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Monday, April 13, 2015

Looking at The Asset Enhancement & New Member Fees....An Anthem Opinions Editorial

Asset Enhancement Fee....or...New Member Fee...
Discriminatory Charges that Most are Unaware of When Selling a Home


Because many of our readers are somewhat new to Sun City Anthem, we feel it necessary to once again, make residents aware of a special assessment called the "Asset Enhancement Fee" or the "New Member Fee" that is payable at the sale of all homes in Sun City Anthem purchased after April 12, 2001.

To our knowledge, Sun City Anthem is only one of a few homeowner associations that  impose this fee.

We have...for years....opposed this discriminatory fee, yet this has always fallen on deaf ears of those who are elected to our board each year. 

What most people are unaware of.....

Original purchasers decided BY REFERENDUM that they should be exempt from this "dreaded" transfer fee...

...and easily passed a proposition that allowed original buyers to EXEMPT THEMSELVES....yet make sure ALL OTHERS PAY IT !

A number of years ago, Nevada passed a law FORBIDDING PROPERTY TRANSFER FEES; however, a loophole was found by our Board at that time in order to keep it in force.

How best to describe these costs? 

"They both look like a duck.... and...walk like a duck'''....
...but...
... "smell" like a goat,...and allow people to become...  greedy "pigs"  

Other than charging this senseless fee, that fund has become the "favorite" of past boards allowing them to finance ventures....AVOIDING ANY VOTE OF THE RESIDENT MEMBERSHIP.

In essence....it has become a fund in which 4 people have the ability to SPEND YOUR MONEY WITHOUT YOUR APPROVAL.  (a 4 of 7 vote by a board allows this to take place).

A perfect example of using this fund was the attempt to "sell" a mini-golf course" idea a year ago, saying "it was free"....enticing in excess of 700 residents to sign a petition believing that statement to be true.

Subsequently it was learned that MANY COSTS would have been added; and was thankfully originally rejected by the Property and Grounds Committee as a result.....but later brought back to life by the Life Style Committee.

Without this fee....large expenditures require A MAJORITY VOTE OF THE MEMBERS...a democratic approach to the well-being of a community.

Proponents say that "it's in the CCRs" and as a result, must be imposed.

Our response...just as some found the "loophole" to continue collecting it....

...a Board who is RESPONSIBLE and who wishes to "live" by the democratic principle, can easily make a decision NOT TO COLLECT IT.

As you consider your choices for this year's election, we encourage any conscientious voter to ASK EACH CANDIDATE this simple question....

"If you had the ability not to collect this fee, would you still collect it?"

Remember...that individual would have the opportunity to determine if it prevailed.

We believe this unnecessary fee is substantial, amounting of approximately $300,000 each year...totaling close to $1,000,000 in the past three years.

This fee creates a burden to sellers and/or buyers (if negotiated between the two parties) on all "selective" homes in Sun City Anthem.

And...if this does create a burden and provides no direct benefit to homeowners other than allowing 4 individuals the opportunity to "spend" at their pleasure, we ask a simple question:

Why does it exist?

That...is where the original developer, Del Webb, comes into the picture.
This fee was created by that firm for one purpose....

...in order to reduce their obligations to subsidize the costs of maintaining the community in the early stages of home sales.

Dell Webb is now GONE...and with that departure...

...those costs are now NONEXISTENT.

Yet, we the homeowners, still bear the cost of this "surcharge" (the verbiage used in the CCR's).

Just how does the dictionary define a "surcharge"?

An additional or excessive charge, loan, or burden.

Yes indeed, a burden that no longer exists...except for one purpose...

...allowing 4 people to spend at will for projects they believe are needed...yet feel you the homeowner, should accept without question.

Anthem Opinions Administration

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