What route should we go

Started by KyleS3 • 9 replies • 1581 views

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KyleS3 (Louisiana)
Posts: 3

Posted:

Okay so I bought my house October of 2015. Hoa dues were 180 a year when I signed for my home. I found out that a family friend was being sued a few months after I moved in for have an add on to his home. The add on was added on the back side of his home it was actually a back porch/leant to and looked great and looked as part of the house. He added it when he bought I believe about 5 yrs ago and there were no rules against it. The subdivision developer sued him for it to be removed. Developer lost and stuck the hoa dues with 9k in legal fees. To make our hoa go up even more. This year he sued again and won as I was told the judge basically didn't want the headache anymore and said remove it. This year we're stuck with 10k of legal fees. Here's what's tricky. None of the bord committee lives in here nor the developer. The developer has majority vote on everything because he still owns a ton of lots in here.(500 votes)a lot from what I'm told. He is currently steady selling and developing our subdivision to a company called DSLD which is a big home building company here that buys lots builds spec houses and then sells. We have a community area which is a joke. It's supposed to be a volleyball court. It's two poles in buckets a torn net and half the sand is grown over. The electricity bill is 2300 which is ridiculous to me we have one sign out front lit at night and that's it. Not 2300 worth. Only thing I can think of is there's a dsld home built the first one in the subdivision and it's a show house for the company for people to come in and look at layouts plans etc and deals are done there. I believe he's footing the bill for their electrical. Which I'd like to know if it's legal. Second is we have no meeting all year except 1 and we get no letters events anything and our property management fees are almost 15k which is also ridiculous to me as they do nothing. The management company is GNO property management. The other thing is our lawn care and landscaping. It's over 8k a year for some crappy flowers around our sign and they cut about a 200 us stretch about 15ft wide in the front of the subdivision and that's it none of our lawns or anywhere else. Here is our most recent dues paper. Is there a legal way to ask for more of a breakdown since I really don't think the numbers add up. We have quite a few of us in the neighborhood who are trying to get together and find a loop hole and get rid of the hoa and form our own or to atleast have a say so on the board. Any help would be greatly appreciated. Also here's the site that cost 500 a year which I thinks a joke.

Our website link

Trying to attach the photo of our dues but having no luck

KyleS3 (Louisiana)
Posts: 3

Posted:

Since I can't get the picture upload heres the dues in a nut shell
Total operating income 41,520

Property management fee 14,532
Accounting 310
Legal fees 10,000
Printing postage delivery 750
Processing fee 175
Insurance 2700
TOTAL GENERAL 28,467

Electric 3200
Water 150
TOTAL UTILITY 3,350

Website 500
TOTAL COMMUNICATIONS 500

Landscaping contract 7,260
Landscape expenses 800
Landscaping misc/volleyball 750
TOTAL LANDSCAPING 8,810

Maintenance 393

Grand Total of 41,520

173 lots 240$/lot

TimB4 (Tennessee)
Posts: 21,061

Posted:

Kyle,

You ask what route you should go.

What is it you want to accomplish (i.e. a route to do what)?

Your post simply wasn't clear to me on that point.

You purchased into a development that isn't complete. This means that (typically based on the governing documents) you are at the whim of the Developer. If you want to force a turnover, you will need to go to court and show why. This will cost you money for your attorney and money for your share of the Associations attorney.

You may simply have to wait it out or sell and move.

DouglasK1 (Florida)
Posts: 2,046

Posted:

If you search through posts here you'll find a lot of people who would not buy into a development that is still developer controlled, now you know why.

In my case I did buy into a developer controlled association, but it is a fairly small community and it was at a time when homes were selling well so we only had to put up with the developer for a couple of years. There have been plenty of posts here from people who have had to put up with developer control for many years, or even decades.

A few states have HOA ombudsmen or other agencies that will help with HOA issues, but in most states you're on your own, which means the courts would be your primary method of getting anything changed.

Escaped former treasurer and director of a self managed association.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Kyle,

In reading your CC&Rs, I would not have purchased property there.
Mainly because the Association is responsible for the common area regardless if it's held by the developer or held by the Association (at least that is my take on a quick read).

KyleS3 (Louisiana)
Posts: 3

Posted:

I would not have bought here had I known all that. I was born and raised in the country got married and we came across this house foreclosed only a few years old. Only reason we got it was because it appraised over 60k more than we bid and won it for. Just trying to figure out with the neighbors a route to go to get some say so and control in our own subdivision.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Quote:

Posted By KyleS3 on 12/11/2016 4:46 AM

Just trying to figure out with the neighbors a route to go to get some say so and control in our own subdivision.

Realistically, the way governing documents are written, you will likely need to wait until the development is sold out or most can agree to a potentially lengthy court case and every thing that goes with it (legal expenses, time, energy, expected and unexpected consequences of such a case, etc.).

JeffT2 (Iowa)
Posts: 880

Posted:

Before you jump to conclusions, I would first ask the developer for explanations, because things usually cost more than you realize.

I would also offer to help with the administration of the HOA. The developer may not know how to run the HOA and so hires a management company and does whatever they say. You can help to get bids and oversee things. If the HOA has low expenses and high satisfaction, then it will be easier for the developer to sell houses.

I suggest you look at your state's nonprofit laws, especially the sections on records, standards for directors and officers, and conflict of interest. You don't have to wait for the turnover. In most states these laws give you the right to inspect the corporation's financial records (to see where the money is going), and require the directors (including the developer) to act in the best interest of the corporation. Spending HOA funds on his own electric bill is not in the HOAs best interest and is a conflict of interest and not allowed.

NigelB (Texas)
Posts: 254

Posted:

Quote:

Posted By KyleS3 on 12/11/2016 4:46 AM
I would not have bought here had I known all that. I was born and raised in the country got married and we came across this house foreclosed only a few years old. Only reason we got it was because it appraised over 60k more than we bid and won it for. Just trying to figure out with the neighbors a route to go to get some say so and control in our own subdivision.

The only way to get more say in the HOA is for it to be turned over to homeowner control by the developer, and that does not appear to be likely with the fact that the developer has 500 votes and the homeowners have a couple of hundred.

You are all pretty much stuck with what the developer decides. The developer can raise association dues by the amount in the governing documents on an annual basis, they can run up attorneys fees and court costs, and make the association pay for it through special assessments (cause they hold the majority vote).

Really the only way to get out of a situation like that is to sell.

DonnaR5
Posts: 162

Posted:

Does your community have street lights? That would account for electricity bills.

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