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Subject: Amenities/Clubhouse use
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Author Messages
LouiseD1
(Missouri)

Posts:2


09/12/2019 3:19 PM  
In 2018, I bought a home in a community that was still in development. As of january 1st, 2019....the new HOA was put in place and the developer relinquished rights to the HOA. Over the past 6 months the Bylaws and Declarations have been rewritten removing any reference to the developer.

As an important note, our community is adjacent to another HOA that has a clubhouse. That clubhouse was used by the developer of our community as an amenity to prospective buyers...even though the developer did not own or have any monetary investment in the property.

Now, the new HOA has received a bill from the HOA that owns the clubhouse assessing monthly dues and upkeep and expenses they expect our HOA to pay to then rent the clubhouse.

My question, can a developer offer an amenity that he doesn’t even own? We are looking at terminating the agreement the developer had with the other HOA.

I look forward to any comments of how this can be resolved.

Thanks,
LD
JohnT38
(South Carolina)

Posts:117


09/12/2019 3:49 PM  
I don't have a legal answer for you but I certainly agree that you should be paying to use another HOA's clubhouse. Why shouldn't you?
LouiseD1
(Missouri)

Posts:2


09/12/2019 3:57 PM  
It’s not really should we pay for it....if we use it, yes we should pay for it. However, I guess the question was more of whether a developer can offer an amenity he didn’t own?

Thanks
KerryL1
(California)

Posts:6647


09/12/2019 4:15 PM  
Is the use of that clubhouse in the purchase agreement that you & the developer signed when you bought in your own HOA?

Is there anything in your own governing documents, maybe the covenants (declaration, CC&Rs) that says use of that other HOA's clubhouse is included when you purchase in your own HOA?
SteveM9
(Massachusetts)

Posts:3367


09/12/2019 4:39 PM  

Now, the new HOA has received a bill from the HOA that owns the clubhouse assessing monthly dues and upkeep and expenses they expect our HOA to pay to then rent the clubhouse.


Pretty simple, ask to see the paperwork associated with this. Contracts? Legal documents, etc.

Its possible the developer made a deal with the other association and you simply dont know about it.
MelissaP1
(Alabama)

Posts:8623


09/12/2019 4:47 PM  
I don't see where the developer "Offered" this amenity. The developer used the amenity while selling homes in the HOA. It doesn't mean it was an "offering" of use to others. Unless the Developer promised a clubhouse upon completion of the HOA.

Do not see why your HOA can decide to keep the agreement or decide to end it. Your HOA didn't enter into this contract as "owner" owned. So I expect to be able to re-negotiate terms of use if your HOA wants to continue the relationship/use.

Former HOA President
SteveM9
(Massachusetts)

Posts:3367


09/12/2019 4:55 PM  
When the developer handed over control to you, the hoa, he also handed over all of his previous deals he made. So if he made a 3 year deal for use of the clubhouse for $ xxxx dollars, you own that too.

Yes, things can be negotiated.
NpS
(Pennsylvania)

Posts:3775


09/12/2019 10:04 PM  
You need to speak with the other community.

My HOA was formed by dividing a farm into 3 developments. One had a clubhouse and pool. The other 2 didn't. There was language in the Declaration that required the development with those amenities to make them available to the other 2 communities at a reasonable price.

Worked for around 10 years. Then they jumped up the prices they charged. And did so every year until no one in the other 2 communities took advantage of those amenities anymore.

So ... even when you have something in your docs giving you rights, the HOA in control is in control. Talk to them.

Sikubali jukumu. Read all posts at your own risk.
LetA
(Nevada)

Posts:797


09/13/2019 5:20 AM  
Posted By LouiseD1 on 09/12/2019 3:57 PM
It’s not really should we pay for it....if we use it, yes we should pay for it. However, I guess the question was more of whether a developer can offer an amenity he didn’t own?

Thanks





If the developer had a contract in place with the other HOA, then yes the developer can market that and an amenity. You need to look at all of your documents and consult a lawyer.
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