Who Pays For Landscaping/Snow Clearing During Development?

Usually, the developer runs the show on everything until the community's turned over to the homeowners. I don't know if mulch is a requirement, but there are usually city or county ordinances addressing things like mowing or snow removal - in my area, homeowners or the HOA (if it owns the streets and sidewalks) are responsible for keeping the grass at a height that prohibits vermin from setting up shop, or keeping the sidewalks free of snow and ice so people can walk on them instead of in the street. If that isn't being done, you may be able to file a complaint with the agency that oversees trash removal or building/land code violations.

Your documents should tell you who's in charge of doing what - whatever the HOA is destined to do is likely what the developer is supposed to do now. For example, if a city street runs through the community, it's up to them to maintain it. If owned by the developer and the issue is snow removal, they may have a policy stating that doesn't get done until after the snow stops and it's a certain height, like 3 inches or more (as in my community).

You haven't said if you've spoken to the developer about this, but keep an eye on what happens because a lack of maintenance may also mean the money's getting funny (and not in a good way) and the developer can't afford to do regular maintenance. As you suspect, that could lead to more trouble in the future - some developers go belly up and don't finish anything, leaving the homeowner association to do it and then battle it out in court if there isn't some sort of bond that can provide the money to get it done. For that part, you may be able to check with the city or county to see if that exists.

Thank you for your detailed reply.

To further clarify, the roads, common sidewalks, trail, and parking lots are all being cared for by a Contractor hired by the developer. So, there are no safety issues to worry about. The issue is payment. The Developer is paying for plowing the roads within the community. For for reasons I do not understand (nothing in writing), the HOA is paying for common area sidewalks, the parking lots, and the multi-use path (paved trail).

In our Declaration, it is quite clear the HOA is responsible for ALL the above mentioned hard surfaces until such time to Township has the roads (and sewer system under the roads) dedicated to them. To date, nothing has been dedicated to the Township or the HOA because the community is still under development.

I found a Developer's Agreement (with the Township) that states the Developer is responsible for all "improvements" (maintenance of) until dedication. Improvements include all the hard surfaces mentioned here. This is why I believe there is something not right. I can't find any documents that mentions the HOA is responsible for any improvements prior to dedication to the Township or the HOA. So I am questioning why we are even sharing the snow removal costs whereas in my mind the Developer should be absorbing all these costs to the improvements until such time dedication takes place.

Dan

There should be an Annual Financial statement which would show income and out go. I have lived in 5 associations and I will not buy into one until it is close to turnover and has solid financial/budget reports to show me. My main concerns are will the dues cover expenses come turnover? Is there a Reserve Study? Is there a Reserve Fund and how much is in it?

Many developers keep dues artificially low during the sales period and when the owner take over they need to catch up with via increased dues and/or Special Assessments.

Based on my position, I see HOA financial reports monthly. But just because we are financially healthy, it doesn't mean we should be spending money on services prior to dedication. See my other post.

Yes, we have a reserves account that is equally as healthy. As this is a new community (since 2016), the reserves budget line item continues to increase with $0 outlay because, as you probably are aware, reserves are for large-scale repairs or replacements of capital improvements 10, 20 or 30 years down the road.

JohnC, I believe the Developer Agreement states the Developer should be paying for all services until dedication. But it doesn't matter what I believe; I guess that would be up to the Court if it went that far.

To answer your first question, until dedication:

- Garbage collection
- HOA Insurance
- Property Management Company compensation
- Reserves (Capital Contributions)
- Attorney fees
- Utilities (parking lot lights)
- Misc

After dedication:

- All of the above plus:
- Landscaping common property
- Snow/ice/sand/salt common property