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September 2, 2010 |
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| March 17, 2009 |
By: Polyana da Costa |
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lmost a decade after Howard Cohan moved into Devon Place, a neighborhood within Boca’s Woodfield Country Club, he was told he would be required to establish a social membership in the golf and tennis club and pay annual dues of more than $10,000 to continue living in the community.
He also was told he would be required to spend a minimum of $2,500 per year in food and beverages at the club.
That was in 2003, and despite his displeasure with the homeowners association, Cohan paid his dues each year. Finally, Cohan had enough and recently filed a lawsuit challenging the club’s mandatory membership. Cohan’s attorney, Andrew Bray, is seeking class action status for the suit against the Woodfield Country Club Homeowners’ Association.
And Cohan isn’t the only homeowner fighting mandatory fees.
In the midst of the worst economic downturn in decades, more residents of country club communities are fighting mandatory membership dues for pricey amenities like golf courses, tennis courts and restaurants that they don’t use.
Attorney Ronald D’Anna represents more than 150 homeowners in a lawsuit at the Bristol Lakes, a community in the Aberdeen Country Club in Boynton Beach. And D’Anna said owners in other high-end communities have contacted him about fighting club fees in their developments.
Cohan declined to discuss his lawsuit, which claims the association’s membership requirement is “illegal, improper, unfair and/or unreasonable.” Bray wouldn’t speculate why Cohan waited so long before filing suit.
Representatives of the Woodfield Country Club Homeowner’s Association did not return calls and e-mails seeking comment.
Bray said he expects an increasing number of homeowners who were hit with mandatory fees in recent years to file similar suits as the sluggish economy forces Floridian’s of all income levels to cut back.
“Most people have less money to go around right now,” Bray said. “Things that were taken for granted before, such as these assessments, become a problem. Not only that, the membership requirement certainly impacts anyone who is trying to sell a home in that community.”
D’Anna, the attorney for Bristol Lakes homeowners, said “these are very tough times for everybody, so the interest level on this issue has definitely peaked.”
Many high-end South Florida communities — especially in Boca Raton, Delray Beach and Boynton Beach — have imposed mandatory club fees in recent years. The cost can range from a few thousand dollars to more than $20,000 per year. Buyers also face a one-time fee of up to $50,000 to join.
They help pay for maintenance and activities at the clubs, which typically include spas, restaurants, pools and fitness clubs, tennis courts and a golf course.
Several lawsuits were filed by homeowners who thought the requirement was unfair and some of these legal battles have lingered for years.
D’Anna has been representing the homeowners at Bristol Lakes in their lawsuit against the Aberdeen Property Owners Association since 2005.
Palm Beach Circuit Judge David French late last year ruled the membership fee requirement was “unreasonable” and “unenforceable” for new buyers. The suit is before the 4th District Court of Appeal. The appeal claims French should not have ruled in the case because he lives in a country club community.
Attorney Barry Silver has represented homeowners in Delray Beach’s Hamlet in their fight over mandatory club fees since 2005. Silver said he was recently contacted by more Hamlet residents who want to join the suit.
“The economy is definitely a factor,” Silver said. “And in Palm Beach County, you also have those who lost money to Madoff. The truth is homeowners have much less funds than they used to and selling a home is more difficult, especially when there is a membership associated with it. So they are trapped in a home they can’t afford and the membership itself becomes prohibitive.”
Stevi Nichols, 64, is one of the residents suing the Hamlet association.
“It’s a terrible situation,” said Nichols, who allowed a lender to foreclose on the house after unsuccessfully trying to sell it. “The assessments got ridiculous after
we bought it. There was one for some $40,000. My husband is retired military. We didn’t have that kind of money.”
Nichols said she paid $365,000 for the home in 2004 and invested another $100,000 in upgrades.
“I couldn’t even find a buyer that would pay $200,000 so I walked from it and we moved back to Colorado,” she said.
Michael Hyman, a Miami attorney representing the Hamlet Association and country club, said the residents at the Hamlet have no legal basis for suing.
“The amendment was passed properly [in 2002] and all of the people who purchase after the amendment do not have a right to contest the amendment because they bought into a community where mandatory [membership] was the established procedure,” he said. “And the people who were there previously waited too long to bring an action.”
Hyman said when these country club communities were created by developers in the 70s, the developers were not looking forward to how the property would be maintained without a mandatory membership.
“Golf courses are a central component of these communities,” he said. “The residents may think it’s a burden but it’s a way to protect the community.”
Longtime Boca Raton real estate agent Elliot Koolik, who represents home sellers in various Palm Beach County communities, including Woodfield, where club equity is required, said he understands property owners’ frustration but said they are shortsighted for not realizing the private club adds value to their home.
“Country club living is not for everyone,” he said. “Most people who want to buy a home in a country club knows there are equity costs.”
In order to own a house at Woodfield, buyers have to pay a one-time equity fee of between $38,000 to $60,000, an annual fee of $10,800 to $19,000, plus they are required to spend a minimum of $2,500 on food and beverage at the club.
“It can be expensive and I understand the rationale of the homeowners suing,” Koolik said. “They feel like a right has been taken away from them because now [potential] buyers are required to have a membership. But they need to understand the decision to impose the membership was made by the majority” of the owners.
Koolik said communities require club memberships fees in order to maintain a high level of amenities. He said communities that have kept club membership optional have seen the home values decline, he said.
“It is in the best interest of the owner to keep the club private,” Koolik said. “There are some clubs that allowed optional membership and had to allow in outside members to get the club to survive. They charge the fee because they are forced to. The country club is an amenity to the community whether you like it or not.”
Bray said what often angers homeowners is the lack of flexibility. He said at Woodfield, for example, a homeowner who has the highest tier membership is not allowed to downgrade even when he sells the house.
“There are instances where people had health disasters and wanted to downgrade but they won’t let anyone downgrade, not even if you sell the home. So now, not only can’t you play in the golf course but you have to continue to pay for it.”
Silver, the attorney for Hamlet homeowners, agreed and predicts judges will consider the current economic decline as more of these suits come before them.
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Club Costs
Boca Raton is known for its well-manicured country club communities. Here’s what some of them charge for annual membership.
Addison Reserve: $14,121 to $20,173
Bocaaire Country Club: $17,550
Boca West: $$9,287 to $15,208
Broken Sound: $7,397 to $16,286
St. Andrews: $19,200
Woodfield: $8,850 to $18,215
Source: Brokerage Web sites and Daily Business Review research
Polyana da Costa can be reached at (561) 820-2065.
Ronald D’Anna photo by Melanie Bell |
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