"No-build" fee

Started by ChrisK7 • 12 replies • 1775 views

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ChrisK7 (Georgia)
Posts: 7

Posted:

We have a small HOA (9 homes) and a private road which needs replacing... Part of the reason it has not been replaced is due to 2 lots that are currently un-built, and have been that way since purchased in 2007.

We can impose a fee on these lots, but i was wondering if anyone had any experiences or examples that could help, either imposing an annual "not built fee" or a one off "build fee" to cover the damage to the road that construction would cause.

Our main concern is the road, but of course having empty lots does impact the values of current properties... our ACC rules are fairly strict, meaning that any home built must be in line with current properties.

Any input would be welcome.

Thanks

GlenL (Ohio)
Posts: 5,491

Posted:

From the tone of your post, I assume neither provision currently exists, so the first step would be amending the covenants to allow such a fee.

Studies show that 5 out of 4 people have problems with fractions

TimB4 (Tennessee)
Posts: 21,059

Posted:

I agree with Glen, you need to amend the CC&Rs in order to have either fees.

You should expect a "build fee" to be challenged as your properties didn't have such a fee when you had your house built.

You should also expect a "non built fee" to be challenged, as I expect everyone is paying equally in assessments.

Instead, you may want to adopt an amendment to the CC&Rs that says every lot must have a home built within 2 years of the recording of said amendment. Failure to have a home built will result in monetary penalties of xyz. If not already in the CC&Rs, don't forget the minimum and maximum size of the home (just make sure it's in line with what is already built).

LarryB13 (Arizona)
Posts: 4,099

Posted:

Chris,

Is there no provision now in your CC&R's for maintaining the road? Did everyone, including the developer, think the road fairies will maintain it forever for free?

You will likely need the help of an attorney with this but there is a body of common law that holds that those who use a private road are responsible for its upkeep. Even without explicit language in your declaration here may be a legal obligation to contribute to maintaining the road.

My association has about 300 miles of dirt roads that it maintains. Each member is assessed based on the acreage he owns. It may not always be fair but it works. We have some owners who argue that they should pay less because they live closer to the main roads, those who argue they should pay less because they seldom visit their property, and one guy who says he should not pay anything at all because he rides a bicycle.

Avoid the arguments and just levy a flat maintenance fee on each owner whether he has built or not.

ValK2 (Tennessee)
Posts: 65

Posted:

I cannot help with the "unbuilt fee" or a "sharing" of the cost to cover rebuilding the road.

I can tell you that in my development about 80% of the lots have been built out; those remaining "unbuilts" pay an HOA fee just like everyone else. The owner is also responsible for maintaining the lot...not just mowing it once a year, but keeping it up just like any other other lot. Some of the owners don't pull their weight, so we have the City send them a notice, then mow it and send the bill. Sadly, some owners care so little about their community and their neighbors that they just let it go, pay the fees, and ignore the impact which their negligence has on the broader community.

Likely you will face the same apathy with your road levy. But in the spirit of sharing the costs, by all means find a way to include them in the revenue process.

ChrisK7 (Georgia)
Posts: 7

Posted:

Thanks for all the replies...

The empty lots pay the same HOA fees as built ones, the main reason for trying to impose an extra fee is to speed up completion of the neighborhood. There is also the fact that if we redo the road, and then we have all the trucks for building driving on it we shall have wasted money.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By ChrisK7 on 06/29/2015 10:58 AM
Thanks for all the replies...

The empty lots pay the same HOA fees as built ones, the main reason for trying to impose an extra fee is to speed up completion of the neighborhood. There is also the fact that if we redo the road, and then we have all the trucks for building driving on it we shall have wasted money.

Chris,

Just how crappy a job do you guys plan on doing? You want to build a road that will not stand up to the weight of a few medium-duty trucks? Do you plan on banning UPS and Fedex deliveries, too?

A few years ago I managed a self-storage. Typical commercial pavement with about one inch of asphalt over rolled dirt. I cannot imagine a lousier pavement than that yet it withstood constant traffic from cars and trucks of all sizes, including over-the-road semi's and moving vans.

MarkM31 (Washington)
Posts: 556

Posted:

Quote:

Posted By LarryB13 on 06/29/2015 11:14 AM

That

A paved road should easily handle the loads by all rubber tired trucks going to and from a SFR job site. The reason highways take a beating is frost, volume and speed

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Chris

I agree with others. The unbuilt house construction vehicles will not harm a properly paved road. Do you have the money to pave the road?

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By JohnC46 on 06/29/2015 1:03 PM
Chris

I agree with others. The unbuilt house construction vehicles will not harm a properly paved road. Do you have the money to pave the road?

I'll go even further and say they are causing less wear and tear in the long run considering they are generating no traffic now. I don't really see a justification to charge those two owners more. If you don't have enough to pave the roads, fix that in the next budget by raising dues for all owners.

Escaped former treasurer and director of a self managed association.

PitA
Posts: 1,416

Posted:

ditto

PitA
Posts: 1,416

Posted:

ps.

a 'light duty' asphalt road may fail prematurely because of LACK of heavy traffic 'kneading' the oils back to the surface

'google' it

ChrisK7 (Georgia)
Posts: 7

Posted:

Thanks for all the great info... We don't have the money to do the road but will do a special assessment and get it fixed... at a flat rate for each lot regardless of status.

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