The Board has announced that they will vote to assimilate the Golf Courses into the HOA, making golf an amenity. They are already thinking that they have the vote to accomplish this. They have not appointed a President of the LLC and the recent appointee is the past president of the organization that sold the courses to the HOA.
Many people do not fully understand the implications of making the courses an amenity. To assimilate means the end of this community as we know it. It will no longer be a modest, affordable, 55+ community. It will be transformed into a holiday destination. We will lose control of our community. It will be controlled by a few for the benefit of tourists, who will be here just to use our amenities.
Instead of trying to make all this money by selling our community, we should cut costs. We need to first close 18 holes of golf. Our community can not afford the cost of maintaining 36 holes. Our community does not have the interest in golf it used to have. It is reported that only 8% - 10% of residents are golfers. Members of the Golf Club, have never exceeded 200 in the the three years we have own the courses.
Here is the plan:
Assimilate the golf courses into the HOA. Every resident will now be a member of the Golf Club. Why? Because the courses are an amenity.
It costs $2.2 million (audited, 2022 values) to maintain 36 holes. The annual cost to each resident will be( 2,200,000/2,820) = $780.15. The annual cost of $780.15 equates to (780.15/12) = $65 per resident per month.
Monthly assessment will increase to (135 + 65 ) = $200.
The approximately $2.8 million of repairs needed immediately will be taken from Discretionary Reserves and Operating Funds. This will leave the HOA severely under-reserved, which will require a Special Assessment.
A Special Assessment will be introduced by the Board. The Board will position it as "not because of the golf courses but because we are under-reserved". What the Board will not remind residents of, is the HOA is under-reserved because all the funds have been spent on improving the Golf Courses.
To maintain courses, monthly assessments will increase each year. Without a doubt, within three years, monthly assessments will exceed $250.00 per month, per household. And there will continue to be special assessments.
The Special Assessment of 2021, contrary to what management has stated, does not have the assets to repay its debt obligations and will require a Special Assessment or the use of Discretionary Reserves.
Here is the punchline, currently, Members of the Golf Club, pay a monthly fee and get unlimited golf. Now since golf is an amenity, golfers are going to protest over paying twice for membership. So it will be determined, by our pro-golf Board, that paying for golf in the monthly assessment, constitutes membership, so every golfer in this community will golf for free. Their HOA monthly assessment will cover their golf membership.
And the whole family and friends can golf for free as well. This will save golfers thousands of dollars per year, while non-golfing residents will pick up the tab.
That is why it is so important for the Board to assimilate the courses making it an amenity. The cost of the courses spread over 2,820 residents is a very attractive proposition and reduces dramatically the average cost per golfer.
But given 2,400 people do not golf in this community, it is a fleecing of residents. It is putting a substantial burden on the non-golfing residents of this community.
The Treasurer stated "It will soon be a time when the cost of living in this community (sic), will be too expensive for many residents."
What the Treasurer neglected to say was, that as the cost per resident increases, the cost per golfer goes down.
What about outside play? We will cover this in Part II of "The Plan"
Thank you. Keep the faith.
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