Builder handing over HOA with existing land issues

Started by JamieJ1 • 7 replies • 1476 views

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JamieJ1 (Ohio)
Posts: 5

Posted:

I just recently moved into a new house. The subdivision in which I live has had its HOA under the builder, as it needed to be at 75% capacity to be handed over to those that live there. Well, now we are at 75% and the builder/homeowners want it handed over to the homeowners. However, we have an issue. There is a retention basin in the back of some properties that needs to be fixed. The builder has known about this for awhile, we do have documentation that he has known about it since October. The builder doesn’t feel he needs to fix this issue before handing over the HOA to the homeowners. I feel if he has known about the situation since Oct. he needs to fix it before it’s handed over to us (homeowners). What are your thoughts? Help please!

DonnaS (Tennessee)
Posts: 5,671

Posted:

Jamie,

Contact the State, County and City where you live and report the problem. They should inspect any water conditions before a release of the bond is done. If you can afford an engineer to come and do a infrastructure study prior to accepting the HOA at a turnover. The Developer know of the problem and you have documentation to prove that there is a problem so do not accept his request to rid himself of the retention pond problem.

JamieJ1 (Ohio)
Posts: 5

Posted:

Thanks Donna,

I called the City Engineer and he sending me the documentation. Turns out he has been notifiying the builder since 2009. However, the engineer thinks this is more of a legal issue. Not really sure how I am going to move forward. I think I might share the documents with homeowners and try to have an HOA meeting to figure out how to deal with this issue.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

What does "fixed" mean? What specifically is wrong with it. Just thinking is it a simple fix? or something that may require tons of time and money.

JamieJ1 (Ohio)
Posts: 5

Posted:

This is what was sent to homeowners ( I know some of which means nothing, but it explains the matter. So it loos like a pretty expensive cost.

. Repair & reseed eroded areas
b. Remove the silt from the bottom such that all ground slopes toward the
center channel & exit. This will eliminate the standing water that’s there
now. The good news is that the dirt removed can remain on-site. The bad
news is that there’s A LOT of dirt to be moved. By one estimate 80 – 100
yards of soil. To put that in perspective – A typical pick-up truck holds
about 1 yard. Obviously this repair is beyond wheel barrows and shovels.
A few of us believe it’s best to wait until at least the next two homes are
finished before doing anything. Rich Goodell didn’t think the city would
insist on the repairs immediately.
c. All obstructions around the exit must be removed (we can easily do this ourselves).

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Jamie:

I agree with Donna ... we have a local association who has a retention pond issue the developer was suppose to fix and now their association has a big headache dealing with the issue and having to themselves be so involved between developer and city. It has not been fun for them ...

JamieJ1 (Ohio)
Posts: 5

Posted:

Well it looks like the HOA was handed over. Our lovely new HOA president (who basically volunteered himself without offical vote) signed off on the paper work. So now I guess my next question would be why would people like my husband and I have to pay to fix this issue, if this is something that is documented by the city as a problem since 2009.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Jamie:

Hopefully the homeowners and HOA will not have to pay regarding the issue, as per your statements it is a documented issue. Therefore, it should be something that the developer still needs to pay and have properly fixed. Unlike many developers who have gone under … at least yours is still around in this economy.

Does the city still have a bond from the developer that has not yet been released? If so, I would stay on top of them to potentially not release any money/bond back to the developer until the issue is properly fixed. If they still have a bond in place keep an eye on any upcoming city council meeting agendas and check to see if they might be voting to release any bond back to developer.

While the HOA was under the developer he had the fiduciary duty to insure everything for the association. Now he who has no patience (new President) has potentially shouldered some of that responsibility onto himself and the new board. The new board now will have to take the time and effort to insure the developer follows through to fix the issue.

I would wait until you get the documentation from the City Engineer, then after reviewing you may want to ask him and your city council a number of questions. The main question will be … What does the city plan to do to insure this issue is taken care of properly, as they have been aware of the problem since 2009 and have not yet rectified. LOL ... now you know why I said to wait until you get the documentation before asking questions they may not like, otherwise it may be more difficult to get the documentation.

Also, your HOA needs to at least speak with an attorney (one knowledgeable in construction law) to make sure what the statute of limitations are in pursuing the developer, just in case needed. You want to insure if there are any potential timeline considerations that need to be kept in mind during this process.

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