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ReneeY (Louisiana)
Posts: 1
Posted:
Our subdivision developer who also runs the neighborhood association, made many promises to lot buyers who have built houses ranging from $350,000 to $1.5 million has not kept his promises. This gated subdivision is located along side a river. Some of the promised amenities were: (1) Marina with river access, (2) River front beach area, (3) 24 hour automatic gate access, (4) Park and common area, (5) Private 20 acre pond, (6) Year round grounds keeping in common areas and front gate area, and street lighting. This development is over six years old and still has no marina which was the biggest selling point to property owners since there is no other neighborhood like this in the entire city. The front gate structure states neighborhood and marina as you enter the neighbohood. Quite embarrassing to say the least. I consider these broken promises as fraud since many property owners list this as the main reason they purchased their lot and built their upper end houses over six years ago. The developer lives in the subdivision by the way, and still runs the neighborhood association. Hestill owns a few lots in the neighborhood that he has for sale too. What can be done to make the developer keep his promises, which we have documented proof? Law suit or class action lawsuit by the entire neighborhood is what I am thinking. Also, how can you overthrow a neighborhood association ran by one person and form a completely new one by committee that actually works and is effective?
SheliaH (Indiana)
Posts: 6,964
Posted:
If the development hasn't been turned over to the homeowners yet, you may be limited to what you can do, since he's still in charge over what happens to the property. You could try filing a complaint with your local consumer protection division, but even with that, this dispute might wind up as a class action lawsuit by all of you, so gather together other homeowners and see what they want to do.

And lawsuits don't guarantee anything, especially if the guy doesn't have any money (which is probably why many of the community's features are still MIA). You will all have to pitch in to pay legal expenses for the lawyer representing the homeowners, and brace yourself for a long and expensive roller coaster ride. Good luck!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MatthewW4 (Arizona)
Posts: 500
Posted:
Quote:
Posted By ReneeY on 05/14/2013 8:52 AM

What can be done to make the developer keep his promises, which we have documented proof? Law suit or class action lawsuit by the entire neighborhood is what I am thinking.

If the developer is not making a reasonable effort to deliver what he promised then you and all the other homeowners have a cause of action and you will most likely need to pursue a case against him in court. Given the fact that this seems to be a high-end community, funding such a lawsuit should not be a problem.

Quote:
Posted By ReneeY on 05/14/2013 8:52 AM
Also, how can you overthrow a neighborhood association ran by one person and form a completely new one by committee that actually works and is effective?

Your CC&R's should set out the conditions that must be met for turnover from the developer to the owners. If the conditions have been met and the developer refuses to hand over control then you may have to seek a court order to make that happen. If those conditions have not been met then you may have to request the court to appoint a receiver for the duration of the developer's period of control.

DavidW5 (North Carolina)
Posts: 565
Posted:
Find out whether the developer was required to post performance bonds with the county. If so, the county can require the developer to complete the work before the bonds are released OR the county can use the bond proceeds have the work completed by someone else.

In our jurisdiction (Virginia) the county holds a performance bond posted by the developer on each phase of the project. Only after the county inspects a phase and the developer completes a "punch list" of fixes demanded by the county is the bond released.

We have had good results by maintaining communication with the county supervisor who represents the district where our HOA is located. She has aided us in working closely with the county inspectors to insure that our concerns are addressed.
DaveD3 (Michigan)
Posts: 796
Posted:
In what way was everything promised? Was it the developer verbally saying this that & the other thing? Is it in the official condo documents (we had a walking path that was specified in the docs and we forced the developer to put it in when he tried to get out of doing so). Was it in the sales information (and did anyone retain a copy)?

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