Neighborhood amenity- opt in or not?

[red]

Before I explain which way I’m leaning, I’m going to give some background and see what opinions y’all have. Curious what prospective buyers would prefer since we won’t be here by the time this is built (probably).

We are in a master planned community with an HOA that was taken over by a national builder AFTER we purchased in it. Ugh.

HOA fees are currently $860 or so per year. Amenities are a pool that is too small, a lake, trails, a few playgrounds.

They are putting in an amenity center that is planned to have a resort style pool with swim up bar and restaurants. The fee for this starts at $50/month and will go up about $10/year for the next 5 years, then 5% every year thereafter. This center will probably not be built for a few years and the plans are subject to change as far as what it contains, but we are being asked to commit our property for LIFE now. Meaning if we sell the next person is a member and cannot cancel either. It’s tied to the property. We can opt out but would need to pay $2k initiation fee to join later if they allow us to do so. If we join now, there is no initiation fee.

If you were a buyer, would you rather have the home tied to this center or not?

ETA: We would not start paying the club fee until it is built.

[tacokick]

This sounds bizarre. If you say no, does that mean no buyers would be able to join in the future?

I would not buy a house with this sort of membership commitment. Maybe if it was a retirement community and I had limited mobility and was trapped in the community for the rest of my life but I not locking myself into paying for something like this when I had any other option. An HOA is bad enough.

[mpm]

Is this type of deal common where you live?

[archiethedragon]

Dec 14, 2022 19:58:53 GMT -5 red said:

Before I explain which way I’m leaning, I’m going to give some background and see what opinions y’all have. Curious what prospective buyers would prefer since we won’t be here by the time this is built (probably).

We are in a master planned community with an HOA that was taken over by a national builder AFTER we purchased in it. Ugh.

HOA fees are currently $860 or so per year. Amenities are a pool that is too small, a lake, trails, a few playgrounds.

They are putting in an amenity center that is planned to have a resort style pool with swim up bar and restaurants. The fee for this starts at $50/month and will go up about $10/year for the next 5 years, then 5% every year thereafter. This center will probably not be built for a few years and the plans are subject to change as far as what it contains, but we are being asked to commit our property for LIFE now. Meaning if we sell the next person is a member and cannot cancel either. It’s tied to the property. We can opt out but would need to pay $2k initiation fee to join later if they allow us to do so. If we join now, there is no initiation fee.

If you were a buyer, would you rather have the home tied to this center or not?

Yes. As a buyer would rather be told you don't have access but your can get it for $2k or of course you have access to this great facility for only $50 A month

[chpmnk1015]

I'd opt out..with no definitive time line, etc., I wouldn't want to commit the property at this point.
How are not common where I am though so I may have a skewed outlook on them though..they are a pretty hard no for me

[red]

Dec 14, 2022 20:37:00 GMT -5 mpm said:

Is this type of deal common where you live?

Not common at all. I think some neighborhoods require you join a country club, as part of the HOA though. An amenity center with membership was mentioned last year, new homes with this builder are required to be members. They sprung this 60 page legal document at us and asked for a letter of intent within 1 month. We were told they’d have a virtual meeting to discuss in greater detail when we had our annual HOA meeting and they essentially would not answer questions about it. The deadline is tomorrow and they never set up a meeting. I guess they want the lengthy document to do the talking. It gives me bad vibes all around. We have a different builder, the neighborhood was bought out by this one after the fact. This is my first experience with an HOA and I don’t think I’ll do it again.

[red]

Dec 14, 2022 23:11:04 GMT -5 chpmnk1015 said:

I'd opt out..with no definitive time line, etc., I wouldn't want to commit the property at this point.
How are not common where I am though so I may have a skewed outlook on them though..they are a pretty hard no for me

The neighborhood seems to be split 50/50, which I find odd since this builder has repeatedly lied/changed plans. I just can’t believe this many are willing to jump on board sight unseen FOREVER.

[red]

Dec 14, 2022 20:15:09 GMT -5 tacokick said:

This sounds bizarre. If you say no, does that mean no buyers would be able to join in the future?

I would not buy a house with this sort of membership commitment. Maybe if it was a retirement community and I had limited mobility and was trapped in the community for the rest of my life but I not locking myself into paying for something like this when I had any other option. An HOA is bad enough.

There is a retirement community within the master plan but so far the 2 sections started are not. I hate the impacts this will have to selling our house both ways. Never would have bought here if I knew then what I know now. Established communities that are built out with no HOA for me in the future. Ugh.

[aprilsails]

You don’t seem keen and you have obviously valid concerns with the builder. I would opt out in your shoes. A $2000 initiation fee is steep, but I feel you will pay that and more while waiting for the facility to be built.

