Your HOA at Work
In 2021 LARMAC contracted with GMU Pavement Engineering to conduct an extensive evaluation of the private streets in Covenant Hills. With more than 2.3 million square feet of pavement surface area in Covenant Hills, asphalt is overwhelmingly the most expensive asset listed in the Covenant Hills Reserve Study.
Following this evaluation, GMU presented LARMAC with a Pavement Management Plan (PMP) Study, which provided essential information pertaining to the current condition of the streets and a recommendation for optimizing street conditions and estimating the cost to maintain at an appropriate level going forward. Implementing the recommendations from the PMP Report will extend pavement life and reduce the overall cycle cost over time of the Covenant Hills private streets.
Since the initial PMP Study, an updated Study was conducted in 2024. This updated Study is used to establish street repair schedules within the Covenant Hills community.
Project Timeline and Updates:
- Year 1 - Was completed in November of 2022. The project included street repairs on the following streets: Anapamu, Ali, Sam, Basillica, Friar, Becker, Pointe Circle, Kane and Hammond.
- Year 2 - Was completed in September 2024. The project included street repairs to the following streets: Katy Rose, John, Adele, Julia, Michael, David, Eric, Emmy and Jenny. This phase also included a seal coat on the streets listed above in Year 1 as well as Cambridge Road.
- Year 3 - Was completed in October 2024. This project included street repairs to the following streets: Lemonpeel Rd, Christopher St, Sky Ranch Rd, Pistoria Ln, Pisano St, Stockmen Rd, Cowboy Rd, Gaucho Rd, Vaquero Rd and Catalina Vista Rd.
- Year 4 - Scheduled for the summer of 2026. Streets included in the phase are: Broken Arrow, Columnar, Buckaroo, Sky Ranch, La Riata, Paniolo, Rickie, Thomas, Old Coach and Overlook. The following streets are scheduled to receive a seal coat: Lemonpeel Rd, Christopher St, Sky Ranch Rd, Pistoria Ln, Maremma Ln, Pisano St, Stockmen Rd, Cowboy Rd, Gaucho Rd, Vaquero Rd, Catalina Vista Rd, Katy Rose, John, Adele, Julia, Michael, David, Eric, Emmy and Jenny.
- Year 5 - Scheduled for FY 2027-2028. Streets currently included in Year 5: Coral Blue St, Crespi Cir, Cloister Ct, San Jose St, Franciscan Ct, Mission Ridge Rd, San Juan Bautista, San Luis Obispo St and Bell Pasture Rd (Covenant Hills Dr to Mission Ridge). The following streets are scheduled to receive a seal coat: Broken Arrow, Columnar, Buckaroo, Sky Ranch, La Riata, Paniolo, Rickie, Thomas, Old Coach and Overlook. Also included is Covenant Hills Drive, which is scheduled to receive a slurry seal.
- Year 6 - Scheduled for FY 2028-2029. Streets currently included in Year 6: Sandalo Ct, Portalon Ct, Forest Ct, Fox Hole Rd, Padre Pl, Bell Pasture Rd (Mission Ridge to southern cul-de-sac), Brittlestar Rd, Anna Ln, Moonlight Isle, Starlight Isle and Stellar Isle. The following streets are scheduled to receive a seal coat: Coral Blue St, Crespi Cir, Cloister Ct, San Jose St, Franciscan Ct, Mission Ridge Rd, San Juan Bautista, San Luis Obispo St and Bell Pasture Rd (Covenant Hills Dr to Mission Ridge).
Note - Localized repairs occur as needed and are separate from the phased projects.
Included as part of the Reserve Study approval, an updated funding plan was approved for Covenant Hills. This funding plan has been designed to build up reserves to a sufficient level over the next several years to fund future asphalt repair projects.
To build up funding for the project, the first couple of years required large reserve funding increases, which have since leveled off. Here's a breakdown:
- FY 2023 - 83.7% increase
- FY 2024 - 64.4% increase
- FY 2025 - 10.2% increase
- FY 2026 - 7% increase
- FY 2027(starts June 1, 2026)- 7% increase
The FY 2027 monthly reserve contribution is $194.24. The updated reserve funding plan includes a more typical 7% annual reserve contribution increase for the next six (6) years before dropping to an estimated 5% annual increase beginning in FY 2033-2034. The exhibit below is a section of the updated funding plan, which shows the estimated monthly reserve contribution year over year as well as the corresponding percent funded. As you can see from the exhibit below, the percent funded continues to slowly increase each year despite only factoring in more typical annual reserve contribution increases from this point forward.
Note - The Reserve Study and Funding Plan are reviewed and updated annually as part of the budgeting process. Every year, updates are incorporated into the Reserve Study, such as actual expenses incurred vs. estimates that were budgeted. Additionally, life expectancies can vary based on actual experiences - all of which have an impact on the Funding Plan.
EXHIBIT: Reserve Funding Plan at a Glance
Pavement Management Plan (PMP) Studies:
2021 Pavement Management Plan (PMP) Study
2024 Pavement Management Plan (PMP) Study
