Horrible performance by HOA

The HOA that our neighborhood is ran by the wife and daughter of the developer of the subdivision. Over the past 5 years they have not come through with any of the amenities that were advertised/represented to the new home owners. I'm new at this, so I'm seeking advice and please correct me if I'm wrong.

The developer, I believe, is using HOA dues to fund the developement of amenities that should have been in place a short time after the subdivision was opened. They do not complete any project that is started. The POA doubled the dues just recently which has caused a major up roar in the neighborhood. Aren't the amenities included in the cost of each piece of property sold in the developement?

The POA has not been forthcoming with the financials and have no accountability. I have elected to pay the original dues and not pay the additional dues they have submitted.

Anybody?

A HOA/POA is ONLY funded by it's owners for it's owners. So the amenities you want has to come from the owner's money/dues. The developer is using the money in the proper way it should. Later, when they release the HOA to the owner's themselves, the owner's will be responsible with their dues for the maintenance of these same amenities. The costs don't go away.

If people aren't paying their dues or their assessments properly, the budget is going to suffer. That means the other owners have to take up the "slack" of the non-payers. Hence, why your dues have increased and no amenities have been finished.

I agree the developer didn't setup their business properly. It's not the best way to go about creating a HOA. The developer sounds new to the business and most likely losing their shirt on this deal. The only way for them to recover at this point is to take it out on the owners. Since the developer is still in control, they have the most voting rights and can pass the dues and special assessments at the rate they want.

The developer will eventually leave and turn over the POA/HOA to the owners. Developers don't make money off of maintaining and operating a HOA/POA. They make it from the initial investment period. Once they get about 90% finished, you will see more changes. They will be trying to get out and assigning a new board. That will be the transition board.

I agree with the other poster. You should keep paying the dues or assessments until the change happens. It could cause you more trouble in the end. Plus, some HOA/POA you lose your power to vote if you aren't up to date on your dues. You do have more power if you play by the rules in a HOA than if you don't.

MalcomF - A set of architectural plans should be on file with your borough municipal code department. There should also be a Developer's Agreement with the borough planning board that outlines what is to be constructed. The Developer posts a construction and maintenance bond with the borough and portions of it are released back to the Developer as construction of the subdivision completes. These documents should be available for your review as is your right of public information, no secrets. Go to your borough and spend time reviewing them, inquiring into the portions of the bond the Developer has received back, and politely voice your dissatisfaction with the amenities not constructed to your borough officials. Was the subdivision advertised, do you have any of the promotional materials your Developer's sales office provided prospective buyers. Fraud may be occurring.