BOYNTON BEACH, Fla. — Owners at Hunters Run may soon have to give up the equity or refund they were promised when they initially bought at the golf course community.
At stake is $49 million worth of equity that older owners were supposed to get back when they eventually sold. Some of the refunds are as much as $32,000. The Hunters Run board argues that it needs the $49 million to pay for capital improvements. The alternative, it say, is a special assessment that would be close to $30,000 per household.
The board voted this year to take away the equity rights of members, but petitions were submitted opposing the decision, forcing a referendum. The votes will be tallied on Monday, Sept. 23. The board’s lawyer submitted an opinion saying the board could legally change the bylaws to permit the use of equity funds for capital improvements.
Current owners have until Oct. 1 to sell their units and recover part of their initiation fee.
The result has been a glut of sellers trying to sell to meet the deadline, especially with condominiums. Ten two-bedroom condominiums are currently listed for sale for less than $5,000. One is for sale for $1,000 with a credit of $10,000 to a buyer who can close by Oct. 1. Prices of condo units have been repeatedly slashed to attract buyers.
Hunters Run golf community in Boynton Beach, Florida. (Allen Eyestone/Palm Beach Post)
Country clubs in South Florida typically charge a buy-in or initiation fee to anyone who buys a home. The initiation fee at Hunters Run has been significantly increased over the years to its current level of $105,000, and there is no refund any longer to a buyer when the home is sold. At one time, the refund was as much as 80 percent of the initiation fee.
It is not unusual for country clubs to raise their initiation fees and no longer offer refunds, as Hunters Run did, but what is unusual is the taking away of equity rights of older owners. Wycliffe Country Club in nearby Wellington did it several years ago, but it was done over a three-year period. The Hunters Run board took its action this year.
“I have mixed feelings about it,” said Joel Schreiber, who bought his unit eight years ago. He is being called on to give up $32,000.
“My kids are fine and do not need the money. The club could really use it to improve itself. I love it here. So I am OK with it and will support the board, but I can understand the position of those who want to keep their equity.”
More than 100 homeowners signed…
..
Click Here to Read the Full Original Article at Golfweek…