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AnnaJ1 (Maryland)
Posts: 95
Posted:
We're an HOA of 245 single family homes. Long story short, the developer promised a clubhouse once the last lots were sold & developed. This process took about 10 years. Developer unfortunately and unexpectedly died with about 2 lots left and before clubhouse construction could begin, in 2018. Wife took over and now she doesn't want to give up the money. HOA is suing, and there was a county Planning Commission Hearing where they told the developer they must build the clubhouse. They still haven't. I'm really sick of this upheaval. Has anyone else's HOA faced this? How did it turn out?
TimB4 (Tennessee)
Posts: 21,059
Posted:
If the developer posted a bond with the city/county, the HOA should make a claim on it.

Talk to your attorney about doing this.
AnnaJ1 (Maryland)
Posts: 95
Posted:
Quote:
Posted By TimB4 on 02/03/2021 6:00 PM
If the developer posted a bond with the city/county, the HOA should make a claim on it.

Talk to your attorney about doing this.

Hi Tim, thanks for your response. The developer posted a bond, which is now about $40,000 for a clubhouse that will take about $400,000 to build. The county allowed him to lower his bond once the last house was complete, I guess because the clubhouse wasn't required per subdivision regulations.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By AnnaJ1 on 02/03/2021 5:45 PM
Long story short, the developer promised a clubhouse once the last lots were sold & developed.
Exactly what is the evidence of this promise?
AnnaJ1 (Maryland)
Posts: 95
Posted:
Quote:
Posted By AugustinD on 02/03/2021 6:20 PM
Posted By AnnaJ1 on 02/03/2021 5:45 PM
Long story short, the developer promised a clubhouse once the last lots were sold & developed.
Exactly what is the evidence of this promise?

The site plan approved in 2011 by the county showed a clubhouse. Board had multiple meetings with the developer before he died discussing the center, such as what elevation did we want, should we allow the adjoining neighborhood to use it, should it have a patio, etc etc. Developer gave the Board architectural drawings. It's well documented that the neighborhood should have it.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By AnnaJ1 on 02/03/2021 6:07 PM

The developer posted a bond, which is now about $40,000 for a clubhouse that will take about $400,000 to build.

doesn't change my advice.

40K is 10% of the build.
AnnaJ1 (Maryland)
Posts: 95
Posted:
We will stake claim on the bond. The attorney has mentioned that previously. But we're trying to get the clubhouse constructed. No one else has been jerked around by a developer in this way?
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By AnnaJ1 on 02/03/2021 6:39 PM
Posted By AugustinD on 02/03/2021 6:20 PM
Posted By AnnaJ1 on 02/03/2021 5:45 PM
Long story short, the developer promised a clubhouse once the last lots were sold & developed.
Exactly what is the evidence of this promise?

The site plan approved in 2011 by the county showed a clubhouse. Board had multiple meetings with the developer before he died discussing the center, such as what elevation did we want, should we allow the adjoining neighborhood to use it, should it have a patio, etc etc. Developer gave the Board architectural drawings. It's well documented that the neighborhood should have it.
Does the Declaration say anything about a clubhouse?

I agree the site plan and the county's ruling on this count for a lot. But if the Declaration also speaks of a clubhouse, this strengthens your legal claim.
ChadH3 (Alabama)
Posts: 50
Posted:
Anna, we have a similar issue. Our subdivision is little older (began in 2004) and only about 70% of the originally planned lots have been developed. Two of the three original developers got out of the project through bankruptcy when the housing market crashed and the third who took on everything himself, is getting quite old himself.

The master plan for the development included (and the current master plan still does) a community pool, clubhouse, park and playground. After he continuously moved the pool and other amenities around on different master plans, the City finally held his feet to the fire and forced him to build a pool before allowing the next phase to be platted. That was a few years ago and we do have a pool now that the HOA has had to put a lot of extra money into because obviously he didn't do things the right way originally, just enough to get by.

Now we're still without a clubhouse, playground and park and the developer is now selling the future phases to a new developer who - surprise, surprise - doesn't want to be involved in building any of those. Thankfully we've had a good rapport with him thus far and I'm hopefully we'll be able to work something out without getting the City or lawyers involved.

I say all this for one major warning - get the money and manage the construction as an HOA. It's a lot easier to do it right the first time than have to go back and spend more HOA dollars on fixing mistakes.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By AugustinD on 02/04/2021 6:17 AM
Posted By AnnaJ1 on 02/03/2021 6:39 PM
Posted By AugustinD on 02/03/2021 6:20 PM
Posted By AnnaJ1 on 02/03/2021 5:45 PM
Long story short, the developer promised a clubhouse once the last lots were sold & developed.
Exactly what is the evidence of this promise?

The site plan approved in 2011 by the county showed a clubhouse. Board had multiple meetings with the developer before he died discussing the center, such as what elevation did we want, should we allow the adjoining neighborhood to use it, should it have a patio, etc etc. Developer gave the Board architectural drawings. It's well documented that the neighborhood should have it.
Does the Declaration say anything about a clubhouse?

I agree the site plan and the county's ruling on this count for a lot. But if the Declaration also speaks of a clubhouse, this strengthens your legal claim.

I agree. The developer may not be legally obligated to build such. They need an attorney to research this.

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