Home Owners Association

The month of January has already flashed passed and it looks as if the rest of the year is going to do the same. In January the first monthly levy invoices were sent out to those homeowners who have taken transfer of their properties and several interesting queries and points were raised by these homeowners which warrant clarification. These issues are discussed below.

A. The Homeowners Levy

1. Several homeowners have requested to pay their levies annually in advance on the basis that they would get an additional discount. We believe that it is not in the best interest of the homeowners to agree to this, on the following basis:
   The HOA would earn approximately 5% per annum on the invested money (which is taxable in the HOA’s hands) The deposited amount is utilised over the paid up period, so the interest earned, is based on roughly 50% of the upfront payment. (As the deposit is used up) If one does the calculation of the breakeven of the after tax interest benefit compared to the discount to be given, at 5% interest earned, the break even is 2.66% (2.66% on an annual basis, it is less from now to September) Thus, we could only afford to give a 2.66% discount, without having to call on the other home owners to pay more to make up the shortfall in the collection of levies.
2. Municipal rates are not included in the levy. These will be billed by the Kouga municipality direct to each property owner. Enquiries on behalf of homeowners to the municipality have revealed that rates have not as yet been calculated for the estate.
3. The levy is the same for all erven on the estate irrespective of size or position. The levy is based on the common use of all of the facilities and infrastructure such as water, electricity, sewerage, maintenance of buildings plant and machinery. Every property owner has an equal share in the estate irrespective of the size of erven.
4. We will pass a R50 (plus VAT) credit monthly in the event that levies are paid by home owners by stop order. Please provide details to the office so that we can credit your account with the discount once your stop order is in place.
5. Some owners could not open the PDF format invoice file emailed for January. As a solution to this problem please download the Adobe reader from the following website www.adobe.com on the internet. If this does not work, contact us and we will make alternative arrangements as to the way we communicate.
6. Where property owners share ownership with another person or persons, such as fractional ownership, please make arrangements for the levy to be paid in full. The collection of portions of the levy must be dealt with between the individual owners. For administration purposes, the HOA will deal with one representative of the owners. (Copies of newsletters etc will be sent to the other owners, if the contact information is provided to us)
7. A final note on the levies. We apologize to those who received levy invoices which may have been incorrect or where we had the incorrect personal information. We will rectify this as quickly as possible however we need your assistance to get the information correct, and we respectfully request your backing. Please note we are here to assist you in any way we can. Our special thanks to those homeowners who paid their levies promptly.
8. Many homeowners have requested a financial breakdown of the make up of the levy. The levy is discussed in detail in Annexure C of the original sales agreement which was signed on plot purchase. The following budget figures are provided which are still subject to approval.

Period ending 30 September 2007

1. Budgeted Income: 2,862,300
2. Administration Expenses 771,102
3. Audit Services 18,000
4. Security 726,000
5. Internet & Communication (possibly later)
6. Insurance 45,000
7. Services (Electricity & Water) 355,500
8. Operating Costs - Ongoing Repairs 341,397
9. General Maintenance 420,600
10. Garden Maintenance 450,000
11. Future & Planned Maintenance - Reserves
12. Total Expenditure 3,127,599 13 Surplus/ Shortfall* -265,299
13. The developer has undertaken to meet this shortfall for the financial year.

B. Construction
To date we have one home that is complete and another 4 in various stages of construction. There have been 15 home owners’ plans that have been submitted to the Architectural Review Committee and another 8 homeowners have been through the first orientation meeting. This gives us a total of 25 homeowners who are active with the building process on site. At this rate we estimate that 80+ homes will be built by the end of the year. It is also interesting to note that 60% of those building are planning to be permanent residents. As we proceed with the building process several points must be highlighted.

1. The Record of Decision issued by the Department of Environmental Affairs & Tourism (DEAET) in 2005 specifies the rules of development on this estate. In addition, protocols relating to all aspects of the building process have been approved which set out the rules pertaining to the building of homes. These protocols provide guidelines for Architects, Builders, Subcontractors and Homeowners, ensuring the environmental and architectural integrity of this estate. These documents must be studied by all prospective homeowners and applied to any construction activity, they are available for download from our website: http://www.stfrancislinks.com/home_owners.php
2. To simplify the monitoring process we have made changes to the Plan Approval Application. The most important change is the cutting out of one stage of the process. These procedures are explained on the attached annexure.
3. If your plot has indigenous thickets or trees please try to include them within the design of your home. They provide shade and good wind protection. We do understand that some trees will have to go and in these instances please get the architect to detail the positions of trees to be removed on your layout plan as DWAF will not issue a removal permit without their positions relative to the home being shown on the approved plans. It must be remembered that in terms of the approval, for every single protected species of tree removed four trees of the same species have to be replanted on the estate!
4. The protocols are designed to ensure good quality building without detracting from the stated architectural style and environmental ethos of the estate. One aspect of the building process which is important is the appointment of a principal agent who will be the HOA’s contact through the building process. This is important especially for those owners who live out of town. We require a person who is local, preferably not the builder to ensure that the building process goes according to your wishes. In most cases the Architect is appointed to this position.
5. Changes to the protocols happen as we streamline the process and react to sensible suggestions. Please remember to check regularly on the website for changes. Once you start building we will notify the principal agent on site of any changes.

C. Security

1. Access cards are now being issued and should you have a chance to visit our offices please fill in a security form and collect your card from the maintenance entrance gate. Remember it takes 20 minutes to get a card so please don’t attempt to get it in a hurry!
2. Before the Easter Break we will increase the security level substantially and therefore if you can, please try to obtain your access card before the Easter rush to minimize your disruption.
3. In addition to the access card, as a member of the Golf Club, each homeowner will be issued with a Golf Club membership card which can be used for purchases on the estate.
4. You will note that the access card does not even refer to St Francis Links. This is a security precaution, so that if someone loses the card, it is not obvious to someone with bad intentions what the card is for. If cards are lost or stolen, this should be reported immediately so that we can electronically cancel them.

D. Staff

We would like to take this opportunity to introduce the permanent HOA staff to the Homeowners:

Frank Silberbauer - Estate Manager

Candice Peltenburg – Accounts Administrator

Marinus Peltenburg – Security Manager

Simtembele Kilani – Service Manager

JC van der Wath - Environmental & Maintenance Manager

Allan van den Heever - Building Manager