The Klahanie Board of Directors continues to work toward offering the community a practical and financially responsible solution related to our need to address the replacement of our office and consider the timing of replacing and possibly expanding our Mountainview Pool complex. Under the leadership of our current board, the previous several boards, the Building and Special Projects Committee, the Finance and Operations Committee, Urbal Architecture and Gary Lin (Lineage Real Estate, L.L.C.), we are at the point where current board action is necessary to continue to move this process forward. We need more definitive information to make the best decisions about this significant project for the future of Klahanie. To this end, on Tuesday December 17th, the Board will be voting on whether to take the next step toward this goal. This next step would involve allocating $310,000 of already approved 2025 Reserve study budget funds for the development of plans and building-related studies for the board’s further consideration. With the allocation of these budgeted funds, the Klahanie Board of Directors will get the information needed to determine the project’s scope, budget and timelines. This will equip the board to make a decision about whether or not to move forward to the next phase of this project development which includes preparing for applications for construction permits to the city and state. The community will also have more time to ask questions and get more specific answers.

• The Klahanie Board has the obligation, as outlined in governing documents, to maintain and Klahanie’s common areas and amenities. This includes our trails, office, courts, green spaces and pools. • Specifically, for the past five years, the Board (under at least 25 different board members) has worked with various consultants in conjunction with the Building and Special Projects Committee and Finance and Operations committees to develop these options. • The current Klahanie office is a manufactured building that was built as a temporary sales office for the Klahanie developer in 1985. We need to vacate our current space because of the building’s structural deficiencies and zoning of the property on which it sits. • The Mountain View Pool has significant structural issues that need addressing including drainage, compromised pool liner and a settling deck. • The Board considered addressing the pool and office issues separately but determined that it would be more fiscally responsible to combine these projects. Additionally, our residents have expressed a strong interest in providing a community gathering space and now is the time to consider this option.

When purchasing a property in the Klahanie Association HOA, buyers agree to adhere to the governing documents of the association. The board oversees the funds and operations, utilizing dues and other raised funds to manage tasks. Members convene annually to elect directors and discuss relevant topics. Generally, the association's assets, such as the pool, courts, and trails, must be maintained within the budget. The board strives to maintain, repair, and replace these assets, with opportunities for capital improvements when possible.

A reserve report is conducted by a skilled professional, and state regulations mandate that it be completed annually. Klahanie has utilized two different companies over the past two years and is looking to hire a new expert this year to provide more detailed information in a report that will be received in the spring.

Our current office building is about 40 years old. When considering a 20-year period, renting for a 10-year term at the quoted rate would cost approximately $900K. With expected rent increases, the cost for the second 10-year term would be around $1.3M, bringing the total to approximately $2.2M for 20 years. Over 40 years, rent would total approximately $7M. If we invest in our own building, we can maintain and upkeep it diligently, ensuring we have a viable building after 40 years without remaining loan payments.

The pool is dangerously shallow, the liner needs replacement, the deck is sinking, soil reports are required, and the pool is 30 years old. Investing in repairs for such an old pool is fiscally irresponsible.

As a member of Klahanie, you are required to pay dues for the maintenance of all amenities. While using the amenities is optional, financial support through dues is mandatory. Many people find that the amenities positively impact their property values.

The expansion aims to increase our offerings to Klahanie residents. We are currently at the capacity for swimming lessons due to limited pool space and cannot meet peak demand with only 4 lanes, resulting in long waiting lists. The new pool will be 25 yards long, in line with updated pool standards. The width will depend on the number of lanes. For reference, an Olympic or long course pool is 50 meters long by 25 meters wide. We are proposing a pool about half that size.

Currently, our board meetings, committee meetings, and staff meetings take place in a 360 square foot room, which is insufficient for groups larger than 10 people. An indoor meeting space would allow us to host events for Klahanie residents and provide rental space.

Most of the pool usage by residents involves swim lessons and lap swimming, so lap swimmers are not a smaller interest group. The teams that rent our pools provide more value than they receive, as the association earns more from them than the costs incurred. This benefits even non-swimming owners by helping cover these pool expenses, reducing the burden on dues.

