Sharing a Lake Owned by Neighboring HOA

Hi friends!
We have taken over control of our HOA from the home builder and trying to get some things sorted out, that the original developer never could.

Our community of about 62 homes, sits next to a lake that is owned by an HOA nextdoor to us. They have about 126 homes. The residents next door and their HOA own the lake, and are worried that sharing the lake with us, will open up a can of worms in terms of liability. Plus, let's face it, they don't want anyone else playing in their backyard lake.

They have asked us to contribute a sum of money to help pay for insurance, upkeep, signage, etc. I"m not sure we could even be added to an insurance policy, so that seems bizar.

Paying for signs and working with them on rules and regulations for each community, seems appropriate. Along with the idea that each HOA would take care of their respective shorelines and ensuring everyone is covered with insurance. Putting up 'Swim and Boat at Your Own Risk' seems like the best approach, since you can't call the lake police.

There is also a worry that if we give them money now, can we make sure they put it into a 'Lake-only Fund'? Do we create a committee with members from each community? Offering money up front, might hurt us down the road unless we have something in writing about this being a year-to-year agreement.

We hold some leverage in this deal -- we own the dam, they need to access the area for upkeep. Plus, we could flat out drain the lake, and that's that. We're taking the high road, of course.

What would you recommend or have you seen this set up in a way that makes everyone feel a little bit better?

That's interesting...

This is great advice. You should support the pond/lake management at an appropriate level but never simply pay the other HOA.

This is their problem.I echo what DouglasK1 posted: I doubt your HOA's governing documents give the Board the authority to pay for another HOA's common elements. What you are proposing is a big deal not really worthy of this forum except for some common sense type checks.Correct. It is.

Who from the other HOA reached out to your HOA? If it was not an attorney, then I think the chances are that what this other HOA sent your HOA is likely legal nonsense and the stuff of busybodies who did not have the sense to talk with their attorney first. What I think when I read that you think this seems "appropriate" is that you want to be nice and come off as fair-minded while this other HOA walks all over your HOA legally and takes your HOA membership's money, too.Again, read DouglasK1's comment. I doubt your governing documents will make this easy.It's the other HOA's lake. Check with your attorney about what, if any responsibility your HOA has to protect your HOA's members if and when they trespass and use the other HOA's lake. You're da-n right you do. So far it appears to me your HOA has all the leverage and your HOA does not have to do anything.Sometime I look forward to a legal translation of and legal elaboration of what "own" here means.Again, I look forward to a legal elaboration on the other HOA's right to access the dam for upkeep.Seriously: I do not think your HOA could lawfully drain the lake. But go ahead and try it and see how many attorneys from the other HOA line up against your HOA.You're funny. I think what you mean is that your HOA's Board has not talked to a real estate attorney yet about your obligations concerning, for example, flooding, especially when your HOA has controlled flooding for some time. For example, where I am if a neighborhood uphill established drainage mechanisms for some years and then suddenly gets rid of them, the downhill neighbors can sue the pants off the uphill neighbors.I recommend: Having the Board identify problems as best they can. Hiring an attorney to review the governing documents. Then meet with the attorney to discuss whether problems even exist; what the HOA's obligations are regarding the dam; and more. Budget at least $10,000 just to hear the attorney's impressions.