Should an HOA Encorage or Discourage Development

I live in a Common Interest Community which is not your typical HOA in that our covenants expired years ago but what we have remaining is the common sanitary sewer that serves about 30 homes. Some are lived in full-time and some are part-time summer homes. The developer went bankrupt years ago as well so there are many vacant lots either owned by individual owners or ownership is in limbo due to the developers bankruptcy.

The sanitary sewer is old and needs constant maintenance which in some years can be in the thousands of dollars and other years minimal. Last year the board raised the sewer connection fee to $10,000 from $5,000. Owners were allowed to vote on this even though the bylaws give the authority to set these fees to the Board. I voted against the increase because in my mind this cost may discourage development of any of the vacant lots. In my mind developing the vacant lots may increase my property values and $10,000 sewer hook up fee diminishes it's value. Many of the vacant lots are not maintained and large trees, bushes, and weeds have taken over. This does not make the community as desirable or as attractive as it could if these vacant lots were either developed or maintained.

My question to the Board for discussion is what do the owners want. Do they want to encourage development so the community looks better thereby increasing their property values or do they want to discourage development because of the added maintenance to an aging sanitary sewer. Each home is assessed $375 per year for sewer use. I believe a $10,000 sewer hook- up fee will discourage development and buyers because that fee is so out of the norm around here. In my opinion buyers will look elsewhere.

I built my house in 2007 and since then 6 new homes have been built in the community. Presumably 4 paid a $5,000 connection fee. The other two had issues which I won't go into. Personally I like the new development because the community looks so much better but I may change my mind if these new homes are overloading this ancient sewer system. There are still several vacant lots and there are a few currently up for sale. I think these owners will have a hard time selling because of the sewer costs or they may have to sell at a very low price.

I would propose the hook up fee be returned to the $5,000 to encourage lot sales and development. I think there is a minority mindset from some owners that they don't want any development no matter what the reason. They were in the majority in attendance last year when the new hook up fee was voted on.

I hope this makes sense. Any thoughts?

My closest neighbor said she likes things the way they are and doesn't want new people moving in. She gave no particular reason. My perception is that the people who have been here for years do not want development because of fear that undesirables will move in. .There could be other reasons for them not wanting development but I don't know what they are. I can't site a specific reason.

There has never been a reserve study done. The Association is run very loosely. Most of the time the Board flies by the seat of their pants. Although I see improvements.

Thanks NpS. I was hoping you would post on my topic. At this point I would like to hear some discussion from the Board and other owners. I emailed the Pesident who is setting the agenda and asked her to add a discussion on the topic. I am particularly interested in hearing what the Board members have to say. They have the information on maintenance costs and one of the board members has a lot for sale that hasn't sold in about a year.

Banks/Chester,

To answer the question you asked with the thread: Should an HOA Encorage or Discourage Development

An Associations responsibility is to maintain the common area, common elements and common amenities.
If the Association fulfills their responsibility then the Association has done it's job and development of specific lots may or may not occur.

How funds are raised to fulfill the Association's responsibility is up to the Board.
If $5,000 per hookup was not providing enough funding, then either rates need to increase or hookup fees need to increase or a combination of both.

As NP said, to properly determine what funding will be needed an evaluation or a full study of your septic system needs to be done. Until this is done, everyone is simply guessing on what the life expectancy of components and cost of replacement will be.