Capital Improvements
Associations seek taxing authority for new buyers

Local community associations are asking members to modif their covenants so they can tax new homeowners for capital improvements. Both Brandermill and Woodlake have those questions on their ballots to be decided by members later this month. Hampton Park already allows it. As planned communities age, community boards are finding an ever increasing cost to repair and replace playgrounds, athletic fields, community signs, bike paths and other amenities. “It allows new residents to contribute to the existing amenities,” said Gene Grecheck, Woodlake’s VP. “At 20 years old, Woodlake needs more capital improvements. Increasing our assessments would be too much of a burden on the residents.” Woodlake residents now pay $360 annually in assessments. This year new homebuyers would pay that amount at closing for the capitalization fee.
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As Fred Pilot points out, here we have HOAs acting like cities. Cities pass along costs to new homeowners by imposing fees on developers. HOAs are now getting into the act...