Sometimes referred to as a Capital Contribution Fee or an “initial contribution,” it is a payment made by a new homeowner as they purchase a property and “enter” the HOA. 

The fee is based on a small percentage of the purchase price of the home they wish to buy.  In the case of Sunriver, the proposed Capital Transfer Fee is 0.5% of 1% (one-half of 1 percent).

The fee amounts to one-half of 1% (0.5 %) of a property's sale price and required to be collected at sale closing. No sale, no fee – it's that simple.

With roughly 140 Sunriver properties changing hands each year at an average price between $800,000 and $1 million, the fee could generate approximately $700,000 annually – all restricted exclusively for new and improved amenties/facilities. Below is data from the past property sales in Sunriver

The approach has an inherent logic to it: new owners arriving in Sunriver benefit from facilities and amenities built and paid for by existing owners – this fee represents their contribution to the community they're buying into and helps ensure the value of their investment into the future.

To generate the same funds as a CTF, the board and Finance Committee looked and considered the following:

• Increasing annual maintenance fees. This would require a roughly 10% increase to generate the same amount of funding as the CTF.
• Asking owners to approve each new amenity on a case-by-case basis via a special assessment.
• Doing nothing and NOT investing in any future amenities and/or infrastructure.

SROA has also inquired about receiving a portion of funds from the Transient Room (Lodging) Tax. The answer has been "no."

A capital transfer fee helps strengthen the financial foundation of the HOA, supports funds for future needs, and helps preserve the quality of the community.  

A CTF is used by other large scale HOAs to fund the development of new amenities and infrastructure.  While everyone will pay the same percentage (one-half of 1%), similar to property taxes, a CTF levies a higher fee on larger homes, which generally make more extensive use of amenities and infrastructure. The buyer of small condo purchased for $450K would pay $2,250, while the buyer of a large $1.5M home would pay $7,500.

Capital transfer fees will be collected at the point of sale as part of the closing costs for the property transaction. During the escrow process, your real estate agent or escrow company will list this fee, and it is often noted on the settlement statement. 

Yes, if the Capital Transfer Fee passes it will be added to the Sunriver Consolidated Plan and be paid when there is a transaction between a seller and buyer in Sunriver.

When a home/condo/lot/business is sold on the open market, or privately with an exchange of funds, the buyer and seller will negotiate as to who pays the Capital Transfer Fee. 

This applies to all properties within Sunriver – from condos and homes to commercial properties (including Sunriver Resort, Village, etc.). 

Homes sold in the short term (next ~5 years) have a very strong argument that the new owner will realize the benefit of investment from the CTF fund.

If your property passes in a cashless transaction, such as a bequest, there will be no capital transfer fee collected.

The fee would NOT apply to non-monetary transfers, including:

• Transfers by owners into a trust in which the owners are the beneficiaries
• Transfers by owners into an entity where the owners are the primary shareholder or member
• Transfers occurring as a result of the death of the owner to an executor or personal representative of the owner
• Transfers to mortgages as the result of foreclosure or a deed in lieu of foreclosure
• Other non-monetary or similar transfers as approved and at the discretion of the SROA Board of Directors.

Should a beneficiary decide to sell the property (a monetary transaction), a fee would be collected at that time.

Current annual maintenance fees and other sources of funds (Member Preference, Recreation Plus, Scene ads, etc.) are sufficient to fund operations (staff, materials & supplies, utilities, etc.) and maintain or replace existing capital assets. 

These funds are not sufficient to invest in major new amenities and/or infrastructure.

Why does Sunriver need additional amenities and/or infrastructure? 

Sunriver operates in a highly competitive market.  Owners who purchase homes in Sunriver have multiple options in Central Oregon.  To remain competitive and maintain everyone's property values, SROA needs to invest in amenities and infrastructure that are sought by new owners. 

This is no different than a private home in that a home that has been modernized and invested in is much easier to sell and can extract a premium price over neighbors who have not invested.

What is the disadvantage of approving each new amenity on a per project basis?

All projects requiring additional funds (beyond those SROA currently has) must be approved by the owners. A vote of the owners is an expensive and labor-intensive process.  By approving the CTF, SROA will have access to an on-going source of funds without requiring additional vote of the owners.

The capital transfer fee funds, currently projected to be roughly $700k/year, will be invested in the development of new amenities and infrastructure. 

These funds will be used for large-scale investments (~$1M+) that can’t be funded via existing maintenance fees

The board will impanel a group of owners to review requests for new amenities / infrastructure and make a recommendation to the board as to which project to support.

While the exact investment will be based on a recommendation of owners, owners in the past have suggested items such as:

• Additional pathways to remove bicycles and pedestrians from our roads
• An indoor court (tennis /pickleball) facility
• Additional regional parks
• Additional spaces for clubs/social activities
• Expansion of the fitness center

Even if you don’t use any of the amenities Sunriver offers today, you will benefit by the increased value at a time when you decide to sell your home. 

Even if you never sell your home, there would be "generational" benefits for your children, grandchildren and beyond. 

Keeping Sunriver current, vibrant and a fun place to live and vacation benefits all Sunriver owners – today and into the future.

The board will need to look at other alternatives for funding new amenities and infrastructure. 

Other options include increasing the annual maintenance fee by ~10% (which must be approved by owners) or asking owners to approve a special assessment on a project-by-project basis (similar to what was done for SHARC).