Help Needed to Interpret Covenant Statement

Sounds like the original "grantor" developer reserved the right to add covenants or easements to lots not already sold or coveyed. Why is this a problem 30 years later? Harold

BarbaraB4 - Capping dues for roadway maintenance at $25.00 per year should have amassed $91,500 in 30 years, any earned interest not included. This is not to suggest that you actually should have $91,500 just that math shows what $25.00 would generate. Maintenance of roadways is just one aspect of roadway funding. What about funding for replacement of roadways? Or is your HOA not distinguishing between maintenance and replacement? My roadway replacement for just 2 miles of roads is $387,000 to be done every 15 years. Roadway sealcoat is $38,000 to be done every 5 years. 20 miles of roadway could be 10 times the costs I've provided.

Are the roadways dedicated for public use, or are they private and the HOA is responsible to replace them? If so, your HOA could be in for some incredible financial responsibility. Don't want to scare you but if your HOA was in my neck of the woods you would be looking at a one lump sum replacement cost of $3,870,000 or apprx $31,721.00 per unit owner. If that cost was spread out per unit (122) over 30 years and then monthly it would be $88.11 per month for roadway repair funding.

How do you know there not enough money to maintain the roads in your HOA? Is there an empirical study that was done for your HOA by an engineering firm with expertise in capital reserve replacement plans?

Barbara, you stated “Nothing herein is to be construed to prevent the grantor from placing further covenants or easements on any lot in said subdivision which shall not have already been conveyed by them.” Unless the developer still owns properties this statement is obsolete. It has nothing to do with your current problem.

Meanwhile your statement "the orginal covenants state that dues to maintain the roads is not to exceed $25.00 per year. There are over 20 miles of road .." illustrates your problem. Your HOA can try to amend the Covenants to remove the cap of $25/year which appears to be inadequate to maintain 20 miles of road.

Your comment makes me wonder. Is do you pay DUES(voluntary) or an ASSESSMENT(manditory)? Is the $25 just part of a larger assessment? The reason I ask is because the bridge and other maintenance, which can be considered separate from "roads", may be budgeted separate from road maintenance and paid from assessments which are not capped.

Roger and all,
This seems to be a prime example of why there should be a "CC&r Committee or at least some document requiring the documents be reviewed frequently and a "live" program that would list changes needed because of changing demands or changing events that need to be addressed, as far as how they impact the documents.

Barbara,
The task of re-writing your documents may go easier if your approach the project piece meal.
Form a committee, have each read documents and list gross defects (outdated or not applicable any more). Committee gets together and meets with lawyer to discuss gross changes and pencil out deletions. Then each committee member takes the same one section to go thru and pencils changes, then set this aside and go do the next section. When finished compare notes and make pencil changes, discuss how these changes effect rest of document, create rough draft and submit to lawyer for opinion. Then work on his suggestions until you get a working document, then final visit to lawyer.
It is hard work and difficult but doable. And always remember when you finish, the next day you will say, "we should have changed ........"