III. Financial Matters

Monthly Charges to GHI members cover the pro-rata share of Corporation expenses plus any charges attributed directly to a member or the member's home. Listed below is a breakdown of a typical monthly charge with an explanation of the line item.

Sample Monthly Charge Statement

1. Real Estate Taxes
2. Trash Collection
3. Insurance
4. Administrative/Board/Committee/Membership
5. Maintenance and Capital
6. Reserves
7. Addition Maintenance. ..(If applicable)
   
   DEBT SERVICE:
8. Rehab Loans Amortization Payments
9. Other Loan Payments (if applicable)
   Monthly charge rounded to the nearest $.25  

OTHER CHARGES & CREDITS:
ADD: Garage Rental
ADD: Boat Yard Charge
LESS: Credit for Submeter
LESS: Rehab Loan Deferral Program
LESS: Increase Deferral Program
LESS: Section 8 Assistance
PLEASE PAY THIS ON THE FIRST OF EACH MONTH

1. Real Estate Taxes
   Five jurisdictions (City of Greenbelt, Prince George's County, Washington Suburban Sanitary Commission, Maryland National Park and Planning Commission, and the State of Maryland) levy property taxes. Because tax assessments are not levied against individual GHI dwellings but upon groups of dwellings, and because the land has not been subdivided into individual lots, GHI Mutual Ownership Contracts stipulate that members agree to accept the proration of real estate taxes or assessments made by the Corporation to their unit. Additions and certain improvements (such as privacy screens) result in increased assessments and, therefore, increased taxes. Each member receives an itemization of his payments for property tax in January. This amount can be deducted from the member's federal and state income taxes.
2. Trash Collection
   Trash Collection is charged to each unit equally based on the rates set by the City of Greenbelt.
3. Insurance
   Insurance carried by GHI covers the structures only, including approved additions. The contents of the home and other personal possessions (including sheds and fences) are not covered, as well as certain liability situations. Members are urged to contact their insurance agent for specifics and to obtain HO-6 or similar coverage which will protect their possessions.
4. Administration/Board/Committee/Membership
   The administrative costs of operating the corporation are charged evenly to all members.
5. Maintenance and Capital Improvements
   The pro-rata share of the total maintenance budget for each type of home is based upon the size of the dwelling unit and its construction type. This charge also includes the member's share of capital improvement programs being implemented during a given year which involve work beyond normal maintenance.
6. Reserves
   Contingency and replacement reserve funds have been established to fund replacement of key building components, emergency needs, unplanned expenditures, and other contingencies.
7. Addition Maintenance Program
   Maintenance on additions is charged separately. The fees are based on the type of addition, size, and number of plumbing fixtures, and are set by the Board of Directors.
8. Rehab Loans Amortization Payment
   This includes repayment of pro-rata share of the large rehabilitation loans from the early 1980's, which funded new windows, roofs, heating systems, plumbing, siding, electrical, and other modifications. Members can deduct the interest portion of the monthly payment on this loan from federal and state income taxes. An itemization of interest paid is sent to each member in January.
9. Other Loan Payments
   These include repayments of loans for various purposes (share loans, MHRP, siding installed on block homes) applicable to a small number of unit.
10. Non-budgetary Charges and Credits
    If you rent a garage, boat or trailer space, or receive assistance, adjustments will be made to your monthly charges. If GHI uses your electricity to light common areas or drive sump pumps, your monthly charge is reduced by a credit for submeter accordingly based upon estimated usage.

Members do not receive payment books from GHI; monthly charges are due on the first day each month. Penalties for late payments are specified in your Mutual Ownership Contract. Payments should be mailed or deposited at the GHI offices. Make check or money order payable to Greenbelt Homes, Inc., including your name and address on the check. Maintenance charges on fee-for-service work is due the month after the billing, unless a payment schedule has been prearranged.

Financial statements are prepared on a quarterly basis during the year and are available for member examination by calling the Fiscal office. The books of the Corporation are audited annually by a certified public accountant. The audit reports are reviewed by the Management staff, the Treasurer, the Board of Directors, and the Audit Committee and are published in the Annual Report, which is sent to all members.