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StephenM11 (Indiana)
Posts: 3
Posted:
I have sat on 2 HOA boards over the years and value their capacity. I currently have a property that has an amended plat, 10 lots, and a private road runs as easement thru the property. I am not a developer, I just have owned the porperty for years and life has taken me in a different direction. Lot 1 has the entry from the main road, and lots 9 and 10 have the turn around, so those 3 lots carry the largest maintenance. The road runs thru the middle of each property. Changing the plat is not an option. As I structure the properties for sale, I struggle to establish a HOA vs filed restrictive covenants because there is no common property and a very small group of people to maintain the cost and time of HOA operation. The only known common cost is private road maintanance. Any suggestions as to structure, or should I go ahead with a HOA. We all know how hard it is to get participation to run the operations, and management fees at this scale could be prohibitive.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Stephan

I believe there is a way to establish an association whose only function is road maintenance/repair. Nothing else. Owerns free to do as they wish.
SheliaH (Indiana)
Posts: 6,964
Posted:
I don't think this is a question for this type of website. You may want to take to your local zoning board and perhaps other developers to see what would be the best use for the land and perhaps you can get a lead for a buyer.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
HenryS7 (Pennsylvania)
Posts: 336
Posted:
You don't need a homeowners association for what you are talking about. All you need is a cost share agreement recorded as a convenant on each property with a statement as to what portion of the road maintenance cost that they will share.

An HOA involves compliance, maintenance of parks, ACC review, and a whole additional set of things. This may or may not be appropriate for your particular subdivision, but is unnecessary if your only goal is to share costs among the homeowners for road maintenance.
StephenM11 (Indiana)
Posts: 3
Posted:
Thanks for the prompt replies. I was wanting to do some form of cost share agreement where each lot was responsible for 1/10 of the total road care, and file restrictive covenents with the recorder prior to selling the first lot, but the enforceability question arises. I have no problem funding the initial cost for some of the road upgrades as well, but if I sell the lot I intend to build on, or just move on, I would like some way to pass on the road maintanance fund where whomever takes over has a means to collect from the other property owners. Zoning has already taken care of most of my concerns as to property use, restricting farm animals, no non-operable cars or junk, etc.
If not a HOA, what form of organization would I use strictly for road maintanance?
TimB4 (Tennessee)
Posts: 21,060
Posted:
Simply do a private road agreement, attach it to the deeds and establish a corporation to oversee the maintenance and funds.

Note: all owners will have to agree.
TimB4 (Tennessee)
Posts: 21,060
Posted:
here is an example of a private road agreement.

Make sure you utilize an attorney so your document is in compliance with all the nuances of your State, County and municipality.
StephenM11 (Indiana)
Posts: 3
Posted:
TimB, thank you so much. That hits the nail on the head.

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