I’m sorry your community didn’t turn out the way you had anticipated. Something similar is happening in my neighborhood. Our builder upsold the lots around the edge since there would be green space (a ravine) behind them forever. Not two years later, due to water management, the ravine has been rerouted and a new builder is coming in and putting high density homes through the previous green space. The people who paid an extra $30k lot premium are PISSED. Nothing they can do but complain.

[VillainV]

Ugh. No. Over $100/month for a pool (with annual $5/mo increase) is too much. And the privilege to eat at restaurants where I also have to pay probably exorbitant prices to eat there? No.

FWIW, we moved into a master planned community this summer that has two kick-ass pools (one 25m lap pool and one resort-style pool with awesome water slides), SEVERAL well-kept pocket parks with playgrounds, hiking and mountain-biking trails, tennis and Pickleball courts, fitness center, and a lot of free monthly programming. We pay $135/month. And that includes our garbage and recycling pickup. We live in a place where the pool is only open 4 months out of the year, so I’m glad that there are enough other amenities that we use to make the $135/month seems worth it to us in the non-swimming months.

[noodleoo]

Yeah, I'd say no to this too. I'm curious though, do you have to start paying the extra fee now or after the center is built? What if not enough people opt in? I'm so curious how this works.

ETA:  I answered what I would do if I was planning to live there (and the whole thing seems very sketchy at this point).  But how long are you planning to stay since you asked about future buyers?  If you are planning to move in a year or 2 and you don't have to pay until the thing is finished, I might sign on since it wouldn't cost me anything and might be desirable to buyers.  But if the moving plan is uncertain, I'd pass.

[archiethedragon]

just to clarify my answer, personally I would not sign on for this. But that is because I am not an HOA fan. They are not that common where I live, I don't understand them and I don't understand why anyone would want to live in an area with an HOA. But you are asking about a potential buyer. That buyer is interested in an HOA and all of the amenities that come with it. So I think it would be to your detriment to tell that potential buyer that they don't have access to the brand new facility in the community they are looking to move to, unless they fork over $2k. I think it a much better sell to be able to tell them they do have access for a small monthly fee, which is what an HOA is anyway.

[steamboat185]

Unless the new pool is within easy walking distance, I’d say no. I feel like people have all these big ideas about using amenities, but rarely actually take advantage unless it’s right next door.

[sunshineandpinot]

I'd opt out.

[mpm]

Dec 15, 2022 4:51:48 GMT -5 red said:

Dec 14, 2022 20:37:00 GMT -5 mpm said:

Is this type of deal common where you live?

Not common at all.

If this isn’t common in your area, and therefore wouldn’t be an expectation of future buyers, I would not want to enter into an agreement that would tie this additional ongoing and ever-increasing cost to your property forever.

[just]

Not built yet - could take at least 2 years to build? At that point you'll have paid $1320 for nothing.
I'd wait and if it's awesome when built, pay the 2k at that point. The $ difference wont' be much at that point.

[dr.girlfriend]

I would wait. If it's super-awesome you can join with the initiation fee later, if it flops you're not locked into a lifetime commitment.

[simpsongal]

Wait - you have to pay the HOA regardless right? Do you have to pay the $50 while it's being built? B/c if it takes 2 years that's $1200 for nothing....so not too far from the $2K initiation fee. That influences my answer.....can you opt out of the new facility too or does that covenant/run w/the house?

It's a relatively modest increase compared to the HOA you're already paying.

[heygrey]

Dec 15, 2022 11:38:57 GMT -5 simpsongal said:

Wait - you have to pay the HOA regardless right? Do you have to pay the $50 while it's being built? B/c if it takes 2 years that's $1200 for nothing....so not too far from the $2K initiation fee. That influences my answer.....can you opt out of the new facility too or does that covenant/run w/the house?

It's a relatively modest increase compared to the HOA you're already paying.

It’s $860 per year. $50/month ($600 yearly) nearly doubles that right off the bat and will exceed it in a couple years.

OP, I would opt out. Mostly because I hate being told how to spend my money. It would also make me want to move out sooner if I could and be done with this mess of a company.

[flygirl]

I guess one thing to ask is how much the houses are in your area? If they are 750k+ people might like the amenity or not care, but if your <400k, some people might be deterred by the added HOA fee then the pool fee on top of that

[statgirl]

I would opt out. When I sold, I would offer to pay the initiation fee if it was a deal-breaker to not have access.

[red]

Dec 15, 2022 6:54:53 GMT -5 aprilsails said:

You don’t seem keen and you have obviously valid concerns with the builder. I would opt out in your shoes. A $2000 initiation fee is steep, but I feel you will pay that and more while waiting for the facility to be built.

I’m sorry your community didn’t turn out the way you had anticipated. Something similar is happening in my neighborhood. Our builder upsold the lots around the edge since there would be green space (a ravine) behind them forever. Not two years later, due to water management, the ravine has been rerouted and a new builder is coming in and putting high density homes through the previous green space. The people who paid an extra $30k lot premium are PISSED. Nothing they can do but complain.

