Pulse letter for November 28

I am writing about the proposed fee that would be charged new residents to cover the costs of existing amenities. I am in favor of this fee but I understand the concerns of residents who worry this fee would affect the selling prices of homes. What I am suggesting might make it less likely the seller would end up paying the fee.

One way to lessen the impact on buyers would be to offer payment options. One option would be to pay the fee at closing. But to reduce the impact on buyers they could be offered the option of paying the fee monthly over one, three or five years. Buyers selecting this option would be charged a service fee, perhaps prime plus a fraction of a percent, increasing with the length of the payoff term. Payments would be collected with the monthly HOA billing. Full payment would be due if a property is sold before the fee has been paid off.

Kiplinger’s Personal Finance Magazine recently published a story about 55+ communities. Two communities mentioned had fees like this.

The physical facilities that make The Villages special are aging. An entrance fee will help preserve our community.
—Lou Alexander