GRF Updates Trust Facilities Fee
In accordance with Civil Code §4580, GRF charges a Trust Facilities Fee, a capital contribution on all resale transactions. This key revenue source is used for reserves planning and improvements and helps keep monthly assessment costs down as a result of buyers contributing to reserves at the time of purchase through the resale process.
A Trust Facilities Fee of $1,500 was approved by Resolution 90-11-87 and charged on escrows opening after January 1, 2012. Policy wording has changed slightly over the years, and a fee increase to $5,000 has been in place since January 1, 2018.
On August 30, the GRF board reviewed the adequacy of fees and increasing nonassessment revenue assumptions for the 2022 Business Plan. On October 5, the board approved increasing the GRF Trust Facilities Fee, waiving the fee if a unit is sold to a current owner of a unit inside the Village and raising the sales price exception threshold from $75,000 to $150,000 and the exception fee from $2,500 to $3,000.
This means that effective with escrows opened, or purchase contracts signed, on or after January 1, 2022, the GRF Trust Facilities Fee will be set at $7,500 for units with a sale price of $150,000 or higher and $3,000 for units with a sale price less than $150,000.
GRF collects approximately $3.7 million a year through the current Trust Facilities Fee. To reflect a fee increase to $7,500 per transfer, the 30-year reserves plan includes a projected revenue stream of just over $5.4 million annually. Through this additional revenue, the GRF board was able to avoid additional reserve contributions and instead reduced the projected reserve contributions from $19 to $17 per manor per month in 2022.
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