The Berger Center project is moving closer to real contracts and real costs at a time when both construction and borrowing are becoming more expensive. In his September 15 President’s Report, OVA President Steve Spanier said, “On the Berger project, we’re still on track to identify and sign contracts with a project manager, an architect, and a general contractor prior to year-end.” That makes another question increasingly important: When will Oakmont members see the financial plan for paying for Berger?

The August 24 Berger workshop outlined a substantial scope: HVAC replacement, lighting, electrical and low-voltage systems, sound improvements, interior changes and other work, along with a possible vestibule addition of up to 1,000 square feet. The final workshop slide moved from Finalize Scope to Board Decision, to Hire Contractors, including obtaining and comparing bids. What it did not show was a financial plan.

What do we know about the money?

As of August 31, OVA reported about $4.1 million remaining on the golf-course loan, about $6.5 million in Asset Replacement Fund cash and investments, and about $1.8 million in Capital Improvement Fund cash and investments, approximately $8.3 million combined. That $8.3 million should not be viewed as money simply available for Berger. ARF and CIF also support other current and future replacement and capital projects throughout Oakmont.

Another important number is $8.2 million, the last major ESG general-contractor design-build estimate for Berger. OVA did not contract with ESG and moved to a different process, so $8.2 million is not the current Berger price. We do not yet know the cost of the new project manager, architect and general contractor, the final design, contractor bids or ultimate construction cost.

Construction costs are moving too

That uncertainty matters because construction costs are rising. The Associated General Contractors of America reported this month that inputs for new nonresidential construction increased 8.9% between August 2025 and August 2026. Aluminum mill shapes rose 27.3%, steel mill products 23.4%, and copper and brass mill shapes 20.9%. Those are not abstract commodities for a project like Berger. HVAC, electrical systems, ductwork, lighting and remodeling all depend on materials, equipment, labor and transportation.

Then there is diesel. The Wall Street Journal reported September 15 that the national average price of diesel reached a record $6.27 a gallon, up from $3.69 a year earlier. In California, the average reached $8.21 a gallon. At the time of that report, Brent crude oil was trading around $107 a barrel. Diesel matters to construction because it powers trucks delivering materials and much of the heavy equipment used on construction sites.

The fuel squeeze is global. Ukrainian drone attacks have reduced production at several major Russian refineries, contributing to restrictions on Russian diesel exports. Middle East disruptions have also tightened energy markets and transportation routes. By September 17, Brent crude remained above $100 a barrel, even as prices moved lower during the trading day.

For Oakmont, the connection is practical. Fuel, freight, steel, copper, aluminum, HVAC equipment and construction labor eventually become part of the bids OVA receives. And Berger is not OVA’s only building need. The same pressures affect future pool work, roofs, paving, mechanical systems and other projects funded through Oakmont’s reserves. A major commitment to one facility has to be considered alongside the needs of Oakmont’s other aging infrastructure.

The other price tag: borrowing

Construction costs are only half of the Berger equation. For a 15-year community-association loan, current published HOA lending information suggests rates can fall roughly in the 7% to 10% range, depending on the association’s finances and loan structure. OVA’s actual rate would have to be determined through competitive lender proposals. Because dues are OVA’s primary recurring revenue source, lenders would be expected to examine assessment income, delinquencies, reserves, existing debt and the annual debt-service burden closely.

Since President Spanier has discussed with members several possible ways of paying for Berger — including the use of reserves, a special assessment, refinancing OVA’s existing debt, or taking out a new loan — let’s look at the numbers.

A $5 million loan could ultimately represent approximately $2,500 to $3,000 per OVA household/share. Using approximately 3,212 OVA household shares, borrowing $5 million for 15 years at 7% to 10% would require roughly $539,000 to $645,000 a year in principal and interest, or approximately $8.1 million to $9.7 million in total payments over 15 years. If an amount equal to that full principal-and-interest cost were divided among OVA household shares, it would equal roughly $2,500 to $3,000 per household. Every $1 million borrowed represents about $500 to $600 per household in total principal and interest over 15 years. Using reserves could reduce the amount that must be borrowed, but those funds also support other current and future OVA capital and replacement needs. These figures are illustrations, not a proposed assessment or prediction of OVA borrowing; the actual cost would depend on the amount financed, interest rate, fees, repayment terms and financing approach ultimately selected.

