An email from Wayne Ristine wants to know: “Are there any lenders that understand lending or specialize in lending to purchase an airpark property.”

My response: I don’t know of any lender specializing in airpark properties, but there are firms that can help you. If you’ll share the general area you are looking at perhaps I can help you find a lender. Additionally, by pointing out the region you are looking at some lenders in that area as well as other airpark residents are very likely to come forward with additional information for you. If anyone has suggestions, please post them in the comments section below.

Following is an email we received from Thom Barlow of Tampa, Florida:

Charlie Masters from Sandy’s Farm Airpark sandysairpark@sportys.com said to contact you.

I live on a modest little airport community 18 mi. north of Tampa FL. called Tampa North Aeropark (X 39). Before this Sub-Prime Mortgage Fiasco hit the fan the market value of my 4 bedroom 3 full-bath country-style hangar home was approximately $440,000. Now I can’t get an appraisal up over $250,000.00. It seems “they” do everything they can to purposely de-value my place. My loan officer told me Bank of America is holding so many foreclosure properties they have de-valued everything in the market so they can unload their inventory.

My biggest hurdle is the COMPS. The Appraisers don’t know how to appraise “Airport Community Homes”, They just don’t see the VALUE of living with your plane on a runway. They want to compare my place with a run-of-the-mill home in the area. More than likely sold real cheap & fast so the seller could get out from under a sub-prime mortgage and/or they lost their employment during this fiasco the Banks caused to the world economy.

My question to you is . . . Do you have knowledge of this happening elsewhere ? If so . . . What is being done to address it ?

Could you direct my path to Real Estate Appraisers that know what they’re doing ? I don’t care if they’re in other states. They might know useful stratigies and have connections that could help me here. This might be an area for your “Living with your Plane” to address at this time.

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My Parents have lived for over 20 years in Florida at the Spruce Creek residential airpark. They tell me that the Hangar, as it is not a living space, is not considered in the valuation for a home mortgage. My guess is the tax man has no problem recognizing it as a revenueable event / thing. I would have guessed in a situation like that, with runway access, it would have a positive effect on the valuation of the property.

Is this a Florida thing or is this another obstacle to living next to your airplane?

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We are a well established fly in community in the Atlanta area. We have corporate bylaws, and a new set of covenants to comply with Georgia code 44-3-220. None of this is a problem.

What we need some help on is a thru the fence agreement between one of the property owners and the HOA. One of our owners owns several acres adjoining community/HOA owned property and they keep horses there. At the present, they simply access their property “thru the fence” from their property, then across HOA property, then onto their adjoining land. We’ve not had any problems, and really don’t expect to, but I suggested a Thru the Fence agreement should be drawn up to establish the rules, guidelines, restrictions, etc for this resident to access his adjoining property (which is NOT part of the subdivision at all). He is quite agreeable to this and would like to draw up something.

Does anyone have any Through the Fence agreements they might be willing to share, to help us create something?

Thanks,

Chuck Hanna
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We received the following from Ron Lock:

I am building an airpark in Mississippi, about 12 miles N/W on McComb (KMCB) in Auburn MS. It is 3,000 ft and includes a 300 ft. overrun (grass). Runway 6/24 will be called Lockhaven Airpark LLC. This is the runway area, and there is a 3 1/2 acre section for hangers that will be called Lockhaven Properties LLC. For future development I am putting in a 10-acre lake and will still have about 40 acres for future home sites.

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We received the following from Charles Wood or Paradise Air Haven Airpark in Washington, Oklahoma:

Just wanted to let you know that LWYP saved our Homeowners Association almost $1,000 in insurance premiums this year. The past several years we had been paying Air Capital Insurance of Wichita, Kansas, $2900 for a $500,000 liability policy.

After you conducted your insurance survey, and several underwriters contacted you, I contacted Mike Schiller at Wenk Aviation Insurance Agency, Inc., Highland Park, Illinois. Wenk provided a $1,000,000 liability policy for $1,922. Thank you.

Charles Wood
Paradise Air Haven Airpark (39OK)
Washington, OK

Chuck Wenk, a second-generation aviation insurance broker, told us recently that liability coverage for residential airparks and individual homes is readily available from a wide variety of companies. How the property is managed becomes the major key in getting the coverage and the rate required.

Located in Highland Park, IL, Wenk said his company was started by his father and today includes his own offspring, thus making it a 3-generational insurance agency providing a full range of coverage. He claimed his firm, Wenk Aviation Insurance, is the oldest aviation insurance firm in the country. The firm is licensed to sell insurance in every state except Hawaii and Alaska, he added.

Most residential airparks are securing liability coverage of $1 million although he has written policies as high as $10 million. Wenk reported that there is no “average” figure for liability coverage. “Every situation is different,” he explained. “Does the airpark sell fuel, is there a maintenance facility, are the homes fenced from the runway, can kids get to the airplanes, etc., are all questions that the insurance underwriter wants to have answered,” Wenk added. He said the premium for the insurance coverage depends on the answers.

“We’ve written $1 million liability policies for as low as $850 and as high as $21,000,” he stated.

You can reach Went Aviation Insurance at 1-800-225-WENK.

I read your recent article in the April 4, 2008 Issue of General Aviation News regarding airpark liability insurance.

Our airpark, High Mesa Airpark LLC has a 3300 foot long, 60 foot wide runway. Each of the 20 lots of 2 acres owns property out to the middle of the runway, with a setback of 150 feet where no construction is allowed. Each lot owner makes his own taxiway to the runway.

In your answer, “Hopefully the runway, taxiways or other common property are held by a homeowners association that is incorporated.” The question is what is meant by the words, “held by”?

Also, in paragraph two, “consider the value of the property owned by the association.” Our association does not own any of the runway itself.

How could one distinguish between runway ownership and home ownership of for example lot 7, and a common runway?

The situation might also be complicated by our County Planning and Zoning regulations.

In the event of an “incident” leading to litigation, most likely occurring on the runway, the situation becomes even more unclear.

I concur with you in that I would not want to be part of an association that goes without liability insurance. Possible resolution of these questions might come from a study of other examples of past cases involving air park associations in litigations.

Do you know of an attorney with experience involving air park associations? Please advise.

Thank you,

Ron Garver, Maintenance Manager
Phil DiBartola, Air Park Assn. President

Recently we asked insurance firms to tell us about liability insurance terms and fees for residential airparks. We received responses from Jon R. Shimer, Jr. of Aviation Insurance Resources and Norma Joyce of AUA. The information they provided is below together with the contact information.

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If you haven’t completed the survey form in airpark liability insurance, please click on Latest News and scroll down to the survey story. You can then click on the link and go directly to the survey.

This survey can provide potentially vital information to anyone currently living on an airpark or considering buying on a fly-in community. There have already been about 20 responses to the survey and we’re hoping to receive at least 50 to make the information more meaningful.