🏡 43 North Road
The building the Board bought — and what it actually costs
The Board purchased 43 North Road. Here is the building, the mortgage, the operating costs, the breakeven rent, and the subsidy every household pays.
43 North Road
The Financial Picture
What we bought, what it costs, and what a tenant would pay — every number from a public record.
A Note to the Board of Governors
The figures below are compiled from publicly available records. We recognize they may not reflect the Board's internal projections. We respectfully invite the Board to share official cost projections for 43 North Road — including expected operating costs, rental income targets, and per-household impact. If official figures are provided, we will update this section immediately and mark them as Board Verified. Until then, we're working with what's publicly available.
We want what's best for the HOA. Transparency helps everyone make better decisions.
The Board has not yet reached out to our group for corrections — Our goal is 100% accuracy.
What We Bought
The Building & The Purchase
The building
2,618 sq ft · Built 1954 · 1.41 acres · Commercial
The purchase
$500K · $125K down · $375K mortgage at 6.75% · 15-yr term
Source: Treasurer's Report + Kinnelon Borough records (Block 11201, Lot 104).
First Year (2026)
Year 1 — first year loss
- Mortgage
- $56,820
- Renovations (one-time)
- $125,000
- Operating costs
- ~$48,000
- First year loss
- $229,820
Per household
$250 / yr
Per month
$20.82
Includes $125,000 one-time renovation. Operating costs at community-input midpoint.
Every Year After (2027–2040)
Ongoing yearly loss
- Mortgage
- $56,820
- Operating costs
- ~$48,000
- Ongoing yearly loss
- $104,820
Per household
$114 / yr
Per month
$9.49
Mortgage fixed for 15 years. Operating costs at community-input midpoint — may increase with inflation and building age.
Beyond the Mortgage
What It Takes to Operate This Building
The $57K mortgage is just the start. Operating costs sit on top of it.
Mortgage (debt service)
Verified — Treasurer's Report
$56,820 / yr
Operating costs
~ Community input ($4,000/mo)
~$48,000 / yr
Total ongoing
$104,820 / yr
Market Rent
$5,018 / mo
$60,214 / yr
Kinnelon avg · $23/sq ft
Source: LoopNet
Breakeven Rent (Ongoing)
$8,735 / mo
$104,820 / yr
1.74x market rate
Rent needed to cover ALL costs
Breakeven Rent (Year 1)
$19,152 / mo
$229,820 / yr
3.8x market rate
Including one-time renovation
The Subsidy
What Homeowners Cover
Subsidized: the portion of building costs not covered by rental income, paid collectively by all 920 homeowners through annual assessments.
Year 1 subsidy
$169,606 / yr
$184 / household
(total Year 1 costs minus best-case rent of $60,214)
Ongoing annual subsidy
$44,606 / yr
$48 / household / year
Even with a tenant at top market rent
Assumes 100% occupancy at the highest Kinnelon market rate with no vacancy, no broker commissions, and no tenant improvement costs. Operating costs use the $48,000 community-input midpoint.
Sources
- Treasurer's Annual Report 2025 & 2026 Budget
- Kinnelon Borough property records (Block 11201, Lot 104)
- LoopNet.com — Kinnelon & Butler NJ office listings, May 2026
- Building: 2,618 sq ft, Class 4 Code 560, Year Built 1954
Verified ✓ = from official documents. Estimated ~ = conservative assumptions. Board members: email support@43northrd.com with corrections.
'Generating income to offset Club dues' is currently the #1 priority among survey respondents — selected by 1 neighbor (100%). But the numbers tell a different story — at current market rates, leasing 43 North Road would not generate income. It would require an ongoing subsidy from homeowner assessments.
See the breakdown below.