One important distinction: if OVA actually issued a one-time special assessment to raise $5 million immediately, that assessment would simply be about $1,557 per household ($5 million ÷ 3,212). The $2,560–$3,070 figure represents each household’s share of the total principal and interest if OVA borrowed $5 million for 15 years. This works out to be about $14 to $17 per month per household for 15 years.

The broader lending environment is also changing. On September 16, the Federal Reserve raised its benchmark interest rate by a quarter point to 3.75%–4.00%, while long-term Treasury yields have risen sharply. OVA would not borrow at the Treasury rate; an HOA lender would establish its own rate based on OVA’s finances, loan structure, term and other underwriting factors.

That is particularly important because OVA already owes about $4.1 million on the golf-course loan at roughly 4%. If that lower-rate debt were refinanced into a new 15-year loan, the existing 4% rate would not simply carry over. OVA could potentially pay a substantially higher rate on millions of dollars of existing debt as well as on any additional money borrowed for Berger.

Before refinancing that loan, members should see a side-by-side comparison of keeping the existing lower-rate debt versus replacing it with new financing, including the interest rate, fees, repayment period, annual debt service and total principal and interest through the final payment.

Berger has two price tags

This is why Berger has two price tags: the cost of the building and the cost of the money used to pay for it.

Oakmont is facing two moving targets at once. Construction costs can rise while financing those costs can also become more expensive. Because dues are OVA’s primary recurring source of revenue, the cost of long-term borrowing ultimately matters to every Oakmont household.

Necessary HVAC and infrastructure work, extensive remodeling and expansion are also different financial decisions and should be priced separately. Expansion can create continuing expenses after construction ends, including heating, cooling, electricity, insurance, maintenance and eventual replacement costs.

Where is the financial plan?

The Board cannot know the final Berger construction price until designs are completed and bids are received. But members can be shown financial scenarios before then. How much might come from ARF or CIF? How much might be borrowed? Would the existing golf-course loan be refinanced? Would a special assessment be considered? What would those alternatives mean for reserves, future dues and OVA’s ability to fund other projects?

Right now, Oakmont knows approximately what it owes on the golf-course loan, what is held in ARF and CIF cash and investments, and what ESG previously estimated under a design-build approach OVA did not pursue. What remains unknown is the cost of the new professional team, the final Berger scope, contractor bids, construction price and financing plan.

Those are the numbers members need next. Berger has two price tags. Members need to know what the building will cost and what the money to pay for it will cost.

Coming next week in Our Oakmont Community Up Close:

Let’s Dance!

Sources

Oakmont Village Association — September 15, 2026 Board Agenda & Resolution Packet (OVA member sign-in required)
https://oakmontvillage.com/article/9-15-2026-board-agenda-resolution-packet/

Oakmont Village Association — August 24, 2026 Berger Center Project Scope Workshop
https://oakmontvillage.com/article/video-berger-center-project-scope-workshop/

Associated General Contractors of America — Construction Input Costs, September 10, 2026
https://news.agc.org/news/construction-input-costs-climb-8-9-between-august-2025-and-august-2026-association-survey-finds-war-and-tariff-impacts-are-disrupting-projects/

Wall Street Journal — “U.S. Diesel Prices Hit New Record High as Fuel Squeeze Bites,” September 15, 2026
https://www.wsj.com/finance/commodities-futures/u-s-diesel-prices-hit-new-record-high-as-fuel-squeeze-bites-455c4983?mod=Searchresults&pos=3&page=1

Reuters — Russian diesel refineries cut output after drone strikes, September 15, 2026
https://www.reuters.com/business/energy/half-russias-top-diesel-producing-refineries-cut-back-output-after-drone-strikes-2026-09-15/

Reuters — Oil market update, September 17, 2026
https://www.reuters.com/business/energy/oil-prices-extend-losses-fears-middle-east-supply-disruptions-ease-2026-09-17/

Federal Reserve — September 16, 2026 FOMC Statement
https://www.federalreserve.gov/newsevents/pressreleases/monetary20260916a.htm

U.S. Treasury — Daily Treasury Interest Rates
https://home.treasury.gov/resource-center/data-chart-center/interest-rates

Sizzle Capital Group — HOA Loan Interest Rates 2026
https://sizzlecapitalgroup.com/hoa-loans/interest-rates-2026

First Citizens Bank — HOA Lending Solutions
https://www.firstcitizens.com/commercial/solutions/community-association-banking/hoa-lending-solutions

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