As any one who reads my blogs regularly knows, I’ve written a lot about HOA’s, POA’s and their golf courses over the past year or so. The Coronavirus could be an opportunity for HOA’s and POA’s to acquire the golf courses and clubs in their communities and control the amenity that is a big part of the value of their homes.
Just yesterday, I fielded two calls from representatives of major management companies anticipating many opportunities with community clubs and golf courses in the near future. Since so many are owned by third parties, and those third parties are frequently focused on other areas, the presumed negative impact of the pandemic on golf and club operations, the uncertain future and resulting possible decline in values should present a unique opportunity for community associations to acquire and gain control of their clubs and golf facilities.
If your community is worried about the future of the amenity (club/course) it should act now.
The golf business has gotten off to a rough start in 2020. Even though in many northern areas, the winter was mild and limited snowfall permitted play most of the season, the Coronavirus pandemic and resulting stay at home orders shut golf down in many areas for extended periods, right at the time when the season was beginning.
If any of these courses were distressed, it’s likely to show as the season wears on. We’ve been contacted by one community where the owner closed the course last fall and ceased operations. With Spring now upon us, their situation is further complicated by the growing season, which combined with no maintenance will cause irreparable damage. The golf course may have to be rebuilt from scratch.
As I have before, I urge all HOA’s and POA’s to mobilize, unite and understand that in many cases, the community club or golf course is critical to the value of your homes – whether you play golf or not.
The entire community (not just golfers) has a considerable vested interest in the sustainable success of the club. The math is usually pretty simple. Calculate the amount necessary to acquire the club and invest capital where necessary. Divide by the number of homes. If that number is less than the value that would be lost by the failure and closure of the club, it’s in everyone’s interest for the HOA to act.