Hunters Run, a golf course community in Boynton Beach, Florida, is facing a controversial decision that could have significant financial implications for its owners. The board at Hunters Run is considering taking away the equity refunds that older owners were promised when they initially bought their homes. This equity is valued at $49 million, with some refunds totaling as much as $32,000. The board argues that they need this money for capital improvements, and if they don’t use the equity, they would have to impose a special assessment of close to $30,000 per household.
In response to the board’s decision, petitions were submitted by homeowners opposing the change, leading to a referendum scheduled to be held on Monday, Sept. 23. The board’s lawyer provided an opinion stating that they have the legal authority to change the bylaws to allow the use of equity funds for capital improvements. Current owners have until October 1 to sell their units and recover part of their initiation fee before the changes take effect.
The result of the board’s decision has been a rush of sellers trying to sell their units before the deadline, particularly with condominiums. The market is flooded with listings, with some two-bedroom condominiums listed for sale for less than $5,000. Prices have been repeatedly slashed in an effort to attract buyers, with one listing offering a $10,000 credit to a buyer who can close by Oct. 1.
Traditionally, country clubs in South Florida charge an initiation fee, with Hunters Run’s current fee at $105,000, which has been significantly increased over the years. There used to be a refund of up to 80% of the initiation fee when the home was sold, but this is no longer the case. While it is not uncommon for country clubs to raise fees and eliminate refunds, the decision to take away equity rights from older owners is unusual and has sparked controversy among residents.
Despite the mixed feelings among owners, the board stands by its decision, arguing that it is necessary for the future of Hunters Run. The board views the decision as a way to fund necessary improvements and ensure the community’s sustainability. By retaining funds from initiation fees, the board believes it can prevent imposing special assessments on members.
Realtor David Greenblatt, who also lives at Hunters Run, represents clients who have listed their condos at a significantly reduced price of $1,000. He acknowledges that there is some pain currently being felt by residents but believes that the community will ultimately benefit from the improvements funded by the equity changes. Hunters Run offers a range of amenities, including golf courses, tennis courts, pickleball courts, a fitness center, a club spa, and restaurants, making it an attractive community for residents.
In conclusion, the decision at Hunters Run to potentially eliminate equity refunds for older owners has stirred up controversy and led to a rush of sellers trying to sell their units before the deadline. While some residents support the board’s decision as necessary for the community’s future, others are against giving up their equity. Ultimately, the outcome of the referendum on this issue will determine the financial future of Hunters Run and its residents.
