During 2026, the Chestnut Mountain Farms Board of Directors focused on three primary areas: strengthening assessment billing and collection practices; directing Association resources toward essential maintenance, roadway, gate-access, security, and communication improvements; and advancing community amenity projects planned for 2027.
1. HOA Assessments and Collection Practices
1.1 Delinquent Accounts
When former Board President Bruce Anderson and current Board President Perry Swaim assumed leadership responsibilities, the Association faced a substantial backlog of unpaid assessments. For many years, collection efforts had largely consisted of reminder notices mailed to the home or office address on file. Some property owners had never paid an HOA assessment. In other cases—fewer than a dozen over the past decade—owners transferred their lots to the Association in lieu of paying their outstanding balances.
At present, eleven properties with individual past-due balances exceeding $10,000 remain delinquent. The total recorded balance of unpaid assessments, penalties, and interest accumulated over approximately twenty years is $186,883.59, down from the $364,830 inherited by the Board in 2023.
The Association has taken possession of nine lots:
- Four lots have been sold for a combined total of $60,000.
- Two lots are being held for sale at a combined asking price of $90,000.
- Three lots are being considered for conversion to common ground for community use.
Lot 75 is currently under contract for $60,000, and the sale remains pending. The Board has also reached settlements with owners who have brought their assessments current. Liens have been filed against the eleven properties that remain delinquent.
The recorded delinquent balance is not necessarily the amount the Association can recover through legal action. Applicable statutes of limitation, lien requirements, and the circumstances of each account affect the collection remedies available under North Carolina law. The current estimate of the amount recoverable through direct collection is approximately $23,000, plus any legally allowable penalties, interest, legal fees, and collection costs. The legal basis and amount of recovery remain subject to confirmation by the Association’s attorney.
One potential avenue for recovering additional value is the negotiated transfer of delinquent properties to the HOA. Where legally and financially appropriate, the Association could market and sell those properties, with net proceeds helping to offset delinquent balances and related costs.
Together, the eleven delinquent properties contain approximately 85.31 acres. At an estimated average market value of $3,800 per acre, their combined potential value is approximately $324,178. This is an estimate, not an appraisal or guaranteed recovery. It does not account for legal expenses, taxes, sales costs, property conditions, accessibility, or differences in the value of individual parcels.
The Board recognizes that obtaining ownership of all eleven properties is unlikely. Nevertheless, it will continue pursuing reasonable, legally available collection options to protect the financial interests of the Association and its members.
1.2 Annual Assessment and Invoicing Process
Annual HOA assessments are due January 1. Invoices are distributed electronically during October and November of the preceding year, giving owners advance notice of the payment deadline.
Each emailed invoice includes a secure payment link. Electronic invoicing is now the Association’s standard billing method because it reduces administrative expenses, mailing costs, and processing time. Limited exceptions have been approved for owners who meet the Association’s requirements for paper invoices.
Property owners are responsible for:
- Watching for their annual invoice during October and November.
- Checking spam or junk-email folders if the invoice is not received.
- Maintaining a current email address with the Association.
- Contacting the Association before January 1 if an invoice has not arrived.
- Paying the assessment by the January 1 due date.
Failure to receive or locate an invoice does not eliminate an owner’s responsibility to pay the annual assessment when due.
1.3 Delinquent-Account Follow-Up
In 2026, the Board approved a formal collection follow-up process. Board members are assigned responsibility for contacting owners who have not paid their annual assessments by January 1.
Direct contact has improved the Association’s ability to address overdue accounts and reduce recurring late payments. The Board will continue applying this process consistently to strengthen financial stability and ensure fairness to owners who pay on time.
1.4 Collection Goal
In prior years, the Association carried forward approximately $22,000 annually in unpaid assessments, penalties, and interest from late-paying owners. This amount excludes the long-term delinquent accounts of owners who have made no payments.
The Board’s goal is to collect all current-year assessments by March 31. Consistent follow-up is intended to reduce annual carryover and ensure that all owners meet their financial obligations to the community.
2. Budget Allocations and Maintenance Priorities
The Board’s second major focus was allocating Association funds responsibly and addressing maintenance and improvement needs throughout the community.
The Association maintains ongoing agreements with M&M Landscaping for roadside maintenance, snow removal, fallen-tree removal, and other routine tasks. These services are not competitively bid. M&M has served the community for many years, and the Board appreciates its continued support and responsiveness.
For work outside these ongoing service agreements, the Association solicits multiple competitive bids from qualified professionals.
Maintenance Projects Completed 2026
2.1 Roadway Repairs and Stabilization
The HOA approved and funded major roadway repairs in both 2025 and 2026. In 2025, the Association tested a stabilization process on Meadows Road to address the continuing movement of roadway material toward the downhill side of the road.
Based on the results, the Board authorized the same treatment for Chestnut Mountain Farms Parkway in 2026. The work was intended to improve roadway stability, reduce deterioration, and extend pavement life.
Total roadway investment: approximately $126,000.
2.2 Gate Lighting Upgrade
The entrance-gate lighting was upgraded to LED fixtures in 2026. Replacement parts for the previous system are no longer available, making continued repairs impractical. The new fixtures provide an energy-efficient lighting solution for the community entrance.
