by an annual Maintenance Fee assessment as set in the declarations. These same declarations establish the responsibilities of the POA which in HSB include maintenance of the approximate 122 mile road system. Over the past several years, The POA portion of the annual Maintenance Fee has not been able to keep up with the road maintenance needs and the upgrading of our aging roads.

These same Declarations, which established the POA, also limit its ability to raise funds for increasing maintenance and road renewal. And the POA is further restricted from borrowing money or carrying forward large sums for future projects. As a result the HSB POA Board believes that its only option for road renewal funding is to ask for a Special Assessment from each property owner.

The Horseshoe Bay Declaration of Reservations provides that the Assessment Association (Maintenance Fund) may establish an Assessment for the purpose of defraying the cost of several types of projects including the construction or reconstruction of capital projects. Such Special Assessments must be approved by 2/3rds of the owners of lots and tracts following appropriate notice of a planned special assessment. The Special Assessment may be made applicable to up to a total of five calendar years one of which is the year in which the Assessment is approved.

Should the HSB POA decide to ask its property Owners to approve a Special Assessment to fund Road Renewal Program it must do so within tightly prescribed time lines during the remainder of the year. If such action is not taken promptly, the collection of the Special Assessment would not take place until late 2009 making the funds unavailable until 2010.


Return to Road Renewal Menu

Return to Home Page