Assessment and Property Value Facts

Developments and communities have a variety of assessment models. Many communities where golfers are a minority have assessment structures where golf members pay a significantly higher annual assessment: 2 to 3 times that of non-golf members in the same community. This is particularly true of most developments coming online in the past 10 years in most markets where non-golf owners own the majority of units. Some communities have assessments based on square footage and other factors.

Real estate agents acknowledge that Zillow has the highest volume of traffic for real estate buyers. That means the information contained there about the greater value loss at Eastman is public information and well disseminated.  Mr. Goldsmith’s figures demonstrate the reality that Eastman property values have deteriorated twice as much as the average NH property:

$253K /$222K = 12% NH real estate average value LOSS.

$291K /$220K = 24% Eastman real estate value LOSS.

Our July 8 Blog post “Are Eastman Properties Worth more today than in 2010?” (click here) correlates the property value reductions at Eastman in the past 4 years with other neighboring communities. You can be sure the average NH community did not pour $4.5 million into a community center and several million dollars into the ground at a golf course. One can see that by significantly increasing our Eastman ownership costs we have more than doubled the loss on our property values versus state property values. Are we to accept the conclusion to “continue spending more and continue lowering values”? read more.

Looking at the bigger picture is a good idea however the big picture ought to be markets such as the Lebanon-Hanover area, not the State of New Hampshire. That market analysis tells you that the highest wages in the State are in the Lebanon-Hanover market ($26.08/hr.--source NHES). It tells you that housing units for sale as a percent of units in the communities of Hanover, Lebanon, Enfield and New London is less than 3% while Eastman is almost 9%- more than three times our neighboring communities. It tells you that the Lebanon Hanover market has the lowest unemployment rate in the state and a housing shortage.

The housing units for sale marketing data are remarkably similar to that of an analysis we did four years ago comparing the same towns. Obviously those in control of this community do not want you to know this information for a very good reason: THEY WANT YOUR MONEY NOT YOUR VOTE. So don't tell anyone - everybody outside already knows!!

There are a very few new communities where the assessments are the same.

Most of these would be where the majority of owners (70% or more) are golfers, often with homes valued at $500,000 or above.

Yes, we are equal owners, however lawyers on committees and the Board, aided by others ensure that we do not have equal rights and that we are not an open transparent society. In fact the wealthiest amongst us want us to be secret and not talk about what goes on at Eastman because that would demonstrate to the public that we are unequal owners. It's called volunteering to be shackled and being intimidated if you resist.

HOA’s are actually a unique breed of community. Bear in mind, Eastman is not an HOA.  Built into many HOA documents are greater ownership rights on the ownership part of the developer. This often addresses adding additional units, on-going property management etc. In these cases, owners have limited ownership rights. There have been a number of court cases across the country where these ownership rights have been the subject of much consternation on the part of the buyer/owners in those associations. It's a good idea to Google HOA's and look at homeowner rights if you want to be more knowledgeable of what could be coming down the road here at Eastman.

Eastman is a corporation organized as a 501(c) 4 and its form of governance is contained in numerable documents, many of which are not in the Declaration of Covenants & Restrictions as was the intent of the founders. Yes, the Declaration documents have been changed more times in the past 12 years than they were in the first 30 years, essentially neutering the Council and providing opportunities for innumerable closed meetings on the part of the Board and other governance entities sometimes subsets of Committees. There was a time when the business of the Board was done at the public Board meetings—now it is primarily done at closed meetings. By a total integration of the Council Chair with the Board, collaboration has resulted in often hidden powers being given inappropriately through other documents, as Randy correctly pointed out. One example was the recent sham of a Committee, the CRC, being composed entirely of golfers who had the power to have their recommendations presented to the Council without a community vote. Board Policies, Golf Committee Bylaws, (click here)  Board Committee Charters etc. etc. have all been means whereby power and knowledge has been removed from the “equal ownership” that each Eastman owner has in this community. The more than adequate seeding of elitists and golfers on the Council shuts out the majority of owners from having transparent, open governance and direct vote on how incredible sums of money are spent with no real oversight. What the average Eastman owner does not know does hurt him or her financially both in property value and in excess assessments.

Submitted by Robert Logan who is the CEO of a consulting practice since 1993 which provides expertise on improved business, financial and operational performance as well as leadership.