FAQs: THE PURCHASE

The following FAQs are taken from the Official HOA Fact Sheet. They are broken out here by topic for homeowner convenience. They have been updated with links and line-throughs to show the current status of work completed. (All links open in a new tab.) You can see the FULL OFFICIAL FAQs here to verify that all information is accurate to the official version. This page is provided only for ease of reading and convenience in referencing additional information.

  1. Are we selling the HOA’s front lot where the swimming pool and tennis courts are located?
     
    No. The HOA Board received a letter of intent from a developer who was interested in purchasing the property for $4.5 million. The property was appraised for $4 million, but the HOA was informed at the last meeting that the Board turned the developer’s offer down. The lot owned by the HOA is not now, nor has it ever been, listed for sale by a broker. No one is advocating or planning to sell it in the future. The clubhouse purchase will be accomplished via a dues increase, and the amount of the dues increase will be sufficient to cover acquisition, operation, and maintenance costs. Moreover, a sale of the front property would require a much higher voting threshold as well as approval from mortgage holders.
  1. Why is it a good idea to acquire the golf course land and former golf course clubhouse if the community votes to do so? Some of the potential reasons for this purchase are:
    • It may protect or enhance property values.
    • It will enable the community to determine how the property will ultimately be owned and used, thereby reducing uncertainty.
    • It ensures that the property will be maintained at the same class A level as existing HOA common area.
    • It provides the community with the opportunity for a new identity as a greenspace community on Lake Manassas with five miles of walking/jogging/biking trails.
    • It provides a central space to gather for HOA meetings, community events and parties, clubs, pot lucks, cookouts, childrens’ activities, snow day activities, senior events, etc.
  1. How can we be sure that we won’t have to keep increasing HOA fees to pay for operating the clubhouse and property?
     
    The Board is investigating has investigated all aspects of the potential purchase to ensure that the purchase of the clubhouse, and its ongoing operation, will not be the basis for an additional dues increase in the future. However, the community has had virtually no increase in dues over the last ten years, so minor increases to account for our current operating budget (not inclusive of possible golf course operating expenses) may be necessary to keep up with inflation. This would occur regardless of whether the golf course is purchased.
  1. What is the property worth?
     
    It is hard to use any type of objective standard or value to determine what the property is worth to the Community, as the golf course is an integral part of the community. That being said, the golf course owners received 5 other offers, at least two of which included offers to purchase the land and the clubhouse. The HOA Board believes it made a competitive offer in light of the all the offers that were made. Seven years ago, the Clubhouse parcel alone was assessed at $3,450,000.
  1. What happens if the HOA members don’t vote to approve the purchase of the clubhouse and property?
     
    The HOA then has the right to terminate the purchase agreement and the golf course owners have preserved the right to accept a backup offer. The HOA Board is not aware of the terms of the backup offer, who made the backup offer, or what such an offer would mean for the community.
  1. Can we be sure there were really multiple offers and how do we know who they were from?
     
    The HOA Board confirmed that there were 5 other offers. As with any real estate transaction, the terms of those offers and the potential purchasers is not going to be divulged.
  1. How did the offer come about?
     
    The Board was made aware that multiple offers had been received by the golf course owners for purchase of the clubhouse in late August. At that point, the Board asked the GC owners to provide the general terms under which a Letter oflntent from the HOA would be considered competitive against other offers in hand. A copy of the resulting email from the GC owners was subsequently sent to all HOA members who have signed up to receive email correspondence. The Board subsequently voted to submit a Letter of Intent under those terms set forth by the GC owners. Despite the rapid turnaround, the HOA is protected by a 60-day study period and contingency for HOA voting approval.
  1. What are the terms of a proposed acquisition of the land and former clubhouse parcels?
     
    The Virginia Oaks HOA has offered to buy the clubhouse parcel, 19+ acres around it, plus all the land belonging to the former golf course except for the 2 acre maintenance shed lot on Route 29 and the 10 acres along the peninsula that were purchased by the Boones in May 2019. The total purchase price is $1,750,0000.
  1. What is the timeline anticipated for the decision to purchase and the purchase itself?
     
    • Mid-October: Budget calculations, reserve study completion, preliminary loan approvals
    Late October Early November: Sign final Purchase Agreement
    • Late October to Late December: 60-day study period during which homeowner approval will be sought
    • Middle of December: Final HOA voting
    • October to End of December: Terminate Purchase Agreement, if necessary, without financial penalty
    • End of January: Settlement on property purchase
    • February: Begin process for property cleanup and renovation after appropriate bids from contractors
  1. What will be happening during the study period?
     
