Post by Admin on Jun 3, 2016 9:33:46 GMT -7
GLA Board Loves Debtors; how much will they reward past due landowners?
This thread follows up on a thread started yesterday. This thread and the linked one, deals with precise and detailed information regarding the financial injury to dues paying landowners from the GLA Board changing the past due interest rate from 18% compounded monthly to 12% simple interest. The linked post will help explain the difference between simple and compound interest. It also offers detailed information on solutions and costs to bring our 18% compounded interest rate in line with Montana state law.
The table below allows any past due landowner who owns a single parcel with a dwelling, to roughly calculate how much they will save with the new 12% simple interest rule and proposed covenant change.
Examples: If you have not paid your assessments for one year, 2015, you will owe $420.00 plus 18% compounded interest for a total of $470.40. The new 12% simple interest rate will save you $25.20 which allows you to keep 5.08% of the original amount owed.
If you have not paid your assessments for 5 years, 2010 to 2015, you will owe $4,300.90 which includes 18% interest compounded yearly. The new 12% simple interest rate will save you $1,691.30 which allows you to keep 39.32% of the original amount owed.
If you have not paid your assessments for 10 years, 2005 to 2015, you will owe $10,903.22 which includes 18% interest compounded yearly. The new 12% simple interest rate will save you $6,631.54 which allows you to keep 60.82% of the original amount owed.
If you have not paid your assessments for 18 years, 1997 to 2015, you will owe $37,710.48 which includes 18% interest compounded yearly. The new 12% simple interest rate will save you $31,288.40 which allows you to keep 82.97% of the original amount owed.
The greater the number of years a landowner has not paid their assessments, the greater the percentage of the debt the GLA Board is willing to forgive. Those who paid the least, will be rewarded the most. Additionally all past due landowners have received the same benefits of road maintenance and snow plowing as dues paying landowners.
The table below allows any past due landowner who owns a single parcel with a dwelling, to roughly calculate how much they will save with the new 12% simple interest rule and proposed covenant change.
Examples: If you have not paid your assessments for one year, 2015, you will owe $420.00 plus 18% compounded interest for a total of $470.40. The new 12% simple interest rate will save you $25.20 which allows you to keep 5.08% of the original amount owed.
If you have not paid your assessments for 5 years, 2010 to 2015, you will owe $4,300.90 which includes 18% interest compounded yearly. The new 12% simple interest rate will save you $1,691.30 which allows you to keep 39.32% of the original amount owed.
If you have not paid your assessments for 10 years, 2005 to 2015, you will owe $10,903.22 which includes 18% interest compounded yearly. The new 12% simple interest rate will save you $6,631.54 which allows you to keep 60.82% of the original amount owed.
If you have not paid your assessments for 18 years, 1997 to 2015, you will owe $37,710.48 which includes 18% interest compounded yearly. The new 12% simple interest rate will save you $31,288.40 which allows you to keep 82.97% of the original amount owed.
The greater the number of years a landowner has not paid their assessments, the greater the percentage of the debt the GLA Board is willing to forgive. Those who paid the least, will be rewarded the most. Additionally all past due landowners have received the same benefits of road maintenance and snow plowing as dues paying landowners.
| Assessments | Amount for | You Owe $ with | New Balance | Amount GLA Gives to you | Percentage of your original debt |
| Due for the year Ending in: | 1 land and 1 Dwelling | 18% Interest Compounded Yearly | With 12% Simple Interest | You Save $$$ | the GLA Board lets you keep |
| 2015 | $420.00 | $495.60 | $470.40 | $25.20 | 5.08% |
| 2014 | 382.00 | 1,027.50 | 898.24 | 129.26 | 12.58% |
| 2013 | 382.00 | 1,655.14 | 1,326.08 | 329.06 | 19.88% |
| 2012 | 382.00 | 2,395.75 | 1,753.92 | 641.83 | 26.79% |
| 2011 | 382.00 | 3,269.67 | 2,181.76 | 1,087.91 | 33.27% |
| 2010 | 382.00 | 4,300.90 | 2,609.60 | 1,691.30 | 39.32% |
| 2009 | 348.00 | 5,409.45 | 2,999.36 | 2,410.09 | 44.55% |
| 2008 | 318.00 | 6,604.76 | 3,355.52 | 3,249.24 | 49.20% |
| 2007 | 290.00 | 7,891.05 | 3,680.32 | 4,210.73 | 53.36% |
| 2006 | 264.00 | 9,272.78 | 3,976.00 | 5,296.78 | 57.12% |
| 2005 | 264.00 | 10,903.22 | 4,271.68 | 6,631.54 | 60.82% |
| 2004 | 240.00 | 12,652.24 | 4,540.48 | 8,111.76 | 64.11% |
| 2003 | 240.00 | 14,716.09 | 4,809.28 | 9,906.81 | 67.32% |
| 2002 | 240.00 | 17,151.43 | 5,078.08 | 12,073.35 | 70.39% |
| 2001 | 240.00 | 20,025.13 | 5,346.88 | 14,678.25 | 73.30% |
| 2000 | 240.00 | 23,416.09 | 5,615.68 | 17,800.41 | 76.02% |
| 1999 | 240.00 | 27,417.43 | 5,884.48 | 21,532.95 | 78.54% |
| 1998 | 240.00 | 32,139.01 | 6,153.28 | 25,985.73 | 80.85% |
| 1997 | 240.00 | 37,710.48 | 6,422.08 | 31,288.40 | 82.97% |
For ease of use we changed the color of the fonts in alternating lines to green.
The table above calculates the original debt by adding past due year end balances and adding 18% interest. The Covenants specify 18% interest that is compounded monthly. For ease of use we compounded the 18% interest on a yearly basis. Thus actual savings will be greater than listed in columns 5 and 6.
The Covenants also specify a 5% penalty which is now considered illegal by Montana courts. Therefore we left it out of our calculations.
The table also assumes that no payments have been made since the first year the landowner became past due. Data is current to June 2016.
The table above calculates the original debt by adding past due year end balances and adding 18% interest. The Covenants specify 18% interest that is compounded monthly. For ease of use we compounded the 18% interest on a yearly basis. Thus actual savings will be greater than listed in columns 5 and 6.
The Covenants also specify a 5% penalty which is now considered illegal by Montana courts. Therefore we left it out of our calculations.
The table also assumes that no payments have been made since the first year the landowner became past due. Data is current to June 2016.