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KarlaS2 (Georgia)
Posts: 1
Posted:
Who owns the initiation fee collected at closing of new home sales?

Our covenants call for the collection of an initiation fee to the 1st owner of any home sold in the HOA. The builder still has control of the HOA and will for 10 more years.
The builder decided to add a pool to the community after about 150 (out of 600) were already built, however he is making the homeowners/HOA fund the majority of the construction. He has offered up a small amount of every future home sold but is also claiming that the money being charged as the initiation fee is also part of his contribution (and thereby significantly overstating and misleading homeowners into how much he is contributing to the construction of the pool)
SheliaH (Indiana)
Posts: 6,964
Posted:
Your answer may be in your third sentence - the builder still has control of the HOA and will for 10 more years. If that's the case, the developer will be able to do whatever he/she wants until the community is turned over to the homeowners. Until then you may be stuck paying for this pool. Take your paperwork and look it over with your attorney to see if there are any outs, but be prepared for the possibility there aren't any, other than moving out.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

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