Facilities Maintenance

Our Property Owners Association is essentially toothless and in reality exists in name only. According to the covenant the developer can (is not obligated to) transfer authority over the OA after 90% of the properties have been sold. Currently that number is well below 40% after 15 years of operation. The current assessment is $600 annually for landowners and $1,200 for homeowners. The developer has never been very transparent on how the dues are spent though he outright says all monies collected are used for taxes, insurance, improvements and maintenance of the facilities and amenities. He goes so far as to say that he personally has been subsidizing the operation. He also says that the for profit club (of which most of us are paid members) also subsidizes the operation. Now, it has become painfully obvious to the residents and landowners that maintenance on the facilities and amenities ie the pools, rec center, parks etc. have deteriorated to such a point over the last two years that safety and health concerns are now an issue. To make matters worse the developer has declared bankruptcy of the management company of the development as a legal strategy to combat a lawsuit brought by his mother against him several years ago. He says since the property is now in the hands of a trustee appointed by the bankruptcy court no structural repairs can be made except through the trustee. To my knowledge our OA has no current standing with that court. As to maintenance the developer is essentially saying the costs are exceeding the fee revenues including the subsidies. Unfortunately he has not provided us with the kind of financial reporting transparency that would help the owners make a prudent determination on how to proceed. Any guidance would be helpful. We are in the State of Texas.

A HOA is ONLY funded by it's members for it's members. Your developer was still in control and funding your HOA. So his claiming bankruptcy and being sued explains it all why there is a lack of maintenance. Not enough funds collected does that.

I would simply start finding out how much these thing will cost if you weren't under the developer. You don't necessarily need to know what the developer has spent. It's what your HOA once owner owned will spend. Taxes should be available at the Tax assessor's office. Insurance can call a few companies to get their costs/coverages.

Basically start out as if you were running the place. That should give you a guide in knowing how much your HOA/members need to start contributing.