We don’t need to pay the monthly fee until it’s built at least. I just know we won’t be here long term, it’s way too hot/humid for our liking, schools are not great, our house is too small now that we’ve had 2 kids, etc. I have no clue if this will be a selling point or detriment though.

[red]

Dec 15, 2022 12:23:10 GMT -5 statgirl said:

I would opt out. When I sold, I would offer to pay the initiation fee if it was a deal-breaker to not have access.

That’s what we were leaning toward. They keep saying it’s not guaranteed that your property will be able to join, but I’m sure they’d gladly take the money. I think they’re just trying to put pressure on us to commit now.

[red]

Dec 15, 2022 10:18:43 GMT -5 steamboat185 said:

Unless the new pool is within easy walking distance, I’d say no. I feel like people have all these big ideas about using amenities, but rarely actually take advantage unless it’s right next door.

It’s like 1/2 mile from us, like the current small pool we walk to now. The current pool was closed almost every week for a day or two due to decal incidents, so I’m not thinking this will be that glamorous either lol.

[red]

Dec 15, 2022 11:56:07 GMT -5 flygirl said:

I guess one thing to ask is how much the houses are in your area? If they are 750k+ people might like the amenity or not care, but if your <400k, some people might be deterred by the added HOA fee then the pool fee on top of that

Houses range from 400k-650k. Ours is on the lower end since it’s a small 3BR/2BA, with a floor plan geared more toward older people (1&1/2 story cape cod with master down). I think these fees are much more than other neighborhoods except for one other master planned on the other end of town.

[red]

Dec 15, 2022 11:52:15 GMT -5 heygrey said:

Dec 15, 2022 11:38:57 GMT -5 simpsongal said:

Wait - you have to pay the HOA regardless right? Do you have to pay the $50 while it's being built? B/c if it takes 2 years that's $1200 for nothing....so not too far from the $2K initiation fee. That influences my answer.....can you opt out of the new facility too or does that covenant/run w/the house?

It's a relatively modest increase compared to the HOA you're already paying.

It’s $860 per year. $50/month ($600 yearly) nearly doubles that right off the bat and will exceed it in a couple years.

OP, I would opt out. Mostly because I hate being told how to spend my money. It would also make me want to move out sooner if I could and be done with this mess of a company.

Yeah, we’re already planning on moving for a multitude of reasons but I stay home with our little ones now and we refied last year and it’s super affordable. Probably moving in 2-3 years.

[red]

Dec 15, 2022 11:38:57 GMT -5 simpsongal said:

Wait - you have to pay the HOA regardless right? Do you have to pay the $50 while it's being built? B/c if it takes 2 years that's $1200 for nothing....so not too far from the $2K initiation fee. That influences my answer.....can you opt out of the new facility too or does that covenant/run w/the house?

It's a relatively modest increase compared to the HOA you're already paying.

Sorry, should have clarified we don’t pay until it’s built. Once opted in we cannot cancel, all future owners of our home must be members indefinitely too. There is a joinder between the club and our property.

[red]

Dec 15, 2022 7:41:23 GMT -5 VillainV said:

Ugh. No. Over $100/month for a pool (with annual $5/mo increase) is too much. And the privilege to eat at restaurants where I also have to pay probably exorbitant prices to eat there? No.

FWIW, we moved into a master planned community this summer that has two kick-ass pools (one 25m lap pool and one resort-style pool with awesome water slides), SEVERAL well-kept pocket parks with playgrounds, hiking and mountain-biking trails, tennis and Pickleball courts, fitness center, and a lot of free monthly programming. We pay $135/month. And that includes our garbage and recycling pickup. We live in a place where the pool is only open 4 months out of the year, so I’m glad that there are enough other amenities that we use to make the $135/month seems worth it to us in the non-swimming months.

We were excited when we thought it would at least have a fitness center, since we pay for the YMCA currently. But it’s just a big, shallow pool that will probably be too warm, peed/pooped in, and not maintained like our current one. I have trust issues with this builder that already closed our one on site restaurant/bar 2 years ago and keeps putting off opening a new one there due to “supply chain” issues. Meanwhile, new restaurants have opened everywhere else.

[janegold]

I think this is an amenity that we would really enjoy and as a potential buyer, the commitment wouldn't be likely to dissuade me from buying the house - although I do think it's weird that the commitment is tied to the property rather than the owner. BUT since you have good reason not to trust the builder, I'd probably wait in your shoes too. If enough people opt-out of the commitment, they might be forced to lower the initiation fee anyway to bring more people in.  

[Deleted]

Dec 15, 2022 12:23:10 GMT -5 statgirl said:

I would opt out. When I sold, I would offer to pay the initiation fee if it was a deal-breaker to not have access.

This is what I would do. There are just too many flags on this.