Why are shares being eliminated?
While membership is healthy, the number of certificate holders has been on a steady decline for years. Most new members to the club are not interested in purchasing a certificate.
The membership structure has been updated to clear up confusion and to promote more flexibility and simplicity in servicing current members and attracting new families. These changes have been made based on membership trends from the past several years.
With one membership level for everyone, all our members will have equal access to reserve their spot at the club and volunteer for leadership positions.
I’m a shareholder. What about my discount on dues?
If you had a membership certificate in 2018, you’ll continue to receive a $60 discount on dues in 2019 and 2020. This value represents more than the share would be worth if it were put up for sale, and is in addition to the many years most certificate holders have had access to a $60 dues discount.
What’s the difference between a “Share” and a “Certificate?”
The club has used the term ‘shares’, for what are actually “member certificates,” as defined by the bylaws. The certificates entitled the holder to a reserved spot for their family at the club.
How does this change affect inactive dues?
Members will no longer be charged inactive dues during seasons in which they do not use the pool.
Doesn’t my certificate guarantee me a discount?
The member discount is another common misconception. While a discount has been offered in the past, it is specifically not guaranteed by the bylaws of the club and could be changed or eliminated.
As part of the transition, certificate holders in 2018 will be offered a discount for the next two seasons (2019 and 2020). Beginning in 2021, Forest Hollow will have one membership rate and one membership type. Inactive dues will not be necessary.
I’ve been a shareholder for a long time. What is my share worth now? Can I sell it?
Membership certificates are not in demand. When families leave the club, most certificates go unsold and become void. Long time members have had the benefit of dues discounts at a value that far exceeds the value of the certificate.
What if membership sells out: Isn’t my share worth more if that happens?
No. According to the bylaws, certificate holders can transfer their share only to someone who buys their home. If certificates sold out and a member wanted to leave, the club has the option of either transferring the certificate to someone on the waiting list or buying their share back from them at a price set by the board.
While the club has allowed certificate holders to sell their share in the past, this flexibility is not accounted for in the bylaws.
Doesn’t my share mean I own part of the club?
No, membership certificates do not include any ownership stake in the club. Many members paid membership dues or inactive dues in order to keep their certificate with the intention of selling it for a profit, but most shares go unsold and become void.
What will happen to my share?
Member certificates have been eliminated from the membership structure.
How can I reserve a spot at the pool each season?
Priority registration for members from the previous season will open on February 1 and go through February 28. Open registration for new members will begin on March 1.
The early bird discount will be offered from February 1 through March 31.
References:
Bylaws as ratified by the Board of Directors, Fall 2018 (PDF)
Prior version, with Markup (PDF)
Letter sent to members in Fall 2018
Questions
Please click here to contact us.