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Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

National Defense Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

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Page 1: National Defense Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

National Defense Authorization ActTitle 30, Subtitle B, Section 3024

Cabin User and Transfer Fee(aka Cabin Fee Act)

National Forest Homeowners

Page 2: National Defense Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

Goals achieved by the CFA!For Cabin Owners: Stable and predictable fees. Simple and manageable system. Eliminates the risk of dramatic fee increases making cabins

unaffordable & unmarketable. Long term viability of the Cabin Program as a family-based

recreation program for the middle class.

For the Forest Service: A far simpler and less costly program to administer. A fair and reasonable return for the tax payer. Continuation of this USFS recreation program with a reliable

and long term source of revenue for the Forest Service.

Page 3: National Defense Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

New Fee SystemFEE TABLE SUMMARY

11 Annual Fee Tiers $650 - $5,650 Range

• 70% of fees < Avg Fee• 30% of fees > Avg Fee

$1,200 Transfer Fee – upon change of cabin ownership

Temporary Fee waiver/reduction for impaired access or occupancy

USFS Fee retention after 10 years USFS Review & Report to

Congress after 10 years

Tier No. of PermitTier Size Permits Fee1 6% 834 $6502 16% 2,224 $1,1503 26% 3,614 $1,6504 22% 3,058 $2,1505 10% 1,390 $2,6506 5% 695 $3,1507 5% 695 $3,6508 3% 417 $4,1509 3% 417 $4,65010 3% 417 $5,15011 1% 139 $5,650

Total 100% 13,900 $2,205

Page 4: National Defense Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

NFH/USFS CollaborationImplementation Task

Input

Feedback

Aligned?

Interim Fees NFH USFS Yes

Completion of Appraisal Cycle

USFS NFH Yes

Fee Tier Assignments NFH USFS Yes - Work in Process

Transfer Fee NFH Work in Process

Impaired Access/Occupancy

USFS NFH Yes

Permit Amendment NFH Work in Process The new law requires the USFS to implement CFA fees along with

appropriate administrative rules & regulations within 12 months. The USFS implementation of the CFA appears to be on track. The communication between NFH and USFS is positive and continuing

with no current issues.

Page 5: National Defense Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

Transfer Fee Considerations Assessed when a new permit is issued due to a cabin change of

ownership.

NFH proposed a change of name on a permit presumes there’s a change of ownership, with some exceptions…..• Legal Name Change• Placing a cabin in a trust where the trustee is the same cabin owner• Addition or removal of a spouse’s name (Marriage, Death, Divorce)• Co-ownership when there is a change of permit holder but not change of

ownership

The USFS position is unknown at this time, so we suggest….• Review the name(s) on your permit (is there any need to update?)• If you are contemplating putting your cabin into a trust, or transferring

the cabin to other family members……we recommend you act this year if you want to avoid a transfer fee in the future.

Page 6: National Defense Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

What’s my Fee Tier?Tract Name/Lot Lots Rep.

Approved Appraisal $

National % Ranking Tier # CFA Fee

Camp Creek Rd 30, Lot 52 69 $55,000 80.2% 5 $2,650Camp Creek Rd 32, Lot 18 32 $50,000 74.4% 5 $2,650Camp Creek Rd 34, Lot 63 36 $35,000 57.9% 4 $2,150Cool Creek Rd 12, Lot 113 9 $48,000 73.2% 5 $2,650Cool Creek Rd 12, Lot 131 16 $30,000 44.7% 3 $1,650Flag Mountain Rd 20D, Lot 30 39 $36,000 59.1% 4 $2,150Flag Mountain Rd 20D, Lot 38 1 $53,000 78.6% 5 $2,650Mile Bridge Rd 27, Lot 2 20 $46,000 71.9% 5 $2,650Mile Bridge Rd 35, Lot 115 11 $40,000 65.3% 4 $2,150Mile Bridge Rd 35A, Lot 16 127 $52,000 78.1% 5 $2,650Oregon Trail Rd 19, Lot 21 17 $50,000 74.5% 5 $2,650Still Creek Hwy 26, Lot 8 5 $32,000 51.5% 4 $2,150Still Creek Rd 10, Lot 1 1 $44,000 69.6% 4 $2,150Still Creek Rd 10, Lot 20 32 $37,000 60.7% 4 $2,150Still Creek Rd 14, Lot 6 17 $55,000 80.3% 5 $2,650Tollgate Rd 24, Lot 16 20 $36,000 59.3% 4 $2,150Vine Maple Rd 12, Lot 57 27 $52,000 78.2% 5 $2,650Vine Maple Rd 20, Lot 14 53 $50,000 74.9% 5 $2,650Vine Maple Rd 20, Lot 7 5 $40,000 65.4% 4 $2,150Zigzag Hwy 26, Lot 5 2 $42,000 68.3% 4 $2,150Zigzag Rd 3, Lot 1 4 $33,000 53.3% 4 $2,150Zigzag Rd 9, Lot 6 3 $48,000 73.2% 5 $2,650

*NFH Estimate Only. USFS will determine CFA Fees prior to the 2016 Billing.

Page 7: National Defense Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

What the CFA does for Cabin Owners

The new CFA law holds true to the NFH guiding principles for a new fee system……. Preserves the cabin program, no cabin loss due to high fees. Stable and Predictable fees, increased only by inflation, not by

changes in the real estate market or a flawed appraisal system. Strengthened cabin values for all, and the return of cabin

marketability where it was lost due to high fees. The elimination of cumbersome and expensive appraisals,

reducing costs for the FS & cabin owners alike. Simplicity and Longevity…..will withstand the test of time. Strengthened relationships with the USFS with fee retention. Peace and enjoyment of the simple cabin life once again.

Page 8: National Defense Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

What the CFA does not do….. The CFA does not roll back fees to pre-2008 levels

• The average fee under CUFFA increased over 100% from 2008 to 2014.

• The CFA will yield a lower average fee in 2016, however, the ~10% reduction of average fee does not reverse the 2008-2014 increase.

While the vast majority of cabin owners perceive CFA fees will be ‘more fair’, there remain a few examples of permit fees that may not appear to be reasonable compared to others. The use of appraisal values for CFA fee Tier placement is the cause of these inequitable fee tier assignments.

While the CFA results in a range of fees supported by the market, there is no assurance every existing cabin owner is able or willing to pay the new fee.

Page 9: National Defense Authorization Act Title 30, Subtitle B, Section 3024 Cabin User and Transfer Fee (aka Cabin Fee Act) National Forest Homeowners

THANK YOU!

For your feedback, legislative contacts, and financial support.

Questions?