Submitted to the Editor of the Smoke Signals:
The Big Canoe POA Board is proposing that a Capital Reserve Fund be established and funded by an Initiation Fee of 1% on the first million and .5% on the amount above one million, on the sale price of a home or lot in Big Canoe. The Board feels that the purchaser of the property will pay the Initiation Fee. Big Canoe Realtors and many Homeowners are of the opinion that, even though the Fee will be negotiated between buyer and seller, it will ultimately come from the seller’s bottom line. Some have even called it an Exit Fee. As the Fee must show on a Seller Disclosure Statement it will surely have some impact on the already slow real estate market.
We along with many other Big Canoe Homeowners have attended the POA Board meetings in reference to the proposed Capital Reserve Fund and feel that a majority of the homeowners in attendance support funding the Reserve. We do have the following question.
Will the Big Canoe Homeowners have the opportunity to vote on other funding options or will the vote simply be a yes or no on the Board proposed 1% Transfer Fee?
Our primary concern in writing this letter is that the POA Board will force a yes or no vote on the 1% Initiation Fee without offering other options to Big Canoe Homeowners. Following are a few suggestions that will spread the cost among all Big Canoe Homeowners and still shift a larger portion of the funding to new homeowners. We feel sure there are many other options that have been submitted to the Board.
- 1. An increase in monthly fees of $20 per home or lot. This will establish an account of approximately $720,000 per year as a Reserve for Replacement. Let the existing $25 special assessment expire in 2010. All Big Canoe Homeowners pay this Fee.
- 2. Charge new buyers, not an option, an Initiation Fee of a flat $2,500. $2,000 of the fee is allocated to joining the Big Canoe POA and admission to the Club. $500 will replace the existing $400 administrative transfer fee. Existing Homeowners are exempt from any Initiation Fees, having already paid $1,500 through the special assessment. Although the Fee must be shown on a Seller Disclosure Statement, it should not be a deal breaker as it involves joining a $10,000,000 Club. This also exempts existing residents from paying a fee to sell and potentially another fee to buy when moving within Big Canoe. Only new Homeowners pay this Fee.
- 3. A modest Amenity Initiation Fee for new members. Maybe for Golf, $2,500, Tennis, $1,000, and Fitness, $500. Ask any of the Real Estate Agents who primarily work Big Canoe and they will tell you that prospects and buyers are amazed that there is no fee to join our amenities. Only new homeowners pay these fees.
- 4. Charge a Construction Impact Fee per Sq. Ft., the amount to be determined, for each new home built in Big Canoe. There is a Road Impact Fee of $.25 per Sq. Ft. presently being charged on new construction. Unfortunately it is not always being collected. Include, as part of the Construction Impact Fee, a Road Access Fee that builders will charge and collect from suppliers. These are private streets and public access is not required. Builders will pass all Impact Fees through to the buyer and be paid by new homeowners.
We are requesting that the POA Board delay any vote on the 1% Initiation Fee until all funding options have been disclosed to and voted on by Big Canoe Homeowners. There is too much controversy on the 1% Board Initiation Fee to simply offer it for a yes or no vote.
- Bill and Cherry Booth 2095
- Herb and Eileen Deitsch 2359
- Donald and Evie Dilliplane 2261
- Erv and Ginger Dykstra 2559
- Jim and Pam Elliott 8246
- Bert Loftman 8249
- Jim and Nancy Popp 5094
- Mark Przybyla 1075
- Mark Sementilli 1005
4 users commented in " Alternative Funding for Big Canoe CIF "
Follow-up comment rss or Leave a TrackbackQuick Question in #4 you state that the road impact fee isn’t always collected…how so…I thought all plans had to be approved and at the time the POA approved plans the fees were to be paid..Thanks in advance
When doing research on other possible funding options for the Captial Reserve Fund, I called the ACC to get the amount of the road impact fee. I was given the charges and informed at that time that the developer has not paid road impact fees for eiher Laurel Ridge or Choctaw. Further investigation confirmed this and I was told that the developer felt that by building the construction road from Steve Tate to the Choctaw site, the construction had no impact on Big Canoe roads. I have no knowledge as to whether or not the developer has since paid the fee for Laurel Ridge. This is certainly something that should be answered by the POA Board.
Jim,
Thanks for the response and thoughtful letter.
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