Reston Association has officially paid off its million loan for the purchase of The Lake House. The board of directors elected to pay off nearly $2.42 million of the remaining balance.
Formerly Tetra, The Lake House has been hit with financial difficulties since it was purchased for $2.6 million — about twice its assessed value — in 2015. RA showed a cost overrun of $430,000 last spring, due in part to a six-figure expected rent back from former owner/tenant Tetra that did not happen. Renovations on the property to transform it into a community building have cost three times more than expected. An independent audit was requested.
RA is looking into new ways to make the facility a reliable source of income — a concern that was raised in previous RA meetings where some board members expressed dismay that RA was losing money on the project.
This year, the facility is expected to produce $224,000 in rental income. According to an RA statement, paying off the loan early will allow each member to save $8.66 on their assessment. If the facility produces target rental incomes, members can receive another $6.17 in savings, according to RA.
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