FAQ- frequently asked questions about real estate issues:

1. Townhouse vs. Condominium:  The legal description of units is unit-bldg, which is the legal definition of a condo vs. lot and block for townhouse.  Our Declaration of Condos also defines units in those terms and more, emphasizing that owners have “air-space” rights to their property vs. ownership of the building and the land underneath it. Don’t be confused by our townhouse appearance.  We are condos.  It should be emphasized that marketing units for sale as single-family homes in the MLS might be confusing and a disservice to interested parties.  Realtors should use the MLS condo worksheet vs. residential.  In using the condo worksheet, property TYPE should be marked as condo, NOT townhouse.  This information is very important to lenders who underwrite condos differently than townhouses.  FHA issues also come into play too.
2. Correct spelling of our name:  The spelling of our community has always been questionable.  The developer, EDI, spelled it at least two different ways: HEATHERRIDGE SOUTH, or, Heatherridge South. A third way is Heather Ridge South.  The importance in a correct spelling is uniformity in marketing so as not to confuse consumers.  Our recommended spelling is Heatherridge South. 
3. Sub-area vs. name:  For MLS purposes, the sub-area can be spelled either Heatherridge or Heather Ridge.  Our community name is Heatherridge South.
4. MLS research techniques:  Realtors and appraisers may best research inventory by searching by street name and address numbers. Because EDI built similar if not exactly alike units in HRS, Fairway 16, Double Tree and Heather Gardens, Realtors and appraisers should be careful in what to view for comparables and how to do it.  For example, if you are researching 1680 sq-ft two-story models with three bedrooms on the second level, you might search HRS and Fairway 16 as follows in the MLS:
1. FUNCTION:  Search Listings (SL)
2. AREA: AUS (99% of agents market in AUS, but some use SSE, DSE for ghosting)
3. PROPERTY TYPE: Condominiums (COND)
4. PRICE RANGE: $150,000 to $275,000 (today’s value range, 2003-2004)
5. STATUS: Available (A), Under contract (U), etc.
6. STREET NAME: XANADU OR WHEELING OR VAUGHN (or appropriate Heather Garden street names if you want to search there)
7. ADDRESS NUM: 2300 to 2900 (Iliff is 2300 south, and 2900 takes you to end of address numbers in HRS.  Heather Gardens is different

This method is deemed reliable and most inclusive when researching HRS or Fairway 16.  In using Vaughn as a street name, properties in Dam East Townhouses will come into view too.  Care and understanding is advised when comparing units to each other in the Heatherridge community.    

5. HOA Maintenance Fees:
1. The 2006 HRS fees are as follows: 2-bdrm units (two-story and patio homes) are $228; and 3-bdrm units $233.
2. For a history of HOA fees, see HOA Fee History under Real Estate.
3. Fee includes following services:  Clubhouse & Pool, exterior maintenance including the roof, sewer, water, building insurance, snow removal, security, general and grounds maintenance, asphalt drives repair / replacement, accounting and administrative services.
4. For more information, please click on our link to Westwind’s website.
6. Working Capital Contribution:  Each owner has contributed to the General Fund when they closed on their unit.   Each purchaser will contribute the followings at closing:  Two-bdrm units, $246; 3-bdrm units, $258. Most closings are conducted through a title insurance company, so they will need to contact Westwind’s accounting-bookkeeping division Management Company for specific details and procedures.
7. Special Assessments: Special assessments are rare but not unknown concerning the operation of our community.  Typically, special assessments have been used twice only for large-scale improvements: in the late 1980s to install steel siding, roofs, and fences ($1.1M project); and in early 2000s to replace walls and fences ($560K project).  It is not the practice or habit of the Board to assess owners for improvements above scheduled monthly assessments.  It is the practice of the Board to carefully monitor, fund and project Reserve Funds to meet future capital expenditures
8. Insurance:         As you are probably aware, insurance premiums are on the rise.  What you many not know is that along with these premium hikes, insurance companies are also reducing or limiting the amount of coverage offered for certain perils in their policies.  The insurance industry has attributed these hikes and changes to losses incurred because of 9/11; claims related to black mold, wind, and hail; and decreased income due to the slumping stock market.  Whatever the reasons, your Homeowners Association has also been impacted by these hikes and changes.
9. The Association’s insurance premium for 2003 was increased by approximately one-third.  While this hurts, it is not as bad as the increases experienced by other associations.  Of greater concern to the Board are the changes in the wind/hail deductible within the policy.  Formerly, the deductible was a fixed dollar amount.  Under the current renewal, the deductible is calculated as a percentage of the total value of the building or buildings damaged by a hail/wind storm.  Initially, this percentage was to be 3% but the Association was able to negotiate this down to 2%.  Still, at 2%, the potential exposure for each home, in the event of a major catastrophic hail/wind storm, is roughly $2,000 per home or about $350,000 for the entire HRS complex. If this occurred, a special community assessment would need to be authorized in order for the Association to pay for such an amount.

