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MichelleT4 (Georgia)
Posts: 3
Posted:
Hello,
Our HOA was turned over from the builder to the residents in March 2015. We are a 77 townhome subdivision in Georgia that began in 2007 and was finished early 2015.

Since the transition we have discovered that the irrigation system (irrigation water and electricity is billed to HOA) is inoperable in several areas throughout the subdivision. We have reached out to the builder via mail informing them of the inoperable sprinklers without a response on the issue.

We found out about possible inoperable sprinklers when we had landscape bidders assess our subdivision and it was confirmed when we had the original installer visit the subdivision to turn ob the sprinkler system for us. It was during this time he informed us that the Hoeme builder did not inform him that the HOA had been turned over to the residents. He also informed us of the following:

The last 8 homes built in the subdivision in November 2014-February 2015 have damaged sprinklers that were damaged by the builder (per the irrigation owner's assessment). Some of the inoperable sprinklers are in the area of homes built in 2007-2013. He quoted us approx. $1800-$2200 to fix but could cost less or more.

The sprinkler system has been turned off since 2009 in the inoperable areas and only newly built townhomes had sprinklers turned on at the time sod was lain, however shortly after they were turned off.

What, if any recourse can we take at this point? Are home builders required to make sure all common areas are in good working condition before turning the HOA over to the residents? Are home builders required to disclose inoperable/ damaged equipment to the residents before or during transition of HOA?
LarryB13 (Arizona)
Posts: 4,099
Posted:
Michelle,

This is from a South Carolina Supreme Court Opinion:
"In Goddard v. Fairways Dev. Gen. Partn., 310 S.C. 408, 426 S.E.2d 828 (Ct. App. 1993), the Court of Appeals held that the developer of a planned unit development ("PUD") owes a fiduciary duty to the property owners association and its members, much like that owed by promoters of a corporation to investors. As such, the developer has a responsibility to insure that the common areas are in good repair at the time they are conveyed to the property owners association or to provide the association with funds sufficient to effectuate any needed repairs to those areas. Id. at 414, 426 S.E.2d at 832."
Source: http://www.judicial.state.sc.us/opinions/displayOpinion.cfm?caseNo=25453

I do not know what case law or statutes in Georgia may have to say on the subject but this should give you a starting point for research because it says, "Yes, the developer has a duty to turn over the common areas in good working condition."

Did you obtain an estimate for repairing the sprinkler system? If that is your only issue you might want to consider biting the bullet, paying for repairs yourselves, and moving on as an alternative to pursuing some sort of action against the developer.

Did the developer have to post bond anywhere? Locally with a city, county, or township government or perhaps for a state-issued contractor's license. If there is a bond still in the hands of a government agency you might want to file a claim against it.
LarryB13 (Arizona)
Posts: 4,099
Posted:
I dunno how I missed it but you said the sprinkler contractor gave a verbal estimate of $1800-$2200.

To me, this is chump change. Hiring an attorney to research the law for you and then pursuing the developer through legal channels is going to cost you a bundle even if you win the battle five years from now.

If this was my decision to make, I would make a demand on the developer while also checking out whether there is a bond to make a claim against; if nothing pans out then pay out the money for the repairs and get on with your lives. The cost of the repairs is roughly $30 per unit.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By LarryB13 on 08/09/2015 1:28 AM
I dunno how I missed it but you said the sprinkler contractor gave a verbal estimate of $1800-$2200.

To me, this is chump change. Hiring an attorney to research the law for you and then pursuing the developer through legal channels is going to cost you a bundle even if you win the battle five years from now.

If this was my decision to make, I would make a demand on the developer while also checking out whether there is a bond to make a claim against; if nothing pans out then pay out the money for the repairs and get on with your lives. The cost of the repairs is roughly $30 per unit.


I agree.
AllisonD (Florida)
Posts: 449
Posted:
During the turnover, do the residents have any requirement to turn on the sprinklers to make sure they are running properly, and examine all the other items to make sure they are correct before completing the turnover? How does anyone know that the irrigation was not working in March? If irrigation problems existed since 2009 why was the builder not made to correct everything before the turnover? I am not trying to defend the builder, I am just not knowledgeable about this process.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By AllisonD on 08/09/2015 5:21 AM
During the turnover, do the residents have any requirement to turn on the sprinklers to make sure they are running properly, and examine all the other items to make sure they are correct before completing the turnover? How does anyone know that the irrigation was not working in March? If irrigation problems existed since 2009 why was the builder not made to correct everything before the turnover? I am not trying to defend the builder, I am just not knowledgeable about this process.


Residents had a right to inspect before turnover. Six years later, not likely that you have any recourse against the developer.

Also irrigation often requires annual maintenance. There should be a record somewhere of what has been done over the years.

Sikubali jukumu. Read all posts at your own risk.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By NpS on 08/09/2015 6:07 AM
Residents had a right to inspect before turnover. Six years later, not likely that you have any recourse against the developer.


The developer ran things until March of 2015. My understanding is that everything is required to be functional at turnover. The fact that some damage was done six years earlier and left unrepaired should not relieve the developer of his duty to turn over a functioning sprinkler system.

I am not sure where residents would be given rights to inspect before turnover. It would be nice but I do not know of any requirements that it happen.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LarryB13 on 08/09/2015 6:18 AM
Posted By NpS on 08/09/2015 6:07 AM
Residents had a right to inspect before turnover. Six years later, not likely that you have any recourse against the developer.


The developer ran things until March of 2015. My understanding is that everything is required to be functional at turnover. The fact that some damage was done six years earlier and left unrepaired should not relieve the developer of his duty to turn over a functioning sprinkler system.

I am not sure where residents would be given rights to inspect before turnover. It would be nice but I do not know of any requirements that it happen.


Thanks Larry. Missed that. Sometimes a local government will hold some of the developer's money in escrow pending project completion. If HOs had notified govt agency before escrowed funds were released to developer, may have been able to get relief from developer.

Sikubali jukumu. Read all posts at your own risk.
AllisonD (Florida)
Posts: 449
Posted:
There was recently an appellate case here in Florida against Maronda Homes where it was determined there is an implied retroactive warranty on essential services like sewer and water pipes and drainage ponds but not irrigation lines. I cant imagine there not being a requirement or opportunity for the homeowners to test the irrigation system but that being said, the poster said there were problems since 2009 so they knew there were problems and still allowed the turnover to occur. So were there reserve accounts set up sufficient to repair the system?
AllisonD (Florida)
Posts: 449
Posted:
Curious, is irrigation included in your documents? Maybe the builder set up makeshift irrigation to keep the place looking pretty while they were trying to sell homes but did not include it officially?
MichelleT4 (Georgia)
Posts: 3
Posted:
Thank you LarryB13 for the advice, We will make a demand to the builder and check to see if there is a bond.
MichelleT4 (Georgia)
Posts: 3
Posted:

Thank you for replying.
The residents did not know that the irrigation was inoperable, it was turned off without notice or reason to us. Some asked years ago but were ignored by the mgmt company. After the turn over in March we decided we wanted to plant flowers. It was at that time we were informed that our sprinklers should be turned on. Then we discovered the problem once the irrigation installer visited the subdivision. To add more layers to the situation. In May, we informed the builder in writing about replacing a dead tree and land grading in areas of the subdivision where puddles would form and sit for days after rainfalls. The builder replaced the dead tree and graded the land however the inoperable sprinklers were never addressed by them even when we followed up for a response. We do have a reserve account set up that could repair the system. We don't want to use our reserves if it was the builders responsibility. We would like to hold them accountable if need be.

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