There are three source of revenues: the Operating fund, the General Reserves fund and the New Buyer Fee fund.
The Operating fund comes from revenue generated by the annual assessments and the golf course income. These funds cover the day-to-day expenses of running the association, including common area landscaping, golf course maintenance, Clubhouse maintenance, utilities, employee salaries, etc.
The General Reserves fund covers major expenditures and emergency items, such as a new piece of golf course equipment, Clubhouse roof repair, new copy machine or new hot water heater. Each of these ‘components’ are included in an annual Reserve Study that identifies projected useful life and replacement costs. Funds to cover this are transferred from the general fund.
The New Buyer Fee fund came into place in 2005 and Summerfield now collects a $2,000 transfer fee upon sale of a property (with some exceptions) for this fund.
Can you explain the tax status of Summerfield?admin2022-09-20T23:11:30-07:00
Yes. We fall under IRS Code Section §528 and file form 1120-H. This subsection exempts certain nonprofit homeowners associations that manage association property. At least 60% of our gross income must come from dues, fees or assessments and at least 90% of our expenditures must be for the association’s property. We do not pay income tax on dues and assessments, if they are used for maintenance or improvement. We do not pay income tax on any other taxable income, as long as we maintain those percentages.
Can my adult child live with me?admin2022-09-21T15:57:12-07:00
Homes in Summerfield may not be rented. If you are going to be gone for up to 7 months, you might allow a friend or relative who is age 55+ or, with a Board variance, under that age, to occupy your home.