End this Fee...and You Force Responsible Spending

Asset Enhancement Fee...Nothing More than a Legal Slush Fund

What is it? 

Simply stated, it is  a .33% fee on the gross sales price to sell your home...paid by the seller.

When I think about this "fee", all I can think of is...

WHY is it still around? 

Think back to our federal government in January who said...NO MORE EXTRA SPENDING....and the "sequester" took place....FORCING this country to LIVE WITHIN THEIR MEANS.

Oh my, the cries went out....how will we survive cuts?

...but... somehow, I don't think anyone in Sun City Anthem lost any weight as a result of the cuts.

We "adjusted", didn't we?

...And somehow, without such a fund here in Sun City Anthem, my guess is that...

We too, would "adjust" to that as well.

...or perhaps another way of describing it...it would force our community to BECOME MORE EFFICIENT.

And...all of us...would sleep just as easily without a miniature golf course or a pet park, or whatever else some people might concoct on how to SPEND our money, again and again.

Asset Enhancement Fee...nothing more than a Slush Fund...to provide play money for projects that wouldn't be given a second thought, if that fee didn't exist.

For years this community has been subjected to this CURSE that has merely become a bank account to spend on selfish projects that few residents use.

And obviously, original owners also considered it a CURSE.... because they saw fit to EXEMPT THEMSELVES from it, feeling that subsequent "suckers" should finance their future whims.

Keep in mind that those who are exempt, purchased at a much lesser price, and any subsequent gain at time of sale, could potentially be far greater if values go back to a reasonable level...an even bigger "plum" to original owners.

Apparently Sun City Anthem home sales contribute approximately $300,000-$350,000 to this "kitty" which is used to supposedly fund "capital projects" for our community.

For years I have wondered...Why is this even necessary?

To those who favor it, it is believed to avoid special assessments in the future...money to have on hand that could be drawn upon in order to "improve"....NOT REPAIR...our community.

But as always...there is more to the story.

If it did not exist, yes, special assessments would have to commence in order to fund "capital projects"...

 but... to have a special assessement, that would REQUIRE A VOTE OF THE MEMBERSHIP, not a simple approval by 4 of 7  people.

We will collect $7,858,400 in annual dues in 2013 for essentially the maintenance of THREE BUILDINGS, landscaping, and paying RMI employees salaries, bonuses, medical insurance, and even their employer matching 401(k) contributions.

That amount also includes emergency repairs such as the "questionable" replacement of the Anthem Center air conditioning units THAT WERE STILL FUNCTIONING, yet a reserve study said "their shelf life" required replacing, as well as other items, such as the tax audit fees.

Once again, just WHO out there, would replace a working air conditioner or any functioning product of any kind...because the "manual" said it's time to replace it?

No need to respond...I will...

A BUREAUCRAT.

So...just what is a capital project?  And...what "capital projects" are on the drawing board that we wouldn't even be discussing if this "extra added goodie" wasn't charged to us...the future sellers?

A Pet Park?

A Miniature golf course?

More "freebie" new restaurant equipment?

A $65,000 Vestibule instead of a $6,000 Air Curtain ?

Just ask yourself...if the "Asset Enhancement Fee" did not exist....and a membership vote would be required for a "special assessment"....

Would a COMMUNITY have approved HEAVILY FINANCING NEW EQUIPMENT for any restaurant?

Would a COMMUNITY have approved financing a PET PARK?

Would a COMMUNITY aprove financing a MINIATURE GOLF COURSE?

Would a COMMUNITY have approved spending $65,000 when $6,000 would have solved a vestibule problem?

My guess is NO, but with the "Asset Enhancement Fee", the COMMUNITY NEVER GETS THE CHANCE TO DECIDE.  It's the 4 of 7 board members who decide WHAT, HOW, and the AMOUNT of the "slush fund" that should be used.

Wouldn't it be "loverly" to find out WHY MOST OTHER ASSOCIATIONS in the Las Vegas valley don't even charge this fee?

No one will tell you, because THAT WOULD POSSIBLY DESTROY their play money "fix".

This "curse" is a fee to TRANSFER property, and according to Nevada law, a TRANSFER FEE is ILLEGAL.

No matter what it's called, an "Asset Enhancement Fee" or a "New Member Fee", it still costs Joe Q. Public .33% to sell a home, except for the "select chosen ones" who saw fit to pass it on to others.

And...somehow, some way, someone... figured out a way not to consider the Asset Enhancement Fee  a TRANSFER fee.

Perhaps someone out there can tell me if it isn't a fee to transfer property from Mr. A to Mr. B.....then what is it?

Kind of like...."if it looks like a duck, and quacks like a duck, or waddles like a duck, then it must be a parakeet?"

A few years ago, I went through this with a then newly elected board member, a guy who thank goodness, is GONE, a man who loved to listen, assume financial responsibility was something for "peasants",  and then go back to his board pals, and figure out a way to twist things like a pretzel in order to keep the status quo...no matter what !

We discussed a number of items...

...but the best of the best...was the Asset Enhancement Fee.

I told him SIMPLY, that IF, in the opinion of a BOARD, they considered it a TRANSFER FEE, they could, with just FOUR OF THEM, erase it into the history of Sun City Anthem.

His answer...."if you think I'm going to testify before the Nevada Supreme Court"....

...WHOO...AH... (I thought)

I stopped him there. 

Testify before the Nevada Supreme Court?

He...was going to be called before the Nevada Supreme Court?

He...believed that someone in Sun City Anthem would actually bring some form of lawsuit on behalf of residents for having their fees REDUCED?

He...knowing original residents exempted themselves, believed that these same people and all new ones, would SUE to keep the fees? 

...that this mentality was controling the financial future of 7,144 people?

I couldn't keep a straight face.

Unfortunately, HE COULD. 

That's how BUREAUCRATS think...and that's how ridiculous costs like the Asset Enhancement Fee STAY IN BUSINESS.

So, when you hear someone say, "it won't cost you any dues increase" , they might possibly be correct....for now...

...but THAT BUREAUCRAT knows full well that without that "slush fund", his play pen would actually have to do without an extra rattle and perhaps force a community to spend on something NECESSARY, rather than some ridiculous "want" that would never have been considered, had that "fund" been ELIMINATED by responsible parties simply looking at it as it is...

A TRANSFER FEE.