Upper Beechwood 1 Covenant Expiry

Important information for UB1 Homeowners

Covenant Expiry

The current covenant attached to the properties within the UB1 Homes Association boundary requires a yearly fee to be paid to support and maintain the community swimming pool, tennis courts and surrounding property. The last covenants are set to expire in January 2027, leaving UB1 with an uncertain future.

Special Service Area Levy (SSAL)

The volunteer board for UB1 has explored many post-covenant options and after much consideration and research, has recommended an agreement with the City of Waterloo called a Special Service Area Levy (SSAL) as the best option for maintaining our communal property, continuing our recreational programming and preserving the value UB1 brings to our community and homes.

At the UB1 annual general meeting in April 2024, the UB1 volunteer board was given a mandate by the members to start SSAL discussions with the City. Two further actions are required to complete the SSAL application. The first of these is to collect signatures on a petition to confirm support for this change. The second will then be a formal vote conducted by the City. All UB1 members will be contacted to sign the petition in support of the SSAL.

Frequently Asked Questions

What is involved in the SSAL?

  • The original 213 homes that formed the UB1 membership, including yours, would be grouped into the SSAL.
  • The annual UB1 budget would be divided among the group and the annual fees collected by the City via property taxes including a 1% admin fee.
  • The development of the annual budget, including the annual fee, and the operation of UB1 would remain under the control of UB1, subject to City approval.
  • As associates are not part of the original membership, associate memberships” are not permitted by the City under the SSAL. However, after much discussion, it has been recently confirmed that under the SSAL UB1 will have the opportunity to generate revenue from outside the membership. At a minimum, we would expect UB1 to have the ability to offer a limited number of seasonal facility guest passes. If the SSAL is approved, these additional revenue options will be presented to the members for discussion and approval as part of the regular annual budget.
  • The SSAL can be terminated by either UB1 or the City with a year’s notice.

Why does the UB1 board believe the SSAL is the best option?

Over the past few years, the UB1 board has researched many alternatives. The only funding model that promises continued maintenance and enjoyment of our communal property and its recreation facilities is a SSAL because:

  • UB1 would continue to operate with a consistent, predictable and reliable revenue stream.
  • The membership base would be fixed and not at risk of attrition.
  • The operating costs are shared equally across the properties who benefit from being able to use the facility and/or the price premium afforded on the resale value of your home.
  • The UB1 volunteer board does not have to chase collection and enforcement of voluntary fee payments and face the burden of having to continually refresh a base of voluntary annual users.

Why now?

It takes several months of preparation to apply for the SSAL. The process needs to be completed in 2025 as the City will not accept applications within an election year (2026).

What have other associations like UB1 done at covenant expiry?

Four have a SSAL agreement with the City. Three others operate with a voluntary membership structure with two of the three currently revisiting the SSAL option due to the negative financial impact of attrition on their volunteer membership.

I don’t use the facilities (anymore), why should I continue to pay?

The facility is a community-building investment for all members regardless of use. Members like you benefit from the value it provides to the community and your property’s value reflects the benefit that comes with the right to utilize the facility. Several local realtors have confirmed that a facility like UB1 generates a price premium for resale.

Can we sell the property to a developer?

UB1 encompasses a large area and could be purchased by a developer if UB1 becomes financially unviable or if the membership chooses this direction. There is a strong likelihood that a developer would remove the pool and tennis courts and build a multi-tenant building.

Will my fees go up?

In light of the recent confirmation that UB1 will be able to generate additional revenue from sources outside of its membership, the board would have the ability to operate the facility with a cost structure for members that should be consistent with what members have seen historically.

What if I don’t agree with the SSAL?

The petition process requires approval from 66% of homeowners. If many homeowners do not agree with the SSAL, a new UB1 board will likely need to be constituted with individuals who are in support of a different approach.

How would the SSAL impact current associates?

The SSAL policy as set by the City is clear that “memberships” cannot be offered to households outside of the original covenant. However, it has been confirmed that under the SSAL UB1 will have the opportunity to generate revenue from outside of the membership. At a minimum, we would expect UB1 to have the ability to offer a limited number of seasonal facility guest passes that would allow families in the community, who are not otherwise members, to utilize the facility. If the SSAL is approved, these additional revenue options will be presented to the members for discussion and approval as part of the regular annual budget.

What happens next?

  • Summer 2024: All members will be asked to sign a petition for the SSAL. If at least 66% of homeowners sign the petition in favour of the SSAL, the UB1 board will begin preparing the SSAL application.
  • January 2025: UB1 board submits the SSAL application to the City for approval.
  • February to May 2025: The City completes their own survey of the UB1 membership. If 66% approval is obtained, the UB1 application is scheduled for review at a City Council meeting. The SSAL is hopefully approved by City Council.
  • 2025, 2026: UB1 operates as it does today with members and associates.
  • January 2027: Expiry of outstanding restrictive covenants. The SSAL is applied to member taxes. Additional revenue sources from outside of the membership to be considered by the board to permit broader access and offset operating costs.

I am on board, what do I do now?

If you already know that you are in favour of the SSAL, please print, sign, scan and return the petition form by email to membership@upperbeechwood.com or drop your signed copy in Membership Director Gary Hesselink’s porch mailbox at 510 Clair Creek Blvd. Alternatively, please click this link to choose a time for someone to come by your home and collect your signature. Please remember there is to be only one homeowner’s signature per home.

What if I still have questions or concerns?

As we get that signature process on the petition started, we understand that some of you may still have questions or concerns about UB1’s expiring covenants and what a SSAL means for our board and our community. Therefore, we would like to provide further opportunities for you to learn more and ask any questions:

We thank you for taking the time to review the materials provided, attending a coming information session, and/or for sending along your signed petition form, if you are ready to do so.  Your board remains confident that the SSAL approach is the best option to ensure the ongoing successful operation and ensuing value of the UB1 recreational facility.