DennisH10
Posts: 22
Posts: 22
Posted:
QUESTION ?? Do Some,, or Most,,, or Any HOA communities charge new residents an entrance fee for coming into the HOA community?
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Initiation Fees
Started by DennisH10 • 10 replies • 808 views
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KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
By "new residents," do you mean new Owners? Or both new owners and new renters?
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
By "new residents," do you mean new Owners? Or both new owners and new renters? (owner-occupants & renters = "resident.")
s
We charge no initiation fee to either, but I've seen examples of HOAs on this forum that do.
s
We charge no initiation fee to either, but I've seen examples of HOAs on this forum that do.
DennisH10
Posts: 22
Posts: 22
Posted:
we only have new owners,, when a house is sold,, the new "owner " in this community is required to pay a up front 4 mil fee to the kitty for common area maintenance, which amounts to about +/- $1,000 of which in Pa I am not certain if that is legal BECAUSE our state rules say that those assessments must be equal between all owners,, and how that can be, I do not know because only one out of 58 turns over to a new owner about once a year. then in addition to that we all do pay a $60/ mo mowing fee,, so that part is equal,, but that entrance fee CAN NOT work out to be equal ??
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Not uncommon to have an initiation/buy in fee. Many are a % of selling price.
FredS7 (Arizona)
Posts: 927
Posts: 927
Posted:
I have heard of this sort of fee for over-55 communities with many facilities (notably Sun City). I wouldn't say that it was common.
What is the real question??
What is the real question??
DonaldF5 (Arizona)
Posts: 5
Posts: 5
Posted:
Sorry but I do not know about it.
JenniferG12 (Texas)
Posts: 103
Posts: 103
Posted:
Quote:
Posted By DennisH10 on 08/28/2018 12:06 PM
QUESTION ?? Do Some,, or Most,,, or Any HOA communities charge new residents an entrance fee for coming into the HOA community?
QUESTION ?? Do Some,, or Most,,, or Any HOA communities charge new residents an entrance fee for coming into the HOA community?
Some do. Capital contribution.
https://www.trulia.com/voices/Property_QandA/what_is_a_capitol_contribution_fee_-86383
DennisH10
Posts: 22
Posts: 22
Posted:
I wonder What is a reasonable charge for this? Or should I ask it this way,, IN Pa is $1250 reasonable. It is MHO that this is unfair because it is putting a greater burden on NEW Buyers for repairs of common areas of which those who have lived there the longest some for 20 years are not contributing that much for, although it is they who have worn the area out. It is nearly like asking your NEW neighbor to buy you a new car because you have worn yours out.
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
In addition to being on my association's board right now, I've worked for a new home builder in my area. I have seen capital contributions ranging from a flat dollar amount to a few month's worth of the buyer's monthly assessment. The actual dollar amount seems to depend on the cost and type of homes in the community as well as the type of amenities, which makes sense. The highest capital contribution I've seen is in a new community that has a whole "farm to table" vibe going; it's built on old farm land, with walking trails, ponds, community garden plots, recreation area, and a community center built from a converted barn. It's pretty neat, but obviously all of those amenities are going to require upkeep, thus the higher capital contribution.
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
Forgot to mention, most of the capital contributions I see are based on the monthly assessment, not a flat dollar amount, which keeps pace with inflation and generally works better. As far as the newer buyers paying a higher capital contribution than people who bought years ago, that is true. However, a dollar today buys a lot less than it did years ago, so you could make a good argument that the value of the capital contributions remains more or less constant, thus treating all buyers fairly.
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