This project will be funded by utilizing multiple sources available to the Association, including money saved in our Reserve Fund for the project, money saved in our Capital Fund for improvements to our facilities, and money from future dues income. The effect on dues will depend on the scope of the project and the amount necessary to borrow to complete the project. Here are a few scenarios that may be considered: If we take out a 15-year loan of $10 million with an interest rate of 6.5%, monthly payments would be approximately $87,110, or $1.04 million annually. $1.04 million annually divided by 3,021 dues-paying households is roughly $346 per household per year. If we take out a 15-year loan of $8 million with an interest rate of 6.5%, monthly payments would be approximately $69,700, or $836,000 annually. $836,000 annually divided by 3,021 dues-paying households is roughly $277 per household per year. If we chose not to take a loan out for this project, we would likely need to increase dues to much higher levels, to save the amount needed for the replacement of our office building and the repairs needed for the Mountainview Pool complex due to the immediate need for completing these projects. By taking out a loan and spreading the payments out, we can keep the increase to dues lower. As we have not finalized the scope of the project, we don’t know exactly how much will need to be borrowed, nor the interest rate. The above are some scenarios we are considering, but exact numbers will not be available until we know the final costs for the project, likely late 2025. The Association will also utilize other non-dues income to help fund this project. Income from swim lessons, swim team rentals, and interest on investments can help bring the per household number down over the 15-year life of the loan. The amount of non-dues income that may be available to help fund this project is continuing to be evaluated by the Association and will be shared here as it becomes available. By spreading the costs over a 15-year period, we hope to make the burden on each household manageable. Moreover, if you were to sell your home in the next 15 years, the dues and costs for this project would be then paid by the new owner. Each household would only be paying for the cost of this project while they own a home in Klahanie.

The Mountainview pool has drainage issues and needs a new liner. Although repairs are possible, replacing the pool is a more financially sound option, especially considering the buildable space challenges at Lakeside. We already own buildable space at Mountainview, making it a practical choice. Additionally, we can improve our reserve reports. For the past five years, the board and many members have recognized the need for new office space, and approximately $780K has been set aside in reserves for this purpose.

Our available funds will allow us to structure a line of credit for 18 to 24 months. After construction, we will transition to a 10 to 15-year loan of $7-10M, with the goal of making aggressive repayments to be fully paid off within 10 to 12 years. Debt service and payments can be managed within our operating budget and supplemented with non-dues income.

Yes, dues will increase in 2026 and 2027. The exact dues amount will be determined annually through the budget process. Dues increase for several reasons, including: · Our community amenities are aging and require work · Previous boards reduced dues when increases were advisable, resulting in lower reserves.

Urbal Architecture and Lineage have been developing plans for Mountainview, relying on professional forecasting. Additional factors such as approvals from the Fire Department and County, traffic studies, and expanded space requirements contribute to the cost difference.

Additional lanes are estimated at approximately $250K per two lanes. Pricing depends on permits and market costs for materials.

Due to material breakdown and updated land use requirements, the facilities require significant upgrades. Replacing the pool and combining it with new office space is a financially sound decision. The project is classified as a replacement under reserve report guidelines and state statute.

We are increasing the number of postings on our page and the project’s landing page. Additionally, we are directly engaging with Klahanie Families.

Dues are set to double or triple in the next 5 years. Play equipment and lawn at Mountainview are disappearing. Board acting in secret. Lakeside pool repairs in the next 3-5 years will cause dues to go up even more. Summerwalk tripled their dues because of this project. The board members have a conflict of interest.

This decision will be made later. Residents would have a low fee, while non-residents would pay a higher fee and deposit.

Discussions began in 2012, followed by feasibility studies. Meeting minutes have been available, and multiple updates have been communicated in newsletters and other forums.

Any vote set up by the association requires a 51% or 75% affirmative vote to pass, which is difficult to achieve. This is included in the governing documents.

Environmental studies and inspections indicate that we are significantly out of code. The current manufactured building is inadequate.

No, the cost is prohibitive. Lakeside pool is covered with a bubble during winter months and accessible to all residents.

We encourage you to drop by, talk to staff, or email us your question. We are continually adding answers and updates.