Moderator: Good afternoon and welcome to our Home Buyers discussion with Michael Anderson. Michael, we're pleased to have you with us today.

Michael Anderson: Hello - my name is Michael Anderson. I am here to answer your questions about the Benefits of a Planned Community. Thank you for joining me. I will be here from 1 -2 today.

Moderator: What exactly is a planned community?

Michael Anderson: Good question. A planned community simply put is just that. A community where the homes, the amenities, the transportation netwrok, the parks, and all of the other associated improvements within the community or an area have been planned.

Grayslake IL: We currently live in a successful and coherent planned community, one still under construction. We generally support ordinances and guidelines for such settings. In your experience, how long do these guidelines remain effective among a group of diverse homeowners? What have you observed regarding these ordinances in planned communities after ten or more years?

Thank you for your response. I'll be away during the live conference, and I hope you'll post your response.

Michael Anderson: A very important question. Thank you for asking that.

One of the most important benefits of a planned community is the preservation and enhancement of values, whether those values are real estate prices, or values associated with the community in general. In order to maintain those values, the community most be diligent and forceful in enforcement of the covenants and guidelines. That is not to say the guidelines and the community can not evolve and repond to a changing environment; I think that a community has to do that in order to remain viable. However, the community has to be diligent in enforcement of those rules and regulations, whatever they may be. Once enforcement is terminated and control is lost, it can never be regained. At that point, you no longer have a planned community, just a group of houses.

Alexandria, VA: Are planned communities only new homes or can resale homes be purhcased? If so, do I have to go through a Realtor to find them?

Michael Anderson: The simple answer is, "Yes, there can be resales." Obviously, for the first few years, it is predominantly new homes sales. Once the community is built out, resales become the dominant real estate activity. Those resales should now start to reflect the increase in value that a planned community generates.

One of the oportunities of new home sales, is to get in on the ground floor of that value increase. You may feel like a pioneer for a while. But you can be involved in creating a new community.

With regards to a realtor searching for a resale home, you do not have to use them. However, realtors are a great source of information and help you choose the community that is right for you.

Woodbrige, VA: Do planned communities have particular relationships with area schools? If so, what are they?

Michael Anderson: The answer is "Yes." However, the relationship may not be formal. For example, in Southbridge, the developer has provided a graded elementary school site within the community. It is our intent to "adopt" that school and try to provide them with tools that will provide our residents' children with the best opportunity we can.

The residents within the community will obviously have a great impact on the school through their participation in PTAs and other community and school relationships.

Annandale, VA: Is Reston a planned community or a city? What's the difference?

Michael Anderson: Excellent question. All planned communities are similar in some ways to towns or cities. For example, the Board of Directors of a planned community can have a stron parallel to a town council. A Neighborhood Watch can be thought of as a local law enforcement entity. In Southbridge we used to have a bus service opperated by the developer and ultimately taken over by PRTC (Potomac Rappahanonic Transportation Company) that was in-effect "public transportation." Our community is responsible for trash pic-up - similar to a city. And finally, you can draw a strong parallel that your monthly assessment is similar to taxes.

The parallels between cities in the large (in terms of geographic size) planned communities. Southbridge will be - when finished - over 2800 acres, 5000 homes, and 3.5 million square feet of retail, office, and commercial space. The parallel to a city is much stronger the larger the community is.

Paris, France: If you had a choice between buying a condo or a townhouse in a planned community, which would you buy and why? Any thoughts on inside the beltway vs. outside the beltway? What about "historic" looking properties -e.g. Cameron Station- versus similar modern types?

Michael Anderson: We had to reply to anyone from Paris! You have hit upon the second most important reason for looking at a planned community: lifestyle. You need to spend some time analyzing what is important to you: being close to work; being close to schools; being in an historic district; budget; and so on.

Once you establish 5 or 6 or more criteria for choosing a planned community, I think that you will narrow the choice quickly. Inside the beltway is generally closer to work, but much higher priced. Outside the beltway, generally more suburban in nature, prices will be lower. For example, Cameron Station is very dense. If you are looking for a single-family house on a half-acre lot, Cameron Station is not for you. Come on down to Southbridge!!

Alexandria, Virginia: What does "mixed-used master-planned" mean?

Michael Anderson: You are talking about Southbridge. Mixed use is just that. It is a mixture of uses. It's good planning. Mixed-use tries to anticipate the buyer's needs, tries to provide them a place to work within the community, to buy gas, shop for groceries, go to school, and play soccer and swim.

Annandale, VA: What kind of representation do I have as a planned community home owner in the general community decisions? Is my influence dependent on the value of my home or the loudness of my voice? Thanks in advance.

Michael Anderson: Most planned communities are based on "One-house - one-vote." Your influence in the community is a direct-function of your involvement. If you get involved and have good ideas, it does not matter if you live in a $750,000 single-family house, or a $100,000 condominium. Every unit's voice is the same. But, you must read the documents before you buy. The covenants, by-laws, and articles of incorporation are dry and technical documents but are the blue print for the governance of the community.

Mclean, VA: I am young and single and have a friend who lives in Kentlands. She loves it there. Do some communities have a large singles population or do most cater to families and retirees?

Michael Anderson: It has been my experience most planned communities are tailored toward families or age restricted. I refer back to my earlier answer about choosing your lifestyle. It may be your friend, even though single, shares the same values as most of the families in Kentlands, and is therefore very at home in the community. You have to sit down and identify what lifestyle you are looking for before searching for a planned community.

Arlington, VA: I am looking for a 2br apartment. Should I consider a planned community? Will it be more expensive?

Michael Anderson: Without knowing your particular situation, I would in general advise you that most of the planned communities are designed for home-ownership. Therefore, your choices will be limited within planned communities. I know, for example, Lorton Station has apartment within it, so does Fair Lakes. I do not know of too many more that will have apartment components within them.

The farther out you go form Washington DC, the more likely you are to find opportunities to own for the same price as renting. Again, it depends upon your lifestyle choice: "Do I rent close in, or own a little bit farter out."

WDC: If I lived in your community, would I be able to paint my house purple, or bright red?

Michael Anderson: The answer is "sure." As long as you follow the covenants and restrictions within the community. If you can convince an architectural review committee that a purple house is consistent with the rest of the community and they approve it, you can paint it purple. You may have an uphill battle convincing the committee, but you have the right to try!

Dc: Why do you consider Southbridge to be special?

Michael Anderson: We believe that Soutbridge is in the center of everything, and "Connects You to Your World." Southbridge has the conveniences of being close to shopping at Potomac Mills, schools, work areas - the 95 corridor, and also near public transportation. Southbridge will have an eighteen hole championship public golf course. It will have a neo-traditional, mixed-use town center. Southbridge will feature miles and miles of hiking and biking trails. Almost 40% of the site will remain undisturbed in order to protect the water quality of the Potomac, and its tributary creeks. AND, our pair of nesting bald Eagles.

Southbridge will have a private high-school in the community, and at least two elementary schools. We will also have a senior housing component within the town center. We currently have swimming, tennis, and a community center avaiable to all of our residents.

Southbridge features 5 different builders, offering seven total different products priced from $140,000 - nearly $400,000. We invite you to come out today and see Southbridge for yourself! For further information and directions, please feel free to contact Dorothy Ostman at 703.221.0441.

Thank you for allowing me the opportunity to participate in the home buyers conference. I hope that I have provided good answers that will help you in the home buying decision making process.

You have all asked some excellent questions today!

Moderator: That's all the time we have. Our thanks to Michael Anderson, Southbridge and all who participated. Join us tomorrow at 1 pm for a discussion about active adult retirement communities. See you then.