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Subject: Evil Developer
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07/03/2006 9:27 AM  
Our developer is still in charge of the HOA-The neighborhood is ~6 yo and 50% full. Our HOA is ~100,000 in debt already. This debt is for lights in the neighborhood and new landscaping. The covenant states that the HOA is responsible for the maintenance of the community, not the development. Many residents are upset b/c they are raising the HOA fee again t help pay off the debt. What rights do we have? Many have siad let them put a lien on my home if i do not pay my HOA fees. Can we abolish the HOA at this stage?


07/03/2006 9:41 AM  
Wow Chad, $100,000 in debt in 6 years. Review the financial books to make sure expenses are valid and the Developer has paid his assessments. They should have been paying the assessment on each vacant lot in the same amount you are paying. If they have, then the assessment has been way too low and needs to be raised considerably. Get homeowners on the Board to help keep income up and expenses down. Request that contractors be selected by competative sealed bids. Other than that you need to pay your assessment unless you want to personally pay a lot more. The HOA can not be abolished.


07/03/2006 11:58 AM  

The developer has a responsibility to construct the community to a set of approved plans. Are the lights detailed on the set of approved plans, if so wouldn't the HOA only be paying for the lights that are installed and shouldn't that be covered in your HOA maintenance fees? On the topic of lighting, there is a news article link on the homepage with a case in New Jersey that relates to Municipal Services Reimbursement for street lighting. Read the article it's on page 4 titled City Awards 100K to Condo Owners, perhaps your state has a similar reimbursement act!!

In my HOA docs, the developer is responsible for it's proportionate share of all common expenses for uncompleted units as well as completed units that have not been conveyed to the unit owners (sold). Perhaps there is some recourse if you docs state the same.

Is there anything in your gov docs. or state statutes that have limitations on the developer. Is there anything that states while the developer maintains a majority on the board of directors, it must not make no additions, alterations, improvements or purchases not contemplated in the Public Offerring Statement which would necessitate a special common expense assessment or a substantial increase in the annual common expense assessment installments unless required by a governmental agency, title insuracne company or Institutional Lender or in the event of an emergency. If your docs state the same, you could then ask why is new landscaping required?

I agree with RogerB to review the financial books, get homeowners involved on the Board, get sealed bids, and pay your assessment.

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