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KathyC3 (Illinois)
Posts: 4
Posted:
Hi all,
I built a home in 2008 (IL) in a new subdivision; there are recorded Restrictions/Covenants, and in regards to a Homeowners Assoc, it basically talks about how the Homeowner's Association will function, and just that it "shall be formed in sufficient time to accept the rights and duties conferred upon it in this document...", but nowhere in this document does it talk about any common areas that are to be maintained. There was a subdivision entrance with some extensive landscaping the developer put in and at first maintained and apparently a "retention pond", but this developer has since gone bankrupt, and the remaining lots were sold by the bank to independent builders. And there was an entire next phase that was bought by another developer, but it is our understanding that it will not be part of our subdivision. When he bought that, it also included the area that was the subdivision entrance, and he just tore everything out. There were never any dues collected by the original developer, and nowhere in the covenants does it even say anything about any common ground. Now, the village wants to assess each property owner in our subdivision a special tax to maintain this "retention pond", but they are highly encouraging us to form a Homeowner's Association to maintain it, even saying it would be cheaper for us rather than them assessing us this tax. First, can the village assess us this fee? Since this developer, that the village approved to do this, has gone bankrupt, shouldn't they take this over, just as they do the street maintenance, etc? Obviously this retention pond was required for building code purposes. Second, we aren't entirely opposed to forming a HOA, however, we wouldn't want the responsibility and liability for this retention pond. I realize this may fall into some legal category, but any info anyone may have would be appreciated. Thanks
LarryB13 (Arizona)
Posts: 4,099
Posted:
Kathy:

No answers but some questions:

What are the dimensions of this retention pond?

What kind of maintenance does the retention pond require?

How much does the city propose to charge each homeowner under this tax?

Whose name is on the deed for the retention pond?

Does the plat for the subdivision dedicate the retention pond to anyone, such as the public or the homeowners or the HOA or the city?

KathyC3 (Illinois)
Posts: 4
Posted:
Not sure of the dimensions. Probably the size of one of the lots which are not big. Right now it just requires mowing but we are concerned with flooding and mosquito control? The city hasn't offered any amount of the assessment yet and I do not know who's name is on the deed. I'm assuming it is the bank that foreclosed on the property. We do not have the 'plat' but will attempt to obtain from the county. Sorry for the lack of info.
Thanks
GlenL (Ohio)
Posts: 5,491
Posted:
Kathy one of the main reasons cities require developers to start HOA's is that there isn't enough tax money to cover additional infrastructure. Without seeing all of your documents I would guess that the HOA would be responsible for maintaining the pond and probably the entrance which you said the other developer removed. One of the things an HOA is responsible for is maintaining insurance on the common elements, no matter their size. Now without insurance each and every homeowner would be on the hook if someone were to drown in the pond, meaning you all individually could be sued. You need to get the neighbors together and pony up a few dollars and hire an attorney versed in real estate law to guide you all though this.

Studies show that 5 out of 4 people have problems with fractions
KathyC3 (Illinois)
Posts: 4
Posted:
Thanks for the advice. I will see what we can do. This is what we are definitely trying to avoid, any liability to us homeowners regarding this property. Kathy
KathyC3 (Illinois)
Posts: 4
Posted:
Thanks for the advice. I will see what we can do. This is what we are definitely trying to avoid, any liability to us homeowners regarding this property. Kathy

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