Posted:
BenB1:
Review your official documents thoroughly for a legal definition of what units/homes are part of the association. Obviously, only residents who have completed settlement on their own unit can be members and part of an association, but you need to clarify how one is a member. You have not stated if your association is voluntary or involuntary regarding assessment fees.
As far as the unbuilt, uncompleted and unsettled units go, you can refer to your local municipal office for clarification on the lots which are platted as part of the association and those, if any, which are not. You should also have a 'plat plan' included with your documents. Obviously, until the entire number of homes/units are built and settled upon, your association will not have to incur the full amount of expenses to maintain. It may well be the developer intends to build various type units--single homes, condos, etc. and intends to create subdivisions. But, you won't know until you get clarification. IMO, the Board needs to go 'right to the horse's mouth' and speak with the developer re the undeveloped homes (100)yet to be built. But, before that, review the documents yourself.
Normally, transition from the developer to residents does not occur until a certain percentage of units have been sold and settled. This process, also, is detailed in your documents, as well as what items are considered to be capital appropriation items for which the association must establish a capital expense fund to cover. Also listed should be what is considered common area expenses (ex.: sidewalks, streets, water drainage system, roofs, gutters, etc.) which are to be repaired/maintained by the assessment fees from residents/members.
Have you gone through the actual turnover and now have a full resident-controlled Exec. Board? Has the developer submitted financial reports, annual budget for the Board's review to assist in computing total operating expenses for the new year? Has the Board contracted with a Property Management company?
You need to provide additional information for us to speak directly to assessment fees required.