SteveS8 (New York)
Posts: 128
Posts: 128
Posted:
Our condo community is still controlled by the sponsor since he is continuing to build the community (over 500 units have been sold out of 700+ which will be built).
In the Offering Plan it states that he has control of the Board as long as he holds at least one home, whether it be unsold or rented by him to a tenant.
He has rented homes and apartments for several years to people, on a temporary basis for $3000 or $4000 a month, who are waiting for their homes to be finished in the community.
More recently he began to rent homes to people waiting for homes in other communities he is building. He even rents homes to friends of his, and, he now leases homes with an option to buy.
He is shortly going to start a rental community next door, and I am guessing that he would not mind renting in our community while people are waiting for those rentals to be finished.
The catch here is that he pays only a small percentage in maintenance fees on homes which are unclosed ($45 to $110 per month) when homeowners in sold homes are paying $500 to $800 a month.
So, when he rents, which he is doing more and more of, he gets to keep the monthly rental and only pay the HOA a small percentage of the maintenance fee despite that fact that the people renting are enjoying all the amenities that the rest of us are paying full price for: gas heat, swimming pools, lifeguards, clubhouse, security, employees, landscaping, snow removal, repairs, etc., etc. etc...
The Offering Plan appears to make no mention of what the sponsor's maintenance fee obligations are should he rent a unit.
This does not appear to be a fair situation. Clearly, the sponsor needs the break when the house is unsold and there is no one living there to use the amenities, but rentals seem to be a whole different ballgame.
Do the residents have any recourse here? What would you recommend?
Thanks!!
Steve
In the Offering Plan it states that he has control of the Board as long as he holds at least one home, whether it be unsold or rented by him to a tenant.
He has rented homes and apartments for several years to people, on a temporary basis for $3000 or $4000 a month, who are waiting for their homes to be finished in the community.
More recently he began to rent homes to people waiting for homes in other communities he is building. He even rents homes to friends of his, and, he now leases homes with an option to buy.
He is shortly going to start a rental community next door, and I am guessing that he would not mind renting in our community while people are waiting for those rentals to be finished.
The catch here is that he pays only a small percentage in maintenance fees on homes which are unclosed ($45 to $110 per month) when homeowners in sold homes are paying $500 to $800 a month.
So, when he rents, which he is doing more and more of, he gets to keep the monthly rental and only pay the HOA a small percentage of the maintenance fee despite that fact that the people renting are enjoying all the amenities that the rest of us are paying full price for: gas heat, swimming pools, lifeguards, clubhouse, security, employees, landscaping, snow removal, repairs, etc., etc. etc...
The Offering Plan appears to make no mention of what the sponsor's maintenance fee obligations are should he rent a unit.
This does not appear to be a fair situation. Clearly, the sponsor needs the break when the house is unsold and there is no one living there to use the amenities, but rentals seem to be a whole different ballgame.
Do the residents have any recourse here? What would you recommend?
Thanks!!
Steve