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Defect Remediation Project

Defect Remediation Project. West Campus Point March 13, 2007 Part 4 of 4. Additional Issues. Soil grading (flooding) Communication between WCP and University Cost recovery mechanism Valuation of units. Guiding Principles.

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Defect Remediation Project

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  1. Defect Remediation Project West Campus Point March 13, 2007 Part 4 of 4

  2. Additional Issues • Soil grading (flooding) • Communication between WCP and University • Cost recovery mechanism • Valuation of units

  3. Guiding Principles • WCP Board needs to be an equal partner with University in shaping and approving all aspects of the solution • No one wants to go through this #$#%&! again!

  4. Action Items • Regular operational meetings • Access to senior administrators • Timetable • Periodic high-level progress reviews

  5. WCP Finances • Everett Kirkelie created the first budget in 1986 • Yearly Budgeting > Homeowners’ Assessments 2007 Assessments based on reviews conducted every 2-3 yearsof 30-year infrastructure needs • Operating… 2/3 • $323 per month • Landscaping • Insurance • Management • Reserves… 2/3 • $168 per month • Roofing • Paint • Street

  6. Total Monthly Payment Per Unit 2007: $491/month $177,000/(30 Years) 1987: $135/month $48,600/(30 years) 1987 Scaled by Faculty Salary Scale (CPEC) Original budget created by Everett Kirkelie Sources: WCPHOA Annual Reports, BLS, CPEC

  7. Total Monthly Assessment Per Unit 2007: $491/month $177,000/(30 Years) 1987 Scaled by Consumer Price Index 1987: $135/month $48,600/(30 years) 1987 Scaled by Faculty Salary Scale (CPEC) Sources: WCPHOA Annual Reports, BLS, CPEC

  8. Assessment Based on Reserve Studies Total 100% funding of recommended assessments CPI CPI Roof/Deck/Trellis Sources: WCPHOA Reserve Studies, BLS

  9. Assessment Based on Reserve Studies Total CPI CPI Roof/Deck/Trellis Sources: WCPHOA Reserve Studies, BLS

  10. Why Reexamine the WCP “Index” for Appreciation of Units over Time? • To restore original intent of both the University and faculty • To increase the chances that WCP owners would be able to move out, thus freeing the homes for future recruits. • To create a common standard to apply across all UCSB faculty housing owners at WCP, North Campus, etc. based on current published economic information.

  11. Total Percentage Change in Real Estate Prices and CPI, 1975 QI – 1985 QIV • This graph • Approximates a graph shown to first buyers to justify using CPI as index. • Shows that CPI and real estate prices rose at similar rates, on average, in base period.

  12. 1986-2006 Total Percentage Change Since 1986-IV In CPI and Three Housing Price Indices (Housing Data: Office of Federal Housing Enterprise Oversight) 450 400 350 California Housing 300 USA Housing 250 CPI National Cumulative Percent Change S. Barbara Co. Housing 200 150 100 50 0 2003 2004 2005 2006 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year http://www.ofheo.gov/HPI.asp

  13. 1986-2006 Total Percentage Change Since 1986-QIV in CPI and Three Housing Price Indexes • Inflation in housing prices has far outstripped the CPI in the last decade • “Santa Barbara Co.” trend data are for the “Santa Barbara-Santa Maria Metropolitan Statistical Area” • OFHEO data cover • Single family homes • Repeat sales of same properties: “constant quality” • Conforming mortgages only, up to $417K • Readily available data (End of Part 4)

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