RayC4 (Virginia)
Posts: 173
Posts: 173
Posted:
It is common for a developer at the beginning stages of a subdivision to absorb costs related to the 'common areas' (e.g. landscaping, insurance, walking trail maintenance, retention basin maintenance, etc). These items of course all become the responsibility of the homeowners (thru the HOA) after the 'Period of Declarant Control.' (And the 'new' homeowner officers experience the proverbial 'shock and awe' when creating their first budget and see that significant assessment increases are necessary.)
My question is: what is to prevent the Declarant/Developer from imposing these costs directly onto the few initial homeowners immediately -- during the Period of Declarant Control? I realize this may be unsound for the Developer's own marketing reasons (i.e. the higher assessments would turn off prospective purchasers). But please ignore that aspect of it. I'm asking what authority normally addresses these costs and who must bear them during these two very different time frames (before and after Declarant transition to homeowner members).
My question is: what is to prevent the Declarant/Developer from imposing these costs directly onto the few initial homeowners immediately -- during the Period of Declarant Control? I realize this may be unsound for the Developer's own marketing reasons (i.e. the higher assessments would turn off prospective purchasers). But please ignore that aspect of it. I'm asking what authority normally addresses these costs and who must bear them during these two very different time frames (before and after Declarant transition to homeowner members).