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 Everett Kirkelie created the first budget in 1986 Yearly Budgeting > Homeowners’ Assessments WCP Finances 2007 Assessments based on reviews conducted every 2-3 years of 30-year infrastructure needs Operating… 2/3 $323 per month 1)Landscaping 2) Insurance 3)Management Reserves… 2/3 $168 per month 1)Roofing 2) Paint 3)Street

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

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

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

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

10 Why Reexamine the WCP “Index” for Appreciation of Units over Time? To restore original intent of both the University and faculty 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 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. To create a common standard to apply across all UCSB faculty housing owners at WCP, North Campus, etc. based on current published economic information.

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

Total Percentage Change Since 1986-IV In CPI and Three Housing Price Indices (Housing Data: Office of Federal Housing Enterprise Oversight) Year Cumulative Percent Change California Housing USA Housing CPI National S. Barbara Co. Housing

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 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” “Santa Barbara Co.” trend data are for the “Santa Barbara-Santa Maria Metropolitan Statistical Area” OFHEO data cover OFHEO data cover Single family homes Single family homes Repeat sales of same properties: “constant quality” Repeat sales of same properties: “constant quality” Conforming mortgages only, up to $417K Conforming mortgages only, up to $417K Readily available data Readily available data (End of Part 4)