PROPOSED AMENDMENT TO COVENANTS: A BUYER TRANSFER FEE
From the WPOA Board of Directors
WPOA Board of Directors recommends Option 1, a Covenant amendment.
We believe the proposed Buyer Transfer Fee is forward-looking, financially prudent, and designed to transition us to a sustainable revenue stream before funding gaps occur in the years ahead.
To pass, this Amendment needs at least 60% of all property owners to vote (for quorum) and needs 75% YES votes from those votes cast. We need your vote for this to pass.
Wintergreen is now 50 years old and is nearing full buildout. Over those years, our WPOA community has relied on "Developer Transfer Fees" from new development to fund our Capital Reserve Accounts which we rely upon to build and maintain infrastructure, including our roads and buildings. With new development, including Crawfords Place, nearing completion, this critical revenue stream is diminishing, causing a loss of funding for our Reserve Accounts. With this loss of funding, we must ensure another sustainable method for maintaining our Reserve Accounts. We present two paths forward:
Option 1 - Buyer Transfer Fee (A YES vote to approve the Amendment): This fee is strategically designed to shift the burden of funding reserves from existing owners to a one-time fee for new buyers. At the time of closing, new buyers would contribute a one-time fee equal to the improved lot annual assessment (currently $2,279). This ensures that those joining our community contribute to the long-term infrastructure they will enjoy. This model—widely used by peer resort communities—will allow annual assessment increases to remain stable, focused on funding annual operations.
Option 2 – Approximate additional 3% assessment increases for several years (A NO vote to reject the Amendment): In order to fund baseline operational costs while also steadily building capital reserves, assessments for all current owners would increase by an estimated 8% annually for several years (the baseline 5% operational increase plus an additional 3% for Reserve Account funding), as explained more fully in the Additional Background section.