Contractor not paying HOA fees... Options?

Started by JamesR15 • 11 replies • 1309 views

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JamesR15 (Oregon)
Posts: 8

Posted:

Hello.

We are a small community of 19 total lots. All lots are sold, some have houses. There is a contractor working on a home, that has not paid HOA fees since April 2016. What are my legal options for his not paying his fees? It seems the only leverage I will have is to not hook up his water to the house until all his HOA and water connect fees are paid. I have begun charging late fees (1%) and calls to him have yielded nothing. I'm looking for suggestions.

Location: Southern Oregon

Thank you,

James

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Does the contractor own the home? Or is the contractor building the home for the owner? Not sure what the relationship of the contractor is to the HOA....

Former HOA President

JamesR15 (Oregon)
Posts: 8

Posted:

Contractor purchased the lot, is building home to sell.

JAmes

NigelB (Texas)
Posts: 254

Posted:

Quote:

Posted By JamesR15 on 11/08/2016 1:46 PM
Contractor purchased the lot, is building home to sell.

JAmes

Wouldn't your governing documents address that? Our state that the assessment on an unfinished lot is 1/2 of the regular assessment. Shouldn't that have been collected at the time the individual purchased the lot by the Title company that handled the transaction? The remedy is to place a lien on the property

TimB4 (Tennessee)
Posts: 21,062

Posted:

File a lien on the home for the unpaid assessments.
This way, he can't sell the home until the assessments are paid.

However, first check to make sure that the builder didn't inherit any decalarant rights when they purchased the property.

MarkM31 (Washington)
Posts: 494

Posted:

First, who are you? I assume the Board President? How is it that you could not hook up the water? Is the water system privately held and controlled?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

In my present and past HOA, no dues were paid until the home was sold.

JamesR15 (Oregon)
Posts: 8

Posted:

Yes, I am the President of the HOA, also acting as treasurer and secretary. I am also the watermaster. there is a hookup fee to hookup the water. it is in the contract that if someone owns a lot, they pay hoa fees. when the water is turned on, they start to pay domestic and irrigation water fees also.

James

JamesR15 (Oregon)
Posts: 8

Posted:

no, the documents do not address that. I was not in on that part. I moved into the subdivision, was made "vice-president" of the hoa since I lived there and the subdivision owner did not. When they sold the last lot, i became the president. Nobody wanted to step up, aside from being treasurer and secretary in name only, so i'm doing that also.

James

BillK15 (Washington)
Posts: 14

Posted:

Our HOA had a similar situation a few years back. We had a contractor who bought 10 lots from the previous builder who went "belly up". Our governing documents (specifically under the Article addressing Assessments) give builders a one-year reprieve from assessments in order to build/sell the home. Well he didn't read the documents, and was sent a bill for the past dues on 10 lots. Needless to say, he was not happy. We eventually negotiated a figure, and all is well now. Suggest reviewing your documents. I keep finding new items in mine after 5 years on the Board.

JamesR15 (Oregon)
Posts: 8

Posted:

I will do that.

Thank you for your help and reply. This is all new to me.

James

PitA
Posts: 1,416

Posted:

Quote:

Posted By TimB4 on 11/08/2016 3:46 PM
File a lien on the home for the unpaid assessments.
This way, he can't sell the home until the assessments are paid.

However, first check to make sure that the builder didn't inherit any decalarant rights when they purchased the property.

PERFECT

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