WHEN DOES THE HOA START PAYING FOR COMMON AREAS

Started by DaleW • 4 replies • 1534 views

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DaleW (California)
Posts: 3

Posted:

CA I'm the only homeowner on BOD the other two members are the Developer. At present we have some of the common areas completed and they have not been turn over or deeded over to the HOA. The Clubhouse and Pool/Spa area should be completed within the next couple months.

May question is does the HOA have to pay maintainence on common areas or facilities that have not been deed to them? We are currently under DRE Phasing Budgets and there are things in the Budget that don't get paid out(landscaping being one of then).

Dale

RogerB (Colorado)
Posts: 5,067

Posted:

Dale,
To answer your question requires researching the original plans approved by a planning commission and your Declaration. Then negotiations with the Developer will be required if you think the HOA is paying for items which the Developer should be paying - this can happen with a Developer controlled Board and is one reason a tramsition audit should be done when the association Board transitions from Developer control to homeowner control.

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

DaleW,

Typically in an HOA or COA, maintenance to pay for and fund the replacement and repair of common areas begins from day one of the close of a residence. Did you pay a fee at close, have you received any maintenance bills?

Budgets from the Developer to run my NNJ HOA and COA association were forecasted at full occupancy as if the entire developement was complete. That the elements were not constructed or deeded was irrelevant because the money was set aside and used to maintain only what could be maintained.

What is DRE Phasing Budgets, curious??

GeraldT1
NNJ

DavidW5 (North Carolina)
Posts: 565

Posted:

Dale,

We are facing the same issue here in Virginia. Our BOD has one homeowner and 4 employees of the developer. None of the common areas have been deeded to the Association. There are mechanics liens on the clubhouse. Our bylaws state that if the developer notifies the association in writing that they are making common facilites available for the use and enjoyment of the members, then the association is responsible for the operation and maintenance costs of the facilities. The HOA has been paying for the clubhouse maintenance and repair costs (for what we believe is a faulty air handling system). We have requested to see the written notice from the developer but they have been unable to produce it. Also our county regulations make the developer responsible for snow removal from roads that are still under bond. All of our roads are still under bond but the HOA was billed $82,000 last year for snow removal.

We have documented these issues and requested the developer to reimburse the association but I suspect we will have to sue the developer after transition is completed.

DaleW (California)
Posts: 3

Posted:

Gerald: Thank you for your reply. We are currently paying the Built_Out Budget amount of $114.00 and the true budget is $175.25 with the difference being subsidized from the Developer. Which brings up one more problem the Developer is a slow payer (sometimes 4 to 5 Months behind).

The DRE is in CA the Department of Real Estate. The oversee and govern the Real Estate business within CA. We are in Phases and each Phase we have a Budget that has been approved by DRE and that is currently want the HOA is using. The problem with the budget is the items in the budget are not accurate, items have not been completed or are not going to be, so I feel as Treasurer we need a new more complete budget. ther are also things in the budget that the developer continues to pay, which are in the budget and have been completed, some will say that is a good think because you are building up all these funds.

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