Turnover from Developer to Community

MaureenS3
Posts: 1

Posted:

Our gated community of 138 homes is nearing turnover by the developer to residents and this will likely happen by fall. We are not sure what our rights are when it comes to two important areas; 1) the overall condition of the community. Does the Developer have to meet any certain standards before turnover? Are we permitted to "refuse" turnover until he makes some things right? We are concerned regarding the condition of our streets due to construction traffic; paver sidewalks being pushed up by oak trees along the right of way planted close to sidewalks; and a few dead/missing trees in some common areas. 2) The Developer has approved quite a few ARB requests against the covenants. Some are "retro" after homes were built already and neighbors complained about non-adherence to the docs. For example: fences that extend in the front yard (docs say even with the rear of the home), 2 homes in the development do not have sidewalks in from of the them, (sidewalk is required prior to Co being issued by our city); one home is a multi-family home (docs state only single family homes are permitted.)
Can someone please advise? Just trying to get ahead of this before it's too late if we have any recourse. Thanks in advance!

GenoS
Posts: 4,262

Posted:

I can't offer any specific advice but I think you are doing the right thing being proactive and preparing for the turnover. In my own HOA, 20 years before I moved here, the first homeowner board dropped the ball on several things that later on, way past any statute of limitations, became a huge pain in the neck to deal with. Hopefully some people here will respond with more detail. Do look at FS 720 since it has some relevant language about developers. Counties may also require a developer to put up a "performance bond" to ensure that obligations are met. The HOA can squawk to the county before it releases the bond back to the developer if things aren't right.

JanetB2 (Colorado)
Posts: 4,213

Posted:

Quote:

Posted By MaureenS3 on 05/09/2017 10:38 AM
Our gated community of 138 homes is nearing turnover by the developer to residents and this will likely happen by fall. We are not sure what our rights are when it comes to two important areas; 1) the overall condition of the community. Does the Developer have to meet any certain standards before turnover? Are we permitted to "refuse" turnover until he makes some things right? We are concerned regarding the condition of our streets due to construction traffic; paver sidewalks being pushed up by oak trees along the right of way planted close to sidewalks; and a few dead/missing trees in some common areas. 2) The Developer has approved quite a few ARB requests against the covenants. Some are "retro" after homes were built already and neighbors complained about non-adherence to the docs. For example: fences that extend in the front yard (docs say even with the rear of the home), 2 homes in the development do not have sidewalks in from of the them, (sidewalk is required prior to Co being issued by our city); one home is a multi-family home (docs state only single family homes are permitted.)
Can someone please advise? Just trying to get ahead of this before it's too late if we have any recourse. Thanks in advance!

Love someone trying to stay ahead of the ball ... kudos to you!!!

First check with your local government and County Records to see if a contract is on file between the two with regards to the development. In my are this is noted as a "Site Improvement Agreement" (SIA). This document is agreed to by the local government and developer and then the contract is filed with the Local County Records. When the developer signs this contract they usually also must submit $$$ in an escrow account and which will later be released by the government if developer meets their requirements. If there are items in question you need to find our if this $$$ is still in escrow and watch your local government agendas to see if ever appears to be released so you can have homeowners contest the issue.

The issue with items which have been approved ... that is a problem if in writing because those owners applied in good faith and received a response in good faith before expending money to make any such improvements. If not applied for and received then you need to look to your State Laws. In my State if an owner has "constructed" items such as fence, home add on, etc. or in essence "permanent construction" and not challenged within one year by the HOA, they will most likely win in a court battle.

I have a large binder with tabs dividing ALL various documents, developer documents with local government, and a copy of my State Statutes. I have taken various colored highlighters and colored sections pertaining to the developer and owners.