When the Board first became aware of this impending change in coverage, we began searching for another insurer who would offer either a fixed dollar deductible for wind/hail damage or a lower percentage deductible. We did find one company that would provide a fixed deductible of $2,500 per occurrence.  Unfortunately the company’s premium was three times the premium we have been paying.  The Board judged this to be prohibitively expensive. The Board will continue to search for a more affordable insurance policy with either a fixed or a low deductible, but at present we will continue with our current insurance carrier with the 2% deductible.

Given the changes in our association’s insurance policy, individual homeowners may need to request a change in their personal homeowner’s policy; a change that would provide them with coverage to pay for their part of a community assessment following a catastrophic event.  A personal insurance policy has been designed specifically for owners of town homes/condos.  It is called a HO-6 policy.  HRS residents may already have this type of policy, but for those who don’t and have only a personal-property type of policy, we encourage homeowners to acquire one.  The unique types of coverage typically included in a HO-6 policy are:

a.       Building Coverage (often described as an extension of personal property) and

b.      Loss Assessment Coverage (to protect homeowners from assessments made by the association for loss of property or insufficient liability limits)

These two types of coverage are relevant to our needs considering the association’s current insurance situation.  HRS homeowners need coverage for personal property provided under Building Coverage.  Homeowners also need Loss Assessment coverage set at high enough limits to cover reimbursement for a special assessment created by a property damage deductible following a catastrophic event.

Insurance companies write policies differently.  This results in different types of coverage under Loss Assessment.  Some exclude property damage from Loss Assessment coverage, limiting it to liability only.  Others exclude assessments due to deductibles.  Still others may not allow you to raise the property limits beyond the standard $1,000 or $1,500 set in many policies.  It is important to check with your personal agent about this. Many companies will allow you to raise the limits of this type of coverage and usually it is very affordable.  For example, an additional $10,000 in coverage may cost $6 annually while an additional $50,000 in coverage may cost $15 annually.  If your current policy is limited, you may find that you have to shop around to find companies that offer what you need.

As you review your homeowner’s insurance policy, you also might review your Building Coverage clause.  The Association covenants designate that the association is responsible for insuring the units except for the following:  carpeting, wall coverings, pictures, furniture, and personal property as well as public liability within the homeowner’s unit.  Additionally, any improvements or upgrades (such as kitchen cabinets, built-in appliances, finished basements, patio covers, etc.) which were not a part of the original unit as built by the original builder, are not covered and would be the homeowner’s responsibility in the event of a loss.  Given this information, you may want to check with your personal agent to insure that your limits are high enough to cover your replacement needs.

We cannot over emphasize the importance of a HO-6 policy for each and every homeowner.  If you are currently insured by one, please communicate with your agent to confirm that your coverage terms and limits are appropriate.  If you do not have a HO-6 policy, contact your insurance agent to inquire about obtaining a policy.  If you don’t already have an agent, you may want to call Peliton at (303) 771-1800, which is the agency the association uses.

Specific HRS models built by EDI: