AMENDMENTS FAQ

Ballot Initiative FAQ: Proposed Cap Increase for Annual Maintenance Fee

The Nassau Bay Homes Association (NBHA) is asking homeowners to vote on a proposed increase to the cap on the annual maintenance fee (dues). Currently, the annual maintenance fee cap is $0.01 (10 mills) per square foot of lot area and we are suggesting an increase to $0.02 per square foot of lot area. This modest adjustment is essential to keep our community financially stable, legally protected, and well-maintained for years to come.

Give me a good reason to vote for this? 

Costs have risen dramatically in recent years, but NBHA’s budget has remained unchanged since the 1960s. We are still operating on a framework established during a different era–when insurance, legal fees, and maintenance costs were a fraction of what they are today. This proposed increase to the cap on the annual maintenance fee will help up:

1. Cover rising insurance premiums (up 20% annually for 3 years)

2. Build reserves for future maintenance and emergencies

3. Establish a legal fund to protect the HOA and homeowners

4. Avoid sudden special assessments

What are my annual dues paying for?

Insurance: NBHA carries liability and property insurance for both the Marina and Pool. While the marina is self-sustaining– generating enough revenue from slip rentals to cover its own insurance and maintenance–the Pool is does not generate enough revenue to be self-sustaining. Since it is a shared amenity, the cost of the pool is covered by all homeowners through annual assessments. 

Over the last few years, insurance premiums have increased by 20% annually. Despite efforts to find more affordable coverage, rates continue to rise. This insurance is not optional–it is essential to protect every homeowner form liability and ensure the continued operation of our shared spaces. Without it, the association and its members would be exposed to significant financial risk. 

Reserves/Savings: Major components–like roofs, equipment, and infrastructure–must be replaced over time, whether or not NBHA plans for it. Reserve funds aren’t “extra”--they are how we responsibly save and plan for big improvements without hitting homeowners with sudden costs. 

Think of it this way: if you bought your home 10 years ago, and the HOA had just completed a major upgrade, you wouldn’t have paid for that project. The previous owner contributed to reserves through their annual dues. Now, as the current homeowner, your dues help build reserves for future improvements. THis system spreads costs fairly across generations of homeowners and keeps our community financially stable. 

In addition to planning for the future, reserve funds enhance resale values. To learn more about the necessity of reserve funds, please visit: https://hoaresources.caionline.org/why-does-your-hoa-need-reserves/

Legal Fund: Nobody wants to get sued, but unfortunately it seems a normal part of society today. This is especially true when you are a homes association. The NBHA has never had a specific reserve fund for legal expenses. An HOA should have funds available to protect the association in the event of a lawsuit. As the association is legally obligated to enforce the deed restrictions, we are at risk of a contentious response and legal issues with any violation notice sent. The NBHA would like to put funds into reserves for future legal needs to protect us all.

Payroll Expenses: Why Staffing Matters

Nassau Bay Homes Association is proud to employ its own staff-- a choice supported by the majority of homeowners who preferred this over hiring a mangement company. Having dedicated staff allows us to maintain direct oversight, personalized service, and cost control.

However, employing staff comes with essential expenses: wages, payroll taxes, and workers' comp insurance. While homeowners have consistently expressed appreciation for our in-house team, we cannto sustain this model long-term without increasing the cap on the annual maintenance fee. This adjustment ensures we can continue providing the service and responsiveness out community values.

Operational Expenses: Nassau Bay Homes Association is responsible to maintaining key community assets, including the pool, marina, white wall, and monument entry signs. Over the years, the cost of pool checmicals and general marina upkeep has steadily increased. Additional operational expenses include routine landscaping, seasonal flower bed maintenance, electricity, water, and administrative expenses. To responsibly plan for these essential services, the Association must ensure funding is available to cover all related costs. 

Why doesn’t the HOA do what other non-profit organizations do and have fundraisers or look for donations? 

The NBHA is not a charitable organization. It is a non-profit, administrative organization tasked with maintaining the beauty and value of the community for its members. First this means, the NBHA does not take in more than it needs. Any money brought in is either used that fiscal year or set aside for future needs. Second, NBHA does not do philanthropic work which benefits a wider community and is not entitled to the charitable status that allows donations to be tax deductible. Most importantly, fundraising will not solve the budgeting issue. HOAs use special assessments for sudden unexpected projects that need to be financed right away. The Board has the option to assess every homeowner a one time fee to cover all necessary costs. However, this will not set the association up for long term financial stability. The issue is that we are operating on a budget set in 1962. Goods and services have increased eight to ten times during that time and will continue to increase. There is no way the HOA can continue operating on a budget that was sufficient in the 1960s, just like a family would not be able to live on an average salary from 1962. 

Are my dues paying for the marina?

No. The marina generates its own income through slip rentals. The marina brings in enough revenue to save for future maintenance and even helps with some of the pool expenses. 

Why do you not charge more for pool passes (pool tags, swim tags)? 

We would have to charge between $300 to $500 per pool pass to be even close to making enough to keep the HOA’s budget healthy and allow us to save for  future maintenance. And that is if we assume that the same number of people will keep buying pool passes every year, however that leaves the HOA not knowing how much they will make any given year and having to hope that people will buy pool passes to ensure that we have an adequate budget. It is also unfair to put all the burden on people who use the pool when the increase in budget is needed for projects that will benefit the whole community.

How much is NBHA wanting to increase the dues?

The NBHA needs to increase the cap on dues. The new proposed increase is an annual cap of $.02 per square foot of lot area. Currently, you are paying $.01 per square foot of lot area. This one-cent increase will significantly help the home association's operating budget and reserve funds.

This means if you currently pay $130 annually, the most you could ever pay with the cap increase is $260 annually. Your assessment will not be more than $0.02 per square foot of lot area without another amendment to the deed restrictions. In other words, your annual assessment will not continue to rise each year.

Is the raise to cover all taxes that were not paid? 

No, this raise is to try and keep up with inflation. The NBHA budget was set in 1962 and has not been increased since. Just like a family cannot live on a salary from 1962, the association cannot keep operating on a budget from 1962, when the cost of goods and services has increased ten-fold. 

Who is responsible for maintaining the white wall?

The white cinder block wall running from Point Lookout to Nassau Bay Drive was originally built to separate residential and commercial areas. At each end, it features Nassau Bay monument entry signs–all of which are the responsibility of the Nassau Bay Homes Association. 

After decades of exposure, both the wall and signs show significant wear and will eventually require a full replacement. Unfortunately, our current budget cannot support this kind of infrastructure project. However, by increasing the annual maintenance fee cap and beginning to set aside reserve funds, we can plan for future replacement. This investment would not only preserve the character of our neighborhood– it could also enhance property values for all homeowners. 

Short-term Rentals Amendement

The short-term rental (STR) amendment is to restrict rentals to a minimum of 31 consecutive days. The STR amendment will improve community harmony and safety. The amendment also aims to combat issues like parking, noise, and excessive strangers being present in the neighborhood.