At our last Annual Meeting in December, some homeowners suggested that the HOA Board look into the possibility of establishing an initiation fee, a one-time fee collected at closing when a home changes ownership. Over the last few months, the Board has learned that many neighborhoods similar to ours all over the country have an initiation fee, which serves as an additional source of income for the neighborhood, reducing (though not eliminating) increases in annual dues for current homeowners. Our initial concern that an initiation fee might make homes harder to sell does not seem to be the case — in fact, there is anecdotal evidence that the opposite might be true because of perceived value.
So, after much discussion, we are now formally presenting the idea of establishing an initiation fee to the membership. This change will be accomplished by a rewording of the appropriate Article in the Wyatt Farm By-Laws (one paragraph). This document shows the original paragraph and the proposed rewording. If approved, this change will go into effect July 1, 2010.
As you might expect, the amount of an initiation fee is a function of the amenities provided by a neighborhood. We created a list of the amenities at Wyatt Farm, and compared it to other neighborhoods with initiation fees. This led us to conclude that an appropriate initiation fee for Wyatt Farm would be a one-time fee equal to the current annual dues.
As part of this change we are eliminating the minor fee currently charged to buyers for the “homeowner packet” that contains information important for new owners and for the real estate transaction. We will still create and deliver the packet (electronically), but the cost will be subsumed by the initiation fee.
All homeowners are invited to vote, for or against, the rewording of the by-laws and therefore the establishment of the initiation fee. We will hold a special homeowners meeting for anyone wishing to discuss this issue, and then tally the vote. The meeting will be held at the home of Lisa and Mike Goatley, 2213 Birchleaf Lane, on Tuesday, June 1 at 7:00 pm.
Proxy votes are welcome if you can’t come to the meeting. No special form is needed — simply send email to info@wyattfarm.org with your vote. If you vote against the proposed change, please indicate your reasons so that the Board can factor them into further discussions.
Thanks to the homeowners who initially brought this idea to our attention!