2.3 Entrance Landscaping
The damaged shrubs forming the “CMF” display at the entrance will be removed, and the area will be prepared and converted to grass. The estimated cost is $2,700. This change is intended to improve the appearance of the entrance and reduce ongoing maintenance costs.
2.4 Entrance Bridge Repairs
The HOA has obtained quotes for entrance bridge repairs. Based on the bridge’s current condition, the Board considers this work a priority that can no longer be postponed. The estimated cost is $10,000.
2.7 Gate Access, Security, and Owner Communications
Earlier in 2026, the HOA replaced its previous gate-entry system with the Butterfly Entry Control System. Windshield-tag access has improved entry convenience while providing additional tools for managing and monitoring community access.
The transition involved technical issues and a learning period for owners. Those early concerns have largely been resolved as owners have become more familiar with the system.
The Butterfly system also supports owner communications through text messages and email notifications. These notifications will become the Association’s standard method for distributing community updates. Important notices will also be posted on the Owners page of the Chestnut Mountain Farms website, providing another location for owners to review current information.
Maintenance Projects 2027
2.5 Barn Repairs
The HOA has obtained quotes for necessary repairs to the Barn. The Board considers this work a priority based on the structure’s current condition. The estimated cost is $23,000.
2.6 Pavilion Repairs
The HOA has obtained quotes for necessary repairs to the Pavilion. The Board considers this work a priority based on the structure’s current condition. The estimated cost is $3,500.
3. Amenity Projects for 2027
3.1 Lake Project
The 1.5-acre lake project is underway, and the required environmental evaluations have been completed. The estimated total project cost is $169,000.
The HOA has committed to contributing $50,000 over time toward its required share under the grant-application process. Approximately $14,000 has been spent to date, leaving approximately $36,000 of that commitment remaining. The Board plans to replenish Association funds used for this contribution through proceeds from the sale of HOA-owned properties. The sale of Lot 75 is currently pending.
The grant-application effort includes pursuing the committed endorsements from the local Fire Department Chief and Forestry Agent. The first phase of dam construction is expected to be completed in fall 2026.
The project serves two principal purposes:
- Fire protection: The lake is intended to provide an additional water resource for firefighting. In 2025, the Association installed a 35,000-gallon water tank near the dumpster area, and the local Fire Department connected it for emergency access. Similar firefighting access is planned for the lake.
- Community recreation: Located behind the Barn, the lake is intended to provide a recreational resource and encourage greater use of the Barn and surrounding community amenities.
3.2 Barn Restroom Project
The Board plans to install restroom facilities in a separate, standalone building at the Barn. The estimated project cost is $30,000. These facilities would support broader use of the Barn and lake area as a community gathering place.
4. Maintenance Funding and Common-Area Designations
4.1 Maintenance Funding
To fund the maintenance repairs identified in this review, the Board will reallocate $60,000 from the 2027 paved-road budget. This adjustment is intended to allow completion of the listed maintenance work.
The four maintenance projects with individual estimates—entrance landscaping, entrance bridge repairs, Barn repairs, and Pavilion repairs—total approximately $44,200. This leaves $15,800 of the proposed reallocation beyond those estimates. The remaining funds will be deposited into the Association’s emergency contingency savings account, which currently has a balance of $25,000. The final allocation will be confirmed as project scopes and costs are finalized.
The lake contribution and proposed restroom building are separate amenity commitments and are not included in the $44,200 maintenance subtotal.
4.2 Potential Common-Area Designations
The Board is considering three lots for community use:
| Lot | Potential Community Use |
| 118 | Emergency exit from the mountain |
| 77 | Sunset overlook; the lot is described as not buildable |
| 92 | Possible additional water resource for fire protection |
The Board is also considering requesting county review of the property-tax treatment of these lots. Conversion to common ground and any change in tax treatment would require confirmation of the applicable legal, governing-document, and county requirements; neither outcome should be assumed. Other properties may be considered for community use in the future.
5. Board Service and Community Participation
5.1 Recognition of Board Members
I am proud of the work our Board members have undertaken this year. They are volunteers who receive no compensation for their time. Their responsibilities include overseeing collections, coordinating legal matters, evaluating property transfers, reviewing project proposals, and managing the Association’s day-to-day needs.
Special thanks go to Bruce Anderson and Susan Catoe for their work on delinquent accounts and the related legal processes. Lou Pagano, Eric Clement, and Craig McCrodden also conducted a telephone follow-up program that resulted in the collection of nearly $32,000. Their efforts are greatly appreciated.
Our Board members are neighbors who volunteer to serve the community. Their commitment helps protect our shared resources and maintain Chestnut Mountain Farms.
5.2 2027 Board Elections
Elections for Board seats with terms expiring in 2027 will be completed by the 2027 Annual Meeting. Owners interested in appearing on the ballot should contact Susan Catoe. Voting is scheduled to begin in June 2027, with ballots available on the website.
5.3 Website and Owner Information
The Association continues to use its website to make documents, Board meeting notes, event information, and community alerts available to owners. Please take time to explore these resources and review updates regularly.
5.4 Owner Participation
Owners are encouraged to contact a Board member with suggestions, inquiries, concerns, or questions. Your participation helps the Board identify needs, address problems, and make informed decisions for the community.
Perry Swaim
President, Chestnut Mountain Farms HOA
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