What We've Learned Together
Thanks to community input, we now have a clearer picture of what 43 North Road actually costs:
- The building
- 2,618 sq ft · Built 1954
- Annual mortgage
- $56,820/yr ✓
- Annual operating costs
- ~$48,000/yr
- Total cost to carry
- ~$105,000/yr
- Best-case commercial rent (Kinnelon avg)
- $60,214/yr
- Amount subsidized by homeowners
- ~$45,000/yr
Sources: Treasurer's Annual Report · Kinnelon Borough records · LoopNet.com · Community input
The 5-Year Picture
~$273,000
Paid by HOA members to subsidize a commercial tenant over 5 years
Even at top market rent with zero vacancy, homeowners pay the difference between what the building costs and what a tenant pays.
'Generating income to offset Club dues' is currently the #1 priority among survey respondents.
'Subsidized' = the difference between what the building costs and what a tenant would pay — covered by your assessment across 920 households.
🍽 Village Inn finances
The Village Inn — by the numbers
The Inn is the largest single expense in your assessment. Hero card, per-household impact, revenue-vs-expense gap, full spending breakdown, and the 7-year deficit trend.
Total Community Cost — Yearly Deficit
$406,304
paid by all 980 households every year
The Village Inn generates $1.43M in revenue but costs $1.83M to operate. Assessments cover the $406K gap — whether or not you dine there.
2026 SRC Proposed Budget, pp. 7 & 13 · Includes $49K G&A allocation
$34
per month
8% of your $413 monthly dues
$415
per year
8% of your $4,824 annual dues
$406K
total community cost
Yearly deficit
🍽 Village Inn
Revenue vs. expense — does the Inn pay for itself?
The Inn brings in $1.43M per year from dining, catering, and bar sales. But it costs $1.84M to operate — leaving a $406K gap that your dues cover.
Revenue covers 78¢ of every $1 spent
Revenue
$1,428,688
Total expense
$1,834,992
Reported expenses: $1,785,992. Adding $49,000 G&A Inn allocation = $1,834,992 total.
🍽 Village Inn Spending
How the Inn spends $1.84 million a year
This is only Village Inn expenses — not the full Smoke Rise budget. Nearly half goes to staffing. Food and beverage is the next largest cost.
| Payroll & Staff | $793K | 43% | |
|---|---|---|---|
| Cost of Food | $339K | 18% | |
| Supplies & Other | $217K | 12% | |
| Cost of Liquor | $108K | 6% | |
| Insurance | $51K | 3% | |
| Utilities | $51K | 3% | |
| Real Estate Tax | $44K | 2% | |
| Advertising | $35K | 2% | |
| G&A Allocation | $49K | 3% |
G&A Allocation: $49,000 of Inn expense categorized under General & Administrative (Budget p. 13)
🍽 Village Inn Deficit
7 years of growing losses
The gap between what the Inn earns and what it costs has grown 64% since 2019 — from $247K to $406K. That's an extra $159K per year the community now covers.
2019–2025: reported deficit · 2026: includes $49K G&A allocation
Sources: SRC Proposed Budgets & Treasurer's Annual Reports
💰 Combined yearly losses
Two operations. One bill.
The Village Inn deficit and 43 North Road costs are paid by every household — whether or not you use either one.
Combined yearly losses — 2026
$587,584
paid by all 980 households every year
Village Inn deficit of $406K plus 43 North Road carrying cost of $181K — together, the two operations cost the community $587,584 per year.
2026 SRC Proposed Budget · pp. 3, 7 & 13
$50
per month
Per household, every month — Inn deficit + 43 North Road
$600
per year
Per household, every year — combined yearly losses
$588K
all households
Total community cost, every year
💰 Where the $588K comes from
Three line items, one bill
The Village Inn's yearly deficit plus the two 43 North Road lines on the 2026 Capital Fund page — added together.
Village Inn yearly deficit
$406,304
Revenue minus operating expenses (incl. $49K G&A allocation)
43 North Road — annual loan
$56,280
Mortgage debt service · 15-yr term at 6.75%
43 North Road — replacement items
$125,000
Capital replacement & maintenance — 2026 budget
Combined yearly losses
$587,584
Source: 2026 SRC Proposed Budget — Village Inn (p. 7), Capital Fund (p. 3), G&A (p. 13).
