The Board of Directors is responsible for determining the costs of operating and maintaining the cluster. Each year, the Board develops a budget, which is presented to cluster residents at the annual meeting in December for review. Based on this budget, dues are levied for the following year. Special assessments may be levied by the Board at any time as need arises, to fund unexpected or under-funded situations during the year. This might include, for example, mid-year increases in a cluster service contract, weather-related damage to the trees or grounds, or unexpected roadway or sidewalk repairs. Special assessments differ from, and are in addition to, annual dues because they are for a specific purpose and for a limited period of time.
Paying dues is a legal responsibility assumed by purchasing a house in Hillcrest Cluster.
Dues are billed annually by the cluster’s financial management company. It is important that all members pay their annual dues promptly in order for the association to take care of its financial responsibilities.
Annual dues are based on a budget developed by the Board of Directors. The budget includes all the necessary expenses to maintain the cluster in good working order and includes common grounds maintenance, streetlights, trash collection, snow removal, insurance, infrastructure and other administrative expenses. Revenues are comprised of annual dues, interest income, prior year dues payments, and any carryover funds that may be available.
In 2018, the Board completed a Capital Assets Reserve Study to meet the requirements of the Virginia POA Act (2008), as amended. The study identified the cluster’s capital infrastructure assets–roads, sidewalks, pathways, and recreation areas. Since it is imperative that the Hillcrest Cluster Association (HCA) take necessary actions maintain these assets in a good state of repair, it was necessary to identify the useful life and the replacement costs if the assets, which was estimated at approximately $800,000 in 2020 dollars. The VA POA Act requires that homeowners associations establish a capital reserve to maintain and rehabilitate its infrastructure to keep our community in a state of good repair. Based on this study, the cluster Board of Directors established a capital assets reserve for emergencies, and a long term capital replacement program for roads and sidewalks and recreation equipment. The annual contribution to these reserve funds is also included in the cluster’s annual budget.
Per the cluster’s By-Laws, Board members may be compensated for their service. The tradition for Hillcrest Cluster has been for Board members to be compensated the equivalent amount as their annual dues. Board members are not, however, required to accept compensation for their service. To do so is voluntary. That said, when a Board member chooses to be compensated, we follow the rules set forth by the Generally Accepted Accounting Principles (GAPP): Each Board member pays their dues and then requests reimbursement for the amount paid, and these transactions are accounted for in our books. The reimbursement is reported to the IRS through form Misc-1099.
The current billing schedule follows.
- At the end of the calendar year in December, invoices are sent to homeowners.
- Hillcrest Cluster offers homeowners a discount, which is determined by the Board, if dues are paid by February 28th of each year. The postmark on the payment will determine eligibility for any discount offered.
- Payment in full must be made by June 30th of each year to avoid accrual of interest.
- From the first day of July, all accounts with an unpaid balance will be charged interest at the rate of 1.5 percent per month. Interest will be charged to the account on the first day of every month in which there is an unpaid balance until the account is paid in full.
- If necessary, quarterly statements are mailed to all HCA Members with an outstanding balance on the first of April, July and October.
- All accounts with an overdue balance on December 31st will be referred to the HCA legal counsel for collection. After the account is referred and after due notice has been given, a lien will be filed against the title of the property. Should the account continue in arrears, further legal action may be taken. All legal expenses, including attorney fees, incured by HCA in seeking to enforce it’s governing documents shall be added to the account balance, and shall be the basis for a lien and/or lawsuit to recover all sums owed.
Special assessments may be levied by the Board at any time if the need arises, to fund unexpected or under-funded situations during the year. This might include, for example, mid-year increases in a cluster service contract, weather-related damage to the trees or grounds, or unexpected roadway or sidewalk repairs. Special assessments differ from, and are in addition to, annual dues because they are for a specific purpose and for a limited period of time.
Payment Options
Payments can be made by check or electronic funds transfer. If you want to pay electronically, you should contact Capitol Property Management to request the required form.
Capitol Property Management 3914 Centreville Road, Suite 300 Chantilly, VA 20151
Tel: 703.707.6404 (Ask for our Account Rep: Mia Diamond)
Budget
Hillcrest Cluster maintains an average annual income of around $230K, much of which comes from dues collected from its membership. These funds are managed by the Board of Directors with the support of our Financial Management Company to provide resident services, legal and administrative services, common grounds property maintenance, and support the capital reserves which are utilized for long term maintenance and upgrade efforts.
To the right is a general breakdown of the different sections of the budget. The largest category is Major Maintenance, which includes road maintenance, landscaping upgrades, and tree maintenance.
In 2018, the Board of Directors established a five year operating budget plan as a guide for future expenditures and annual dues. This projected budget will be updated annually to ensure that residents and homeowners are kept abreast of the associations financial needs.
Last Updated: 8/27/2018
