Lake Forest, IL - (February 14, 2008) - Residents living at Walnut Glen, a Residential Homes of America, Inc. (RHA) community located in northwest suburban Island Lake, have the best of all worlds: a beautiful natural setting surrounded by acres of forest preserves, spacious and affordable single-family homes and the added benefit of paying no SSA (Special Service Area) fees.
In communities that have an SSA, the SSA is requested by the developer to a municipality for funding the construction of roads, underground water and sewer lines, curbs, sidewalks and other infrastructure and earthwork improvements within a new neighborhood. The municipalities issue bonds to pay for these improvements over a period of up to 30 years, and in turn, assess the property owners within the SSA community an annual charge to pay off the bonds. In short, a builder with a community that has an SSA can either pass the SSA costs of making these improvements onto the homebuyer, in terms of a costly SSA fee that is paid by the homeowner every month for up to 30 years or choose to absorb these costs and offer the homebuyer a more affordable monthly payment. This is what RHA has chosen to do at Walnut Glen, so homeowners at this community do not pay an SSA fee but still have a manageable payment structure.
“In regards to the popularity of SSA fees, RHA has taken an approach that more builders seem to be discovering as beneficial for both parties involved, that is, covering the cost of the SSA right from the start and not passing this additional burden onto their customers,” said Ann Danner, president and owner of Residential Homes of America, Inc. “Builders that charge the SSA fee to their buyers often claim this allows them to reduce the cost of their home, but in reality, due to market forces and the natural price appreciation that takes place as a new home community is built out, buyers really don’t realize any substantial savings on the price of their home purchase and are still saddled with the SSA payment on top of their monthly mortgage amount, which can be several hundred dollars additional every month.”
By not charging their customers the SSA fee, RHA is saving them thousands of dollars every year, which over a 30-year period, can really translate into big savings for homebuyers, on average, at least $20,000 on each home at Walnut Glen.
“Ask any homebuyer and see what they say when asked if they would like to have an extra $200 in savings every month. The answer will always be ‘yes,’ especially as budgets continue to get squeezed with rising energy and food costs, which can play havoc with a family’s monthly expenses,” Danner said. “That’s why when a homebuyer visits a new construction community that does not have an SSA, like our Walnut Glen neighborhood, they are immediately more interested in moving to that particular location, because they know they won’t be burdened with costly additional payments.”
SSAs can amount to as much as $30,000 plus interest, typically paid over the course of 20 to 30 years. In a community that charges an SSA, the homeowner is billed via a special tax assessment that is added onto their annual property tax bill. This additional amount, with interest, can be upwards of $200 per month and amount to over $64,000 over the life of the assessment, with over half that amount being in interest charges, that are in most cases, non-deductible.
If a resident lives in a community that charges an SSA and they decide to move, the buyer of their home must assume the payment of the remaining SSA fees, unless the fees have been paid in advance. This can be a big detriment to resale value and in today’s slower resale market, can have a highly negative impact on the resale of a home.
“What buyers really want to know is who truly benefits from the SSA? When a developer passes these costs onto the buyer, the developer is the one benefiting the most, because they are not paying the full cost of making the community improvements, while still selling homes at the going market rate. We choose to absorb the SSA fee at our communities because we believe it is the right thing to do for our buyers. Even with our costs of covering the SSA fee, we are still able to offer a quality built and attractive new home at a very competitive price, which at Walnut Glen, start under $300,000,” said Danner.
A perfect example of an RHA community with no SSA fees is Walnut Glen, which has been planned for 222 luxury single-family homes on large one-quarter acre or larger home sites. Prices for the homes begin at $299,990. There are four impressively
decorated and fully furnished models on display at the community, representing each of the four seasons, plus a fifth home in a vignette format.
As a family-friendly community, Walnut Glen features gently winding streets with several quiet cul-de-sacs along with the majesty of the Black Crown Forest Preserve, which is combined with the Moraine Hills State Park, to create a total of over 3,000 acres of forest preserve land immediately adjacent to the neighborhood. This expanse of mature woods forms the perfect backdrop for many residents’ backyards.
The community also includes pocket parks, several ponds and walking/biking trails that will connect to the nearby Millennium Trail for complete recreational freedom.
RHA has nine exciting floor plans at Walnut Glen, sized from 1,909 to 3,483 square feet. There are eight two-story plans, each with three to five bedrooms, 2-1/2 baths, full basements, central air conditioning and attached two or three-car garages. The 1,909 square foot ranch plan features two to three bedrooms, two full baths, full basement, central air conditioning and a two-car garage.
“Walnut Glen has become a very popular community, with many residents already enjoying everything this neighborhood offers. When we talk to them, one of the reasons why they chose this community is that there is no SSA to worry about. When this fact is combined with all the other wonderful things Walnut Glen features, it’s a very easy decision to decide to move here,” Danner said.
Residential Homes of America, Inc. has been recognized for the highest standards of quality and integrity with the Diamond Builder Designation from the Home Buyers Warranty Corporation for its superior workmanship and spotless claims record. RHA is
the only homebuilder in Illinois to receive the coveted award which is a one-time only, life-time award given only to those builders who have demonstrated at least a five-
year track record of offering the highest standards of construction, design and customer service in their markets based on strict criteria.
Walnut Glen is located in northwest suburban Island Lake. To visit, take Route 176 to Darrell Road, north 1-1/2 miles to Neville Road, west on Neville Road to Dowell Road, south on Dowell to the Walnut Glen Information Center on the west side of the
street. Or, take Route 120 west to Darrell Road, south 1-1/2 miles to Dowell Road, south
one mile to the Walnut Glen Information Center and models. The information center and models are open from 10 a.m. to 5 p.m. daily and Sunday from Noon to 5 p.m. Call
1-815-344-3030 for more information or visit rhahomes.com.