📋 2026 Proposed Budget
Every department, every dollar
Now the wider picture. Stat-card hero, sortable departmental chart, and the per-category breakdown of your monthly fee.
$4.8M
Total community budget
Operating + Capital · 980 households
$4,824
Annual assessment / lot
Up 7.6% year-over-year
$413
Monthly fee
Includes $11/mo installment fee
📋 2026 Departmental Budget
Every department, every dollar
The full Smoke Rise budget, ranked by expense. Departments shaded in forest green; the Village Inn is highlighted in gold because it's the largest single line — and the rest of this page goes deep on it.
Village Inn Includes $49K G&A allocation | $1,834,992 | 38% | |
|---|---|---|---|
Capital Fund | $1,204,000 | 25% | |
Security | $1,013,866 | 21% | |
Maintenance | $802,203 | 17% | |
Office | $585,154 | 12% | |
Recreation | $317,994 | 7% | |
G&A Includes $49K Inn expense allocation | $192,089 | 4% | |
Lake & Env | $159,000 | 3% | |
Prof. Services | $123,600 | 3% |
Source: 2026 SRC Proposed Budget · Village Inn expense includes its $49K G&A allocation. G&A's $192K bucket includes the same $49K Inn expense allocation — a cross-categorization, not a double charge.
🏡 Your assessment
How your $413/month is divided
Every Smoke Rise household pays $413/month — $4,824/year. Here's how that splits across the community's operations.
| Security | $86 | / month | 21% of dues | Gate operations, perimeter patrol, in-house guards. |
|---|---|---|---|---|
| Capital | $87 | / month | 21% of dues | Roads, vehicles, infrastructure improvements. |
| Maintenance | $60 | / month | 15% of dues | Grounds, equipment, landscape, plowing. |
| Village Inn deficit | $34 | / month | 8% of dues | $406,304 yearly deficit, divided across every household. |
| Other | $94 | / month | 23% of dues | Office, professional services, communications. |
| Recreation | $22 | / month | 5% of dues | Lifeguards, beach programming, swim lessons. |
| G&A | $16 | / month | 4% of dues | Taxes on common property, insurance, board events. |
| Lake & Env | $14 | / month | 3% of dues | Dock operations, weed control, fish stocking. |
Source: 2026 SRC Proposed Budget · Percentages sum to 100% across all community operations.
📈 Projections
What happens if nothing changes
At today's combined losses, here's the 1-, 2-, 5-, and 10-year cost per household — paired with the 7-year timeline of how we got here.
💰 If nothing changes
The cost of inaction, year by year
At today's combined losses of $587,584/year, here is what every Smoke Rise household pays if the Village Inn deficit and 43 North Road costs continue at 2026 levels.
Year 1
$600 per family
2 years
$1,200 per family
5 years
$3,000 per family
10 years
$6,000 per family
All 980 households over 10 years
$5,875,840
Nearly six million dollars.
Based on $587,584/year combined losses · 2026 SRC Proposed Budget
🍽 Inn deficit timeline
7 years, year by year
The Inn's deficit grew every year, with no structural changes made on any step to address it.
2019
Inn deficit: $247K
↓ No structural changes
2020
Inn deficit: $282K(+14%)
↓ No structural changes
2021
Inn deficit: $310K(+10%)
↓ No structural changes
2022
Inn deficit: $295K(-5%)
↓ No structural changes
2023
Inn deficit: $310K(+5%)
↓ No structural changes
2024
Inn deficit: $350K(+13%)
↓ No structural changes
2025 (proj.)
Inn deficit: $350K(0%)
↓ No structural changes
2026
Inn deficit: $406K(+16%)
↓ No structural changes
2019–2025: reported Inn deficit · 2026: includes $49K G&A allocation · 2026 SRC Proposed Budget
🗳 Your voice
The numbers are clear. What should we do?
Take the 5-minute governance survey to share your perspective on how Smoke Rise should manage these operations.
Next: Your voice
Vote, rate, and share your ideas
Beyond the governance survey, /voice is the hub for every way you can weigh in — the 43 North Road vote, ratings of community operations, and open suggestions.