June 21st, 2008
Property Values Fall As Owner Associations Cut Costs
Tree and playground removal is causing property values to fall. If the Home Owners Associations focus on pinching pennies, they may never realize where the losses are.
The home owner and condominium associations are removing the essential components of their common areas. Playgrounds and trees are being removed at an alarming rate. To their credit, some associations have elected to replace them with dog runs. However, they often don’t take into consideration that the park-like scene has a direct added value to a property.
As insurance prices are going up, association boards are looking for ways to reduce liabilities. There is financial pressure placed on the associations every time their insurance company has to pay a claim. Trees may fall on people and cars and children may get hurt on the playgrounds
Removal of common elements often have devastating effects on the culture of the community. A park-like scene is quickly turned into mere concrete, dirt and possibly a dog run. Parents typically gather at the playgrounds and socialize while their children play. This allows the parents an opportunity to get to know one another while the children would have the essential opportunity to be kids.
Families are forced to spend more time inside when the green space is removed. This has a direct negative effect on the sense of community, the social skill and health of our youth.
There is no consideration as to the impact on global warming. There is a reduction of shade; increased utility bills; and it often becomes more expensive to the association and unit owner, than the increased insurance rates they would have paid.
By-laws to save the green space can be implement, if unit owners take the the request to their boards and request a vote If they don’t take the initiative to do this, they may come home one day and find that there land is raped of many mature trees and playgrounds.
This is happening and this happened to me. I owned a condominium in Montgomery County Maryland. I found numerous mature trees removed from my community, when I returned from vacation. The playground which faced my home had beautiful shade trees to keep the kids cool and shaded was now completely exposed to the afternoon sun and heat.
The board members had the trees removed. They said that the tree company had made recommendations as to which trees were to be taken down. I asked why they did not get an independent party to make the recommendations. They had no response. I asked why it was recommended that those trees were removed and they said that they would provide me with a report. That was six months ago. I have yet to receive the report and don’t expect one.
I sold the property as quickly as I could. I was subjected to a board that had terrible decision making abilities. After the tree removal they told me that they were planning on taking out the playground. I stopped them from removing the playground equipment. No one on the board had young children. They did not understand the value of a playground.
Take the initiative to save your assets .Now I am a commissioner on the Commission on Common Ownership Communities. I am striving to make changes so that everyone may benefit. Learn what you can do to help your community. You can make an impact if you will take the time to get involved. Take Action Now
The net result is that the properties become less attractive to potential home buyers, who are also property investors, the value of the properties decline.