Owners at Hunters Run, a golf-course community in South Florida, may soon face a difficult choice – give up the equity they were promised when they bought their homes or brace for a hefty financial hit.
The fate of nearly $49 million in equity is at stake, a sum older residents were expecting to recoup when they eventually sold their homes. Some homeowners could lose as much as $32,000.
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The Hunters Run board says it needs the money for crucial capital improvements. Without it, they claim, the only alternative is a special assessment, a nearly $30,000 fee for each household. Faced with that, the board made a controversial decision this year to eliminate the equity refunds.
Unsurprisingly, this hasn't sat well with many residents. Petitions opposing the move flooded in, forcing a referendum, with the vote set to be counted on September 23. The board's lawyer has backed the decision, stating that it is within its legal rights to modify the bylaws, allowing them to use equity funds for improvements.
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Owners who wish to cash out their equity are racing against the clock. They have until Oct. 1 to sell their units and recover part of their initiation fees. The pressure has led to a sudden surge in sellers, particularly among condo owners.
As a result, prices have plummeted. Currently, 10 two-bedroom condos are listed for less than $5,000, with one unit offering a $10,000 credit to anyone who can close by the deadline. It’s a buyer's market, but the frenzy to sell by the deadline has been chaotic.
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Country clubs in the area typically require an initiation fee, but at Hunters Run, that fee has skyrocketed to $105,000. The fee is no longer refundable when a home is sold, a stark contrast to previous times when up to 80% was refundable.
While it's not unusual for clubs to increase fees, stripping older owners of their equity is another story. It's a move near Wycliffe Country Club made years ago, but they did it gradually. Hunters Run's board acted quickly, stirring emotions.
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"I have mixed feelings," said Joel Schreiber, a resident who stands to lose $32,000. "My kids don't need the money. The club needs it for improvements. I love it here, so I'll support the board. But I get why others want to hold onto their equity."
More than 100 homeowners felt strongly enough to demand a vote on the matter.
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In a letter to residents, the board acknowledged the tough decision: "Every member of the board will lose our equity as well. The board saw this as necessary for Hunters Run's future." They stressed that the decision was better than imposing steep assessments on everyone.
David Greenblatt, a Realtor in the community, sees the silver lining. "There's some pain right now, but once we're past this, Hunters Run will be even better," he said.
With its lush amenities – three golf courses, tennis courts, pickleball, and more – Hunters Run is home to over 1,600 units. Built in 1979, the community now finds itself at a crossroads, with a decision looming that could impact its future for years to come.
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This article Owners At This Prestigious Florida Golf Community May Be At Risk Of Losing Their $30,000 Buy-In – Here's What It Means For Their Investments originally appeared on Benzinga.com
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