First off, NOBODY IS PAYING $400/MONTH for the Amenity Fee, it is mathematically impossible. In fact, with the current prevailing rate of $179 (since January 2022) even with a 10% CPI adjustment applied it's not possible to have a monthly amenity fee at $200 yet. Yes, you may see a one-time rate higher than this due to a billing catch-up or error, otherwise it's impossible.
The CPI adjustment does not keep up with real world cost increases that have and continue to occur. The budgets prove it year after year, hence the reason the Deferral Rate
(there was never a "cap" on the amenity fee contrary to what many believe) was removed; Repair and Replacement reserves were going to start to be eroded to meet the operating budget requirements.
The R&R reserves need to continue to be adjusted to compensate for future inflation. The R&R fund for the SLAD (amenities between 466 and 44) is projected to have a balance of just over $28M at the end of this fiscal year. For reference the Paradise rec center is projected to cost approximately $20M for the replacement facilities. With more than twice the amenities between 466 and 44 than north of 466 the long-term exposure is substantially greater - eventually we're going to have to start replacing amenities and we have a lot of them, we need to protect and adequately fund the R&R funds.
The CPI is controlled/manipulated by Washington DC frequently to make their economic projections and political needs look better, they are far from accurate (party in power doesn't matter, they all do it). Resetting the amenity fee upon sale of a home is the only way we have to make up for lost ground caused by the CPI. The annual reset of the Prevailing Rate is outside of the Deed Restrictions CPI limitations and looks at real numbers, the real operating costs, and is adjusted to "balance the books" to reality. The developer is the one who sets the Prevailing Rate. In the grand scheme of things are a minor, if any, profit center for them, they just need to break even. They make their profits in selling homes, trying to milk a few extra dollars a month per home in amenity fees would be self-defeating in comparison to the ability to sell more homes with the lowest amenity fee possible.
No, the system isn't perfect, but it has been working well for the last 30+ years. Trying to change it would be next to impossible at this point; there are hundreds of different deed restrictions contracts (one for each unit) that would have to be altered and getting the thousands of residents to agree to the changes would prove impossible.
Some complain the system isn't fair, especially when they buy a new home and they are paying the max amount, what is quickly overlooked is that it becomes more "fair" for them as new residents move in after them and the complainers are no longer paying more, they're paying less than someone new here. How much are we really talking about, in my neighborhood (8 1/2 years old) where I'm one of 15 original residents remaining, I pay $173.12/month, my newest neighbor pays $179/month, if $6/month breaks my budget, I need to move. Yes, in some cases it may be a few dollars more, but the point of the matter doesn't change, it simply isn't that much.
The Deferral Rate was a 1-year deferral that was renewed and continued several times. It was not a lifetime "your amenity fee will never go up" promise as some would have you believe.
The Deferral Rate first went into effect on 1 August 2012.
The Deferral Rate is exactly that a deferral, and the resolutions that were past (attached below) by both VCCDD and SLCDD allows for restoration of deferred rate increase. When the Deferral Rate was terminated in 2019 these deferred rate increases were not imposed on the residents that benefited by the Deferral Rate (over 85% benefited), they could have been and legally can still be reimposed.
The idea of reinstating a Deferral Rate or cap is both foolish and dangerous, as many have pointed out, the cost will continue to rise and without an increase in the operating budget (amenity fee) the only other option is the degradation of the amenities we all enjoy. If crying about being on a "fixed income" doesn't work at Publix, McDonalds, or the gas station, it certainly won't work for paying for our amenity operating costs. No body like cost increases but they are a reality we must live with.
I've covered this topic many time here and also have made videos explaining all of this
The Villages Information/Fees Videos - YouTube