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LizanneG (<Not Specified>)
Posts: 7
Posted:
The HOA took over from the Developer the end of March. Since 1997, the Developer had the right to set maintenance fees at his discretion. While the majority of residents have and continue to pay $39/month, those who purchased double lots and either centered their home on both lots or put the home on one lot were also charged $39/month. This has been the case for 10 years. With the development of the last two phases, 4 homeowners have double lots with their home centered across the two lots. They pay 1 1/2 times the fee or $58/month. These fees were all agreed to in wiriting by the Developer at the time of purchase through a Addendum to Purchase Contract setting out the specific fees the homeowner would pay.

Now that the residents have taken over the HOA, several residents (all of whom reside on one lot) don't think it's fair that a home on two lots or someone owning two lots as one piece of property should only pay $39/month. These "several reisidents" are very outspoken and try to get others that probably didn't care to jump on the bandwagon. There are excellent arguements on both sides of this issue. The homeowner on a double lot actually utilitizes the common areas less that if two homes were on the lots, and the same goes for wear and tear on the roads and retention ponds, etc. But it does reduce the overall income of the HOA. Lawn maintenance is not included in the fee. Granted we are not talking huge sums of money here - there are about 17 double lots out of 330 lots.

I guess my quandry is that the covenants do specifically state that maintenance fees are per lot. But they also say that the Developer can establish fees different from others, etc. Additionally, the signed contract is binding and the residents have been paying the fees for as much as 10 years, certainlly setting a precedent. We will be amending our Bylaws and Covenants later this year and I see a big fight ahead. I would like to prevent the inevitable animosity and ill-will this argument is going to cause in the community. Has anyone come across this before and if so, how did you handle it?
PaulJ (South Carolina)
Posts: 40
Posted:
Quote:
Posted By LizanneG on 08/05/2007 10:19 AM
The HOA took over from the Developer the end of March. Since 1997, the Developer had the right to set maintenance fees at his discretion. While the majority of residents have and continue to pay $39/month, those who purchased double lots and either centered their home on both lots or put the home on one lot were also charged $39/month. This has been the case for 10 years. With the development of the last two phases, 4 homeowners have double lots with their home centered across the two lots. They pay 1 1/2 times the fee or $58/month. These fees were all agreed to in wiriting by the Developer at the time of purchase through a Addendum to Purchase Contract setting out the specific fees the homeowner would pay.

Now that the residents have taken over the HOA, several residents (all of whom reside on one lot) don't think it's fair that a home on two lots or someone owning two lots as one piece of property should only pay $39/month. These "several reisidents" are very outspoken and try to get others that probably didn't care to jump on the bandwagon. There are excellent arguements on both sides of this issue. The homeowner on a double lot actually utilitizes the common areas less that if two homes were on the lots, and the same goes for wear and tear on the roads and retention ponds, etc. But it does reduce the overall income of the HOA. Lawn maintenance is not included in the fee. Granted we are not talking huge sums of money here - there are about 17 double lots out of 330 lots.

I guess my quandry is that the covenants do specifically state that maintenance fees are per lot. But they also say that the Developer can establish fees different from others, etc. Additionally, the signed contract is binding and the residents have been paying the fees for as much as 10 years, certainlly setting a precedent. We will be amending our Bylaws and Covenants later this year and I see a big fight ahead. I would like to prevent the inevitable animosity and ill-will this argument is going to cause in the community. Has anyone come across this before and if so, how did you handle it?

Some basic advice, Lizanne. You need to speak to your attorney about this, not the people on here.
LindaC3 (Florida)
Posts: 526
Posted:
LizanneG--- Our HOA is made up of 299 (3) acre parcels..There are numerous double lot owners here...For tax reasons they have filed a unity of title at the courthouse thus having ONE LOT for tax puposes only....Our Articles of Incorporation ,By Laws, and the filed PUD..Planned Urban Development ....state that we shall have 299 lots ....NO LESS NO MORE....So inessence our double lot owners each pay $XXX.00 per month per lot .You may want to go to your county planning and zoning dept and check to see if there was a PUD or similar document filed there that may be of help to you....Best of luck....LindaC
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Unfornately, it doesn't seem any changes will effect these "double owners". Their situation may just have to be "grandfathered" in or documented in the CC&R's as a separate reference to those who own these types of lots.

There's a lot that's got to happen when you change your documents. It would take a whole post for me to even touch on it. You may want to look up similar posts in regards to timelines and such for updating documents. There are a few posts related to that on here.

Former HOA President
MaryN (Virginia)
Posts: 125
Posted:
Our HOA is in Virginia. The subdivision plat is dated 1972. CCR's read something like: each lot will share equally in the maintenance costs of the road maintenance. For years owners of adjoining lots paid one fee. One owner has 5 lots and another 6. They also paid one fee. 10 years ago, new people buy in and raise Holy..you know what..we are still embattled! Went to court in Feb. 06..Judge ruled one lot one fee..also told the board how many lots were legally in the subdivision and it can't be changed by changing the CCRs and bylaws. This past week we were back in court, issue..seperate and unequal billing policies. The owners of the 5 and 6 lots do not want to be part of the Association, talked the board into believing them. The Judge wasn't very happy with the board. He ruled the old covenants from 1972 stand. He explained very patiently..it doesn't matter if lots are merged for tax purposes..if the subdivision plat shows 2, 3, 4 or whatever lots..that is the number. With our covenants..each lot is expected to pay equally. The board walked out of his courtroom and in the parking lot..doesn't believe the judge knows what he's talking about. The bills went out in June..we shall see what they do next. We are a small HOA..42 residential lots, 5 farm parcels, we only have the roads, a well, and some mowing to take care of...5 farm parcels..and it's like a WAR ZONE!
Bottom line..Virginia Law is very clear .. one lot.. one fee..
Maryb
PaulJ (South Carolina)
Posts: 40
Posted:
Good grief. Its not all that complicated. Your docs should outline how people pay their fees and dues. You need to amend your by-laws to do what you want. If you get your 2/3rds vote, then it doesnt matter what the developer told them or what happened before. Thats the entire point of amending the by-laws; to change what was, based on a 2/3 majority.
LizanneG (<Not Specified>)
Posts: 7
Posted:
Thanks everyone for your comments We do plan on discussing with counsel, but I wanted to see if anyone else had any experience with this. A difficult situation which will work out in the end - it's just the process that will be divisive on the community.
DaneC (California)
Posts: 210
Posted:
"those who purchased double lots and either centered their home on both lots or put the home on one lot"
If a double lot, and a home is on one lot only, then wouldn't the other be available for sale? Those instances, sound like 2 lots.
LizanneG (<Not Specified>)
Posts: 7
Posted:
Of the 17 "double lots" 4 have homes on only one lot - the rest all have their homes centered across both lots.

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