Reston Association Pays Off The Lake House Loan

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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