Mike requested that his op-ed on the Capital Contribution Fee be posted at bcmatters.org. Thank you Mike for your thoughts and ideas. (Patricia)
A Different Take - Vote “No” For A Capital Contribution Fee Mike Permenter – Choctaw Village November 22, 2020
During December 2020, the POA Directors will ask property owners to vote on a proposed one-time $2,500 fee to be assessed on all new homeowners at the closing of their purchases of Big Canoe homes. This fee is referred to as a Capital Contribution Fee. I urge you to vote "no" for this fee for these reasons. 1. The $2,500 fee will not necessarily be an assessment on all new property owners at the closing of the purchases of Big Canoe homes. This fee will probably become a negotiated cost between the buyer and seller at closing. If a seller moving out of Big Canoe is anxious to sell, the seller will most likely agree to pay the fee. Thus, the seller will pay for capital improvements the seller will never use. Some may say that since the seller made the choice to pay the fee, there should be no sympathy for the seller. However, if the seller needs to sell for whatever personal reasons, why put the seller in a position of the buyer negotiating this fee with the seller? 2. There is no provision to assess the fee on new homeowners at the time they sign up to join their first amenity. Such a provision will ensure the new homeowner will definitely be paying the fee. However, I wonder if this option was not chosen because of the Directors' fear. Perhaps it is the fear that assessing the $2,500 fee on a new homeowner at the time they sign up for an amenity will discourage the new homeowner from joining any amenity. Then again, the Directors can prorate this $2,500 fee over a 12-18 month period for the new homeowner. In contrast, if the fee becomes a negotiated cost borne by the seller, it is a win-win for the Board and for the buyer – but not for the seller. 3. There is no sunset provision for the $2,500 fee, but there should be. This means the fee becomes a “forever" fee. Since at least 2013 (and maybe pre-2013), property owners have been paying an additional $25 monthly assessment to help pay for a Clubhouse that burned down and was rebuilt. It is unknown when or if this assessment will end - i.e. no sunset provision. Why not sunset the $2,500 fee every three years? This gives current and future property owners the power to self-determine whether we want to continue the fee. It also gives current and future property owners the flexibility to reassess the funding directions of a Capital Contribution Fee. The November 2020 Smoke Signals magazine notes that mailing out ballots for voting on the $2,500 fee will occur Nov. 25. The voting period runs Dec. 2 - 28, 2020. Announcing the results happens Dec. 30, 2020. In summary, I hope you will consider voting "no" on approving the $2,500 Capital Contribution Fee. Mike Permenter 10236 Big Canoe