This HOA program is modest, fully funds the amenities, and reinforces the strong profitability of the project by delivering exactly the convenience and lifestyle premium Topeka’s 55+ buyers and renters are seeking.

 

HOA Program Recommendation for 52-Unit 55+ Townhome Development (Repurposed YMCA North Kuehne Branch – 1936 NW Tyler St, Topeka, KS)

A refined, modest HOA program is very feasible and highly attractive for the new residents. The attached floor plan (Main Floor Plan A1) and SNCO property records confirm the full amenity package: indoor natatorium (5-lane main pool + leisure pool with zero-depth entry, slide, and patios/solarium), gym/track and fitness upgrades (existing weight room plus proposed circuit/free weights and climbing areas), pickleball courts (natural conversion of the large open gym/lazer tag/rec space), and exterior landscaping (entry plaza, planters, patios, and courtyards).

These features create a true destination community exactly what Topeka’s 55+ market is missing. Residents will happily pay a modest premium for maintenance-free, year-round access to indoor pool, pickleball, fitness/track, and beautifully landscaped grounds.

Recommended Modest HOA Fee

$225 – $275 per month per unit (52 units = $140,000 – $170,000 annual total budget). Midpoint $250 per month remains competitive for Midwest/Topeka/KC-area 55+ townhomes with indoor pools, fitness centers, and pickleball (typical range $150–$350). It is still “modest” while fully self-sustaining, with healthy reserves and no risk of special assessments.

Annual HOA Budget Breakdown (Scaled to This Property)

Conservative Topeka/Kansas estimates (year-round indoor pool and gym require minimal seasonal adjustment):

• Indoor natatorium/pool maintenance (chemicals, cleaning, filtration, pumps, HVAC/humidity control, monitoring, minor repairs) → $25,000 – $35,000
• Pickleball courts (2 courts in converted gym space – cleaning, nets, annualized resurfacing) → $2,000 – $4,000
• Gym/track & fitness upgrades (weights/circuit area, climbing elements, walking track surface, equipment service, HVAC) → $8,000 – $12,000
• Landscaping & common grounds (entry plaza, patios/planters, irrigation, seasonal cleanups/snow removal) → $25,000 – $35,000
• Insurance (liability/property coverage for pool, gym, courts, and common areas) → $10,000 – $14,000
• HOA management/admin (professional manager, accounting, meetings, legal basics, resident portal) → $10,000 – $14,000
• Utilities (lights, water for pool/landscaping, minor HVAC for common spaces) → $12,000 – $18,000
• Reserves (pool resurfacing/filter replacement, court/gym surfacing, track overlay, major equipment) → $15,000 – $22,000

Total annual operating budget: $140,000 – $170,000 → $225 – $275 per unit per month.

The low amenity conversion costs already budgeted ($800k–$1.4M using the existing building shell) keep ongoing HOA operations very efficient.

Impact on Project Profitability

For-Sale Scenario (Strongly Recommended) No impact on the projected $5.48M – $6.50M gross profit. Buyers pay the HOA fee after closing. At a $365k–$375k sale price + ~$250/mo HOA, the total housing cost remains highly competitive and supports the premium pricing driven by the indoor pool, pickleball, gym/track, and landscaping package.

Rental/Hold Scenario As owner/landlord, the HOA becomes an operating expense (≈ $156,000/year at the $250 midpoint). This reduces stabilized NOI from the original ~$750k–$830k range to approximately $594k–$674k. At a 7.25% cap rate, the property value is $8.2M–$9.3M. IRR remains solid in the 14–20% range with modest rent growth, as the full YMCA-style amenities will support the target $2,150–$2,350 monthly rents and keep vacancy low.

Quick HOA Program Outline for Residents (55+ Age-Restricted)

• Community Name Suggestion: “North Tyler Active Adult Townhomes HOA” or “Great Life Townhome Community at the YMCA”
• Governing Documents: Standard Kansas HOA declaration (CC&Rs) with 55+ age restriction (at least one resident 55+; no full-time residents under 18).
• Amenity Access Rules (resident-friendly): Pool and gym hours 6:00 a.m. – 10:00 p.m.; pickleball court sign-up via app; no glass in pool area; limited guest passes; quiet hours in fitness areas. Restaurant build-out (if pursued) can operate separately with resident discounts.
• Management: Professional third-party HOA management company (standard in Topeka) for minimal owner involvement.
• Marketing Message: “Maintenance-free living with your own private YMCA-style amenities — year-round indoor pool, pickleball courts, fitness track/gym, and landscaped courtyards.”

This HOA program is modest, fully funds the amenities, and reinforces the strong profitability of the project by delivering exactly the convenience and lifestyle premium Topeka’s 55+ buyers and renters are seeking.