Developer Controlled HOA charging for management

Can a developer run HOA(not over 90% for turnover) charge the residents for "Community Management Services". I was under the impression the developer had to run the HOA and couldn't charge us to do it. Kind of like how when it gets turned over the BOD can not make money off of their positions.

Thanks.
Josh

Why would the developer not hire a management company? When the HOA is turned over, your HOA is most likely going to have one. A MC is a paid contractor. They are paid to do whatever the HOA board request they do and handle. Most of the time that is to manage the books but sometimes it is to send violation notices. It depends on the contract. Since the HOA is owned/operated by the Developer, they have control over the Management company instructions.

A HOA is ONLY funded by it's members for it's members. Whatever money is put in is to be spent on the operation/maintenance of the HOA. That would then hold that the HOA dues be it owned by the owners or the developer, the funds (dues) collected would go to pay the MC's salary.

*****"Why would the developer not hire a management company?"
My questions is can they be the management company and pay themselves?

*****" Most of the time that is to manage the books "
" Accountant / Tax Return / CPA review" is a separate line item on the budget

*****"sometimes it is to send violation notices."
"Clubhouse coordinator" also another line item is another person that we pay to do this.

*****" It depends on the contract. "
So, there should be a contract saying that the developer will pay the developer with our money to be the MC. If there is can I request to see it?

Thanks

Check out the laws. You may have an argument, but then your only options would be to hire a lawyer and see this thing through.

For example:

720.309 Agreements entered into by the association.—
(1) Any grant or reservation made by any document, and any contract that has a term greater than 10 years, that is made by an association before control of the association is turned over to the members other than the developer, and that provides for the operation, maintenance, or management of the association or common areas, must be fair and reasonable.

How far away from 90% ownership are you?

This statute could apply though. It is a "grant or reservation" made by a document that "provides for the operation, maintenance, or management of the association or common areas" that is viewed as not fair or reasonable. Are you willing to fight it in court or stick out the couple years until your neighbors can gain control of the neighborhood? A cheaper option might just to be the number of homes yourself to reach 90%.

ok, I was just concerned that they raise their rates every year and we can't do a thing about it. Also they were special assessing up for security for a few years in a row without resident approval. Now the city is widening the road outside of our neighborhood from 2 lanes to 4 and the developer is thinking about what can be done for noise abatement since the 8 units that back up to the road are complaining, they are saying that the builder from our section that finished a few years ago didn't do what they were supposed to do and the developer(HOA) does not want to pay out anything much to fix it. They say we can do earth mounds with vegitation but that would be a special assessment for the 8 units that back up to the road. Can a special assessment only be levied against a small portion of the neighborhood as a whole, they want to special assess only 8 units when we have approx 525 units as a whole.