A look at some of the numbers behind WPOA’s proposed new “buyer transfer fee”

An analysis of the vote being asked of property owners to create a new funding source to maintain WPOA’s infrastructure and maintenance

Even if 99 percent of the responses are "yes" from members voting on the covenant changes being put forth by the board of the Wintergreen Property Owners Association, if less than 60 percent of the property owners don't respond, the result will be the same as if the majority said "no." If not enough people vote by the end of the December 13 special meeting, all property owners may face a higher annual assessment forever.

Forever? Really?

WPOA offers this chart to explain the options on the vote for the new “Buyer Transfer Fee” that is coming up:

*From the WPOA website, green notations by WBB.*

How many homes are sold at Wintergreen each year?
In recent years, the number has averaged around 250.

The higher 8 percent annual assessment increase would be for only two, maybe three year, then the reserves would be built back up, WPOA Executive Director Jay Roberts told the WBB. Then the rate of increase on annual assessments would likely go back being using the same criteria as the board has used for decades.

So, again, “forever?” Yes, it’s math.

Because percentage increase would be on the base rate would be higher in all the following years. This higher base rate on annual assessments is what would feed the reserve account used for infrastructure and maintenance, Roberts confirmed.

Even if the percentage increase is zero, the base is still higher.

“Many similar resort communities collect a buyer transfer fee at closing. These vary widely and can be a percentage of the sales price or a flat fee. All are designed to help fund capital reserves,” ***the WPOA board of directors’ explanation offered with this chart.*** (Click to enlarge.)

The proposed “Buyer Transfer Fee” will keep the annual assessments lower, but only if enough Wintergreen property owners vote "yes” and shift the cost from themselves and and their neighbors onto new buyers.

Is this fair to the new buyers coming to Wintergreen? The proposed new "buyer transfer fee" is a one-time fee paid at closing equal to the improved lot annual assessment ($2,279 in 2026). Opinions will vary on how burdensome that might be.

One argument for fairness says it is a one-time upfront payment equal to what current property owners have paid WPOA every year for all the services and upkeep in place that the new property owner is what the new owners is buying into.

A meeting is required for this amendment to pass. The special meeting is set for Sunday, December 13; more details will come later.

(No one at WPOA is saying so, but the bar chart posted here from the WPOA’s website might be read to say, “There are others area communities with similar fees that are less fair to new buyers than WPOA’s plan.”)

In any case, the board says the funds need to come from somewhere. “No increase” is not an option in this upcoming vote. There is no significant change in play here in how and where WPOA spends its money. That’s another issue altogether.

This vote will likely revive some interest in WPOA’s budget which arrived in property owners’ mailboxes this week as part of the annual meeting packet. See it here.

WPOA’s outlays and reserve funding for 2027 total $9,252,230.

The paving of Wintergreen Drive’s four miles every ten years or so, costing WPOA well over a million dollars, is one obvious example. This work has not been funded by the annual assessments on property owners, but instead by the "Developer Transfer Fees" required by the community’s 50-year-old covenants.

In recent decades, the funds for infrastructure projects were compiled by WPOA into the “Capital Reserve Accounts” in irregular (but predictable) bursts of fee payments as developments were completed.

That source of funding is going away because with the last major development in Wintergreen will soon be done. “We are nearing full buildout,” WPOA’s board report says. –Charles Batchelor