HOA turnover question

In December, our association voted in a 5 member board, of which I'm a member, to work with the builder on turning over the HOA. The builder is ready to turnover the documents to us. The builder also has a punch list from the village of items to fix like curbs, sidewalks, etc. This is between the village and the builder and the builder has a $750k bond with the village. Some board members want the punch list from the village completed before the HOA is turned over. I feel that the village's punch list is completely independent of the HOA turnover and has no bearing on the turn over. Should we proceed to turn over or wait until the village's punch list is complete? Also, neither the village or the builder will provide the board with the punch list. Thank you.

Actually depending on your state laws the village maybe should provide a copy if asked as it could be considered public info.

I'd say it would be more important to work with your village representatives to make sure the bond is not released until the punch list is done. Hiring your own engineer to do an inspection to make sure everything is in good shape might not hurt either. Ideally, if any issues where found, that info could be passed on to the village to add to their punch list.

I don't see where trying to "halt the turnover", even if it could be done, would serve any purpose. I don't see where it would give you any more leverage over the developer. After turnover the board has access to the association funds and can hire attorneys, etc. if needed. Before turnover, that would have to be done out of homeowner pockets.

Hi Bryan

Are the streets being dedicated or will they be owned by the HOA?

The roads will be turned over to the village upon the their approval and release of the bond. They will not be owned by the HOA. The only things the HOA will have are some common property (grassy areas) and 3 ponds. Thanks every one for your comments.

Actually in looking at those references on the other thread, these may be more helpful to you:

Storm Water Requirements from the IL EPA website

A Citizen’s Guide to Maintaining Stormwater Best Management Practices For Homeowners Associations and Property Owner From Lake County IL.

Hope this helps,
Tim

Check with the Village ... Ask them if the HOA could be held liable for any items the Developer does not properly complete for the subdivision or noted on the punch list.

I would bet what we call here Site Improvement Agreement (SIA) and which your city has something similar on file is between the Developer and the City and has nothing to do with the Association. That is why the Developer had to put up $750K to be held in escrow until all work properly completed and released by the city. Until he completes the punch list to their satisfaction they will hold that $750K, so he will want to get it done as soon as possible. This would also be the time for any items the Association is to maintain and improve in the future to have those checked out yourselves to make sure correct and no issues. If there are any issues bring them to the attention of the city prior to them releasing the Developer and his $$$.

The individual new owners do not have any written contract themselves with the city to construct the subdivision or perform certain work (other than future maintenance of possibly sidewalk in front of home if needs repair, etc. as noted in your city ordinances), so I would guess the City will tell you that the new owners cannot be held responsible for developer not performing. But, if in doubt ask them …

John,

I'm of the understanding that the village = the city

Yes, the village does = the city. The HOA will have no responsibility in taking care of the roads.