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Posted By RichardP13 on 05/18/2017 6:11 PM
Does anyone understand that when new construction was approved starting in 1999-2000 it was with the stipulation that much of the infrastructure was to be shifted to the HOA, even though they were also paying property taxes as well as maybe a Mello-Roos tax. I can only speak for California, but city governments found a way to shift what normally had been their to someone else. Many others followed suit.
We tried going to the City of Los Angeles about giving the street to them and their answer was...hell-no.
Yes ... but some cities and counties are now finding that was not such a smart idea after all.
Too many HOA's (especially non-gated less expensive homes) have other people using the roads and HOA's generally not properly budget for road maintenance and replacement costs. Some cities are ending up with roads not properly maintained and used by public other than just the HOA owners ... with other Citizens complaining to the city and threatening lawsuits. Then when try to force large "Special Assessment" it either is not enough money due to max allowed per CCR's or Laws. Some people simply cannot afford such large assessments and cannot pay or will state they will walk away and file bankruptcy. You then would have dropping property values due to many foreclosures.
In my area new development roads must be built meeting local government specifications and money set aside from beginning for initial future overlay built into cost for when local government takes over after completed. That then gives them many years to budget for future road maintenance and increase property taxes appropriately over time. It ends up less future headaches and unexpected non-budgeted costs for roads not properly maintained by HOA's.