    The HOA Board will be examining the condition of the property, verifying legal title, conducting a structure and property inspection, and finalizing the financial information.
     
    An appraisal of the property may also be conducted, but the loan will not be impacted by that appraisal since the loan would be backed by future HOA fees and not by the property itself.
  1. Would the proposed verified annual fee increase put us out of line with other communities in the area?
     
    Owners of single family homes in Virginia Oaks pay $1000 in annual dues, and town homes pay $1120. This places Virginia Oaks as having the 6th lowest dues among 18 local communities. Virginia Oaks only ranks 4th from the bottom, though, in terms of the amenities (value) offered for that money. With the proposed anticipated annual increase, single family homeowners in Virginia Oaks would still pay dues just above the $1,666 yearly average among the 18 local communities. However, the HOA would become the only community among those 18 to offer five miles of private walking trails and 130+ acres of permanent green space.
  1. Will we have to rezone the clubhouse and property?
     
    The change to allow the HOA to use the clubhouse lot will require the parcel, or a portion of the parcel, to be for community facilities use. Simultaneously, there will be changes needed to our Proffer (zoning) document, including the correction of some outdated items. Per Prince William County:
    “The baseline change to allow community facilities on the clubhouse parcel is a straight forward request. Once community consensus is reached, I would expect a proffer amendment for this change to move through the process relatively quickly. Our office is supportive of finding solutions with the Virginia Oaks Community.”
     
    Source: Meika Daus, Current Planning Manager, Prince William County Planning Office, 9/3/19.
  1. Does anyone on the Board, or any other committee, have a conflict of interest, or benefit personally, if we acquire the land and clubhouse?
     
    No member of the Board nor any other committee will receive any additional benefit from the purchase of the clubhouse and the property. Likewise, the Board members and committee members have no conflict of interest. The Board and committee members will receive the same benefits as all of the other homeowners in Virginia Oaks.
  1. How will the golf course land and clubhouse be used if we acquire them?
     
    A number of use options have been discussed, including 1) HOA meetings and storage 2) community parties, gatherings, movie nights, potlucks, and BYOB Friday nights at the bar 3) fire pits and cookouts 4) meeting areas for clubs and social groups 5) children’s play groups and snow day facilities 6) fitness classes and boot camp 7) art classes 8) senior group activities 8) rental for homeowner parties and events 9) potential rental by the Chabad 10) community garden
     
    Additional uses and enhancements that may occur further down the road, budget permitting, include: 1) a dog park 2) exercise stations along the cart paths 3) enhanced fitness area 4) family playground and pavilion area.
     
    There will be many more ideas, and the HOA Board wants to encourage everyone to put on their thinking caps. There are numerous options that could enhance and benefit the community.
  1. Who will manage the clubhouse and property?
     
    Our management company will handle reservations for residents who wish to rent the clubhouse for parties/events, and a signup board or other mechanism will be established to handle reservations for club meetings, etc. As with our other HOA facilities, the Board (with support from volunteer committees) will oversee management of the clubhouse as well. As with all aspects of this community, we will continue to call on and utilize volunteers. But the repairs, maintenance, and landscaping will be left to professionals as included in the projected budgets.
  1. If the HOA purchases the Clubhouse and golf course property, will it be brought into the HOA land inventory and common area?
     
    At the September 24th meeting, the HOA attorney made it clear that the property cannot be annexed into the common area until the HOA has completed the purchase. For that reason, the initial vote will be two simple questions per FAQ #17. After acquisition, we should hold a final vote to bring the property formally into the common area of the Association. This would have the advantage of definitively making the tax liability $0 for all the newly acquired property. However, as the HOA attorney also made clear, the definition of common area in our HOA documents is broad enough that we can operate, maintain, and use the newly property immediately after purchase.
  1. What is the status of the rezoning for the Maintenance Shed lot?
     
    The Maintenance Shed lot is being sold separately by the GC owners to a developer. The community is not involved in that sale and has no recourse to stop the sale. However, the Board is working with the golf course owners to negotiate deed restrictions on the sale of the property that would limit the types of business that could operate there to those that would be compatible beside a residential community. The Board is also negotiating to try to keep the Maintenance Shed lot within the Virginia Oaks Residential Planned Community (RPC), which would provide additional protections for the community. The HOA Board may also try to work out a joint Proffer Amendment process to reduce costs and keep the HOA as involved as possible in the rezoning process for this property. The Board is attempting to use the community’s potential purchase of the golf course as leverage to obtain as much protection as possible for residents when it comes to rezoning the maintenance shed lot.