New Community Enhancement Fee at Desert Mountain

The Desert Mountain HOA members will be voting to implement a Community Enhancement Fee for new homeowners. Once approved, all buyers at Desert Mountain will be required to pay a one time fee to the HOA of 1/2% of the purchase price on every home or lot. The fee will be collected at closing starting May 10th, 2023. For example, a buyer of a $2 Million home will pay a $10,000 fee to the HOA at closing. This one-time fee will be used for HOA capital improvement projects such as roadways, bridges, storm damage, erosion control, and upgrading security.

These projects have been funded in the past by Design Review fees paid for by new home construction. Those fees brought in $1.1 million last year, however, it is anticipated to decrease significantly in the next few years as there are fewer buildable lots in the community. The HOA also decided that this fee was necessary because the rising costs of labor and materials will make funding these projects even more expensive in the future.

Several luxury communities in Scottsdale charge similar fees at closing. Silverleaf, Estancia, Whisper Rock, DC Ranch, Grayhawk, Mirabel, and Sincuidados all charge a minimum of 0.5% to new property owners as a one-time fee at closing. The fee is charged to every new property owner every time a home or lot is sold and paid to the HOA at the close of escrow. These fees are set aside by the HOA to pay for capital improvement projects in the community.

If this proposal is passed by current homeowners, the HOA predicts it will bring in approximately $1.25 million per year based on 125 transactions, averaging $2 million each. I expect the current homeowners will approve this change since it does not cost them anything (only future homeowners are affected) and it strengthens the financial reserves of the community.

Feel free to contact me with any questions about Desert Mountain or other golf clubs in Scottsdale. I specialize in representing buyers and sellers in the finer golf communities of North Scottsdale.